Brand Value and Market Position - Tsingtao Beer brand value reached RMB 240.689 billion in 2023, maintaining the top position in the Chinese beer industry[8] - The total brand value of Tsingtao Brewery's brands, including Tsingtao Beer, Laoshan Beer, and Hans Brewery, surpassed RMB 380 billion[9] - Tsingtao Brewery has launched several new products, including "Century Legend" and "Tsingtao IPA," which cater to market demands and lead trends in high-end beer consumption[11] - The company operates 57 wholly-owned and controlling breweries and 2 associated breweries across 20 provinces in China, solidifying its leading market position[6] - Tsingtao Brewery's products are sold in over 120 countries and regions worldwide, reflecting its extensive market reach[13] - The company has strengthened its marketing network and improved customer service capabilities to enhance its competitive edge in both established and emerging markets[13] - Tsingtao Beer has received multiple awards for quality in domestic and international competitions, reinforcing its reputation for high product quality[10] Financial Performance - Total revenue for 2023 reached RMB 33,936,523 thousand, an increase from RMB 32,171,566 thousand in 2022, representing a growth of approximately 5.5%[17] - Net profit attributable to shareholders of the Company was RMB 4,267,851 thousand, up from RMB 3,710,629 thousand in 2022, reflecting a year-over-year increase of about 15%[17] - Basic earnings per share for 2023 was RMB 3.139, compared to RMB 2.736 in 2022, marking an increase of about 14.7%[17] - Total profit for the year was RMB 5,746,407 thousand, which is an increase from RMB 5,006,141 thousand in 2022, representing a growth of approximately 14.8%[17] - The weighted average return on net assets for 2023 was 16.12%, up from 15.30% in 2022, indicating improved efficiency in asset utilization[17] - The Company’s total equity attributable to shareholders increased to RMB 27,449,478 thousand from RMB 25,494,822 thousand in 2022, showing a growth of about 7.7%[17] - The Company recognized government grants in profits amounting to RMB 391,134 thousand, contributing positively to the overall profit figures[15] Operational Efficiency and Cost Management - The company continued to enhance operational efficiency and cost management, contributing to sustainable growth[26] - The revenue per kiloliter increased by 6.4% year-on-year, indicating improved pricing power in the market[28] - The company is focusing on digital transformation and innovation management to drive high-quality development[24] - The company is accelerating the construction of large-scale, intelligent, and green plants, including a high-end beer production base with an annual capacity of 1 million kiloliters and a malt raw material base with an annual capacity of 250,000 tons[31] Shareholder and Equity Information - The board proposed a final dividend of RMB2.00 per share for the year ended December 31, 2023, subject to approval at the annual general meeting[39][41] - The company aims to maintain a stable profit distribution policy, ensuring that cash dividends are not less than 30% of the distributable profits for the year[39] - The total number of ordinary shares is 1,364,232,790, with a decrease of 36,002 shares[54] - The substantial shareholder, Qingdao State-owned Assets Supervision and Administration Commission, held 405,132,055 A-shares, which is 29.70% of the total issued capital[62] Employee Management and Development - As of the end of the reporting period, the company had a total of 30,687 full-time employees, with 13,716 in production, 9,714 in sales, and 2,368 in technical roles[82][83] - The company implemented a differentiated assessment and distribution mechanism for total wages linked to performance, aiming to enhance employee income levels in line with operational results[84] - The company has adopted an annual performance appraisal system for executive directors and senior management, focusing on position responsibilities and annual operating results[75] - The proportion of highly skilled talents within the Company continued to increase, with over 70 skill awards received at national, provincial, and municipal levels[88] Governance and Compliance - The Company has complied with the disclosure requirements under Chapter 14A of the Listing Rules regarding continuing connected transactions[130] - The Company’s internal control procedures regarding transactions have been deemed adequate and effective by the Board[130] - The internal control and risk management system aims to ensure legal compliance, asset security, and the authenticity of financial reporting[194] - The company has established a robust management system for information insiders, with no regulatory issues reported during the Reporting Period[153] Environmental Sustainability - The company is committed to environmental sustainability, focusing on low-carbon management and circular economy practices to achieve a balance between production efficiency and ecological civilization[40] - The Company has improved its environmental management system and aims for sustainable development through low-carbon management and circular economy practices[44] - The environmental performance has been continuously improved, ensuring stable and compliant pollutant discharge during production[46] Strategic Initiatives - The company is actively expanding its global market presence, particularly in traditional advantageous markets, as part of its strategy along the "Belt and Road" initiative[29] - The Company implements a profit distribution policy, ensuring cash dividends are no less than 30% of distributable profits for the current year[42] - The Company is leveraging its position as the world's first industrial internet "Lighthouse Brewery" to drive innovation and high-quality development in the beer industry[31]

Investment Rating - The report maintains a "Buy" rating for Qingdao Beer with a target price of HK$101.00, slightly down from the previous HK$101.58 [1][4]. Core Insights - The report indicates that despite a significant increase in sales and distribution expenses in Q4 2023, the profit margin expansion trend is expected to continue into 2024, driven by product upgrades and a decrease in the sales and distribution expense ratio [1][2][4]. - The adjusted net profit for 2024 is projected at RMB 40.87 billion, which is 7.7% lower than previous forecasts due to increased brand investment following negative news in November 2023 [1][3]. - The report highlights that the average selling price of beer increased by 6.8% year-on-year in 2023, while sales volume decreased by 0.8%, indicating a shift towards higher-end products [1][2]. Financial Summary - Revenue for 2023 was RMB 31.55 billion, with a year-on-year growth of 5.9%. The projected revenue for 2024 is RMB 33.40 billion, maintaining the same growth rate [2][7]. - The gross profit margin for 2023 was 34.0%, expected to rise to 36.1% in 2024, reflecting ongoing improvements in product mix and cost management [2][10]. - The adjusted earnings per share (EPS) for 2024 is estimated at RMB 3.64, down from RMB 3.82 previously forecasted, indicating a 5% decrease [1][3]. Valuation - The report uses a 15x adjusted EV/EBITDA multiple for valuation, which is higher than the current multiples of 9.0x for Chinese beer companies and 12.8x for liquor companies, reflecting the company's positive revenue structure changes and profit margin improvements [4][5]. - The target price of HK$101.00 is based on updated earnings forecasts and a revised exchange rate assumption of 1.10 for RMB/HKD [4][5]. Market Comparison - Qingdao Beer is compared with peers such as China Resources Beer and Budweiser APAC, showing a competitive position in terms of valuation metrics like P/E and EV/EBITDA [5]. - The report notes that Qingdao Beer trades at a P/E of 12.6x for 2024E, which is attractive given the expected growth in profit margins and revenue [5][10].

Group 1 - UBS has slightly lowered the target price for Qingdao Beer (00168) from HKD 62.75 to HKD 62.12, considering the increase in sales and marketing expenses [1] - The company reported a revenue of RMB 33.937 billion for 2023, which met expectations, while EBITDA and net profit were RMB 4.806 billion and RMB 4.268 billion respectively, slightly below expectations due to higher-than-expected sales and distribution expenses [1] - The management has not provided specific guidance for the future but emphasized that premiumization is the main trend in the Chinese beer industry [1] Group 2 - The sales volume for the second half of last year was 2.98 million tons, a year-on-year decrease of 11%, consistent with the decline in the third quarter of last year [1] - The total sales volume for the year slightly decreased to 8.01 million tons, underperforming the overall industry growth of approximately 0.3% [1] - Despite the decline in sales volume, the improvement in product mix accelerated the average price growth to 6.4%, compared to a 4.8% increase in 2022 [1]

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 33,936,522,741, an increase of 5.5% compared to RMB 32,171,565,624 in 2022[4] - The net profit for the year was RMB 4,348,198,924, representing a growth of 14.2% from RMB 3,804,721,478 in the previous year[4] - The company reported a net profit attributable to shareholders of RMB 4,267,851,406 for 2023, compared to RMB 3,710,628,593 in 2022, reflecting an increase of about 15%[16] - Basic earnings per share for 2023 was RMB 3.139, up from RMB 2.736 in 2022, representing a growth of approximately 14.7%[16] - The company maintained a stable tax expense of RMB 1,398,208,378 for 2023, compared to RMB 1,201,419,808 in 2022, indicating an increase of approximately 16.4%[14] Assets and Liabilities - The company's total assets decreased to RMB 49,256,011,349 as of December 31, 2023, down from RMB 50,311,699,796 in 2022[3] - The total liabilities decreased to RMB 21,001,264,174, a reduction of 12.6% from RMB 24,039,387,261 in the previous year[3] - The total accounts receivable as of December 31, 2023, was RMB 2,952,827,066, down from RMB 3,463,768,573 in 2022, indicating a decrease of approximately 14.7%[8] - The total liabilities for 2023 were CNY 21,001,264,174, an increase from CNY 24,039,387,261 in 2022, showing a decrease of approximately 12.5%[25] Research and Development - Research and development expenses rose to RMB 100,637,006, an increase from RMB 62,954,899 in the previous year, highlighting a focus on innovation[4] - The company increased its investment in Qingdao Beer (Lianyungang) Co., Ltd. by RMB 212.2 million, raising its ownership to 56.09%[47] - A total investment of RMB 600 million has been made to establish a leading innovation platform for brewing technology, enhancing R&D capabilities[31] - The R&D innovation base project has a budget of approximately RMB 201.5 million, with an expected operational start within the year[47] Market Strategy and Expansion - The company plans to continue expanding its market presence and investing in new product development to drive future growth[2] - The company has expanded its international market presence, selling products in 120 countries and regions, enhancing its global brand influence[29] - The company aims to diversify its business strategy through new product launches and potential acquisitions to ensure long-term growth[33] - The company plans to enhance product quality and market expansion, aiming for continuous high-quality development by capitalizing on the domestic market's upgrading consumption trends[35] Product and Brand Development - The company achieved a product sales volume of 8.007 million kiloliters and a revenue of RMB 33.94 billion, representing a year-on-year growth of 5.59%[28] - The company's main brand, Tsingtao Beer, saw a sales volume of 4.56 million kiloliters, with mid-to-high-end products growing by 10.59% year-on-year[29] - The brand value of Tsingtao Beer was RMB 240.689 billion, maintaining its position as the top brand in the Chinese beer industry[30] - The company will implement a brand strategy combining Tsingtao Beer and Laoshan Beer to optimize its brand structure and enhance competitiveness in the mid-to-high-end market[36] Investment and Capital Projects - The company is investing approximately RMB 666.65 million in the new 1 million kiloliter pure draft beer base project, which has received construction planning approval[46] - The company plans to invest approximately RMB 1.35853 billion in the new 1 million kiloliter craft beer base and 2,500 tons whiskey project, with construction expected to start in March 2024[46] - A new company, Qingdao Beer (Weifang) Manufacturing Co., Ltd., was established with a registered capital of RMB 30 million for a new 600,000 kiloliter beer project, with a total investment budget of RMB 849.23 million[48] Corporate Governance and Shareholder Returns - The company has complied with corporate governance codes and will continue to maintain high standards in corporate governance practices[40] - The company proposed a cash dividend of RMB 2.00 per share for the fiscal year 2023, totaling an estimated RMB 2,728,393,576, pending shareholder approval[11] - The board recommends a final dividend of RMB 2.00 per share for the year ending December 31, 2023, subject to shareholder approval[39] Risks and Challenges - The company anticipates potential risks in the domestic beer market growth due to uncertainties in consumption and climate change[37] - The company is increasing investment in mid-to-high-end products and enhancing product quality and service to meet the growing consumer demand for high-quality products[38]

智通财经APP讯，青岛啤酒股份(00168)发布2023年年度报告，公司继续秉承实施高质量发展战略，以科技创新为引领，加快推进数字化转型，全面提升创新管理水平，推动高端化、智能化、绿色化以及全价值链发展。 公司充分发挥青岛啤酒的品牌、品质优势积极开拓市场，深耕一纵两横市场战略带，巩固和提升基地市场优势地位，积极开拓新兴市场，促进区域平衡发展，强化区域网络建设，持续优化提升管理运营效率以及费用管理有效性，同时积极开源节流，降本增效，多措并举实现了公司业绩的持续稳健增长。报告期内，公司实现产品销量800.7万千升;实现营业收入人民币339.4亿元，同比增长5.5%;实现归属于上市公司股东的净利润人民币42.7亿元，同比增长15%。每股拟派发现金股利人民币2.00元(含税)。 报告期内，公司继续实施青岛啤酒主品牌+崂山啤酒全国性第二品牌的品牌战略，借助青岛啤酒百廿华诞，聚焦资源强化传播推广，以“体育营销+音乐营销+体验营销”为主线开展系列营销活动，创新推进品牌推广和消费者体验，深化和扩展品牌与消费者之间的联接，全面升级品牌沉浸式体验模式，持续提升品牌影响力。 公司加快落地青岛啤酒主品牌“1+1+1+2+N”产品组合 ...

