Wing Yip Food Holdings Group Limited Announces Fiscal Year 2024 Financial Results

PR Newswire

ZHONGSHAN, China, May 1, 2025

ZHONGSHAN, China, May 1, 2025 /PRNewswire/ -- Wing Yip Food Holdings Group Limited (the "Company" or "Wing Yip") (Nasdaq: WYHG), a meat product processing company operating through its subsidiaries in mainland China, today announced its financial results for the fiscal year ended December 31, 2024.

Ms. Tingfeng Wang, Chief Executive Officer of Wing Yip, remarked, "We are pleased to share our performance for fiscal year 2024, during which we achieved a 7.88% year-over-year increase in net revenue. This growth was primarily driven by an increase in sales of snack products and frozen meat, fueled by stronger promotion efforts across our direct stores and e-commerce platforms. We believe this performance reflects our success in meeting the growing consumer demand for delicious, convenient, and diverse snack options, a segment we are committed to expanding. In 2024, we introduced 81 new products, including 35 snack items aimed at younger consumers, which enhanced our product range and deepened market engagement. Our research and development expenses increased by 17.01% in fiscal year 2024, driven by our efforts in accelerating product development and deepening our presence in the health food sector. We are focusing on the development of products for fitness-conscious consumers, alongside ongoing innovation in plant-based meat alternatives. In addition, food safety and product quality remain central to us. In April 2024, we established our own quality testing center, to improve risk detection for our own products. In the future, we plan to open the quality testing center to other market participants for quality testing, as well."

Ms. Wang continued, "By strengthening our product offerings and enhancing quality assurance, we believe we are set to capture emerging opportunities and reinforce our leadership in China's meat processing industry. As we move forward, we expect to continue leveraging our expertise, resources, and strategic investments to deliver long-term value for our shareholders, partners, and customers."

Fiscal Year 2024 Financial Summary

   -- Net revenues were $144.63 million in fiscal year 2024, an increase of 
      7.88% from $134.07 million in fiscal year 2023. 
 
   -- Gross profit was $44.80 million in fiscal year 2024, compared to $47.10 
      million in fiscal year 2023. 
 
   -- Gross profit margin was 30.97% in fiscal year 2024, compared to 35.13% in 
      fiscal year 2023. 
 
   -- Net income was $11.25 million in fiscal year 2024, compared to $14.01 
      million in fiscal year 2023. 
 
   -- Basic and diluted earnings per share were $0.23 in fiscal year 2024, 
      compared to $0.29 in fiscal year 2023. 

Fiscal Year 2024 Financial Results

Net Revenues

Net revenues were $144.63 million in fiscal year 2024, an increase of 7.88% from $134.07 million in fiscal year 2023, which was primarily attributable to a $2.74 million decrease in sales of cured meat products, a $6.91 million increase in sales of snack products, and a $0.91 million increase in sales of frozen meat products, mainly due to increased promotion of snack products by direct stores and e-commerce.

   -- Revenue from sales of cured meat products was $86.02 million in fiscal 
      year 2024, an increase from $83.28 million in fiscal year 2023. The sales 
      volume of cured meat products increased from 10,956 tons in fiscal year 
      2023 to 12,873 tons in fiscal year 2024. The increase in sales volume 
      resulted in an increase of $14.57 million in revenue. The increase was 
      partially offset by the decrease in the currency exchange rates applied 
      to statements of operations from RMB7.0809 to $1.00 for the fiscal year 
      in 2023 to RMB7.1957 to $1.00 for fiscal year in 2024, which caused a 
      decrease of $1.39 million in revenue. In addition, the increase was 
      partially offset by the decrease in the average unit sales price from 
      $8.00 per kilogram for fiscal year 2023 to $6.79 per kilogram for fiscal 
      year 2024, which resulted in a decrease of $10.44 million in revenue. 
 
   -- Revenue from sales of snack products was $50.54 million in fiscal year 
      2024, an increase of 15.83% from $43.64 million in fiscal year 2023. The 
      sales volume of snack products increased from 5,785 tons for fiscal year 
      2023 to 6,864 tons for fiscal year 2024. The increase in sales volume 
      resulted in an increase of $8.13 million in revenue. The increase was 
      partially offset by the decrease in the currency exchange rates applied 
      to statements of operations from RMB7.0809 to $1.00 for fiscal year 2023 
      to RMB7.1957 to $1.00 for fiscal year 2024, which caused a decrease of 
      $0.81 million in revenue. In addition, the increase was partially offset 
      by the decrease in the average unit sales price from $7.94 per kilogram 
      for fiscal year 2023 to $7.48 per kilogram for fiscal year 2024, which 
      resulted in a decrease of $0.41 million in revenue. 
 
