Group 1 - The juice industry is a significant direction for consumption upgrade in China's food and beverage sector, driving the integration of technologies such as deep processing of fruits and vegetables, cold chain logistics, and smart packaging [2][8] - Major listed companies in the juice industry include Nongfu Spring, Master Kong, and Uni-President, with a focus on concentrated juice, beverage OEM, and packaging [2][5] - The highest revenue in the juice production and processing segment for 2024 is expected to be from Master Kong, reaching 80.651 billion yuan [5][12] Group 2 - The juice industry listed companies are primarily distributed in Taiwan and Guangdong, with notable companies like Wei Chuan and Uni-President in Taiwan, and Aorijin and Jiamei Packaging in Guangdong [8][11] - The company with the most registered capital is Alibaba, while Wei Chuan is the oldest, established in 1953 [11][12] - Uni-President has the highest number of bidding information, totaling 405 entries [11][14] Group 3 - Nongfu Spring, Uni-President, and Master Kong have the broadest business layouts, covering various market levels and product types, while other companies focus on specific segments [16][20] - Nongfu Spring plans to expand its high-end NFC juice capacity and enhance smart management of raw material bases, aiming to become a global benchmark for healthy juice [20] - Master Kong aims to deepen market penetration in lower-tier cities and explore cross-category innovations between juice and tea beverages [20]

Investment Rating - The report maintains an "Increase" rating for the food and beverage industry [3][5] Core Insights - The beer sector shows stable performance during peak season, with slight revenue decline but consistent cost benefits contributing to profits [1][9] - The soft drink sector faces intensified competition, yet leading companies continue to demonstrate strong performance [2][17] Summary by Sections Beer Sector - The beer industry achieved total revenue of 879.3 billion CNY in 25H1, a year-on-year decrease of 0.5%, while net profit rose by 5.9% to 152.3 billion CNY [9] - The gross margin improved to 48.1%, up 1.3 percentage points year-on-year, and net margin increased to 18.7%, up 1.2 percentage points [9][15] - The revenue decline is attributed to weak overall demand and diversified consumer preferences, while profit performance remains strong due to cost reductions and structural upgrades [9][10] - Key players like Yanjing and Zhujiang outperformed in revenue and profit growth, while Budweiser Asia faced challenges due to weak channel performance [9][10] Soft Drink Sector - The soft drink industry reported total revenue of 226.4 billion CNY in 25H1, reflecting a year-on-year growth of 7.5%, with net profit increasing by 1.7% to 39.5 billion CNY [17] - The gross margin for the sector was 41.8%, up 0.6 percentage points, while net margin decreased to 17.5%, down 1.0 percentage points [17][22] - Despite fierce competition, leading companies like Dongpeng Beverage and Quanyuan maintained strong growth, while other companies experienced varying degrees of decline [17][18] - In 25Q2, the soft drink sector saw revenue rise to 107.1 billion CNY, a 14.7% increase year-on-year, but profit margins were pressured due to increased competition and spending [18][20] Key Investment Recommendations - The report suggests focusing on companies with strong single products and distribution channels, highlighting high-growth leaders and stable dividend or undervalued stocks [5][6]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 統一企業中國控股有限公司 呈交日期: 2025年9月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00220 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 50,000,000,000 | HKD | | 0.01 | HKD | | 500,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 50,000,000,000 | HKD | | 0.01 | HKD | | 500,000,000 | 本月底法 ...

Core Insights - The article discusses the enduring popularity of iced black tea in China, highlighting its affordability and mass appeal despite the rise of healthier beverage options [1][3][8] - The market for sweetened iced tea remains robust, with sales expected to reach 350 billion yuan by 2025, significantly outpacing unsweetened varieties [6][14] Market Dynamics - The sweetened iced tea market maintains a 60:40 share over unsweetened tea, with brands like 康师傅 (Kang Shifu) and 统一 (Uni-President) leading the segment [1][6] - New entrants like 元气森林 (Yuanqi Forest) and 农夫山泉 (Nongfu Spring) are innovating within the iced tea space, with Yuanqi Forest reporting a 150% year-on-year growth in market share [1][6] Consumer Behavior - Iced black tea is perceived as a "common man's drink," appealing to budget-conscious consumers who prioritize value over brand prestige [3][15] - The recent price increase from 康师傅 has sparked consumer backlash, indicating a strong sensitivity to price changes among its core demographic [11][13] Competitive Landscape - 康师傅's price hikes have led to a decline in sales, with a reported 6.3% drop in tea beverage sales, while competitors like 统一 have seen growth [13][14] - The article notes that the iced tea market is shifting towards larger packaging sizes, reflecting consumer preferences for cost-effective options [13][14] Brand Positioning - Iced black tea brands have not attempted to position themselves as status symbols, instead focusing on the refreshing and enjoyable aspects of their products [17][18] - Despite health trends favoring low-sugar options, traditional iced black tea remains favored for its taste and affordability, with consumers expressing a preference for the original sweetened versions [17][18]

（ a company incorporated in the Cayman Islands with limited liability ） （一家在開曼群島註冊成立之有限責任公司） (Stock code: 220) （股份代號: 220） N O T I F I C AT I O N L E T T E R 通 知 信 函 21 August 2025 Uni-President China Holdings Ltd. (the "Company") –Notice of Publication of 2025 Interim Report (the "Current Corporate Communication") The Current Corporate Communication of the Company has been published in English and Chinese languages and is available on the website of the Company at www.uni-president.com.cn and the website o ...

（ a company incorporated in the Cayman Islands with limited liability ） （一家在開曼群島註冊成立之有限責任公司） (Stock code: 220) （股份代號: 220） N O T I F I C AT I O N L E T T E R 通 知 信 函 Dear Registered Shareholder(s), Uni-President China Holdings Ltd. (the "Company") – Notice of Publication of 2025 Interim Report (the "Current Corporate Communication") The Current Corporate Communication of the Company has been published in English and Chinese languages and is available on the website of the Company at www.uni-president.com.cn ...

