Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][4]. Core Views - Post-pandemic revenue has returned to a growth trajectory, with the beverage business identified as the core growth driver and profit margins showing an improving trend [3][8]. - The company has implemented a 100% dividend payout policy since 2018, currently reflecting a dividend yield of 8% based on the stock price [3][8]. - The projected EPS for 2024, 2025, and 2026 is estimated at 0.42, 0.46, and 0.49 CNY respectively, with a corresponding PE of 15X for 2024 [3][8]. Summary by Sections 1. Investment Recommendation - The company operates in a sector with rigid demand for instant noodles and beverages, showcasing strong product innovation capabilities, which suggests it can withstand economic cycles [8]. - Key growth drivers include the increase in short-distance travel boosting beverage market expansion, product innovation catering to younger consumers, and diversification of distribution channels [8]. - Revenue CAGR is expected to be around 5% from 2024 to 2026, with net profit CAGR projected at 7% during the same period [8]. 2. Company Overview - Founded in 1992, the company is a diversified multinational group primarily engaged in food and beverage, with a market capitalization of 30.8 billion HKD as of June 28, 2024 [9]. - The company has experienced a recovery in revenue growth after a stagnation period, achieving a record revenue of 28.59 billion CNY in 2023 [14]. 3. Competitive Advantages - The company emphasizes product innovation, having successfully launched several major products that have become market leaders, such as Assam milk tea and various instant noodle lines [20][22]. - Organizational efficiency has significantly improved, with revenue per employee increasing threefold since 2007, indicating enhanced productivity [24]. 4. Growth Potential - The company is well-positioned to capitalize on the growing trend of short-distance travel, which is expected to drive food and beverage sales [30]. - There is substantial room for expansion in retail outlets, with a focus on enhancing distribution networks and exploring new sales channels, including online platforms [30][31].

食品饮料 公 司 研 究 / 公 司 深 度 报告原因:首次覆盖 | 市场数据: | 年 06 月 27 日 | |--------------------------|----------------------------| | 收盘价(港币) | 7.09 | | 恒生中国企业指数 | 6324.05 | | 52 周最高 / 最低(港币) | 7.55/4.30 | | H 股市值(亿港币) | 306.24 | | 流通 H 股(百万股) | - | | 汇率(人民币/港币) | 1.0956 | 一年内股价与基准指数对比走势: 64% -36% 06/2707/2708/2709/2710/2711/2712/2701/2702/2703/2704/2705/2706/27 HSCEI 统一企业中国 资料来源:Bloomberg | 证券分析师 | |--------------------------| | 吕昌 A0230516010001 | | lvchang@swsresearch.com | | 周缘 A0230519090004 | | zhouyuan@swsresearch.co ...

Financial Performance - Revenue for the year 2023 reached RMB 28,591,271 thousand, a 1.2% increase from RMB 28,257,432 thousand in 2022[10] - Gross profit for 2023 was RMB 8,711,731 thousand, up 6.4% from RMB 8,187,917 thousand in 2022[10] - Profit before income tax in 2023 was RMB 2,239,924 thousand, a 29.4% increase from RMB 1,730,829 thousand in 2022[10] - Net profit attributable to equity holders of the company for 2023 was RMB 1,667,060 thousand, a 36.4% increase from RMB 1,222,157 thousand in 2022[10] - Basic earnings per share for 2023 were RMB 38.60 cents, a 36.4% increase from RMB 28.30 cents in 2022[10] - Dividends for 2023 were RMB 1,833,769 thousand, a 25% increase from RMB 1,466,588 thousand in 2022[10] - The Group's revenue in 2023 reached RMB 28,591.3 million, a 1.2% increase year-over-year, with post-tax profits of RMB 1,667.1 million, up 36.4%[12] - Revenue for 2023 increased by 1.2% to RMB28,591.3 million compared to RMB28,257.4 million in 2022[123] - Gross profit increased by 6.4% to RMB8,711.7 million, with gross profit margin rising by 1.5 percentage points to 30.5%[123] - Operating profit increased by 33.5% to RMB1,996.5 million, partly due to a one-off gain of RMB351.4 million from land disposal[123] - Profit attributable to equity holders increased by 36.4% to RMB1,667.1 million, with earnings per share at RMB38.60 cents[123] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 22,134,218 thousand, a 1.6% increase from RMB 21,784,355 thousand in 2022[11] - Total liabilities as of December 31, 2023, were RMB 8,751,841 thousand, a 1.7% increase from RMB 8,603,002 thousand in 2022[11] - Total equity as of December 31, 2023, was RMB 13,382,377 thousand, a 1.5% increase from RMB 13,181,353 thousand in 2022[11] - Cash and cash equivalents as of December 31, 2023, were RMB 931,995 thousand, a 758.7% increase from RMB 108,519 thousand in 2022[11] - Cash and bank balances increased to RMB7,565.5 million as of December 31, 2023, up from RMB6,654.2 million in 2022[125] - Total financial liabilities increased by 24.1% to RMB1,079.4 million, primarily due to short-term borrowings[125] - Cash and cash equivalents increased by RMB823.5 million year-on-year, with net cash inflow from operating activities of RMB3,053.5 million, net cash outflow from investing activities of RMB947.0 million, and net cash outflow from financing activities of RMB1,282.5 million[130][134] - Capital expenditure for 2023 was RMB1,078.8 million, a significant increase from RMB545.9 million in 2022, primarily due to investments in marketing assets and facility upgrades[130][134] - Net trade receivables decreased by RMB234.1 million to RMB585.8 million, mainly due to delayed product preparation for Chinese New Year[131][135] - Inventories decreased by RMB396.6 million to RMB2,125.9 million, with inventory turnover days reduced by 2 days to 42 days[136][137] - Trade payables decreased by RMB552.4 million to RMB2,122.6 million, also influenced by the delayed Chinese New Year preparation[136][137] - Financial assets at fair value through profit or loss increased to RMB1,618.7 million from RMB1,018.5 million in 2022[129][132] - The gearing ratio increased to -48.47% from -43.89% in 2022, calculated as net cash divided by total equity[128][132] - Cash at bank and on hand reached RMB7,565.5 million, with 99.90% denominated in Renminbi[126] Business Segments - The beverages segment achieved a compound annual growth rate (CAGR) of 12.3% since 2020, contributing significantly to the overall revenue growth[12] - "The King of Tomato" brand doubled its revenue CAGR over the past three years, showing strong market favorability[12] - "Uni Green Tea" and "Haizhiyan" brands achieved high double-digit year-on-year revenue growth, capitalizing on post-pandemic consumer trends[12] - The food business recorded revenue of RMB 9,846.8 million in 2023, focusing on product quality, flavor optimization, and diversified consumption scenarios[26][27] - The instant noodles business generated revenue of RMB 9,594.3 million in 2023, emphasizing product quality, innovation, and catering to personalized consumer needs[28][29] - Beverages business revenue in 2023 reached RMB17,775.5 million, an increase of 8.4% year-over-year[40] - Tea drinks business revenue in 2023 amounted to RMB7,579.5 million, representing a 9.0% growth compared to the previous year[41] - Revenue from the juice business in 2023 reached RMB 3,404.2 million, a 13.3% increase year-over-year, accounting for 19.2% of beverage revenue, a seven-year high[55][58] - Milk tea business revenue in 2023 reached RMB6,305.2 million, a 5.0% increase year-over-year, driven by Uni Assam Milk Tea and the launch of CITEA milk tea[71][72] - Coffee business focused on the "A-Ha" brand