Jinjia 2024 Mid-Year Report: Revenue Plummets 27% to 1.484 Billion Yuan, New Tobacco Business Declines 70%

Recently, Jingjia Corporation (002191.SZ) released its 2024 semi-annual report.

• In terms of revenue and profit, the company achieved a total operating income of 1.484 billion yuan in the reporting period, a year-on-year decrease of 27%, with a net profit of 181 million yuan, a year-on-year decrease of 35.26%; 
• At the core business level, during the reporting period, the company's new tobacco business operating income decreased by 70.25% to approximately 91 million yuan, and cigarette product operating income decreased by 24.33% compared to the same period last year; 
• From the same period last year to the present, the proportion of the company's new tobacco business operating income has decreased from 15.13% to 6.16%.

Jingjia Corporation stated that the decrease in revenue from its new tobacco business was primarily due to changes in domestic regulatory policies, which led to a shift in the company's cooperation model with core customers from centralized purchasing to processing services, directly resulting in a reduction in income. Additionally, changes in the international policy environment have further decreased the volume of business orders.

Furthermore, the company added that in response to performance pressures, they are currently focusing on stabilizing and expanding their customer base through customized services. They are actively expanding their overseas business layout, exploring and creating new growth opportunities. They are increasing research and development investments, closely aligning with customer and market demands, and continuously optimizing products and services.