[Company Information](index=4&type=section&id=Company%20Information) This chapter provides essential corporate details for Uni-President China Holdings Ltd., including its stock code, offices, board members, committees, bankers, auditor, and share registrar - Company shares are listed on The Stock Exchange of Hong Kong Limited, stock code **220**[11](index=11&type=chunk) - Executive Directors include Mr. Lo Chih-Hsien (Chairman) and Mr. Liu Hsin-Hua (General Manager)[12](index=12&type=chunk)[13](index=13&type=chunk) - PricewaterhouseCoopers serves as the company's auditor[15](index=15&type=chunk)[16](index=16&type=chunk) [Management Discussion and Analysis](index=6&type=section&id=Management%20Discussion%20and%20Analysis) This chapter analyzes Uni-President China Holdings Ltd.'s operating environment, financial performance, business segments, financial position, risk management, and human resources strategy for the first half of 2025 [Economic Environment Analysis](index=6&type=section&id=Economic%20Environment%20Analysis) In the first half of 2025, China's economy grew steadily, with GDP up 5.3% and retail sales up 5.0%, driven by government consumption policies and evolving consumer demands - In the first half of 2025, China's GDP grew by **5.3%** year-on-year, and total retail sales of consumer goods increased by **5.0%**[19](index=19&type=chunk)[21](index=21&type=chunk) - The Chinese government continued its "Consumption Promotion Year" policy, with macro policies consistently boosting the release of consumption potential[19](index=19&type=chunk)[21](index=21&type=chunk) - Consumer demand for healthy attributes, functional needs, emotional resonance, and value-for-money in food and beverages continued to strengthen, driving product innovation and structural growth in the consumer market[19](index=19&type=chunk)[22](index=22&type=chunk) [Financial Performance](index=7&type=section&id=Financial%20Performance) The Group achieved robust financial growth in the first half of 2025, with total revenue up 10.6% to RMB 17,086.6 million, operating profit surging 33.7%, and profit attributable to equity holders rising 33.2% 2025 H1 Key Financial Data | Indicator | 2025 H1 (RMB million) | 2024 H1 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 17,086.6 | 15,448.6 | +10.6% | | Food Business Revenue | 5,382.2 | 4,947.4 | +8.8% | | Beverage Business Revenue | 10,788.1 | 10,023.5 | +7.6% | | Gross Profit | 5,864.8 | 5,228.0 | +12.2% | | Gross Profit Margin | 34.3% | 33.8% | +0.5 percentage points | | Operating Profit | 1,648.7 | 1,233.3 | +33.7% | | Profit Attributable to Equity Holders of the Company | 1,286.7 | 965.7 | +33.2% | - Gross profit margin improvement primarily due to increased production capacity from sales volume growth and a decline in prices of some raw materials[24](index=24&type=chunk)[26](index=26&type=chunk) - Selling and marketing expenses increased by approximately **RMB 181.5 million**, mainly for brand promotion and channel development[24](index=24&type=chunk)[27](index=27&type=chunk) [Business Review](index=8&type=section&id=Business%20Review) The Group focused on consumer demand, driving steady growth in food and beverages through innovation, omnichannel integration, and emotional marketing, while expanding e-commerce and emerging channels [Food Business](index=8&type=section&id=Food%20Business) The food business generated RMB 5,382.2 million in revenue in the first half of 2025, an 8.8% increase, driven by product innovation, value marketing, and meeting diverse consumer needs - In the first half of 2025, food business revenue recorded **RMB 5,382.2 million**, an **8.8% increase** compared to the same period last year[30](index=30&type=chunk)[32](index=32&type=chunk) - The Group aims to meet consumer demand through precise innovation, omnichannel integration, deep cultivation of segmented scenarios, and emotional marketing to create impactful brand experiences[30](index=30&type=chunk)[32](index=32&type=chunk) [Instant Noodle Business](index=8&type=section&id=Instant%20Noodle%20Business) The instant noodle business achieved steady growth through continuous innovation and strengthened product offerings, with key brands like "Tang Da Ren" and "Qie Huang" expanding market share and revenue - "Tang Da Ren," as a leader in soup noodles, achieved steady overall brand revenue growth in the first half of 2025 and launched "Mini Cup" to enrich its product matrix[35](index=35&type=chunk)[37](index=37&type=chunk) - "Uni-President Laotan Sauerkraut Beef Noodles" focused on quality management, enhancing brand trust through the "Laotan Grandpa" IP, achieving steady revenue growth in the first half[36](index=36&type=chunk)[38](index=38&type=chunk) - "Uni-President Braised Beef Noodles" completed flavor upgrades, developing "Three-Stage Burst Fragrance" technology to enhance brand recognition[36](index=36&type=chunk)[39](index=39&type=chunk) - "Qie Huang" maintained its "using about one sun-ripened tomato" standard, achieving continuous double-digit brand revenue growth in the first half and expanding usage scenarios through online and offline activities[40](index=40&type=chunk)[41](index=41&type=chunk) - "Man Han Da Can" focused on the "Scallion Braised Beef" flavor, achieving high double-digit revenue growth in the first half and promoting through Douyin for food-related content[40](index=40&type=chunk)[41](index=41&type=chunk) [Other Food Products](index=10&type=section&id=Other%20Food%20Products) The "Kai Xiao Zao" brand's cup-packaged "Sour Soup Wonton" and "Seaweed Shrimp Wonton" gained market favor due to their "premium value-for-money," driving growth in the instant wonton category - "Kai Xiao Zao" cup-packaged "Sour Soup Wonton" and "Seaweed Shrimp Wonton" gained continuous trial and repurchase from users due to their "premium value-for-money," driving growth in the instant wonton market[42](index=42&type=chunk)[43](index=43&type=chunk) [Food Business Outlook](index=11&type=section&id=Food%20Business%20Outlook) The food business will focus on high value-for-money, healthy, safe, and innovative specialty products, prioritizing consumer experience, quality control, and integrating health with Chinese culinary culture - The second half will focus on high value-for-money, healthy, safe, and innovative specialty products, providing rich emotional value[45](index=45&type=chunk)[46](index=46&type=chunk) - The Group will uphold its original intention, center on consumers, strictly control product quality, and integrate health with culture to inherit Chinese culinary traditions[45](index=45&type=chunk)[46](index=46&type=chunk) [Beverage Business](index=11&type=section&id=Beverage%20Business) The beverage business achieved RMB 10,788.1 million in revenue in the first half of 2025, a 7.6% increase, driven by brand building, market expansion, high-performance retail, increased freezing efforts, and digital empowerment - In the first half of 2025, beverage business revenue recorded **RMB 10,788.1 million**, a **7.6% increase** compared to the same period last year[47](index=47&type=chunk) - The Group adheres to brand building, cultivates and expands market channels, covering multiple consumption scenarios such as dining, household, gifts, and group purchases[46](index=46&type=chunk)[47](index=47&type=chunk) - Promotes the layout of high-performance retail points, continuously increases freezing efforts, empowers digitalization, and constantly innovates and optimizes product strength[46](index=46&type=chunk)[47](index=47&type=chunk) [Tea Beverages](index=12&type=section&id=Tea%20Beverages) The tea beverage business grew 9.1% to RMB 5,067.5 million in the first half, maintaining stable growth through product innovation, youth-oriented marketing, and cross-industry collaborations - In the first half of 2025, tea beverage revenue was **RMB 5,067.5 million**, a **9.1% increase** compared to the same period last year[48](index=48&type=chunk)[49](index=49&type=chunk) - "Uni-President Green Tea" deployed both low-sugar and sugar-free product lines, launched the new sugar-free "Chun Fu Roasted Tea," and deepened brand reputation through "Smiling Cycling" and "Cooling for Delivery Riders" campaigns[50](index=50&type=chunk)[51](index=51&type=chunk) - "Uni-President Iced Black Tea" launched "Uni-President Cola Iced Black Tea" and partnered with Bilibili to title sponsor a graduation concert; in the second half, it will title sponsor "The Rap of China 2025" to expand influence among young audiences[53](index=53&type=chunk)[54](index=54&type=chunk) - "Uni-President Plum Green Tea" strengthened