strategy in 2023, introducing new flavors like coconut latte to attract the new generation of consumers[76] Brand and Product Performance - "Soup Daren（湯達人）" rice noodles sales increased rapidly, gaining significant consumer recognition[31] - "Soup Daren Genki Music Festival（湯達人元氣音樂節）" achieved record-high on-site attendance and online exposure, significantly boosting brand awareness and reputation[31] - "Uni-President Lao Tan Pickled Cabbage and Beef Noodles（統一老壇酸菜牛肉麵）" revenue gradually recovered due to increased consumer trust and intimacy[32] - "The King of Tomato（茄皇）" brand visual symbol was renewed and upgraded, enhancing brand recognition and reducing cognitive costs[33] - "Kai Xiao Zao（開小灶）" frozen fried rice series won the 2022-2023 Innovative Product Award for the Instant Food Industry in China[37] - "Kai Xiao Zao（開小灶）" products ranked first in multiple categories during the 2023 Double 11 Shopping Festival[37] - "Kai Xiao Zao（開小灶）" launched the "Private Kitchen（私房菜）" gift box in mid-December 2023, targeting the high-end gift market[37] - Uni Green Tea focused on health attributes and value through sugar-free products and marketing campaigns targeting young consumers[42][43] - Uni Ice Tea upgraded its product by adding real lemon juice and targeted Z-generation consumers through Bilibili marketing, aiming to expand brand exposure and influence[46][47] - Uni Plum Green Tea emphasized its unique selling point of "Grade A plums" and sponsored Bilibili's graduation concert to enhance brand awareness in target groups[48][52] - Uni Shuangcui Lemon Tea was upgraded with an innovative concept of "Double Tea Base with 7-minute Extraction" and launched a regional Cantonese-style lemon tea campaign to attract young consumers[49][53] - Classmate Xiaoming leveraged ACG culture and partnered with Bilibili and the Chinese comics IP "Link Click" to target younger student groups[50][51] - The Group's "Haizhiyan" electrolyte drink achieved high double-digit revenue growth in 2023, with a strong compound annual growth rate over the past three years[61][62] - "Uni Orangeate" continued to emphasize its "More Fiber" and "More Vitamin C" image, with a focus on expanding sales points in dining and gift box scenarios[63] - The Group launched a new flavor, "Uni Plum Juice," in 2023, which performed well in the market and became a new growth driver[64] - "Chai Li Won" introduced fresh leaf juice in its green tea category in 2023, enhancing product freshness and delivering a "freshly brewed" taste[56] - Uni Sweet-sour Plum Juice launched in 2023, driving incremental growth with excellent market performance[65] - Uni Crystal Sugar Pear Drink enhanced product quality and packaging in 2023, targeting young consumers with a focus on "Moist" core value[66] - Vitality Awakening 100% fruit (vegetable) juice focused on cultivating 100% juice market in key first-tier cities and expanded online platforms like O2O and groceries delivery services[67][69] - Uni Assam Milk Tea introduced new flavors and packaging formats in 2023, including cans and tetra packs, to capitalize on gift box sales opportunities[73] - CITEA milk tea launched in Q4 2023, targeting young consumers with a "sweet but not greasy, flavourful and aromatic" product using innovative slow-boiling techniques[74][75] - The new flavor of Raw Coconut Latte was well received by the new generation of consumers and has established a market base[79] - ALKAQUA launched a 5L water barrel in December 2023, focusing on e-commerce channels to target the family drinking water market[81][82] - The Group launched four types of flavoured 8-degree sparkling wine under the brand "Uni-Wonder" in 2023, targeting young consumers[84][85] - The premium coffee brand "MANYA" launched CAFÉ Au Lait, combining tea and coffee, exclusively in the Sam's system[87][88] Strategic Initiatives - The Group proposed a final cash dividend of RMB 42.45 cents per share, totaling approximately RMB 1,833.8 million for 2023[15][16] - The Group is focusing on digital transformation to empower all aspects of its business operations[13][14] - The Group plans to deepen market penetration by expanding both offline and online channels, aiming to extend consumption scenarios and get closer to consumers[13][14] - In 2024, the Group will continue to adapt to changing consumer needs by providing safe, high-quality, and innovative products to maintain competitiveness[20][21] - The Group's strategy includes maintaining healthy inventory levels and focusing on freshness control as a fundamental operational policy[13][14] - The Group aims to build long-term competitive barriers through brand power and cultivate future trendy products with a long-term perspective[13][14] - The Group adhered to a value-based marketing strategy, expanding both offline and online channels to meet consumer needs in various scenarios[23] - The Group strengthened its focus on sustainability, implementing measures in areas such as climate change, water resources management, and green production[24] - The Group actively accumulated brand assets and optimized product strengths and product mix, achieving record-high revenue while maintaining sound operation[24] - The Group emphasized the importance of omni-channel expansion in response to rapidly changing market conditions and consumer trends[23] - The Group continued to enhance its organizational coordination and risk management capabilities, maximizing resource utilization efficiency[23] - The Group plans to focus on health, safety, and unique characteristics in innovative products to meet consumer emotional value in 2024[39] - The Group aims to integrate healthy ingredients into national flavors and promote Chinese culinary culture to satisfy personalized, diversified, and healthy consumer needs[39] - The Group will establish strong emotional connections with consumers through product-driven brand concepts to gain emotional resonance[39] - The company plans to expand its young consumer base through low-sugar and sugar-free product lines for Uni Green Tea[44][45] - Uni Ice Tea aims to address product category pain points in 2024 by adding special black tea to enhance flavor and launching a sampling campaign of one million bottles[47] - Uni Plum Green Tea will continue to promote "Grade A plums" in 2024 to further capture consumer attention[52] - The Group plans to expand its presence in family, catering, and O2O channels in 2024 to capture market trends and new opportunities[57] - "Haizhiyan" will focus on the promotion of "Drink Haizhiyan after sweating" in 2024, aiming to strengthen consumer communication and expand electrolyte drink market share[62] - The Group's juice business aims to expand market share in 2024 by launching upgraded product series with better taste and health benefits[70] - The coffee business plans to expand its market presence in 2024 by focusing on ice coffee market penetration and consumer cultivation for coconut latte[78] - The Group will focus on expanding the base of the "A-Ha" brand in 2024, targeting the secondary market of iced coffee and cultivating consumers of Raw Coconut Latte[80] - ALKAQUA will continue to cultivate the Shanghai market in 2024, targeting four highly "involuting" groups and strengthening channel construction[83][85] - The Group explored O2O new e-commerce represented by Meituan Grocery and set up three themed livestreaming rooms on platforms like Douyin Shop and Pinduoduo[90][91] - The