   -- Revenue from sales of frozen meat products was $8.07 million in fiscal 
      year 2024, an increase of 12.78% from $7.16 million in fiscal year 2023. 
      The sales volume of frozen meat products increased from 1,520 tons for 
      fiscal year 2023 to 1,836 tons for fiscal year 2024. The increase in 
      sales volume resulted in an increase of $1.48 million in revenue. The 
      increase was partially offset by the decrease in the currency exchange 
      rates applied to statements of operations from RMB7.0809 to $1.00 for 
      fiscal year 2023 to RMB7.1957 to $1.00 for fiscal year 2024, which caused 
      a decrease of $0.13 million in revenue. In addition, the increase was 
      partially offset by the decrease in the average unit sales price from 
      $4.95 per kilogram for fiscal year 2023 to $4.47 per kilogram for fiscal 
      year 2024, which resulted in a decrease of $0.44 million in revenue. 

Cost of Revenues

Cost of revenues were $99.83 million in fiscal year 2024, an increase of 14.79% from $86.97 million in fiscal year 2023. The increase was primarily attributable to an increase in sales volume resulting in an increase of costs, accordingly.

Gross Profit and Gross Profit Margin

Gross profit was $44.80 million in fiscal year 2024, a decrease of 4.89% from $47.10 million in fiscal year 2023.

Gross profit margin was 30.97% in fiscal year 2024, which decreased from 35.13% in fiscal year 2023. The decrease was mainly due to a $2.17 million decrease in gross profit for sales of cured meat products, a $0.31 million decrease in gross profit for sales of snack products, and a $0.18 million increase in gross profit for sales of frozen meat products.

Operating Expenses

Total operating expenses were $29.03 million in fiscal year 2024, an increase of 4.12% from $27.88 million in fiscal year 2023.

   -- Selling expenses were $19.67 million in fiscal year 2024, an increase of 
      0.62% from $19.55 million in fiscal year 2023. The increase was mainly 
      due to an increase in advertising costs of $0.11 million. 
 
   -- General and administrative expenses were $4.38 million in fiscal year 
      2024, an increase of 7.45% from $4.08 million in fiscal year 2023. The 
      increase was primarily attributable to expense in connection with the 
      initial public offering. 
 
   -- Research and development expenses were $4.97 million in fiscal year 2024, 
      an increase of 17.01% from $4.25 million in fiscal year 2023. The 
      increase was primarily attributable to the new research and development 
      cooperation project of $0.69 million. 

Net Income

Net income was $11.25 million in fiscal year 2024, compared to $14.01 million in fiscal year 2023.

Basic and Diluted Earnings per Share

Basic and diluted earnings per share were $0.23 in fiscal year 2024, compared to $0.29 in fiscal year 2023.

Financial Condition

As of December 31, 2024, the Company had cash and cash equivalents of $87.93 million, compared to $90.96 million as of December 31, 2023.

Net cash provided by operating activities was $12.48 million in fiscal year 2024, compared to $17.65 million in fiscal year 2023.

Net cash used in investing activities was $10.10 million in fiscal year 2024, compared to $0.22 million in fiscal year 2023.

Net cash provided by financing activities was $4.41 million in fiscal year 2024, compared to $6.13 million in fiscal year 2023.

Recent Development

On November 27, 2024, the Company completed its initial public offering (the "Offering") of 2,050,000 American Depositary Shares ("ADSs") at a public offering price of US$4.00 per ADS. Each ADS represents one ordinary share of the Company. On January 14, 2025, the underwriters exercised the over-allotment option in full to purchase an additional 307,500 ADSs at the public offering price of US$4.00 per ADS. The gross proceeds were approximately $9.43 million, before deducting underwriting discounts and other related expenses. The ADSs commenced trading on the Nasdaq Capital Market on November 26, 2024 under the ticker symbol "WYHG."

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