23Q4 revenue -14.37% YoY. The company achieved revenue of 5.139 billion yuan in 2013, -3.78% year-on-year, and net profit of 1,697 billion yuan. The estimated liabilities of 1,178 billion yuan accrued in 2022 were included in non-operating income. At the same time, the estimated liabilities accrued in 2023H1 amounted to 1,747 billion yuan, after deducting net profit of 524 million yuan, or -5.79% year-on-year. Among them, Q4 revenue was 1.286 billion yuan, -14.37% year-on-year, net profit attributable to mother was 2,969 million yuan, and net profit not attributable to mother was 61 million yuan, or -60.02% year-on-year.

23Q4 management expense ratio +5.96pct year over year. The company's 23-year gross profit margin was 32.71%, +1.01pct year on year, mainly due to lower raw material purchase price and product structure optimization; sales expense ratio 8.9%, +0.04pct year on year; management expenses ratio 10.86%, +1.46pct year on year, mainly due to increased expenses such as termination of labor relationship compensation and consulting fees; financial expenses ratio -0.12%, -0.04pct year on year; net profit margin without return to mother 10.2%, year-on-year -0.22pct. 23Q4 gross profit margin 33.14%, year-on-year +1.49pct, sales expense ratio 10.66%, year-on-year +0.73pct, management expense ratio 14.91%, year-on-year +5.96pct, financial expenses ratio -0.15%, +0.04pct yoy, net interest rate without return to mother 5.16%, year-on-year -5.89pct.

23Q4 Chicken Essence Chicken Powder revenue +18.13% YoY. In 2023, condiment revenue was 4.932 billion yuan, -0.45% year on year, and park and real estate development and operation revenue was 155 million yuan, or -33.88% year on year. By condiment product, 23-year revenue (yoy) /23Q4 revenue (yoy) was 3,028 million yuan (+0.09%), 673 million yuan (-17.25%), chicken extract chicken powder 676 million yuan (+13.44%)/189 million yuan (+18.13%), cooking oil 446 million yuan (-10.62%)/107 million yuan (-18.69%), and others 716 million yuan (-6.79%)/154 million yuan (-21.13%), respectively.

Revenue in the Midwest was +7.35% YoY in 2013. By region, the 23-year revenue (yoy) /23Q4 revenue (yoy) was 1.16 billion yuan (-1.47%)/253 million yuan (-15.49%) in the East, 2,034 billion yuan (-0.32%)/511 million yuan (-6.12%), the Midwest 1.08 billion yuan (+7.35%)/256 million yuan (-6.16%), and the North, 636 million yuan (-10.29%)/103 million yuan (-43.92%), respectively. In 2023, there was a net increase of 81 dealers to 2,084. The development rate of districts and counties reached 72.24%, and the development rate of prefecture-level cities reached 94.36%.

Motivation assessment goals are more positive. The company announced that it intends to grant no more than 14.388 million restricted shares, accounting for 1.83% of the total share capital. The incentive targets include the chairman and general manager (7 people), middle management, and core business (technical) backbone (322 people), at a price of 14.19 yuan/share. Incentives evaluate performance based on the three dimensions of revenue growth rate, operating margin, and ROE, respectively: based on 23, revenue growth rate of not less than 12%, operating profit margin not less than 15%, ROE not less than 14%; based on year 23, revenue growth rate of not less than 32%, operating margin of not less than 16.5%, ROE not less than 15.5%; based on year 23, revenue growth rate of not less than 95%, operating margin of not less than 18%, and ROE of 20%. The company also disclosed in its strategic planning plan for the next three years that by 2026, Delicious Fresh will have a revenue target of 10 billion yuan and an operating profit target of 1.5 billion yuan.