its traditional Chinese aesthetic, launched the "Plum Blossom Bamboo Bottle," and collaborated with leading platforms to host a "Intangible Cultural Heritage Grand Exhibition"[55](index=55&type=chunk) - "Uni-President Double Extract Lemon Tea" focused on the selling point of "double tea base, extracted for 7 minutes," creating a "Authentic Kung Fu Festival" to strengthen brand image[56](index=56&type=chunk)[58](index=58&type=chunk) - "Xiao Ming Tong Xue" launched the new "Peach Guava Oolong Tea," continuing to deeply engage with the ACG community, contributing to brand revenue growth[59](index=59&type=chunk) - "Tea King" redefined its positioning as "King of Tea," launched a new Lapsang Souchong black tea flavor, and optimized its external aesthetics to enhance brand professionalism and recognition[60](index=60&type=chunk) [Juice](index=15&type=section&id=Juice) The juice business grew 1.7% to RMB 1,820.9 million in the first half, driven by the "healthy and delicious" concept, optimized flavors, and multi-specification, multi-scenario strategies across various brands - In the first half of 2025, juice business revenue was **RMB 1,820.9 million**, a **1.7% increase** compared to the same period last year[62](index=62&type=chunk)[63](index=63&type=chunk) - "Uni-President Fresh Orange" strengthened its "more beautiful" brand core value through "multi-fiber" design language and expanded into catering channels and festive gift box markets[64](index=64&type=chunk) - "Hai Zhi Yan" electrolyte beverage revenue continued stable growth, driven by "scientific formula + scenario deep cultivation" dual engines, strengthening the "electrolyte replenishment" brand value[65](index=65&type=chunk)[67](index=67&type=chunk) - "Uni-President Fruit Juice" leveraged "Uni-President Kumquat Lemon" and "Uni-President Rock Sugar Pear" to enter campus scenarios and launched the low-sugar, refreshing grapefruit-flavored beverage "You Jian Qing Xin" to open new growth tracks[66](index=66&type=chunk)[68](index=68&type=chunk) - "Yuan Qi Jue Xing" focused on the 100% pure fruit and vegetable juice segment in first-tier cities, advocating a positive lifestyle and conveying the brand tone of "full of vitality, awakening new power"[70](index=70&type=chunk)[71](index=71&type=chunk) [Beverage Business Outlook](index=17&type=section&id=Beverage%20Business%20Outlook) In the second half, the juice business will consolidate core product growth, focus on ready-to-drink and catering channels, pre-deploy for festive markets, and expand new product sales to capture low-sugar, refreshing juice market share - The second half will consolidate core product growth, focusing on ready-to-drink consumption scenarios, deepening catering channel penetration, and pre-deploying for festive gift box markets[72](index=72&type=chunk)[73](index=73&type=chunk) - Expand new product sales, accelerate market share capture in low-sugar, refreshing juice beverages, and create a second growth curve[72](index=72&type=chunk)[73](index=73&type=chunk) [Milk Tea](index=17&type=section&id=Milk%20Tea) The milk tea business grew 3.5% to RMB 3,397.9 million in the first half, with "Uni-President Assam Milk Tea" leading the market and launching a strategic new product, while "CITEA Milk Tea" strengthened brand recognition through unique craftsmanship - In the first half of 2025, milk tea business revenue was **RMB 3,397.9 million**, a **3.5% increase** compared to the same period last year[74](index=74&type=chunk)[75](index=75&type=chunk) - "Uni-President Assam Milk Tea" launched the strategic new product Jasmine Milk Green, positioned as a large green tea-based product, aligning with the sugar reduction trend, receiving enthusiastic market response, and possessing potential for a new growth curve[74](index=74&type=chunk)[75](index=75&type=chunk) - "Uni-President Assam Milk Tea" centered on the core proposition of "smooth good mood," deepening brand connection through Spring Festival family gatherings, Xiaohongshu interactions, and the "Jasmine Bloom • Good Mood Music Festival"[76](index=76&type=chunk)[78](index=78&type=chunk) - "CITEA Milk Tea" meticulously crafted new Chinese-style milk tea, using a 12-minute slow-cooking process, and collaborated with intangible cultural heritage masters and youth platforms to convey the "slow living" philosophy[77](index=77&type=chunk)[79](index=79&type=chunk) [Coffee](index=19&type=section&id=Coffee) The coffee business focused on optimizing "Ya Ha Iced Coffee" product strength and enhancing coffee aroma, deeply cultivating base cities and campuses to expand its consumer base, with plans to explore category innovation in the second half - In the first half of 2025, the coffee business focused on operating strategy, optimizing "Ya Ha Iced Coffee" product strength, and enhancing coffee roasting aroma[81](index=81&type=chunk)[82](index=82&type=chunk) - In terms of channels, deeply cultivated base cities, focusing on campuses to increase brand penetration and cultivate new university student consumer groups[81](index=81&type=chunk)[82](index=82&type=chunk) - In the second half, it will continue to expand its core business through "Ya Ha Iced Coffee" focus and base city development, and explore new directions for category innovation[83](index=83&type=chunk)[85](index=85&type=chunk) [Packaged Water](index=19&type=section&id=Packaged%20Water) The "I Qua" brand maintained its mid-to-high-end natural mineral water positioning, creating immersive experiences and expanding online presence, while optimizing sales points for various product sizes to cater to diverse consumer needs - The "I Qua" brand focused on its core positioning as mid-to-high-end natural mineral water, articulating the "Connected by Source" brand story[84](index=84&type=chunk)[86](index=86&type=chunk) - In the first half of 2025, an immersive "Snow Mountain Secret Realm" experience space was created in Shanghai's core business districts, with online promotion centered on the "Connected by Source" theme[87](index=87&type=chunk)[90](index=90&type=chunk) - Increased the density of 360ml specification sales points and multi-pack product sales to adapt to the drinking habits of parent-child and female consumers and different consumption scenarios[87](index=87&type=chunk)[90](index=90&type=chunk) [E-commerce](index=20&type=section&id=E-commerce) The Group's online business is committed to enriching consumer purchasing channels and creating a convenient, safe, and efficient business model, actively deploying across all-domain interest e-commerce platforms and establishing content live streaming rooms - The Group's online business is committed to creating a convenient, safe, and efficient business model, enriching consumer purchasing channels[88](index=88&type=chunk)[91](index=91&type=chunk) - Deployed across all-domain interest e-commerce platforms such as Douyin Mall, Kuaishou, Pinduoduo, and WeChat Video Accounts, promoting short video and live stream sales[88](index=88&type=chunk)[91](index=91&type=chunk) - Established **8 content live streaming rooms** to meet new user demands for "value-for-money," providing more emotional value, and creating new promotional fronts for brands[88](index=88&type=chunk)[91](index=91&type=chunk) [Others](index=20&type=section&id=Others) The Group actively expanded into emerging channels, leveraging its R&D advantages and production line diversity to deepen cooperation with strategic alliance clients and seek broader expansion opportunities in OEM categories - The Group actively expanded into emerging channels, leveraging R&D advantages and production line diversity[89](index=89&type=chunk)[92](index=92&type=chunk) - Deepened cooperation with strategic alliance clients, seeking expansion opportunities in OEM categories and cooperation projects[89](index=89&type=chunk)[92](index=92&type=chunk) - Diversified layout in emerging channels created new growth momentum for the Group[89](index=89&type=chunk)[92](index=92&type=chunk) [Financial Analysis](index=21&type=section&id=Financial%20Analysis) This section analyzes the Group's cash, borrowings, financing structure, cash flow, capital expenditures, and operating efficiency, noting ample cash reserves, increased short-term borrowings, and improved efficiency metrics [Cash and Borrowings](index=21&type=section&id=Cash%20and%20Borrowings) As of June 30, 2025, the Group's bank and cash on hand increased to RMB 9,354.6 million, while total financial liabilities significantly rose to RMB 2,249.3 million due to increased short-term borrowings Cash and Borrowings Status | Indicator | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (RMB million) | | :--- | :--- | :--- | :--- | | Bank and cash on hand | 9,354.6 | 8,577.2 | +777.4 | | Total financial liabilities | 2,249.3 | 290.0 | +1,959.3 | - **99.90%** of cash is denominated in RMB, **0.06%** in New Taiwan Dollars, **0.02%** in Hong Kong Dollars, and **0.02%** in US Dollars[94](index=94&type=chunk)[95](index=95&type=chunk) - All financial liabilities are denominated in RMB, bear floating interest rates, and there are no pledged bank borrowings[94](index=94&type=chunk)[95](index=95&type=chunk) [Financing](index=21&type=section&id=Financing) The Group maintains an appropriate capital structure, with its gearing ratio improving to (55.35)% as of June 30, 2025, reflecting a more robust net cash position relative to total equity Gearing Ratio | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total borrowings (including lease liabilities) | 2,249,280 | 289,996 | | Less: Bank and cash on hand | (9,354,589) | (8,577,196) | | Net cash | (7,105,309) | (8,287,200) | | Total equity | 12,836,562 | 13,399,110 | | Gearing ratio | (55.35%) | (61.85%) | - As of June 30, 2025, the Group held financial assets at fair value through profit or loss of **RMB 1,318.7 million**[98](index=98&type=chunk)[105](index=105&type=chunk) [Cash Flow and Capital Expenditure](index=22&type=section&id=Cash%20Flow%20and%20Capital%20Expenditure) For the six months ended June 30, 2025, the Group experienced a net decrease in cash and cash equivalents of RMB 406.2 million, with significant cash outflows from investing activities and increased capital expenditure Cash Flow and Capital Expenditure | Indicator | 6 months ended June 30, 2025 (RMB million) | 6 months ended June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Net decrease in cash and cash equivalents | (406.2) | (618.6) | | Net cash inflow from operating activities | 872.0 | 1,486.7 | | Net cash outflow from investing activities | (1,415.4) | (974.2) | | Net cash inflow from financing activities | 137.2 | (1,131.1) | | Capital expenditure (including right-of-use assets for leases) | 641.8 | 395.8 | [Operating Efficiency Analysis](index=22&type=section&id=Operating%20Efficiency%20Analysis) The Group improved operating efficiency by strictly managing trade receivables, payables, and inventory, resulting in a decrease in inventory turnover days from 41 to 35 and trade payables turnover days from 39 to 36 Operating Efficiency Indicators | Indicator | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net trade receivables (RMB million) | 695.8 | 627.6 | +68.2 | | Trade receivables turnover days | 7 | 7 | Stable | | Inventory (RMB million) | 1,842.9 | 2,487.1 | -644.2 | | Inventory turnover days | 35 | 41 | -6 days | | Trade payables (RMB million) | 2,233.6 | 2,283.5 | -49.9 | | Trade payables turnover days | 36 | 39 | -3 days | - The credit period for trade receivables is typically **60 to 90 days**[101](index=101&type=chunk)[104](index=104&type=chunk) - The decrease in inventory balance was mainly affected by preparations for the 2025 Spring Festival[107](index=107&type=chunk)[108](index=108&type=chunk) [Financial Management](index=24&type=section&id=Financial%20Management) The Group adheres to prudent financial management, adjusting expenses and capital expenditures to optimize assets and mitigate risks, while the finance department centrally manages financial risks and cash flow through automated systems - The Group adheres to prudent financial management principles, appropriately adjusting sales and marketing expenses and capital expenditures to optimize infrastructure and channel marketing assets[114](index=114&type=chunk)[117](index=117&type=chunk) - The finance department centrally manages financial risks (including interest rate and foreign exchange risks) and cash flow, and enhances fund utilization efficiency and accounting processing efficiency through an automated reconciliation system[114](index=114&type=chunk)[118](index=118&type=chunk) [Treasury Policy](index=24&type=section&id=Treasury%20Policy) The Group's treasury policy maintains a prudent approach, avoiding high-risk investments and speculative derivatives, with most revenue in RMB, and utilizing foreign exchange forward contracts for hedging other currency risks - Treasury policy prohibits high-risk investments or speculative derivative instruments, and investment in financial products with significant leverage or risk[115](index=115&type=chunk)[119](index=119&type=chunk) - Most revenue is derived from China operations, with assets and payments denominated in **RMB**[115](index=115&type=chunk)[119](index=119&type=chunk) - Foreign exchange forward contracts will be used for hedging if exposed to foreign exchange risks[115](index=115&type=chunk)[119](index=119&type=chunk) [Significant Investments](index=24&type=section&id=Significant%20Investments) As of June 30, 2025, the Group held no significant investments representing 5% or more of its total assets - As of June 30, 2025, the Group held no significant investments representing **5% or more** of its total assets[116](index=116&type=chunk)[120](index=120&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no material contingent liabilities - As of June 30, 2025, the Group had no material contingent liabilities[122](index=122&type=chunk)[127](index=127&type=chunk) [Pledged Group Assets](index=25&type=section&id=Pledged%20Group%20Assets) As of June 30, 2025, the Group had no pledged assets - As of June 30, 2025, the Group had no pledged assets[123](index=123&type=chunk)[128](index=128&type=chunk) [Material Acquisitions and Disposals](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals) During the review period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures - During the review period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[124](index=124&type=chunk)[129](index=129&type=chunk) [Future Material Investments or Plans for Capital Assets](index=25&type=section&id=Future%20Material%20Investments%20or%20Plans%20for%20Capital%20Assets) The Directors confirm that, as of the report date, the Group currently has no plans for any material investments or acquisitions of capital assets beyond its ordinary course of business - The Directors confirm that, other than ordinary business, the Group currently has no plans for any material investments or acquisitions of capital assets[125](index=125&type=chunk)[130](index=130&type=chunk) [Human Resources Policy](index=25&type=section&id=Human%20Resources%20Policy) As of June 30, 2025, the Group employed 33,652 people, optimizing its organizational structure and enhancing efficiency through talent recruitment, training, job rotation, and performance appraisal, with total employee benefits expenses of RMB 2,371.9 million - As of June 30, 2025, the Group's total number of employees was **33,652**[126](index=126&type=chunk)[131](index=131&type=chunk) - The Group ensures a stable, efficient, and vibrant team through mechanisms such as recruiting professional talent, improving training, job rotation, external exchange and learning, and performance appraisal[126](index=126&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk)[136](index=136&type=chunk) - During the review period, total employee benefits expenses (including Directors' emoluments) were **RMB 2,371.9 million**[133](index=133&type=chunk)[137](index=137&type=chunk) - The Group has no employee share option scheme or share award scheme[133](index=133&type=chunk)[137](index=137&type=chunk) [Capacity Strategy](index=26&type=section&id=Capacity%20Strategy) The Group employs a flexible capacity strategy, combining its own production with strategic alliances with professional beverage OEM manufacturers to ensure elastic capacity and maximize resource utilization for focused operational projects - The Group combines its own production capacity with cooperation with professional beverage OEM manufacturers, forming strategic alliances[134](index=134&type=chunk)[138](index=138&type=chunk) - The outsourcing approach provides flexible capacity, allowing resources to be fully utilized in focused operational projects to maximize efficiency[134](index=134&type=chunk)[138](index=138&type=chunk) [Events After Review Period](index=26&type=section&id=Events%20After%20Review%20Period) No events occurred after the review period that had a material impact on the Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2025 - No events occurred after the review period that had a material impact on the interim condensed consolidated financial