On August 9, 2024, the "Mongolian Stock Exchange" JSC’s Tier 1-listed "Gazar Shim Industry" JSC, presented its operational report and financial results for the first half of 2024.
During the reporting period:
Progress of the Company's Action Plan
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Investment and Capacity Expansion
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75% completion of the investment aimed at increasing business operations and expanding the company’s activities.
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Investments in production and capacity utilization, along with reorganization efforts, led to a 25.3% increase in canned vegetable production and a 41% increase in artichoke drink production.
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The construction of mechanized storage for vegetables and preserved foods commenced in June 2024.
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Product Development
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80% completion in preparing and implementing six new product types, which have been developed and introduced to the market.
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Product development tests were conducted for Ketchup, Spicy Sweet Chili Sauce, and Mayonnaise. Orders for raw materials, lids, and pouches were placed, and preparations for production were completed.
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Three types of children's puree products were tested for production. Address and label designs were finalized, and lids, 90g bag packaging, raw materials, and equipment were ready.
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Sales Capacity and System Overhaul
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100% completion of a comprehensive overhaul of the sales system.
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The sales area was optimally divided and allocated.
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The goal of covering previously unreachable shopping points was achieved, leading to a 41% increase in customer coverage compared to the same period last year and a fourfold increase in sales turnover frequency.
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Expansion into rural areas was pursued, with a contract distributor selected in collaboration with a sales representative, resulting in more balanced operations.
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The transport and logistics segment of the sales department was restructured into an independent unit.
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Marketing Policies and Strategies
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83% completion of marketing policy and strategy implementation.
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A cooperation agreement with Bat Solution Partners JSC resulted in the creation of departments for situation analysis, marketing, brand development, visual strategy development, communication strategy development, and content creation.
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Human Resources and Productivity
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Achieved 82% of the performance target for maintaining productivity indicators through increased human resource stability.
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Regular training and development programs for employees are being implemented.
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Employee savings and stock-sharing programs have been established, achieving a 90.5% stability rate and reducing workforce-related risks.
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Income
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Net sales income for the first half of 2024 reached 20.8 billion ₮, reflecting a 20% increase from the same period last year.
Profit
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Net profit for the first half of 2024 was 5.03 billion ₮, a 20% increase from the previous year.
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Return on total assets was 9%, and return on equity was 13%. The return on total assets decreased by 1% year-on-year due to the re-evaluation of fixed assets.
Capital
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Total capital as of the first half of 2024 stood at 56.4 billion ₮, marking an increase of 12.6 billion ₮ or 29% from the same period of the previous year. The revaluation of fixed assets led to an increase of 8.6 billion ₮ in their value.
Highlights and Year-End Goals
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Commissioning of preserved foods and fresh vegetable storage.
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Introduction and placement of new products in the market.
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Company rebranding.
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Maintaining and developing the growth of the updated sales system and the stability of human resources.
Other Information for Public and Shareholders
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A dividend of 5.6 billion ₮, or 4.68 ₮ per share, was distributed from the net profit for the end of 2023, which represents 86% of the profit for the reporting period. We adhere to a policy of distributing at least 30% of the total profit as dividends.
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MONGOLIAN STOCK EXCHANGE