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

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.”

About Wing Yip Food Holdings Group Limited

Wing Yip, is a meat product processing company operating through its subsidiariesin mainland China. The Company, through its operating subsidiaries, sells and markets products under its flagship brand, “Wing Yip,” which can trace its history back to 1915, and has also developed two snack product brands, “Jiangwang” and “Kuangke.” The Company's products are sold through its self-operated stores, distributors, and e-commerce platforms in over 18 provinces across mainland China. The Company offers cured meat products, snack products, and frozen meat products, processing them through its own dedicated production lines. The Company focuses on product development and is committed to improving product quality and expanding product offerings to cater to evolving consumer preferences. The Company's ordinary shares have been listed on the Korea Securities Dealers Automated Quotations of the Korea Exchange since 2018.

For more information, please visit the Company's website: http://ir.wingyip-food.com/. Information on the Company's website does not constitute a part of and is not incorporated by reference into this press release.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations that arise after the date hereof, except as may be required by law. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the registration statement and other filings of the Company filed with the U.S. Securities and Exchange Commission (“SEC”). Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov.

For more information, please contact:

Wing Yip Food Holdings Group Limited Investor Relations Department Email:ir@wingyip-food.com

Ascent Investor Relations LLC Tina Xiao Phone: +1-646-932-7242 Email: investors@ascent-ir.com

WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Expressed in U.S.Dollars, except for the number of shares) As of As of December31, December31, 2024 2023ASSETSCURRENT ASSETS:Cash and cash equivalents $ 87,927,726 $ 90,963,594Restricted cash 880,358 -Accounts receivable, net 7,768,381 7,347,892Inventories 8,456,295 6,576,151Prepaid expenses and other current assets 7,779,378 3,922,368TOTAL CURRENT ASSETS $ 112,812,138 $ 108,810,005NON-CURRENT ASSETS:Property, plant and equipment, net $ 79,568,773 $ 70,510,340Intangible assets, net 47,094 56,069Land-use rights, net 605,343 650,187Right-of-use assets 300,664 215,392Deferred offering costs – 605,866Other non-current assets 157,076 174,317TOTAL NON-CURRENT ASSETS $ 80,678,950 $ 72,212,171TOTAL ASSETS $ 193,491,088 $ 181,022,176LIABILITIESCURRENT LIABILITIES:Short-term loans $ 6,712,972 $ 6,478,964Long-term loans 10,506,144 781,701Accounts payable 8,095,509 7,786,391Notes payable 2,934,527 -Deferred income 46,874 65,495Accrued expenses and other payables 3,195,138 3,433,862Taxes payable 3,603 857,512Lease liabilities 87,648 41,985TOTAL CURRENT LIABILITIES $ 31,582,415 $ 19,445,910NON-CURRENT LIABILITIES:Long-term loans $ 4,335,336 $ 16,726,570Lease liabilities 278,282 212,615Deferred tax liabilities 1,550,063 1,580,428TOTAL NON-CURRENT LIABILITIES $ 6,163,681 $ 18,519,613TOTAL LIABILITIES $ 37,746,096 $ 37,965,523COMMITMENTS AND CONTINGENCIES (NOTE 19) – -SHAREHOLDERS' EQUITYOrdinary shares (No par value; 50,023,428 and 47,973,428 shares issued and $ – $ -outstanding as of December31, 2024 and 2023)Additional paid-in capital 42,997,303 37,370,297Statutory reserve 12,087,066 10,435,949Accumulated other comprehensive loss (9,307,406) (5,119,036)Retained earnings 109,968,029 100,369,443TOTAL SHAREHOLDERS' EQUITY $ 155,744,992 $ 143,056,653TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 193,491,088 $ 181,022,176WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Expressed in U.S.Dollars, except for the number of shares) Years ended December 31, 2024 2023 2022Revenues 144,629,055 134,068,317 130,789,405Cost of revenues (99,833,630) (86,972,132) (86,444,589)Gross profit 44,795,425 47,096,185 44,344,816Operating expenses:Selling expenses (19,672,532) (19,550,604) (19,691,729)General and administrative expenses (4,379,642) (4,075,896) (4,006,282)Research and development expenses (4,973,452) (4,250,451) (4,105,172)Total operating expenses (29,025,626) (27,876,951) (27,803,183)Other income (expenses):Interest income 179,412 178,758 244,416Interest expenses (1,064,745) (995,345) (83,516)Other income, net 58,766 208,908 122,240Other expense, net (2,839,598) (2,111,109) (1,762,251)Exchange loss (3,298) (11,651) (55,654)Total other expenses, net (3,669,463) (2,730,439) (1,534,765)Income before income tax 12,100,336 16,488,795 15,006,868Income tax expenses (850,633) (2,478,882) (3,812,884)Net income 11,249,703 14,009,913 11,193,984Comprehensive incomeNet incomeForeign currency translation adjustments, net of tax 4,188,370 3,831,082 10,312,615Comprehensive income 15,438,073 17,840,995 21,506,599Earnings per share, basic and diluted 0.23 0.29 0.23Weighted average number of shares 48,175,620 47,973,428 47,973,428WING YIP FOOD HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Expressed in U.S.Dollars, except for the number of shares) For the years ended December 31, 2024 2023 2022Cash flows from operating activities:Net income $ 11,249,703 $ 14,009,913 $ 11,193,984Adjustments to reconcile net income (loss) to net cash used inoperating activities:Depreciation of property, plant and equipment 4,418,774 3,016,946 1,347,274Written off property, plant and equipment 614,527 2,007,477 1,668,442Allowance for credit losses (43,797) 18,630 (8,374)Amortization of intangible assets 9,003 7,402 6,995Amortization of land use right 27,472 22,933 16,863Amortization of right-of-use asset 91,368 134,971 649,362Deferred income taxes (30,365) (43,378) (27,160)Changes in operating assets and liabilities:Accounts receivable (376,692) (3,310,188) (2,233,756)Inventories (1,880,144) 1,152,696 (1,813,479)Prepaid expenses and other current assets (3,857,006) 1,139,213 (724,326)Other non-current assets 17,241 30,893 16,045Accounts payable 309,118 671,155 (6,041,247)Notes Payable 2,934,530 – -Deferred revenue (18,621) (19,737) (26,296)Taxes payable (853,909) (859,792) (1,422,488)Lease liabilities 111,330 (124,456) (678,659)Accrued expenses and other payables (238,724) (203,052) (312,809)Net cash provided by operating activities 12,483,808 17,651,626 8,922,859Cash flows from investing activities:Purchase of property, plant and equipment (10,102,478) (217,053) (18,056,679)Purchase of intangible assets (548) (5,113) -Net cash used in investing activities (10,103,026) (222,166) (18,056,679)Cash flows from financing activities:Issuance of ordinary shares, net of offering costs 6,232,872 – -Proceeds from short-term loans 7,123,971 6,478,964 9,961,845Proceeds from long-term loans 650,747 4,647,953 11,598,910Repayment of short-term loans (6,712,972) (3,802,870) (15,727,397)Repayment of long-term loans (2,880,120) (591,558) -Deferred offering costs – (605,866) -Net cash provided by financing activities 4,414,498 6,126,623 5,833,358Effect of exchange rate changes (8,950,790) 13,817 (6,070,232)Net increase (decrease) in cash (2,155,510) 23,569,900 (9,370,694)Cash and cash equivalents at beginning of the year 90,963,594 67,393,694 76,764,388Cash and cash equivalents at end of the year 88,808,084 90,963,594 67,393,694Supplemental disclosures of cash flows information:Cash paid for income taxes 2,352,255 5,310,182 2,044,224Cash paid for interest expense 992,556 923,699 576,097Supplemental disclosures of non-cash information:Lease liabilities arising from obtaining right-of-use assets 183,839 15,225 39,947

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