information[135](index=135&type=chunk)[139](index=139&type=chunk) [Other Information](index=27&type=section&id=Other%20Information) This chapter discloses the company's securities transactions, equity interests of directors and chief executives, major shareholders' holdings, corporate governance compliance, and the audit committee's review report, ensuring transparency and adherence to regulations [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the review period - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the review period[140](index=140&type=chunk)[141](index=141&type=chunk) [Interests of Directors and Chief Executives in the Company's Securities](index=27&type=section&id=Interests%20of%20Directors%20and%20Chief%20Executives%20in%20the%20Company%27s%20Securities) As of June 30, 2025, Executive Director Mr. Liu Hsin-Hua held 310,000 ordinary shares (0.007%), while Chairman Mr. Lo Chih-Hsien held significant interests in an associated corporation, Uni-President Enterprises Corporation Directors' and Chief Executives' Long Position in the Company's Shares | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Liu Hsin-Hua | Beneficial owner | 310,000 | 0.007% | Directors' and Chief Executives' Long Position in Shares of Associated Corporation | Name of Associated Corporation | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding in Associated Corporation | | :--- | :--- | :--- | :--- | :--- | | Uni-President Enterprises Corporation | Lo Chih-Hsien | Beneficial owner | 4,059,095 | 0.08% | | | | Spouse's interest | 93,402,447 | 1.64% | [Interests of Substantial Shareholders and Other Persons in the Company's Securities](index=29&type=section&id=Interests%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20the%20Company%27s%20Securities) As of June 30, 2025, Cayman President Holdings Ltd. was a substantial shareholder with 70.49% of ordinary shares, and Uni-President Enterprises Corporation was deemed to hold 72.92% through its controlled corporations Substantial Shareholders' Long Position in the Company's Shares | Name | Capacity | Number of Ordinary Shares in the Company | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Cayman President Holdings Ltd. | Beneficial owner | 3,044,508,000 | 70.49% | | Uni-President Enterprises Corporation | Interest in controlled corporations | 3,149,742,983 | 72.92% | - Uni-President Enterprises Corporation is deemed to have an interest in all shares held by Cayman President, President (BVI), and Kai You (BVI)[152](index=152&type=chunk)[153](index=153&type=chunk) [Corporate Governance Code](index=30&type=section&id=Corporate%20Governance%20Code) The Directors confirm that the Company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules throughout the review period - The Company has complied with the code provisions of the Corporate Governance Code as set out in Part 2 of Appendix C1 to the Listing Rules throughout the review period[155](index=155&type=chunk)[157](index=157&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=30&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules, and all Directors confirmed full compliance with its required standards during the review period - The Company has adopted the Model Code as set out in Appendix C3 to the Listing Rules, and all Directors confirmed full compliance during the review period[156](index=156&type=chunk)[158](index=158&type=chunk) [Audit Committee Review](index=30&type=section&id=Audit%20Committee%20Review) The Audit Committee, composed of five members with extensive business experience, has reviewed the Group's management accounting principles and financial reporting matters, recommending the Board to adopt the unaudited interim results - Audit Committee members include Dr. Fan Ren-Da (Chairman), Mr. Chen Chih-Hung, Mr. Chen Sheng-Te, Ms. Chien Chi-Lin, and Mr. Lu Chia-Hsing, with a majority being independent non-executive directors[159](index=159&type=chunk) - The Committee has reviewed the Group's management accounting principles and financial reporting matters, and recommended the Board to adopt the unaudited interim results[159](index=159&type=chunk) [Review Report on Interim Financial Information](index=31&type=section&id=Review%20Report%20on%20Interim%20Financial%20Information) PricewaterhouseCoopers reviewed Uni-President China Holdings Ltd.'s interim condensed consolidated financial information for the six months ended June 30, 2025, concluding that it was prepared in all material respects according to Hong Kong Accounting Standard 34 - PricewaterhouseCoopers has reviewed the Group's interim condensed consolidated financial information for the six months ended June 30, 2025[162](index=162&type=chunk)[168](index=168&type=chunk) - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[162](index=162&type=chunk)[166](index=166&type=chunk) - The conclusion is that nothing came to the auditor's attention that caused them to believe the interim financial information was not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[165](index=165&type=chunk)[167](index=167&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2025, the Group's interim condensed consolidated statement of profit or loss showed significant growth in revenue, gross profit, operating profit, and profit attributable to equity holders, with basic and diluted earnings per share at 29.79 cents Summary of Interim Condensed Consolidated Statement of Profit or Loss | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 17,086,589 | 15,448,557 | | Cost of sales | (11,221,781) | (10,220,579) | | Gross profit | 5,864,808 | 5,227,978 | | Operating profit | 1,648,742 | 1,233,258 | | Profit before income tax | 1,778,728 | 1,323,233 | | Profit for the period attributable to equity holders of the Company | 1,286,710 | 965,693 | | Basic and diluted earnings per share (RMB cents) | 29.79 | 22.36 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=34&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's interim condensed consolidated statement of comprehensive income showed total comprehensive income attributable to equity holders of RMB 1,286.7 million, consistent with profit for the period, indicating no other comprehensive income items Summary of Interim Condensed Consolidated Statement of Comprehensive Income | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the period | 1,286,710 | 965,693 | | Other comprehensive income for the period – net of tax | – | – | | Total comprehensive income for the period attributable to equity holders of the Company | 1,286,710 | 965,693 | [Interim Condensed Consolidated Statement of Financial Position](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's interim condensed consolidated statement of financial position showed total assets of RMB 23,119.6 million, a slight decrease, while total liabilities increased to RMB 10,283.1 million and total equity decreased to RMB 12,836.6 million Summary of Interim Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 14,197,869 | 14,267,483 | | Current assets | 8,921,764 | 9,108,751 | | **Total assets** | **23,119,633** | **23,376,234** | | **Equity** | | | | Equity attributable to equity holders of the Company | 12,836,562 | 13,399,110 | | **Total equity** | **12,836,562** | **13,399,110** | | **Liabilities** | | | | Non-current liabilities | 870,524 | 776,279 | | Current liabilities | 9,412,547 | 9,200,845 | | **Total liabilities** | **10,283,071** | **9,977,124** | [Interim Condensed Consolidated Statement of Changes in Equity](index=37&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2025, the Group's total equity decreased from RMB 13,399.1 million to RMB 12,836.6 million, primarily due to dividend payments related to 2024, partially offset by profit for the period Summary of Interim Condensed Consolidated Statement of Changes in Equity | Indicator | Balance as at January 1, 2025 (RMB thousand) | Profit for the period (RMB thousand) | Dividends related to 2024 (RMB thousand) | Balance as at June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Share capital | 39,764 | – | – | 39,764 | | Share premium | 4,829,899 | – | – | 4,829,899 | | Other reserves | 4,583,955 | – | – | 4,583,955 | | Retained earnings | 3,945,492 | 1,286,710 | (1,849,258) | 3,382,944 | | **Total** | **13,399,110** | **1,286,710** | **(1,849,258)** | **12,836,562** | [Interim Condensed Consolidated Statement of Cash Flows](index=38&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2025, the Group's interim condensed consolidated statement of cash flows showed a net decrease in cash and cash equivalents of RMB 406.2 million, with net cash inflow from operating