31 Aug 2023

NFI’s 1H23 revenue was up by 4.0% YoY to Rmb874m. Offline channel sales, which accounted for 58.9% of total sales (1H22: 61.1%), edged up 0.2% YoY to Rmb515m on the back of i) a 34.9% YoY increase in new channel business sales as number of sales outlets increased by 65% YoY to 8,135 terminals, offset by ii) a 6.5% YoY decline in concessionary counters sales mainly due to the 12% YoY reduction in number of counters. Online channel sales, which accounted for 41.1% of total sales (1H22: 38.9%), continued its growth momentum and was up 10% YoY to Rmb359m, driven by the excellent sales performance of its flagship product “Walnut Black Soy Sesame Powder”(核桃黑豆芝麻粉)and the exploration of other E-commerce platforms such as Douyin Store while ensuring a smooth operation of traditional channels.

CROSBY Research – NFI (1837 HK/BUY): New channel business continued its growth momentum with 8,135 POS