On October 23, Financial Associated Press (Reporter Weiling Wu) - Benefiting from terminal market development and new product promotion, Jinzai Food Group (003000.SZ) has already exceeded last year's full year net profit in the first three quarters, and the company plans to launch the upgraded product "Mochi Quail Eggs" in Q4.

Tonight, Jinzai Food Group released its third quarter report for 2024. The company achieved revenue of 1.772 billion yuan in the first three quarters, an increase of 18.65% year-on-year; net income attributable to the mother was 0.215 billion yuan, an increase of 61.2% year-on-year, surpassing last year's full year of 0.21 billion yuan; non-net profit attributable to the mother after deductions was 0.189 billion yuan, an increase of 72.89% year-on-year.

Looking at the performance by quarter, the company continued its growth momentum in the third quarter, achieving revenue of 0.642 billion yuan, an increase of 12.94% year-on-year; achieving a net income attributable to the mother of 71.3776 million yuan, an increase of 42.58% year-on-year; non-net profit attributable to the mother after deductions was 66.7908 million yuan, an increase of 77.83% year-on-year.

Jinzai Food Group stated that the growth in revenue in the first three quarters was mainly due to the continuous development and optimization of dealers, implementation of terminal market construction, and new product promotion. At the same time, with some raw material prices decreasing, operating costs correspondingly decreased, driving the year-on-year increase in the company's net profit.

Notably, in terms of new product reserves, the company recently revealed that the innovative upgraded product "Mochi Quail Eggs" is expected to be launched in the fourth quarter of this year.

On the cost side, combined with the institution research notes previously disclosed by the company, upstream main raw materials such as fish, quail eggs, and jerky have all experienced a certain degree of cost reduction. In addition, the increase in sales scale has driven the improvement of the scale efficiency of the main categories. Jinzai Food Group further revealed that from an annual perspective, the cost of the main raw material crucian carp remains relatively stable, quail eggs have a certain short-term fluctuation, but overall are relatively stable.

It is worth noting that behind the revenue growth, the company's sales expenses are also increasing. The financial report shows that sales expenses in the first three quarters were 0.221 billion yuan, an increase of 29% year-on-year, with the growth rate exceeding the revenue growth rate. The company explained that this was mainly due to the increase in brand promotion fees and e-commerce platform promotion service fees.

In the aforementioned institutional research, Jinzai Food Group explained that in the first half of the year, the company accelerated the pace of market expense investment based on its operational strategy, such as sponsoring variety shows like 'Grow the Crop', online and offline advertising expenses, and other brand promotion expenses. The rhythm in the second half of the year will slow down slightly comparatively.

Jinzai Food Group also stated that from an annual perspective, brand promotion expenses may increase compared to last year, but the company will reasonably plan and control brand expense investments based on actual circumstances. It is expected that the overall sales expense ratio will not have a particularly large increase.