activities, net cash outflow from investing activities, and net cash inflow from financing activities Summary of Interim Condensed Consolidated Statement of Cash Flows | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Net cash generated from operating activities | 872,009 | 1,486,707 | | Net cash used in investing activities | (1,415,402) | (974,198) | | Net cash generated from/(used in) financing activities | 137,199 | (1,131,147) | | **Net decrease in cash and cash equivalents** | **(406,194)** | **(618,638)** | | Cash and cash equivalents at end of period | 203,546 | 313,570 | [Notes to the Interim Condensed Consolidated Financial Information](index=40&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) This chapter provides detailed notes to the interim condensed consolidated financial information, covering general information, basis of preparation, significant accounting policies, estimates, financial risk management, segment information, operating profit, finance income, income tax expense, earnings per share, dividends, changes in assets, investments accounted for using the equity method, trade receivables and payables, financial assets, share capital, and related party transactions [General Information](index=40&type=section&id=General%20Information) Uni-President China Holdings Ltd., incorporated in the Cayman Islands, primarily operates in the food and beverage sector in China, with its shares listed on the HKEX Main Board since December 17, 2007, and its unaudited interim condensed consolidated financial information is presented in RMB thousands - The Company was incorporated in the Cayman Islands and primarily engages in food and beverage businesses in China[180](index=180&type=chunk)[185](index=185&type=chunk)[186](index=186&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since December 17, 2007[180](index=180&type=chunk)[187](index=187&type=chunk) - This interim condensed consolidated financial information is unaudited and presented in **RMB thousands**[181](index=181&type=chunk)[182](index=182&type=chunk)[187](index=187&type=chunk) [Basis of Preparation](index=40&type=section&id=Basis%20of%20Preparation) This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and should be read in conjunction with the 2024 annual financial statements, with the Group operating on a going concern basis - This interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[183](index=183&type=chunk)[188](index=188&type=chunk) - It should be read in conjunction with the annual financial statements for the year ended December 31, 2024[183](index=183&type=chunk)[188](index=188&type=chunk) - The Group's interim condensed consolidated financial information is prepared on a going concern basis, supported by profitable operating results, positive operating cash inflows, and available bank loans[184](index=184&type=chunk)[189](index=189&type=chunk) [Significant Accounting Policies](index=41&type=section&id=Significant%20Accounting%20Policies) The Group's accounting policies are consistent with those of 2024, with new standards like HKAS 21 (Amendments) adopted without policy changes, while the impact of other newly issued but not yet effective standards is being assessed - The accounting policies applied are consistent with those adopted in the annual financial statements for the year ended December 31, 2024[190](index=190&type=chunk)[191](index=191&type=chunk) - The Group has adopted HKAS 21 (Amendments) "Lack of Exchangeability," but it did not result in changes to accounting policies or retrospective adjustments[192](index=192&type=chunk) - Several new and amended standards (e.g., HKFRS 9, 7, 18, 19) have been issued but are not yet mandatorily effective, and the Group is assessing their full impact[195](index=195&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk) [Estimates](index=43&type=section&id=Estimates) The preparation of interim financial information requires management to make judgments, estimates, and assumptions, with key sources of estimation uncertainty remaining consistent with those applied in the 2024 annual consolidated financial statements - Preparation of interim financial information requires management to make judgments, estimates, and assumptions, and actual results may differ from these estimates[198](index=198&type=chunk)[200](index=200&type=chunk) - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are the same as those applied in the 2024 annual consolidated financial statements[198](index=198&type=chunk)[201](index=201&type=chunk) [Financial Risk Management](index=43&type=section&id=Financial%20Risk%20Management) The Group's activities expose it to market, credit, and liquidity risks, with no changes in major risk management policies since year-end, and this section details these risks, including a maturity analysis of liquidity risk and fair value estimates of financial instruments [Financial Risk Factors](index=43&type=section&id=Financial%20Risk%20Factors) The Group is exposed to various financial risks, including market risks (foreign exchange, fair value interest rate, cash flow interest rate, and price risks), credit risk, and liquidity risk, with no changes in major risk management policies since year-end - The Group is exposed to market risks (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk, and price risk), credit risk, and liquidity risk[199](index=199&type=chunk)[202](index=202&type=chunk) - There have been no changes in major risk management policies since year-end[203](index=203&type=chunk) [Liquidity Risk](index=44&type=section&id=Liquidity%20Risk) As of June 30, 2025, the Group's financial liabilities show total contractual undiscounted cash flows of RMB 7,644.5 million, with the majority (RMB 7,123.7 million) due within one year, primarily comprising borrowings, trade payables, and other payables Maturity Analysis of Financial Liabilities (June 30, 2025) | Indicator | Less than 1 year (RMB thousand) | 1 to 2 years (RMB thousand) | 2 to 5 years (RMB thousand) | Over 5 years (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Borrowings | 2,204,131 | – | – | – | 2,204,131 | | Interest payments on borrowings | 9,176 | – | – | – | 9,176 | | Lease liabilities | 23,496 | 12,541 | 8,900 | 1,907 | 46,844 | | Trade payables | 2,233,621 | – | – | – | 2,233,621 | | Other payables and accrued expenses (excluding non-financial liabilities) | 2,653,246 | – | – | – | 2,653,246 | | Other long-term payables | – | 497,497 | – | – | 497,497 | | **Total** | **7,123,670** | **510,038** | **8,900** | **1,907** | **7,644,515** | - Interest payments on borrowings are calculated based on borrowings held at the reporting date, without considering future events[207](index=207&type=chunk)[209](index=209&type=chunk) [Fair Value Estimation of Financial Instruments](index=45&type=section&id=Fair%20Value%20Estimation%20of%20Financial%20Instruments) The Group's financial instruments measured at fair value primarily consist of bank structured deposits, amounting to RMB 1,318.7 million as of June 30, 2025, classified as Level 3, with no transfers between fair value hierarchy levels during the review period Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Financial assets at fair value through profit or loss (Level 3) | 1,318,701 | 1,676,730 | - Financial assets primarily consist of structured deposits purchased from major financial institutions in mainland China, with management prudently investing in low-risk products[213](index=213&type=chunk)[214](index=214&type=chunk) - No transfers were made between fair value hierarchy levels used to measure the fair value of financial instruments for the six months ended June 30, 2025[213](index=213&type=chunk) [Fair Value of Financial Assets and Liabilities Measured at Amortized Cost](index=46&type=section&id=Fair%20Value%20of%20Financial%20Assets%20and%20Liabilities%20Measured%20at%20Amortized%20Cost) At the reporting date, the fair values of the Group's financial assets and liabilities measured at amortized cost, including trade and bills receivables, deposits, other receivables, cash, bank balances, trade payables, other payables, accrued expenses, borrowings, and lease liabilities, were approximate to their carrying amounts - The fair values of trade and bills receivables, deposits and other receivables, cash and bank balances, trade payables, other payables and accrued expenses, borrowings, and lease liabilities are approximate to their carrying amounts[215](index=215&type=chunk) [Segment Information](index=47&type=section&id=Segment%20Information) The Group's executive directors, as chief operating decision