On the afternoon of April 15th, Jinzai Food (SZ003000) held its 2024 Annual Shareholders' Meeting. The company's chairman Zhou Jinsong, Dong Mifeng Wenji, and others had discussions with investors on core issues such as market competition, product planning, channel strategy, overseas expansion, and dividend policies.

Zhou Jinsong stated that healthy competition in the industry is more conducive to expanding the market cake. The company is willing to communicate with peers on the formulation of product standards and promote the standardized development of product categories.

As a well-known brand in the consumer field in Hunan, Jinzai Food continues to deepen its presence in the spicy snack market, with core categories such as dried fish and quail eggs occupying a leading position in the market. This shareholders' meeting sends a clear signal that the company is strengthening its brand barriers, increasing research and development innovation, and accelerating its international layout.

Jinzai Food Chairman Zhou Jinsong and Dong Mifeng Wenji Photo source: Photo by journalist Yu Yaofeng

How to deal with market competition

In 2024, Jinzai Food's operating revenue was 2.412 billion yuan, a year-on-year increase of 16.79%, and the net profit attributable to the parent company was 291 million yuan, a year-on-year increase of 39.01%.

In the company's 2024 annual report, it was mentioned that more and more companies are entering the quail egg market, and the competition in category prices is fierce.
At the beginning of the shareholders' meeting, investors expressed concern about market competition. In response, Chairman Zhou Jinsong stated that the company will crack down on high similarity products through legal means and has successfully handled related cases recently. In addition, Dong Mifeng Wenji also introduced the technological barriers of the company's products at the meeting, such as "currently only we can achieve mass production of soft boiled quail eggs globally, and Japanese companies have not yet been able to break through this technology".

But Zhou Jinsong also emphasized at the meeting that healthy competition in the industry is conducive to expanding the market cake. The company is willing to communicate with peers on the formulation of product standards and promote the standardized development of product categories.

Product strength is one of the core competitiveness of Jinzai Food. The company also plans to launch a new soy product brand in May 2025 to further expand its product portfolio.

Image source: One click generated by the intelligent agent for each financial report

Response to the large-scale dividend plan

In 2024, Jinzai Food plans to distribute cash dividends exceeding 60% of its net profit, which is higher than the industry average.

On site, a reporter from the Daily Economic News asked, "Does the high proportion of dividends in the company affect capacity expansion and research and development
Feng Wenji stated that the company's cash flow is very good, and the adequacy of funds in the company's accounts and the overall health of the business model are also very high. In addition, the company's asset liability ratio is very low. Therefore, from the perspective of the company's business development, there will be corresponding reserves of funds for production and operation, investment and expansion, and other aspects. The development of the company is definitely the top priority, "she concluded.
Regarding how to balance the short-term return needs of shareholders and the long-term development funding needs of the company, Feng Wenji said that from the perspective of the enterprise, the core is still to do a good job in management, and to focus on quality and core competitiveness.

In the past three years, people have been talking about price wars and quality price comparisons. However, friends familiar with Jinzai Food know that the company has been on the path of upgrading in the past few years. Feng Wenji said that there are still structural opportunities for spicy food in future demand.

Jinzai Food's internationalization strategy has achieved certain results. In 2024, the company's overseas revenue will increase by nearly 100% year-on-year, with a scale exceeding 30 million yuan, covering markets such as Southeast Asia, Japan, South Korea, Europe, and America.

Feng Wenji introduced that Southeast Asia is currently a key breakthrough region. In addition, the company's vegetarian products are also very popular in Japan and South Korea.

She also introduced that the proportion of the US market in the company's total business is relatively small. I believe that by 2025, the growth rate of the entire overseas market will exceed that of the domestic market