Group's business research institute developed new products to facilitate steady revenue growth, focusing on value innovation and securing supply[92][93] - The Group has accumulated 164 authorized patents and 48 pending patents as of December 2023, building competitive barriers[95] - The Group focused on empowering its featured products, particularly those with over 1 billion in sales, to maintain market competitiveness[96] - Uni Assam Milk Tea achieved all-around product quality improvement through front-end management of tea raw material quality, refined control of production process, and sound finished product monitoring standards, with new flavors White Peach Guanyin and Green Grape Jasmine launched in 2023 to meet diversified consumer tastes[97][100] - Uni Green Tea established a monitoring system from source to finished product, completed supplier assessment of over 20 tea processing factories, and launched sugar-free green tea in response to consumer health demands[101] - The Group accumulated 164 licensed patents and 48 patents under applications as of December 2023, continuously building competitive technological barriers[98] - Haizhiyan grasped the electrolyte drink trend, developed a new "isotonic" version, and contributed to national electrolyte drink standards formulation[102][103] - Uni-President Lao Tan Pickled Cabbage and Beef Noodles strengthened source monitoring and fermentation craftsmanship to enhance sour characteristics and meet consumer preferences[104] - The King of Tomato optimized production craftsmanship, launched Tomato Bolognese Instant Pasta, and leveraged Xinjiang factory advantages to ensure stable tomato supply and quality[105][106] - CITEA milk tea was launched in 2023 with Da Hong Pao and Rose flavors, using real milk and original tea leaves for a rich, non-greasy texture[107][108] - Uni Shuangcui Lemon Tea features double extraction of black tea and oolong tea, with Ya Shi Xiang flavor positioning as authentic Cantonese lemon tea[109] - In Love With Tomato 100% NFC tomato juice was launched in January 2024, using juice from about 24 cherry tomatoes per bottle for optimal taste[110][111] - Little Raccoon High Fiber Konjac entered the casual snacks market with a chewy texture, spicy taste, and high dietary fiber content for health benefits[112][113] - The Group launched the "Kai Xiao Zao Private Kitchen" series, targeting the home consumption trend with pre-cooked cuisine frozen at -30°C to maintain quality[116] - In 2023, the Group successfully applied tea roasting and aroma-keeping techniques to sugar-free beverages like "Chai Li Won Raw Green Tea" and "Uni Sugar-Free Green Tea"[117][118] - The Group developed and launched new products such as the "CITEA milk tea" series through collaborative innovation with domestic and overseas R&D centers[117][118] - A full-process digital management system for R&D projects was implemented in 2023, improving efficiency and facilitating knowledge inheritance[115][119] - The Group utilized Alibaba's big data model for consumer research, combining "big data + small samples" to empower product innovation and engage consumers in the R&D process[120] - The Food Safety and Quality Committee, led by the General Manager, oversees the design and optimization of the food safety and quality assurance system[120] - Three lines of defense for food safety were established: qualification review, field assessment, and food safety testing to manage supplier risks[120] Corporate Governance and Shareholding - The Group has 26 subsidiaries accredited with ISO 22000 certification, 1 with FSSC 22000, and 6 with HACCP certification[122] - The Food Safety Testing Centre has passed 173 projects under CNAS accreditation as of 2023[122] - The Group's total number of employees as of 31 December 2023 was 33,539[145] - Total staff costs (including directors' remuneration) for the year were RMB4,474.7 million, compared to RMB4,324.3 million in 2022[149] - The Group did not hold any significant investments with a value of 5% or more of its total assets as of 31 December 2023[144] - The Group had no material contingent liabilities or charges on group assets as of 31 December 2023[144] - The Group did not engage in any material acquisition or disposal of subsidiaries, associates, or joint ventures during the year[144] - The Group has no plans for any material investment or acquisition of capital assets beyond its ordinary business of manufacturing and selling beverages and instant noodles[144] - The Group's financial policy aims to reduce the impact of interest rate and exchange rate fluctuations on its overall financial position[143] - The Group maintained an automated reconciliation system, which significantly improved capital efficiency and accounting treatment effectiveness during the year[143] - The Group's treasury policy avoids high-risk investments, speculative derivatives, and financial products with significant leverage or risks[144] - The Group's remuneration policy rewards employees and directors based on performance, qualifications, demonstrated capabilities, and market comparable information[148] - The Board recommends a final dividend of RMB42.45 cents per share, totaling approximately RMB1,833.8 million[160][161] - The proposed final dividend is subject to shareholder approval at the Annual General Meeting

Investment Rating - The report assigns an "OUTPERFORM" rating to the company with a target price of HK$8.22 [1][4]. Core Insights - The company reported total revenue of RMB 29.23 billion for 2023, a year-on-year increase of 2.54%, with a net profit attributable to shareholders of RMB 1.67 billion, reflecting a significant growth of 36.4% year-on-year [1][8]. - Despite a slight decline in revenue, the company's gross profit margin improved to 30.47%, up by 1.49 percentage points, leading to a gross profit increase of 6.40% [1][8]. - The beverage segment has shown robust growth, achieving revenue of RMB 17.78 billion in 2023, a year-on-year increase of 8.4%, with a compound annual growth rate of 12.3% since 2020 [1][8]. - The food business, however, faced challenges with a revenue decline of 10.56% in 2023, but there are expectations for recovery in 2024 as market conditions improve [4][8]. Summary by Sections Financial Performance - Total revenue for 2023 was RMB 29.23 billion, with main revenue at RMB 28.59 billion and net profit at RMB 1.67 billion [1][8]. - The gross profit margin increased to 30.47%, while the net profit margin rose by 5.83 percentage points [1][8]. - The company declared a dividend of approximately RMB 1.83 billion, resulting in a payout ratio of 109.99% [1][8]. Beverage Business - The beverage segment generated revenue of RMB 17.78 billion in 2023, with a net profit margin of 10.9% [1][2]. - Key products like "Unified Green Tea" and "Tea King" are expected to drive future growth through product line expansion targeting younger consumers [2][4]. Food Business - The food segment reported revenue of RMB 9.85 billion, down 10.56% year-on-year, but with a slight increase in net profit margin to 0.8% [4][8]. - The company is focusing on product innovation and quality to meet changing consumer preferences in the instant noodle market [4][8]. Earnings Forecast - Projected revenues for 2024-2026 are RMB 31.53 billion, RMB 33.97 billion, and RMB 36.28 billion, respectively, with net profits expected to be RMB 1.58 billion, RMB 1.81 billion, and RMB 2.01 billion [4][8].