makers, review business performance and allocate resources primarily from a product perspective, assessing beverage, food, and other segments based on segment profit or loss, with over 90% of activities in China - Executive directors review business from a product perspective, assessing beverage, food, and other segment performance, as over **90%** of sales and business activities are conducted in China[216](index=216&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) 2025 H1 Segment Performance | Indicator | Beverages (RMB thousand) | Food (RMB thousand) | Other (RMB thousand) | Unallocated (RMB thousand) | The Group (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 10,788,114 | 5,382,183 | 916,292 | – | 17,086,589 | | Segment profit╱(loss) | 1,544,493 | 189,500 | 104,996 | (190,247) | 1,648,742 | | Depreciation and amortization | 369,106 | 117,190 | 20,656 | 33,955 | 540,907 | | Additions to non-current assets | 583,964 | 31,008 | 5,482 | 21,351 | 641,805 | 2025 H1 Segment Assets and Liabilities | Indicator | Beverages (RMB thousand) | Food (RMB thousand) | Other (RMB thousand) | Unallocated (RMB thousand) | The Group (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | :--- | | Assets | 9,209,556 | 3,656,555 | 1,037,756 | 8,359,578 | 22,263,445 | | Investments accounted for using equity method | 726,704 | – | – | 129,484 | 856,188 | | **Total assets** | | | | | **23,119,633** | | Liabilities | 5,559,524 | 3,642,205 | 401,083 | 680,259 | 10,283,071 | | **Total liabilities** | | | | | **10,283,071** | [Operating Profit](index=50&type=section&id=Operating%20Profit) For the six months ended June 30, 2025, operating profit components included RMB 9,393.1 million for inventory costs, RMB 959.0 million for promotion and advertising, RMB 2,371.9 million for employee benefits, and RMB 55.85 million in government grant income Analysis of Operating Profit Items | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Cost of inventories | 9,393,127 | 8,543,939 | | Promotion and advertising expenses | 959,013 | 1,033,030 | | Employee benefits expenses | 2,371,852 | 2,277,829 | | Transportation expenses | 799,465 | 719,947 | | Depreciation and amortization | 540,907 | 555,457 | | Government grants | (55,850) | (49,390) | - Government grant income refers to subsidies received from various local governments in China as a return for the Group's subsidiaries' contributions to their local economies and development, and are unconditional[231](index=231&type=chunk) [Finance Income – Net](index=51&type=section&id=Finance%20Income%20%E2%80%93%20Net) For the six months ended June 30, 2025, the Group's net finance income significantly increased to RMB 119.0 million, primarily due to higher interest income from cash and bank balances and long-term fixed deposits, coupled with a substantial reduction in net exchange losses Finance Income – Net | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Finance income | 131,146 | 117,774 | | Finance costs | (12,111) | (53,432) | | **Finance income – net** | **119,035** | **64,342** | - Net exchange losses within finance costs significantly decreased from **RMB 38.6 million** in the first half of 2024 to **RMB 2.1 million** in the first half of 2025[233](index=233&type=chunk) [Income Tax Expense](index=51&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2025, the Group's income tax expense was RMB 492.0 million, with mainland China subsidiaries subject to a 25% corporate income tax rate (15% for some western regions), and the Group is assessing the impact of Hong Kong's OECD Pillar Two legislation Income Tax Expense | Indicator | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current income tax (Mainland China corporate income tax) | 424,816 | 351,239 | | Deferred income tax | 67,202 | 6,301 | | **Income tax expense** | **492,018** | **357,540** | - Mainland China subsidiaries are subject to a corporate income tax rate of **25%**, with some companies in western regions enjoying a preferential tax rate of **15%**[237](index=237&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - Hong Kong has announced that OECD Pillar Two legislation will be effective from January 1, 2025, and the Group is assessing its top-up tax impact[244](index=244&type=chunk)[246](index=246&type=chunk) [Earnings Per Share](index=53&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, profit attributable to equity holders was RMB 1,286.7 million, resulting in basic and diluted earnings per share of RMB 29.79 cents, an increase from the prior year, with no potential dilutive ordinary shares Earnings Per Share | Indicator | 6 months ended June 30, 2025 | 6 months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to equity holders of the Company (RMB thousand) | 1,286,710 | 965,693 | | Weighted average number of ordinary shares outstanding (thousand shares) | 4,319,334 | 4,319,334 | | **Basic earnings per share (RMB cents)** | **29.79** | **22.36** | - Diluted earnings per share were consistent with basic earnings per share as there were no potential dilutive ordinary shares[249](index=249&type=chunk) [Dividends](index=53&type=section&id=Dividends) Dividends related to the year ended December 31, 2024, totaling approximately RMB 1,849 million, were paid in June 2025, and the Directors do not recommend an interim dividend for the six months ended June 30, 2025 - Dividends related to 2024, approximately **RMB 1,849 million**, were paid in June 2025[250](index=250&type=chunk)[251](index=251&type=chunk) - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025[252](index=252&type=chunk) [Property, Plant and Equipment, Right-of-Use Assets, Investment Properties and Intangible Assets](index=54&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Right-of-Use%20Assets%2C%20Investment%20Properties%20and%20Intangible%20Assets) As of June 30, 2025, the Group's net book value of property, plant and equipment was RMB 6,168.0 million, right-of-use assets RMB 1,449.3 million, investment properties RMB 318.3 million, and intangible assets RMB 7.0 million, with total additions to non-current assets of RMB 641.8 million during the review period Net Book Value of Non-Current Assets | Indicator | June 30, 2025 (RMB thousand) | January 1, 2025 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment | 6,168,021 | 6,044,750 | | Right-of-use assets | 1,449,332 | 1,513,997 | | Investment properties | 318,280 | 330,583 | | Intangible assets | 6,968 | 7,486 | - For the six months ended June 30, 2025, total additions to non-current assets amounted to **RMB 641.8 million**[253](index=253&type=chunk) [Investments Accounted for Using the Equity Method](index=55&type=section&id=Investments%20Accounted%20for%20Using%20the%20Equity%20Method) As of June 30, 2025, the Group's total investments accounted for using the equity method amounted to RMB 856.2 million, comprising investments in associates of RMB 496.2 million and joint ventures of RMB 360.0 million, with a slight decrease from year-end due to dividends and reduced profit attributable to joint ventures Investments Accounted for Using the Equity Method | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Associates | 496,223 | 485,867 | | Joint ventures | 359,965 | 391,610 | | **Total** | **856,188** | **877,477** | - Changes in investments include dividends receivable (associates **RMB 15.995 million**, joint ventures **RMB 16.245 million**) and share of profit after tax (associates **RMB 26.352 million**, joint ventures **RMB (15.401) million**)[255](index=255&type=chunk) [Trade and Bills Receivables](index=56&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2025, the Group's total trade and bills receivables amounted to RMB 695.8 million, with net trade receivables of RMB 686.4 million, and the majority due within 90 days, consistent with the Group's credit policy Trade and Bills Receivables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables, net | 686,434 | 595,615 | | Bills receivables | 9,341 | 31,941 | | **Trade and bills receivables** | **695,775** | **627,556** | - The Group typically grants customers a credit period of **60 to 90 days**[256](index=256&type=chunk) - As of June 30, 2025, **RMB 673.8 million** of total trade receivables were due within 90 days[258](index=258&type=chunk) [Financial Assets at Fair Value Through Profit or Loss](index=57&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The Group's financial assets at fair value through profit or loss, primarily bank structured deposits, had a fair value of RMB 1,318.7 million as of June 30, 2025, representing 5.70% of total assets, with expected