Sales Performance - For the first three quarters of 2023, the company achieved a total product sales volume of 7.294 million kiloliters, a year-on-year increase of 0.2%[4] - The main brand, Tsingtao Beer, recorded a product sales volume of 4.09 million kiloliters, up 3.5% year-on-year[4] Financial Results - Revenue for the first three quarters reached RMB 30.978 billion, representing a year-on-year growth of 6.42%[4] - Net profit attributable to shareholders was RMB 4.908 billion, an increase of 15.02% compared to the same period last year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 4.596 billion, reflecting a year-on-year growth of 19.08%[3] - Basic earnings per share for the quarter were RMB 1.091, up 4.40% year-on-year[3] Assets and Equity - Total assets at the end of the reporting period were RMB 49.751 billion, a decrease of 1.12% from the previous year[3] - Shareholders' equity attributable to the company was RMB 28.102 billion, an increase of 10.23% compared to the end of the previous year[3] Government Support - The company received government subsidies related to normal business operations amounting to RMB 102.282 million during the reporting period[5] Shareholder Information - Qingdao Beer Group holds a total of 38,335,600 H-shares and 405,132,055 A-shares in the company[8] - The top ten shareholders include Hong Kong Central Clearing Limited and China Securities Finance Corporation, with significant holdings of 24,264,776 and 16,015,045 A-shares respectively[7] - The total number of circulating shares held by the top ten unrestricted shareholders amounts to 13,569,000 A-shares[7] - The company has not disclosed any known relationships or concerted actions among the top ten shareholders[8] - The company’s stock structure includes various investment funds, with significant holdings from China Agricultural Bank and China Construction Bank[7] Operational Insights - The company continues to optimize and upgrade its product structure amid a complex market environment[4] - The report does not indicate any new product or technology developments during the period[9] - There is no mention of market expansion or mergers and acquisitions in the current reporting period[9] - The company has not provided specific future outlook or performance guidance in the available documents[9] Reporting and Compliance - As of September 30, 2023, the company reported an unaudited balance sheet, income statement, and cash flow statement available on the Shanghai Stock Exchange and the company's website[9] - The company has not participated in margin financing or securities lending during the reporting period[8]

TSINGTAO 青岛啤酒 青 島 啤 酒 股 份 有 限 公 司 TSINGTAO BREWERY CO., LTD. (Stock Code 比例代表 : 168) 903 中期報告 INTERIM REPORT 目錄 頁碼 財務報告（未經審計） 2 管理層討論與分析 112 重要事項 118 股本變動及股東情況 120 董事、監事和員工情況 122 購入、出售或贖回證券 123 未經審核中期業績之審閱 123 企業管治守則 123 釋義 123 公司資料 124 2023年中期報告 1 青島啤酒股份有限公司 合併及公司資產負債表 2023年6月30日 （除特別註明外，金額單位為人民幣元） | --- | --- | --- | --- | --- | --- | |-------|--------------|---------|----------|---------|----------| | | | 2023年 | 2022年 | 2023年 | 2022年 | | | 附註四 | 6月30日 | 12月31日 | 6月30日 | 12月31日 | | 資產 | （除另註外） | 合併 | 合併 ...

Financial Performance - The company's operating revenue for the six months ended June 30, 2023, was RMB 21,591,789,633, representing an increase of 12.0% compared to RMB 19,272,658,300 for the same period in 2022[11]. - The net profit attributable to shareholders for the first half of 2023 was RMB 3,425,652,286, up 20.1% from RMB 2,852,094,449 in the same period last year[11]. - For the six months ended June 30, 2023, the total profit amounted to RMB 4,604,120,036, an increase from RMB 3,845,104,398 for the same period in 2022, representing a growth of approximately 19.7%[20]. - The net profit for the six months ended June 30, 2023, was 3,481,281,257, compared to 2,908,316,326 for the same period in 2022, indicating a year-over-year increase of about 19.66%[28]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 3.23 billion, up 24.6% year-on-year[31]. Equity and Liabilities - The company's total liabilities as of June 30, 2023, amounted to RMB 24,992,499,613, an increase from RMB 24,039,387,261 at the end of 2022[10]. - The total equity attributable to shareholders increased to RMB 26,552,653,730 as of June 30, 2023, compared to RMB 25,494,821,703 at the end of 2022, reflecting a growth of 4.2%[10]. - The total current liabilities as of June 30, 2023, were RMB 20,671,550,183, compared to RMB 19,671,788,734 at the end of 2022, showing an increase of 5.1%[10]. - The company reported a significant increase in accounts payable, which rose to RMB 4,765,502,796 as of June 30, 2023, from RMB 3,463,768,573 at the end of 2022, indicating increased operational activity[10]. - The total liabilities of the company amounted to 24,774,003,611, reflecting an increase from 22,520,212,672 in the previous year[30]. Profitability Metrics - The company's gross profit margin for the first half of 2023 was approximately 38.9%, compared to 38.2% for the same period in 2022[11]. - The company reported a basic earnings per share of RMB 2.516 for the first half of 2023, compared to RMB 2.100 for the same period in 2022, representing a growth of 19.8%[11]. - The diluted earnings per share for the six months ended June 30, 2023, was RMB 2.515, up from RMB 2.099 for the same period in 2022, indicating an increase of approximately 19.8%[24]. - The company reported a total tax expense