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

1. Investment and Capacity Expansion

   • 75% completion of the investment aimed at increasing business operations and expanding the company’s activities.

   • 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.

   • The construction of mechanized storage for vegetables and preserved foods commenced in June 2024.

2. Product Development

   • 80% completion in preparing and implementing six new product types, which have been developed and introduced to the market.

     • 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.

     • 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.

3. Sales Capacity and System Overhaul

   • 100% completion of a comprehensive overhaul of the sales system.

     • The sales area was optimally divided and allocated.

     • 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.

     • Expansion into rural areas was pursued, with a contract distributor selected in collaboration with a sales representative, resulting in more balanced operations.

     • The transport and logistics segment of the sales department was restructured into an independent unit.

4. Marketing Policies and Strategies

   • 83% completion of marketing policy and strategy implementation.

     • 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.

5. Human Resources and Productivity

   • Achieved 82% of the performance target for maintaining productivity indicators through increased human resource stability.

     • Regular training and development programs for employees are being implemented.

     • Employee savings and stock-sharing programs have been established, achieving a 90.5% stability rate and reducing workforce-related risks.

Income

• Net sales income for the first half of 2024 reached 20.8 billion ₮, reflecting a 20% increase from the same period last year.

Profit

• Net profit for the first half of 2024 was 5.03 billion ₮, a 20% increase from the previous year.

• 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

• 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

1. Commissioning of preserved foods and fresh vegetable storage.

2. Introduction and placement of new products in the market.

3. Company rebranding.

4. Maintaining and developing the growth of the updated sales system and the stability of human resources.

Other Information for Public and Shareholders

• 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