On April 21st, Kunshan Asia Aroma Corp., Ltd (Asia Aroma) released its annual report for 2023. In 2023, the company achieved revenue of 630 million yuan, a year-on-year decrease of 10.66%; net profit attributable to shareholders of the listed company was 80.158 million yuan, a year-on-year decrease of 39.18%; net profit attributable to shareholders after deducting non-recurring gains and losses was 73.3441 million yuan, a year-on-year decrease of 40.13%; the company’s gross profit margin was 32.17%, a decrease of 3.28 percentage points year-on-year.
In terms of product classification, in 2023, the company’s revenue from natural flavor products was 231 million yuan, a year-on-year decrease of 29.53%; revenue from cooling agents was 291 million yuan, a year-on-year increase of 19.29%; revenue from synthetic flavor products was 98.6178 million yuan, a year-on-year decrease of 18.18%. The annual report pointed out that the decline in revenue from natural flavor products was due to changes in overall downstream market demand and adjustments to the company’s product structure.
Public information shows that Asia Aroma is one of the domestic high-end flavor production enterprises, mainly engaged in the research, production, and sales of flavors. Currently, Asia Aroma has successfully developed three major series of natural flavors, synthetic flavors, and cooling agents, totaling more than 160 products. Its terminal products are mainly used in the food and beverage, daily chemical, and other industries. The company has established long-term and stable cooperative relationships with internationally well-known companies in the flavor and fragrance industry, such as IFF, Givaudan, Symrise, and Firmenich, as well as consumer goods companies such as Mars Wrigley, Mondelēz International, Colgate-Palmolive, and L’Oréal.
In the annual report, Asia Aroma stated that in the next three to five years, the company will seize the opportunity of steady domestic development and the popularization of natural flavors overseas. It will increase research and development investment, strengthen technological innovation, further enrich the types of natural flavor products through continuous improvement of existing products and investment in high-end product research and development, introduce more high-tech content and high-value-added products to the market, further increase the proportion of natural flavor products in the main business, and increase product added value. In addition, the company will continuously improve its corporate governance structure, continuously improve its independent research and development capabilities, expand the domestic and international high-end product market with quality, and achieve long-term rapid and sustainable development of the enterprise.