of RMB 1,122,838,779 for the six months ended June 30, 2023, compared to RMB 936,788,072 for the same period in 2022, marking an increase of about 19.8%[20]. Research and Development - Research and development expenses for the first half of 2023 were RMB 22,160,455, up from RMB 17,002,004 in the same period last year, indicating a focus on innovation[11]. Market and Product Development - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11]. - The company launched new products, including a 1-liter premium raw beer and a 1-liter crystal pure draft beer, catering to the growing demand for fresh and high-end beer products[32]. - The main brand, Tsingtao Beer, achieved a sales volume of 2.812 million kiloliters, with an 8.2% year-on-year increase; high-end products saw a sales volume of 1.975 million kiloliters, growing by 15%[31]. - In the first half of 2023, the company achieved a product sales volume of 5.023 million kiloliters, representing a year-on-year growth of 6.5%[31]. - The company initiated the "120th Re-launch" strategy to strengthen its core beer business and enhance market competitiveness[32]. Operational Efficiency - The company achieved a gross profit of 3,642,048,848, which is a critical indicator of its operational efficiency[28]. - The operating costs for the company were 11,930,613,027, which is a significant portion of the total revenue[28]. - The company reported a total non-current asset increase of 986,276,273 during the period, compared to a decrease in the previous year[28]. - The total non-current assets as of June 30, 2023, were valued at 16,003,852,685, compared to 15,897,464,871 in the previous year, showing a slight increase[30]. Dividends - The company declared a cash dividend of RMB 1.80 per share for the fiscal year 2022, totaling RMB 2,455,619,022 distributed as of August 11, 2023[18]. - The company has not declared an interim dividend for the six months ended June 30, 2023, compared to no interim dividend declared for the same period in 2022[18]. Legal Matters - There were no significant new lawsuits or arbitration matters during the reporting period[35].

Brand Value and Market Position - Tsingtao Beer brand value reached RMB 218.225 billion in 2022, maintaining its top position in the Chinese beer industry[8][9] - The total brand value of Tsingtao Beer, Laoshan Beer, Hans Brewery, The World of Tsingtao, Prince, and Tsingtao1903 exceeded RMB 340 billion[8][9] - Tsingtao Beer products are sold in over 100 countries and regions worldwide[6] Financial Performance - The company's operating profit for 2022 was RMB 5,000,925 thousand[15] - Net profit attributable to shareholders of the company was RMB 3,710,629 thousand in 2022[15] - Net cash flows from operating activities amounted to RMB 4,878,771 thousand in 2022[15] - Revenue for 2022 reached RMB 32,171,566 thousand, showing an increase compared to previous years[17] - Total profit for 2022 was RMB 5,006,141 thousand, reflecting growth from RMB 4,478,975 thousand in 2021[17] - Net profit attributable to shareholders of the Company in 2022 was RMB 3,710,629 thousand, up from RMB 3,155,456 thousand in 2021[17] - Basic earnings per share for 2022 stood at 2.736, compared to 2.328 in 2021[17] - Fully diluted return on net assets for 2022 was 14.55%, up from 13.72% in 2021[17] - Net cash flows from operating activities in 2022 were RMB 4,878,771 thousand, down from RMB 6,043,111 thousand in 2021[17] - Total assets for 2022 increased to RMB 50,311,700 thousand from RMB 46,563,004 thousand in 2021[17] - Total liabilities for 2022 were RMB 24,039,387 thousand, up from RMB 22,769,313 thousand in 2021[17] - The company's operating revenue reached RMB32.17 billion in 2022, a 6.65% year-on-year increase[27][29] - Net profit attributable to shareholders was RMB3.71 billion, up 17.6% year-on-year[27][29] - The company's net profit after deducting non-recurring profit/loss was RMB3.21 billion, up 45.4% year-on-year[28][29] - Total beer sales volume in 2022 reached 8.072 million kiloliters, with revenue of RMB32.17 billion and net profit attributable to shareholders of RMB3.71 billion[36][37] Production and Operations - The company operates 57 wholly-owned and controlling breweries and 2 associated and joint-investment breweries across 20 provinces in China[6] - The company invested in the Tsingtao Brewery Scientific and Technological R&D Center, which includes the State Key Laboratory of Biological Fermentation Engineering of Beer[10] - The company launched several new products, including Century Legend, Tsingtao Centennial Journey, Amber Lager, and Tsingtao IPA, to drive high-end beer consumption trends[11][12] - The company has strengthened its market operations and profitability by improving its sales network and customer service capabilities[13] - The company achieved a product sales volume of 8.072 million kiloliters in 2022, up 1.8% year-on-year[25][27] - Overseas market product sales volume increased by 4% year-on-year in 2022[28][29] - The domestic beer market produced 35.687 million kiloliters in 2022, up 1.1% year-on-year[25][26] - The company focused on mid-to-high-end product development and improved product quality through innovation and R&D[31] - Tsingtao Beer's core brand sales volume reached 4.44 million kiloliters, up 2.6% year-on-year, with mid-to-high-end product sales volume at 2.93 million kiloliters, up 4.99% year-on-year[32][33] - The company accelerated digital and