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the company achieved total operating revenue of 29.225 billion RMB (up 2.54% YoY) and a net profit attributable to shareholders of 1.667 billion RMB (up 36.4% YoY) for the year ending 2023. The company also announced a dividend of approximately 1.834 billion RMB, corresponding to a payout ratio of 109.99% [5][8] Summary by Sections Financial Performance - The company reported a main business revenue of 28.591 billion RMB (up 1.2% YoY) and a gross profit margin increase of 1.49 percentage points to 30.47%, resulting in a gross profit increase of 6.40% YoY. The net profit margin increased by 5.83 percentage points, leading to a net profit increase of approximately 444 million RMB YoY [5][8] Beverage Business - The beverage segment achieved revenue of 17.776 billion RMB (up 8.4% YoY), with a compound annual growth rate of 12.3% since 2020. The tea beverage segment generated 7.580 billion RMB (up 9.0% YoY), while the juice segment reached 3.404 billion RMB (up 13.3% YoY). The milk tea segment reported 6.305 billion RMB (up 5.0% YoY) [6][8] Food Business - The food segment reported revenue of 9.847 billion RMB (down 10.56% YoY). The instant noodle market is recovering post-pandemic, with a focus on high-value products. The company is also expanding its frozen food offerings, which received positive consumer feedback [8] Revenue and Profit Forecast - The company is expected to achieve total revenues of 31.532 billion RMB, 33.968 billion RMB, and 36.281 billion RMB for 2024, 2025, and 2026 respectively, with net profits of 1.581 billion RMB, 1.806 billion RMB, and 2.007 billion RMB for the same years. The report assigns a price-to-earnings (PE) valuation range of 16-20 times for 2024, translating to a per-share value range of 5.92-7.40 RMB [7][8]

Financial Performance - The company's revenue for 2023 reached RMB 28,591.3 million, an increase of 1.2% compared to the previous year[5] - The net profit attributable to equity holders of the company was RMB 1,667.1 million, representing a growth of 36.4% year-on-year[6] - The gross profit margin improved to 30.5%, up by 1.5 percentage points from last year[5] - The operating profit before interest, tax, depreciation, and amortization (EBITDA) was RMB 3,425.4 million, reflecting a 16.8% increase from the previous year[5] - Total revenue for 2023 reached RMB 28,591,271 thousand, an increase from RMB 28,257,432 thousand in 2022, representing a growth of 1.18%[33] - The net profit for 2023 was RMB 1,667,060 thousand, compared to RMB 1,222,157 thousand in 2022, indicating a significant increase of 36.6%[35] - The gross profit increased by 6.4% to RMB 8,711.7 million, with a gross margin of 30.5%, up 1.5 percentage points from the previous year[112] - Operating profit rose by 33.5% to RMB 1,996.5 million, primarily due to a one-time gain of RMB 351.4 million from the disposal of land in Hefei, China[114] Dividends and Shareholder Returns - The company proposed a final cash dividend of RMB 0.4245 per share, totaling approximately RMB 1,833.8 million[7] - Basic earnings per share rose to RMB 38.60 in 2023, compared to RMB 28.30 in 2022, reflecting an increase of 36.6%[56] - The proposed final dividend per share for 2023 is RMB 42.45, an increase from RMB 33.95 in 2022, totaling RMB 1,833,769,000[57] Assets and Liabilities - The total assets of the company as of December 31, 2023, amounted to RMB 22,134.2 million, an increase from RMB 21,784.4 million in 2022[14] - Total liabilities increased to RMB 8,751,841 thousand in 2023 from RMB 8,603,002 thousand in 2022, representing a growth of 1.72%[15] - Current liabilities decreased to RMB 8,015,176 thousand in 2023 from RMB 7,928,165 thousand in 2022, a decline of 1.10%[15] - Non-current liabilities rose to RMB 736,665 thousand in 2023 compared to RMB 674,837 thousand in 2022, an increase of 9.19%[15] - The total equity and liabilities amounted to RMB 22,134,218 thousand in 2023, up from RMB 21,784,355 thousand in 2022, reflecting an increase of 1.60%[15] Market and Consumer Trends - The company continues to focus on expanding its beverage and food business in China, which constitutes over 90% of its sales activities[29] - The Chinese economy showed resilience with a GDP growth of 5.2% in 2023, and retail sales increased by 7.2%, indicating a positive consumption trend[64] - The market is witnessing a shift towards high-quality and cost-effective products, with a focus on health and safety in the new era[75] Product Development and Innovation - The company has launched new product lines, including the "Private Kitchen" series, to expand its product matrix[6] - The company is actively targeting the sugar-free market to meet diverse consumer demands, enhancing product health attributes to drive sales growth[81] - The "Unified Ice Black Tea" product was upgraded in 2023 with the addition of real lemon juice, aiming to attract younger consumers[78] - The company plans to launch a new upgraded product series in 2024 to capture market share in the juice sector, focusing on health benefits and diverse specifications[86] - The company is expanding into the ready-to-eat meal market with the "Private Kitchen Series," utilizing flash-freezing technology to preserve freshness and flavor[102] Strategic Focus and Future Plans - The company plans to continue adapting to changing consumer demands and focus on providing safe, quality, and innovative products to enhance competitive success[8] - The company aims to deepen market penetration and extend consumption scenarios through diversified channel expansion[6] - The company plans to strengthen its product offerings and expand into diverse operational scenarios, including family, dining, and O2O channels in 2024[81] Risk Management and Governance - The company continues to enhance its organizational coordination and risk management capabilities in response to external economic challenges, including inflation and geopolitical tensions[64] - The company has implemented a digital management system for R&D, optimizing the entire process to enhance efficiency and knowledge transfer[104] - A food safety committee has been established to oversee food safety and quality assurance, ensuring compliance with regulations and managing supplier risks[107] Employee and Operational Insights - The total employee cost for the year was RMB 4,474.7 million, an increase from RMB 4,324.3 million in 2022[136] - The total number of employees as of December 31, 2023, is 33,539[133] - The group has implemented a performance bonus and reward plan to recognize outstanding contributions from employees[133]

Economic Overview - In the first half of 2023, China's GDP grew by 5.5% year-on-year, while total retail sales of consumer goods increased by 8.2% year-on-year[16]. Company Performance - The Group recorded a revenue of RMB14,571.9 million for the first half of 2023, representing an increase of 4.5% compared to RMB13,939.9 million in the same period of 2022[22]. - Profit attributable to equity holders of the Company increased by 42.7% to RMB876.6 million, compared to RMB614.4 million in the same period last year[24]. - Gross profit increased by 8.0% to RMB4,532.9 million, with a gross profit margin rising to 31.1%, up 1.0 percentage point from 30.1% in the previous year[22]. - Operating profit surged by 49.4% to RMB1,092.4 million, primarily due to a one-off gain of RMB341.8 million from the disposal of land use rights[24]. - Revenue from the food business decreased by 8.7% to RMB4,902.1 million, accounting for 33.6% of total revenue, while revenue from the beverages business increased by 12.3% to RMB9,258.1 million, accounting for 63.5% of total revenue[22]. Marketing and Consumer Engagement - The Group's focus on consumer-oriented strategies and innovative marketing methods has strengthened its relationship with consumers[17]. - The brand's unique emotional value and deep consumer interactions are key to its market strategy[17]. - The Group is committed to enhancing brand awareness and loyalty through value-based marketing strategies, aiming to create a perfect consumption experience for consumers[28]. - The Group aims to meet the public's demand for personalized, convenient, and value-driven consumption, contributing to sustainable revenue growth[17]. Product Development and Innovation - The Group's product development is driven by the pursuit of better quality and healthier options for consumers[17]. - The instant noodles business is focusing on high-value products and has launched a cherry blossom season limited edition, with a 99% positive feedback rate online[30]. - The Group's strategy includes continuous product innovation and optimization to meet diverse consumer demands across multiple scenarios[47]. - The Group emphasizes the integration of healthy food ingredients into its offerings, promoting Chinese culinary culture[46]. Financial Management - As of June 30, 2023, the Group's cash at bank and on hand was RMB7,048.5 million, an increase from RMB6,654.2 million as of December 31, 2022[92]. - The Group's total financial liabilities increased by 210.3% to RMB2,698.1 million as of June 30, 2023, compared to RMB869.5 million at the end of 2022, primarily due to an increase in short-term borrowings[92]. - The net cash position of the Group as of June 30, 2023, was RMB(4,350.4) million, compared to RMB(5,784.7) million as of December 31, 2022[94]. - The Group's capital gearing ratio improved to (34.55%) as of June 30, 2023, from (43.89%) at the end of 2022, indicating a stronger equity position[94]. Employee and Governance - The total employee benefits expenses (including Directors' emoluments) amounted to RMB2,243.9 million during the Period under Review[140]. - As of June 30, 2023, the total number of employees was 33,321[133]. - The company has confirmed compliance with the Corporate Governance Code during the review period[158]. - All Directors have confirmed full compliance with the Model Code for Securities Transactions throughout the review period[161]. Market Trends and Consumer Preferences - The increasing pace of market changes highlights the growing importance of consumption scenarios and channels[16]. - The Group is focused on enhancing product quality and emotional connection with consumers, aiming to resonate with their preferences and needs[46]. - The Group aims to enhance operations across multiple channels, including family, food and beverage, and O2O, while maintaining sales growth and resilience[59]. Future Plans - The Group plans to launch new frozen prefabricated dishes in the second half of the year to cater to consumers' daily meal needs[41]. - The Group aims to enhance brand vitality through social media engagement and new product series targeting young consumers in the milk tea segment[76]. - The Group will continue to explore consumption scenarios and extend new specifications and packaging materials to meet diverse consumer demands in the second half of 2023[76].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因依賴該 等內容而引致的任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） 220 （股份代號： ） 2023 年中期業績公告 • 14,571.9 4.5% 收益為人民幣 百萬元，上升 • 31.1% 1.0 集團毛利率為 ，上升 個百分點 • 1,793.7 22.9% 未計利息、稅項、折舊及攤銷前盈利為人民幣 百萬元，上升 • 876.6 42.7% 本公司權益持有人期間應佔溢利為人民幣 百萬元，上升 統一企業中國控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然提呈本公司及其附屬公 2023 6 30 6 司（合稱「本集團」或「我們」）截至 年 月 日止 個月（「回顧期」）未經審核簡明綜合中期財務資 料。該簡明綜合中期財務資料未經審核，但已由董事會之審核委員會（「審核委員會」）及本公司獨 2410 立核數師羅兵咸永道會計師事務所按照香港會計師公會頒布之香港審閱準則第 號「由實體的 ...

Financial Performance - Revenue for 2022 reached RMB 28,257.43 million, a 12% increase from RMB 25,230.61 million in 2021[10] - Gross profit for 2022 was RMB 8,187.92 million, slightly down from RMB 8,218.91 million in 2021[10] - Profit before income tax for 2022 was RMB 1,730.83 million, a 19.2% decrease from RMB 2,141.84 million in 2021[10] - Net profit attributable to equity holders for 2022 was RMB 1,222.16 million, down 18.6% from RMB 1,500.72 million in 2021[10] - Total assets as of December 31, 2022, were RMB 21,784.36 million, a slight decrease from RMB 22,065.35 million in 2021[10] - Total liabilities as of December 31, 2022, were RMB 8,603.00 million, up from RMB 8,300.05 million in 2021[10] - Cash and cash equivalents as of December 31, 2022, were RMB 108.52 million, a significant drop from RMB 285.57 million in 2021[10] - Basic earnings per share for 2022 were RMB 28.30 cents, down from RMB 34.74 cents in 2021[10] - Dividends declared for 2022 were RMB 1,466.59 million, down from RMB 1,800.86 million in 2021[10] - Revenue reached a new record of RMB28,257.4 million in 2022, representing a 12.0% increase over the previous year[16] - Revenue for 2022 increased by 12.0% to RMB28,257.4 million compared to RMB25,230.6 million in 2021[139][140] - Food business revenue grew by 15.6% to RMB11,009.4 million, accounting for 39.0% of total revenue[139][140] - Beverage business revenue increased by 11.3% to RMB16,405.4 million, representing 58.1% of total revenue[139][140] - Gross profit decreased by 0.4% to RMB8,187.9 million, with gross profit margin dropping 3.6 percentage points to 29.0% due to rising raw material costs[139][140] - Operating profit declined by 21.5% to RMB1,495.8 million, impacted by higher raw material and transportation costs[142][145] - Profit attributable to equity holders decreased by 18.6% to RMB1,222.2 million[142][145] - Cash at bank and on hand increased to RMB6,654.2 million as of December 31, 2022, up from RMB6,078.3 million in 2021[143][146] - Total financial liabilities surged by 480.8% to RMB869.5 million, primarily due to increased short-term borrowings and lease liabilities[143][146] - Selling and marketing expenses rose by RMB343.8 million to RMB5,886.6 million, driven by higher sales personnel and transportation costs[142][144] - The Group's gearing ratio stood at -43.89% as of December 31, 2022, compared to -43.07% in 2021[147] - Net cash and cash equivalents decreased by RMB177.1 million year-on-year as of December 31, 2022, with net cash inflow from operating activities of RMB1,430.3 million, net cash outflow from investing activities of RMB416.8 million, and net cash outflow from financing activities of RMB1,190.7 million[149][152] - Capital expenditure for the year was RMB545.9 million, up from RMB437.3 million in 2021[149][152] - Financial assets at fair value through profit or loss stood at RMB1,018.5 million as of December 31, 2022, down from RMB1,715.4 million in 2021[150] - Net trade receivables increased by RMB171.4 million to RMB819.9 million due to early preparation for Chinese New Year and increased e-commerce and modern channel sales[155][157] - Inventories balance increased by RMB130.0 million to RMB2,522.5 million, driven by higher bulk raw material costs and early preparation for Chinese New Year sales[156][158] - Trade payables increased by RMB557.0 million to RMB2,675.0 million, reflecting higher purchases of raw materials and finished goods for Chinese New Year production and sales[156][158] - Inventory turnover days decreased by 2 days compared to 2021, indicating improved inventory management efficiency[156][158] Business Growth and Strategy - The Group's revenue has grown at a compound annual growth rate (CAGR) of 8.7% since 2019, with beverages and food segments growing at 8.8% and 9.0% CAGR respectively[15] - The Group focuses on building a flexible supply chain, expanding online and offline channels, and enhancing consumer penetration[17] - The Group emphasizes innovation as a key driver of continuous growth, particularly in new markets[16] - The Group adheres to a "Value Marketing" strategy, aiming to meet diverse consumer needs across different scenarios[27] - The Group plans to deepen its understanding of commodity volatility and risk to improve supply chain agility[25] - The Group aims to build a long-term competitive barrier through brand power and consumer-driven product innovation[17] - The Group is committed to sustainable development, focusing on health, nutrition, and high-quality products to align with changing consumer values[27] - The Group recorded revenue of RMB28,257.4 million for the year ended 31 December 2022, representing a 12.0% increase compared to the previous year[34] - The food business revenue reached RMB11,009.4 million in 2022, a 15.6% increase year-over-year[34] - Instant noodles business revenue grew by 17.9% to RMB10,619.6 million in 2022[34] - "Soup Daren" achieved nearly double-digit revenue growth in 2022, maintaining its position as the No.1 brand in the nourishing soup noodles market[38] - The Group's investment in energy conservation and carbon reduction increased significantly in 2022 compared to 2021[31] - The Group has clear medium and long-term emission reduction goals for wastewater, energy, water, greenhouse gases, and waste[31] - "Soup Daren" launched a new mixian product in Q4 2022 to expand its target consumer base[38] - The Group's operating direction focuses on being "quick, stable, and fresh" to achieve business objectives[29] - New consumption channels such as O2O, community e-commerce, and group purchases have created new marketing opportunities[28] - Consumer demand for healthy, nutritious, and quality products has increased due to lifestyle changes[28] - The revenue of "The King of Tomato (茄皇)" has increased manyfold for two consecutive years[41][42] - "The King of Tomato (茄皇)" launched a new product "Tomato Bolognese Instant Pasta (茄皇意式番茄肉醬風味拌麵)" in 2022, expanding its product line[39] - "Uni-President Lao Tan Pickled Cabbage and Beef Noodles (統一老壇酸菜牛肉麵)" invited 1,000 consumers to visit the factory to witness the fermentation process[44][45] - "Kai Xiao Zao (開小灶)" ranked first in sales volume of instant wonton in 2022[51][52] - "Kai Xiao Zao — Small Wonton in Chicken Soup (開小灶雞湯小餛飩)" won a two-star award from the International Taste Institute in Brussels, Belgium[51][52] - "Imperial Big Meal (滿漢大餐)" utilized an omnimedia matrix including Weibo, Douyin, and Bilibili for brand asset accumulation[49][50] - The Group participated in drafting the group standard for "Technical Specifications for Production Quality Safety Control and Management of Lao Tan Pickled Cabbage"[44][45] - "Teng Jiao (藤嬌)" focused on enhancing the fresh and spicy flavor characteristics, targeting the brand's core appeal of "the feeling of electric shock (觸電的感覺)"[45][46] - The Group emphasized the integration of healthy ingredients and new food technologies into production for 2023[52] - "The King of Tomato (茄皇)" enhanced its brand building through cooperation with talk shows in the second half of 2022[39] - The Group's beverages business achieved annual revenue of RMB16,405.4 million in 2022, representing a year-on-year increase of 11.3%[57] - Revenue from tea drinks amounted to RMB6,956.8 million in 2022, representing a year-on-year increase of 10.9%[58] - "Uni Green Tea" revenue has been growing at a compound rate of high single-digit over the past three years[62] - "Uni Plum Green Tea" recorded a high double-digit growth in revenue in 2022 compared to the previous year, driven by brand repositioning and unique selling points[65] - "Uni Plum Green Tea" revenue has been growing at an exponential compounded annual rate over the past three years[69] - "Uni Ice Tea" achieved a double-digit revenue growth in 2022 compared to the previous year[64] - The Group plans to continue fostering "Uni Green Tea" into a major national brand in 2023[62] - The Group will upgrade "Uni Ice Tea" products in 2023, focusing on real lemons and refreshing aroma to increase consumer purchase frequency[64] - The Group aims to enhance "Uni Plum Green Tea" brand penetration in 2023 by highlighting "Grade A plums" in promotions[69] - The Group actively expanded e-commerce channels such as social e-commerce, community group purchases, B2C, and O2O to meet consumer needs in different scenarios[58] - The juice business revenue in 2022 reached RMB 3,004.5 million, a 35.4% increase year-over-year, contributing 18.3% to the beverage revenue, marking a 6-year high[77] - "Uni Orangeate" achieved a double-digit compound annual growth rate in revenue over the past three years[80] - "Uni Guo Yang Kumquat Lemon Beverage" experienced exponential compounded annual revenue growth over the past three years[81] - "Chai Li Won" collaborated with Wuyishan Dahongpao's intangible cultural heritage heir and Impression Dahongpao to launch the seasonal limited product "Qinggan Dahongpao" in 2022[72] - The company launched the "Cloud Tea Program" DTC platform and live-streaming source tracking in tea plantations to enhance consumer engagement and brand authority[72] - "Haizhiyan" continued to penetrate the sweating scenario by expanding its point-of-sale and reinforcing its core message of rehydration and electrolyte replenishment[83] - The company focused on diversifying consumer scenarios in 2022, achieving rapid growth in household and dining scenarios[76] - In 2023, the company plans to iteratively upgrade products to strengthen health benefits and tap into the sugar-free market to meet diverse consumer needs[76] - "Uni Orangeate" reinforced its dietary fiber benefits through product packaging and diversified media promotion, targeting family consumption with the concept of "Vitamin C-rich household products"[82] - "Uni Guo Yang Kumquat Lemon Beverage" leveraged a popular comic IP for bottle design and immersive scenario marketing to appeal to young consumers[81] - The Group's milk tea business generated revenue of RMB6,005.4 million in 2022, representing a 4.6% increase over the previous year[87][88] - Uni Assam Milk Tea maintained a double-digit compound annual growth rate in revenue over the past five years[89] - The Group focused on cultivating the 100% juice market in key first-tier cities, expanding family scenarios and online platforms such as O2O and groceries delivery services[84] - Uni Tomato Juice leveraged lycopene as a product benefit to create high-quality life scenarios and attract purchases through e-commerce and TV shopping platforms[84] - The A-Ha brand focused on the food and beverage channel to cultivate consumers and expand brand awareness, using its core value of "Carbonated drink with Vitamin C" as the key promotion theme[84] - In 2023, the Group's juice business will continue to invest in restaurant, family, and gift set scenarios, aiming to capitalize on changes in consumption demand and market trends[84] - The coffee business repositioned A-Ha as a "National Coffee Flavored Beverage" and adopted a new brand message, "A-Ha! Getting Started with Vitality!" to target young urbanites[92][93] - The coffee business plans to deepen its focus on the "coffee-flavored beverage" segment in 2023, offering more diverse flavor choices and enhancing brand penetration in key cities[92] - The company's coffee business will focus on the "Coffee Flavored Beverage" sub-segment, expanding product mix to cater to new consumer trends and increasing customer base through interactive marketing campaigns[94] - The "ALKAQUA" brand of mineral water saw increased sales from online and family-size packages, with a focus on large and multi-packaged products on e-commerce platforms, contributing to new growth[98][99] - The "Keep Sweet" bottle can drink series, featuring flavors like "Mango & Pomelo Sweet Soup," enhanced brand scale and regional market visibility through online short videos and other communication methods[100] - The "Red Bean Coconut Milk" winter-exclusive product received positive consumer feedback, targeting the popular cereal drink trend and combining traditional red bean paste with Hainan coconut milk[100] - China's online retail sales reached approximately RMB12 trillion in 2022, representing 27% of the total retail sales of consumer goods, driven by improved consumer satisfaction and demand for convenience[103] - The company explored three new online business models in 2022, including leveraging social traffic, opening flagship stores and live-streaming rooms, and developing the "Uni Happy Planet" shopping application[103] - The "That Street That Lane" brand achieved stable growth with its "Lanzhou Beef Noodles" product and launched "Leshan Spicy Bobo Chicken," which ranked first in Tmall's cold hot pot category and won an innovation award[105] - The company's R&D efforts in 2022 focused on optimizing core products and developing new products aligned with emerging consumer trends, contributing to record-high revenue[107] - Revenue for 2022 reached a new record high, driven by the optimization of featured products and the development of new products aligned with consumer trends[108] - The company was granted 28 patents in 2022, with a cumulative total of 148 patents by December 2022[109][110] - The company launched innovative plant-based beverages, such as "Coconut and Oat Milk Tea" and "Fruit Trio Calamansi Juice," targeting health-conscious consumers[111][112] - "Uni Assam Milk Tea" reduced sugar content while maintaining sweetness, responding to the growing demand for sugar-free beverages[114][115] - The company introduced convenient food products like "That Street That Lane Leshan Spicy Bobo Chicken" and "Kai Xiao Zao" series, leveraging natural ingredients and advanced preservation technologies[114][116] - "Uni Stewed Beef Flavoured Noodles" and "Vine Pepper Beef Noodles" were optimized to enhance freshness and flavor, targeting younger consumers[118][120] - "Uni Ice Tea" and "Uni Green Tea" improved flavor stability and product quality through process optimization and ingredient enhancements[120] - The "Uni More Juice Series" introduced a 1-liter package for the secondary market and a canned series for the catering channel, emphasizing taste stability and affordability[120] - The company focused on differentiating and personalizing tastes through advanced flavouring technology to build competitive barriers[119] - The pandemic accelerated the popularity of instant and prepared foods, with the company leveraging Chinese culinary traditions to meet consumer demand for convenience and authenticity[114][116] - The Group launched the "A-Ha raw coconut flavoured latte" targeting plant-based food demand, using coconut milk and water instead of milk, catering to lactose-intolerant consumers[123] - The "Tomato Bolognese Instant Pasta" was developed to target the fast-growing instant pasta market, featuring sauce made from Xinjiang tomatoes and beef essence[123] - The Group's business research institute worked on over 10 core technology projects in 2022, including the lemon project applied to "Fruit Trio Calamansi Juice" and the beef project applied to "Stewed Beef Flavoured noodles" and "Spicy Beef Flavoured noodles"[124] - The Group promoted domestic production of core ingredients and developed secondary suppliers, ensuring supply safety and establishing technical barriers in tea blending for "Uni Assam Milk Tea"[124] - The Group focused on expanding consumption scenarios, such as developing canned flavours for post-pandemic dining and 300ml or 1.5L+ beverage products for household use[127] - New product development includes affordable sugar-free tea, cereal tea, healthy prepared dishes, and sugar-free versions of classic soft drinks[128] - In 2023, the Group will focus on core technologies like non-fried, sugar-free, and "Three Reduction and Three Kind of Health" (Sugar Reduction, Salt Reduction, Oil Reduction) projects[129] - The Group established a Food Safety and Quality Committee to oversee food safety and quality system design, with members covering key departments like the business research institute and production management[133] - Three lines of defense for food safety include qualification review, field assessment, and food safety testing to manage supplier risks[134] - The Group adheres to three quality controls: raw material acceptance, production process control, and finished product quality control[135] Corporate Governance and Financial Policy - The Group's financial policy aims to minimize impacts of interest rate and exchange rate fluctuations and reduce financial risk exposure[164][166] - The finance department advanced financial intellectualization and implemented daily settlement at key nodes to enhance corporate governance efficiency and reduce costs[165][167] - The Group's total number of employees as of 31 December 2022 was 33,555[171] - Total staff costs (including directors' remuneration) for the year were RMB4,324.3 million (2021: RMB4,030.6 million)[172][174] - The Group recommended a final dividend of RMB33.95 cents per share, totaling approximately RMB1,466.6 million[179][181] - The Group did not hold any significant investments valued at 5% or more of its total assets as of 31 December 2022[168] - The Group had no material contingent liabilities or charges on group assets as of 31 December 2022[168] - The Group did not engage in any material acquisition or disposal

Economic Overview - In the first half of 2022, China's GDP grew by 2.5%, while total retail sales of consumer goods decreased by 0.7% year-on-year[12][14]. Company Strategy and Operations - The company focused on creating value, managing risks, and enhancing flexibility amid ongoing challenges in sourcing raw materials and the impact of COVID-19[12][14]. - The company aims to adapt to changing consumer purchasing habits and the recurrent pandemic by continuously innovating products and enhancing operational capabilities[12][14]. - The company is building a flexible supply chain and integrating online and offline channels to achieve channel diversification[12][14]. - The company emphasizes the importance of prudent and agile organization to respond effectively to dramatic changes in the market environment[12][14]. - The company is committed to maintaining operational focus and resilience in the face of uncertainties[12][14]. - The company continues to enhance its operational capabilities to better respond to market changes[12][14]. - The company is integrating various sales channels to improve market reach and efficiency[12][14]. - The company recognizes the need for continuous innovation to meet evolving consumer demands[12][14]. Financial Performance - The Group recorded a revenue of RMB13,939.9 million in the first half of 2022, representing an increase of 7.2% compared to RMB13,006.7 million in the same period last year[15]. - The gross profit decreased to RMB4,198.8 million, a decline of 7.4% from RMB4,532.7 million in the first half of 2021, with a gross profit margin dropping by 4.7 percentage points to 30.1%[15]. - Selling and marketing expenses were RMB3,104.0 million, down 0.9% from RMB3,132.6 million in the first half of 2021[15]. - Administrative expenses decreased by 3.1% to RMB493.0 million from RMB508.9 million in the first half of 2021[15]. - The operating profit was RMB731.3 million, representing a decrease of 30.9% compared to RMB1,057.6 million in the same period last year[15]. - Profit attributable to equity holders of the Company was RMB614.4 million, down 27.5% from RMB847.3 million in the first half of 2021[15]. Segment Performance - The food business recorded a revenue of RMB5,368.8 million in the first half of 2022, an increase of 14.0% from RMB4,710.6 million in the same period last year[16]. - The instant noodles business generated revenue of RMB5,141.9 million, reflecting a growth of 16.9% compared to the first half of 2021[17]. - The beverage business recorded a revenue of RMB8,247.7 million in the first half of 2022, representing a year-on-year increase of 4.9% compared to RMB7,860.1 million in the same period last year[26]. - Revenue from tea drinks amounted to RMB3,650.9 million in the first half of 2022, also reflecting a year-on-year growth of 4.9%[26]. - Revenue from the juice business amounted to RMB1,401.1 million in the first half of 2022, representing a year-on-year increase of 25.7%[33]. - The revenue of the milk tea business in the first half of 2022 amounted to RMB2,970.2 million, maintaining a double-digit compound growth rate over the past five years[39]. Marketing and Consumer Engagement - The Group's marketing strategies included community group purchases and social group purchases, enhancing penetration and consumption frequency of fast-moving consumer goods[19]. - The Group maintained a focus on product quality and freshness to meet diverse consumer needs and improve satisfaction[18]. - The company launched the "Big Cup" series to cater to consumers with large appetites, extending product consumption scenarios[20]. - The company is actively expanding product specifications and enhancing input on new e-commerce channels to meet diverse consumer needs[26]. - The company is leveraging new marketing opportunities such as community group purchases and social e-commerce to adapt to changing consumer habits[26]. