Here's Why Jiujiuwang Food International Limited's (HKG:1927) CEO May Not Expect A Pay Rise This Year

Key Insights

• Jiujiuwang Food International will host its Annual General Meeting on 30th of May
• CEO Zhenzhong Zheng's total compensation includes salary of CN¥360.0k
• Total compensation is 74% below industry average
• Jiujiuwang Food International's three-year loss to shareholders was 50% while its EPS was down 79% over the past three years

Our free stock report includes 3 warning signs investors should be aware of before investing in Jiujiuwang Food International. Read for free now.

The disappointing performance at Jiujiuwang Food International Limited (HKG:1927) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 30th of May. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for Jiujiuwang Food International

How Does Total Compensation For Zhenzhong Zheng Compare With Other Companies In The Industry?

Our data indicates that Jiujiuwang Food International Limited has a market capitalization of HK$89m, and total annual CEO compensation was reported as CN¥360k for the year to December 2024. This was the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CN¥360k.

For comparison, other companies in the Hong Kong Food industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.4m. Accordingly, Jiujiuwang Food International pays its CEO under the industry median. What's more, Zhenzhong Zheng holds HK$42m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	CN¥360k	CN¥360k	100%
Other	-	-	-
Total Compensation	CN¥360k	CN¥360k	100%

Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. Speaking on a company level, Jiujiuwang Food International prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Jiujiuwang Food International Limited's Growth

Over the last three years, Jiujiuwang Food International Limited has shrunk its earnings per share by 79% per year. In the last year, its revenue is down 10%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Jiujiuwang Food International Limited Been A Good Investment?

Few Jiujiuwang Food International Limited shareholders would feel satisfied with the return of -50% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Jiujiuwang Food International rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 2 which are significant) in Jiujiuwang Food International we think you should know about.

Switching gears from Jiujiuwang Food International, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.