intelligent transformation, completing the Tsingtao Brewery Industry Park 1.2 million kiloliter expansion project, enhancing supply chain and production efficiency[34] Dividends and Shareholder Returns - The company proposed a final dividend of RMB1.30 per share and a special dividend of RMB0.50 per share, totaling RMB1.80 per share for 2022[23][24] - The company proposed a final dividend of RMB1.30 per share and a special dividend of RMB0.50 per share, totaling RMB1.80 per share, to celebrate the 120th anniversary of Tsingtao Beer[42][43] Environmental and Social Responsibility - The Company's environmental performance improved in 2022, with strict monitoring of pollutant discharge ensuring stable and up-to-standard emissions[46] Shareholder and Equity Information - Share capital decreased due to the repurchase and cancellation of restricted shares held by retired or resigned incentive participants[19] - Capital surplus increased mainly due to the grant of restricted shares under the Incentive Plan[20] - A total of 4,359,428 restricted shares held by 619 eligible participants were unlocked on 25 July 2022[50] - The Company repurchased and canceled 122,003 restricted shares held by 14 participants on 9 December 2022[50] - The number of shares held by the public satisfied the public float requirements in the Listing Rules[51] - The total number of ordinary shares decreased by 122,003 to 1,364,232,790 at the end of the reporting period[57] - The Company had 26,260 shareholders at the end of the reporting period, including 26,013 A-share holders and 247 H-share holders[59] - Total number of shareholders at the end of the reporting period was 26,260, including 26,013 A-share holders and 247 H-share holders[60] - Top 10 shareholders include HKSCC Nominees Limited with 613,929,619 shares (45.00%) and Tsingtao Brewery Group Company Limited with 443,467,655 shares (32.51%)[61] - Hong Kong Securities Clearing Company Limited increased its A-share holdings by 10,584,554 shares, totaling 26,504,261 shares (1.94%)[61] - China Securities Finance Corporation Company decreased its A-share holdings by 1,084,664 shares, totaling 16,015,045 shares (1.17%)[61] - Agricultural Bank of China Co., Ltd. – E Fund Consumer Industry Equity Securities Investment Fund increased its A-share holdings by 8,193,873 shares, totaling 13,569,000 shares (0.99%)[61] - Tsingtao Group holds 38,335,600 H-shares through its wholly-owned subsidiary Xinhaisheng and 405,132,055 A-shares directly[62] - Fosun International Limited sold all its shares in the Company on 30 May 2022 and no longer holds any shares[62] - SASACQ holds 405,132,055 A-shares (29.70%) and 38,335,600 H-shares (2.81%) through Tsingtao Group and Xinhaisheng[65] - Citigroup Inc. holds 46,032,180 H-shares (3.37%) and has 43,076,014 H-shares available for lending (3.16%)[65] - T. Rowe Price Associates, Inc. and its affiliates hold 38,780,000 H-shares (2.84%)[65] - SASACQ is entitled to interests in 38,335,600 H-Shares through Hong Kong Xinhaisheng Investment Limited, a wholly-owned subsidiary of Tsingtao Group[67] - Fidelity Management & Research Company LLC holds shares through its controlled wholly-owned subsidiaries[67] - Citigroup Inc. holds shares through its controlled wholly-owned subsidiaries[67] - Mr. HUANG Ke Xing, Chairman, holds 151,400 shares, including 51,300 tradable A-shares and 100,000 restricted shares[71][72] - Mr. JIANG Zong Xiang, CEO, holds 112,900 shares, including 39,566 tradable A-shares and 73,334 restricted shares[71][72] - Mr. WANG Rui Yong, Vice President, holds 110,000 shares, including 36,666 tradable A-shares and 73,334 restricted shares[71][72] - Mr. HOU Qiu Yan, CFO, is deemed to hold 76,000 shares, including 20,000 tradable A-shares and 40,000 restricted shares[71][72] - The grant price per Restricted Share is RMB 21.18[72] - HUANG Zu Jiang, Supervisor, holds 12,900 tradable A-shares as of the end of the reporting period[74] Corporate Governance and Board Activities - The company has implemented an annual performance evaluation and compensation incentive mechanism for executive directors and senior management, including basic salary and performance-based annual salary[78] - Total remuneration for directors and senior management officers in 2022 was RMB 1,318.83 million, including post-retirement benefits[91] - The company's executive directors and senior management officers receive annual performance remuneration based on operating results, work plan progress, and appraisal results[80] - Independent non-executive directors and supervisors receive annual remuneration as resolved at the general meeting[80] - The Company implemented a performance appraisal and incentive mechanism linking total salaries with business performance, continuously increasing staff salaries to support sustainable business development[96] - The Board of Supervisors held 11 meetings during the reporting period, including 5 regular and 6 unscheduled meetings, considering 30 resolutions[159] - The Board of Supervisors conducted on-site research in the Ningxia market to gain firsthand insights into the Company's operations nationwide[162] - The Board of Supervisors confirmed that the Company operated in strict compliance with laws, regulations, and the Articles of Association during the reporting period[163] - The Board of Supervisors reviewed and approved a total of 26 proposals, including proposals on continuing connected transactions, the