EQS Newswire / 28/04/2023 / 21:45 UTC+8
Xiamen Xiangyu: A Giant of China’s Commodity Supply Chain Service, reaching new record revenue and net profit in 2022
On the evening of April 28th, Xiamen Xiangyu Co., Ltd. (600057. SH) released the 2022 annual report and the 2023Q1 financial results. In 2022, the Company achieved the operating revenue in the amount of RMB 538 billion, with a growth of 16% YoY; achieved the net profit attributable to the shareholders of the parent company amounted to RMB 2.6 billion, up 20% YoY; achieved EPS in the amount of 1.1 yuan, up18% YoY; achieved the net profit margin of 0.7%, up 0.1percentage points YoY; achieved the return on equity of 18.06%, up 0.92 percentage points YoY. Xiamen Xiangyu’s 2022 results hit a new record high, with double-digit stable growth in both revenue and net profit, and sustained improvement in operating efficiency.
In 1Q23, Xiamen Xiangyu maintained growth in revenue and net profit. the Company achieved operating revenue of RMB 129 billion, with a growth of 13% YoY; achieved the net profit attributable to the shareholders of the parent company amounted to RMB 546 million, increased by 15% YoY. If restored an investment loss (of RMB 148 million) recognized due to provision for impairment of non-performing loans of its shareholding company (Harbin Rural Commercial Bank) according to shareholdings ratio, the net profit attributable to the shareholders of the parent company increased by +45% YoY in 1Q23. The Company has signed the “Equity Transfer Intention Agreement” with its controlling shareholder, Xiamen XMXYG Group, intending to transfer its shareholdings of Harbin Rural Commercial Bank to Xiamen XMXYG Group or its subsidiaries.
Xiamen Xiangyu is a state-owned supply chain listed company in China. With the corporate vision of “become the leading enterprise in the bulk supply chain industry”, the company practices the tenet of basing on supply chains, serving industry chains and creating value chains, and continues to make efforts to innovate its business model, broaden the service boundary, extend the service chain and improve the service capability, so as to maintain a good operating trend.
In recent years, the company has actively promoted the transformation of its business model and anchored the needs of manufacturing enterprise customers. The company has built an integrated comprehensive service capability based on the layout of key logistics nodes, providing customized solutions for a wide range of manufacturing enterprise customers, including raw material procurement, distribution of finished goods, inventory management, warehousing logistics, supply chain finance, information consulting, and other comprehensive services, We have completed the transformation from a “traditional trader” to a “full industry chain service provider”, and have implemented the “industry chain operation” model by benchmarking overseas giants in some industries (agricultural products). We have achieved significant results in optimizing customer structure, diversified product combinations, and improving profit structure, greatly reducing the exposure to systemic risks in the industry and improving the stability of profit growth.
In terms of optimizing customer structure, the company adheres to targeting manufacturing enterprises as its main target customer group, with manufacturing enterprises accounting for over 50% and 60% in terms of customer number and service volume. In addition, the company signed strategic/long-term agreements with China Hua’neng Group, American Diem (ADM), Rio Tinto Group, Cargill, Anyou Group, Yongsteel Australia, Augusta Mining Group, Zhongtang Special Steel, etc in 2022.
In terms of diversified product portfolio, the company has accumulated a group of high-quality leading cooperative enterprises in the industrial chains of metal minerals, agricultural products, energy and chemical engineering, new energy, etc., and has built mature and stable global business channels. It can dynamically adjust the product composition according to market conditions, and has better growth potential and cyclical hedging ability. The company has now formed six core categories, including ferrous metals, aluminum, stainless steel, grains, coal, and new energy and has certain scale advantages and market power in core varieties, among which, the market share of stainless steel reaches 19.3%, alumina reaches 10.3%, coking coal reaches 3.9%, corn reaches 4.7% and lithium carbonate reaches 4.4%.
In terms of improving the profit structure, the company’s profit model is centered on generating revenue from services and scale aggregation (accounting for more than 70% of profits), building a solid foundation for stable profitability. Additionally, the company leverages price changes to maximize profitability during commodity price fluctuations.
Xiamen Xiangyu has maintained a high and stable dividend policy for many years, with a dividend rate of over 55% for four consecutive years. According to the dividend policy disclosed in the 2022 annual report, a cash dividend of 6.1 yuan (including tax) will be distributed for every 10 shares, with a dividend yield of 5.7% (calculated based on the closing price on April 28th), far higher than the average level of 1.5% in the A-share market. In terms of shareholder structure, Xiamen Xiangyu is one of the heavy holdings of Chinese social security funds. The social security funds account for 3 positions in the company’s top ten shareholders (namely National Social Security Fund Portfolio 503, National Social Security Fund Portfolio 114, National Social Security Fund Portfolio 401). The company is highly favored by long-term investors with high-quality shareholder structure.
Click here for the full report:
Xiamen Xiangyu Co., Ltd. 2022 Annual Report (Summary)
Xiamen Xiangyu Co., Ltd. Report for First Quarter of 2023
File: Xiamen Xiangyu: A Giant of China’s Commodity Supply Chain Service, reaching new record revenue and net profit in 2022
28/04/2023 Dissemination of a Financial Press Release, transmitted by EQS News.
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