maturity dates ranging from July 2025 to April 2026 Financial Assets at Fair Value Through Profit or Loss | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Structured deposits (fair value) | 1,318,701 | 1,676,730 | | Weight of total assets | 5.70% | 7.17% | - Financial assets refer to bank structured deposits, with changes in fair value recognized in "Other gains – net" in the statement of profit or loss[260](index=260&type=chunk) - Expected maturity dates range from **July 11, 2025, to April 9, 2026**[261](index=261&type=chunk) [Share Capital and Share Premium](index=58&type=section&id=Share%20Capital%20and%20Share%20Premium) As of June 30, 2025, the Company's issued and fully paid share capital remained unchanged, totaling RMB 4,869.663 million, comprising 4,319,334,000 shares, share capital of RMB 39.764 million, and share premium of RMB 4,829.899 million Share Capital and Share Premium | Indicator | January 1, 2025 and June 30, 2025 (RMB thousand) | | :--- | :--- | | Number of shares | 4,319,334,000 | | Share capital | 39,764 | | Share premium | 4,829,899 | | **Total** | **4,869,663** | [Trade Payables](index=58&type=section&id=Trade%20Payables) As of June 30, 2025, the Group's total trade payables decreased to RMB 2,233.6 million, with RMB 1,627.0 million due within 30 days, consistent with supplier credit terms, and their carrying amounts approximate fair values due to short-term maturity Trade Payables | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables (third parties) | 1,433,491 | 1,581,911 | | Trade payables (related parties) | 800,130 | 701,593 | | **Total** | **2,233,621** | **2,283,504** | - Suppliers typically grant the Group a credit period of **30 to 90 days**[263](index=263&type=chunk) - As of June 30, 2025, **RMB 1,626.974 million** of trade payables were due within 30 days[263](index=263&type=chunk) [Borrowings](index=59&type=section&id=Borrowings) As of June 30, 2025, the Group's unsecured bank borrowings significantly increased to RMB 2,204.1 million, all current and RMB-denominated, with a weighted average effective interest rate of 1.80% and unutilized facilities of RMB 5,866.5 million Borrowings Status | Indicator | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank borrowings, unsecured (current) | 2,204,131 | 201,264 | | **Total** | **2,204,131** | **201,264** | - The carrying amounts of the Group's borrowings are all denominated in **RMB** and are due within one year[270](index=270&type=chunk) - As of June 30, 2025, the weighted average effective interest rate for bank borrowings was **1.80%** (December 31, 2024: 2.89%)[273](index=273&type=chunk)[274](index=274&type=chunk) - The Group had unutilized bank borrowing facilities of **RMB 5,866.5 million**[276](index=276&type=chunk) [Related Party Transactions](index=61&type=section&id=Related%20Party%20Transactions) The Group engages in various related party transactions with its ultimate holding company, Uni-President Enterprises Corporation, and its affiliates, including significant purchases of raw materials and finished goods, sales, and other services - The Group's ultimate holding company is Uni-President Enterprises Corporation[277](index=277&type=chunk) Summary of 2025 H1 Related Party Transactions | Transaction Type | 6 months ended June 30, 2025 (RMB thousand) | 6 months ended June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Sales of raw materials and finished goods | 159,441 | 110,538 | | Purchases of raw materials and finished goods | 3,727,432 | 3,442,218 | | Logistics service expenses | 26,403 | 3,450 | | Consulting service income | 29,500 | 29,236 | | Rental income | 37,464 | 38,080 | - Key management personnel compensation was **RMB 6.609 million** (first half of 2024: RMB 4.817 million)[280](index=280&type=chunk)

Group 1 - The stock price of Hailide (002206) closed at 6.52 yuan on August 19, 2025, with an increase of 0.46% and a turnover rate of 5.43% [1] - The company's latest quarterly report shows total revenue of 1.453 billion yuan, a year-on-year increase of 5.23%, and a net profit attributable to shareholders of 140 million yuan, up 86.95% year-on-year [1] - Hailide's current liquidity ratios are 1.487 for the current ratio and 1.102 for the quick ratio, with a debt-to-asset ratio of 46.25% [1] Group 2 - Hailide has made investments in 12 companies and participated in 89 bidding projects [2] - The company holds 136 trademark registrations and 305 patent applications, along with 24 administrative licenses [2]

Core Insights - The Chinese apple juice market is experiencing steady growth, with production increasing from 180,000 tons in 2019 to a projected 504,000 tons by 2024, driven by stable demand and improved processing technology [5][2]. - The market size for apple juice is expected to rise from 8.5 billion yuan in 2019 to 12.8 billion yuan by 2024, reflecting a recovery in consumer demand and external market conditions [8]. - Major players like Andeli and Nongfu Spring are leading the market, focusing on high-quality and diversified products, while also expanding their global presence [8][9]. Industry Overview - The juice industry in China is characterized by a multi-category coexistence, with orange juice holding a 28% market share and apple juice (including concentrate) at 22%, together dominating the market [1]. - Tropical fruit juices, such as mango and pineapple, account for 12% of the market, indicating potential for growth [1]. Supply Chain Dynamics - The supply of apple juice is heavily influenced by upstream raw material availability, with apple production expected to grow from 42.4 million tons in 2019 to 50.4 million tons in 2024, maintaining a growth rate of 3% to 4.3% [2]. - Key production regions include the Bohai Bay and the Northwest Loess Plateau, with Shaanxi being a significant area for high-quality apple production [2]. Production Trends - Apple juice production in China is projected to recover from a dip in 2020 due to the pandemic, with a steady increase anticipated from 2021 to 2024 as supply and demand balance out [5]. Market Dynamics - The apple juice market is witnessing a trend towards consolidation, with leading companies like Andeli and Guotou Zhonglu expanding their market share through mergers and acquisitions [9]. - There is a growing preference for high-quality organic products in mature markets, while emerging markets show higher growth rates in demand [9].

Core Insights - The instant noodle market in China is experiencing a significant decline, with a total consumption drop of 4 billion packages from 2020 to 2023, leading to revenue decreases for major players like Master Kong and Uni-President [1][3] - The rise of meal delivery services, particularly Meituan's 6 yuan meal packages, has drastically changed consumer preferences, resulting in a 300% increase in orders while instant noodle sales plummet [1][5] - Health concerns are driving younger generations away from instant noodles, with 59.3% of Gen Z planning to cut back on consumption due to high sodium content [8][10] Industry Overview - Master Kong reported a revenue drop of 1.1 billion yuan in the first half of the year, with a reduction of 3,409 distributors, while Uni-President's instant noodle growth has slowed to single digits [3] - White Elephant is emerging as a strong competitor, nearing Master Kong's revenue with 13 billion yuan, but the industry is facing a split between low-cost and premium products [3][5] - The average price of instant noodles has increased from 2.5 yuan to 5-6 yuan, with premium options exceeding 20 yuan, yet this price hike has not reversed the declining trend [5] Consumer Behavior Changes - The convenience of meal delivery has overshadowed instant noodles, with average delivery times dropping to 28 minutes, making the traditional preparation time of instant noodles less appealing [5][7] - The growth of high-speed rail has led to a 47% increase in food delivery orders, while instant noodle sales in train compartments have decreased by 30% [7] - Social media trends show that while unique flavors attract initial purchases, the repurchase rate remains low, indicating a lack of sustained interest in instant noodles [10] Future Outlook - The evolution of consumer preferences suggests that the definition of convenience is shifting from "quick meals" to "enjoyable experiences," indicating a potential transformation in the instant noodle market [11] - Future iterations of instant noodles may focus on healthier options, such as short-shelf-life noodles and non-fried varieties, or may find niche markets in camping and emergency supplies [11]