unlocking and listing of restricted shares, and the repurchase and cancellation of some restricted shares[164] - The Board of Supervisors conducted site surveys at the Ningxia market to gain firsthand information on the business performance of Tsingtao Brewery in China[165] - The Board of Supervisors confirmed that the Company's financial system is sound, its financial operation is compliant, and its financial statements truly reflect the Company's financial situation and operation[172] - The Company did not have any newly received or remaining proceeds from financing activities during the Reporting Period, and there was no violation in the management and use of proceeds[173] - The Board of Supervisors found that the Company's internal control system is sound and effective, and the 2022 Internal Control Evaluation Report and internal control audit report objectively reflect the system's construction and operation[175] - The Company's Board of Supervisors was recognized as one of the "Productive Board of Supervisors of Listed Companies" by the China Association for Public Companies in October 2022, marking the second time since 2016[178] - The Board of Supervisors will continue to strengthen its supervision and improve its capacity to assist in the Company's high-quality development in 2023[178] - The Board of Directors consists of 4 executive directors and 5 independent non-executive directors as of December 31, 2022[191] - The Board has adopted a diversity policy to enhance effectiveness, with 8 male and 1 female director, achieving 28% female representation at the workforce level[191] - The independent non-executive directors have diverse professional backgrounds, including law, accounting, financial investment, and marketing, aiding in multi-faceted decision-making[192] - The Chairman is responsible for setting the Board meeting agenda and leading the company's overall development strategy[188] - The President is responsible for implementing Board resolutions, managing the annual budget, and reporting on business performance[189] - The roles of Chairman and President are separated to comply with the Corporate Governance Code, with Mr. JIANG Zong Xiang appointed as the new President on June 21, 2022[190] - The Board reviews the implementation and effectiveness of the diversity policy at least annually[191] - The independent non-executive directors have submitted annual work reports to shareholders since 2005[192] - The Company held 8 site meetings with teleconferencing and 7 meetings with voting through communications in 2022 to discuss operations, financial performance, and investment plans[193] - Approved amendments to the Articles of Association and formulated a performance appraisal system for senior management officers[193] - Approved the unlocking and listing of the first grant of restricted shares under the Restricted A Share Incentive Plan and the repurchase of part of the restricted shares[194] - Approved feasibility reports on relocation, new construction, and new capacity projects for subsidiaries[194] - Directors attended 15 board meetings, with 8 in-person and 7 through communications, and 2 annual general meetings[197] - Independent directors can hire independent professional institutions at the Company's expense to fulfill their duties[199] - The Board has adopted mechanisms to ensure access to independent legal, financial, or professional opinions at the Company's expense[200] Employee and Management Information - The company had a total of 31,707 employees as of the end of the reporting period, including 13,842 production personnel and 10,003 sales personnel[95] - Among the employees, 445 held a master's degree or above, while 8,329 had education below secondary specialized school level[95] - Mr. YU Zhu Ming resigned as Executive Director and CFO on June 21, 2022, due to reaching retirement age, with remuneration for January to June 2022 amounting to RMB 52.06 million[85][92] - Mr. WANG Shao Bo resigned as Vice President on October 14, 2022, due to job changes, with remuneration for January to October 2022 amounting to RMB 73.53 million[87][92] - Mr. GUO Xiu Zhang resigned as Chairman of the Board of Supervisors on April 13, 2022, due to job changes, with no remuneration recorded[88] - Mr. SHI Kun resigned as Non-executive Director on June 7, 2022, due to Fosun International's sale of shares in the company, with no remuneration recorded[89] - Mr. YAO Yu resigned as Shareholder Supervisor on June 7, 2022, due to Fosun International's sale of shares in the company, with no remuneration recorded[90] Training and Development - In 2022, the Company focused on digital transformation, enhancing capabilities through the "integration of training and practice" model and building a craftsmen's team with high-level intelligent technologies[96] - The Company organized multiple training programs, including the Practical Workshop on Data Governance and Digital Leadership, to enhance the digital abilities of middle and senior management staff[97] - The Company accelerated the development of a skilled craftsmen's team, with 32 people recognized as Special-Class Technicians and the introduction of a "Beer Sommelier" competition in the 9th Occupational Skill Competition[100] Share Repurchase and Incentive Plans - The Company did not purchase, sell, or redeem any listed securities during the reporting period, except for the repurchase and cancellation of restricted shares[103] - The Company unlocked 4,359,428 restricted shares for 619 qualified participants on 25 July 2022, following the fulfillment of the first unlocking period conditions[105][107] - The Company repurchased and canceled 122,003 restricted shares due to changes in the personal circumstances of 14 participants, reducing the total capital stock from 1,364,354,793 to 1,364,232,790 shares[109][111] - The maximum number of shares to be awarded under the Incentive Plan is 13,494,000 shares, representing approximately 0.9993% and 0.9896% of the total issued share capital as of the Adoption Date and the report date, respectively[110][113] - The first, second, and third unlocking periods allow for the release of 1/3 of the granted shares each, with specific timeframes tied to the registration completion dates[115] - The grant price for the restricted shares under the Incentive Plan is RMB 21.18 per share, determined based on fair market principles[116] - The grant price of the restricted shares under the first grant and reserved grant is RMB21.18 per share[118] - The total number of restricted shares granted in 2022 is 13,371,998, with 4,359,428 shares vested and 8,890,567 shares outstanding as of December 31, 2022[131] - The fair value of the restricted shares is determined based on the single-day closing price of the circulating shares on the grant date[132] - The closing prices of A shares before the first grant and reserved grant were RMB72.20 and RMB79.72 respectively, with a weighted average closing price of RMB96.21 before the vesting date[133] Connected Transactions and Agreements - The actual transaction amount under the Comprehensive Service Framework Agreement for 2022 was RMB12,374,347, below the annual cap of RMB18,000,000[139] - The actual transaction amount under the Entrusted Production Framework Agreement for 2022 was RMB1,877,942, below the annual cap of RMB37,760,000[142] - The Supply Chain Services Framework Agreement includes logistics, transportation, warehousing, and value-added services, with Zhilian Shunda leasing idle warehouses from the company[143] - The annual cap for the Supply Chain Services Framework Agreement was revised from RMB229 million to RMB329 million for the year ended 31 December 2022[144] - Actual transaction amounts for Logistics and Transportation Services and Warehousing and Value-added Services were RMB291.75 million, and for Warehouse Leasing Services were RMB252,294, both within the revised annual cap of RMB329 million[145] - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary course of business, on normal commercial terms, and in the interest of shareholders[145] - The Company's auditor confirmed that the continuing connected transactions were approved by the Board, in accordance with the Group's pricing policies, and did not exceed the annual cap[149] Corporate Culture and Innovation - The Company has established a high-standard corporate culture system to enhance innovation, cohesion, and core competitiveness[184] Board and Supervisory Activities - The Board of Supervisors conducted on-site research in the Ningxia market to gain firsthand insights into the Company's operations nationwide[162] - The Board of Supervisors confirmed that the Company operated in strict compliance with laws, regulations, and the Articles of Association during the reporting period[163] - The

Financial Performance - The company's operating revenue for Q1 2023 reached RMB 10.71 billion, representing a year-on-year increase of 16.27%[5] - Net profit attributable to shareholders for the same period was RMB 1.45 billion, up 28.86% year-on-year[6] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1.35 billion, an increase of 32.07% compared to the previous year[6] - The net cash flow from operating activities was RMB 1.81 billion, showing a significant increase of 94.29% year-on-year[7] - The total product sales volume for Q1 2023 was 2.363 million kiloliters, reflecting a growth of 11.02% year-on-year[5] - The main brand, Tsingtao Beer, achieved a sales volume of 1.401 million kiloliters, which is a 7.45% increase year-on-year[5] Strategic Focus - The company has committed to high-quality development strategies, focusing on market expansion and product structure optimization[6] Shareholder Information - The top 10 unrestricted shareholders include Hong Kong Central Clearing (Agent) Limited holding 613,951,619 shares and Qingdao Beer Group Limited holding 443,467,655 shares[9] - Qingdao Beer Group's holdings consist of 405,132,055 RMB ordinary shares and 38,335,600 overseas listed foreign shares[10] - Hong Kong Central Clearing Limited holds 24,974,536 RMB ordinary shares, representing multiple clients[10] - The company is unaware of any relationships or concerted actions among the top 10 shareholders[10] Governance and Financial Position - The weighted average return on net assets for the period was 5.53%, an increase of 0.75 percentage points compared to the previous year[4] - Total assets at the end of the reporting period were RMB 50.14 billion, a slight decrease of 0.35% from the end of the previous year[4] - Shareholders' equity attributable to the parent company increased to RMB 27.01 billion, marking a growth of 5.94% year-on-year[4] - As of March 31, 2023, the company has not disclosed its unaudited balance sheet, income statement, and cash flow statement[12] - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[12]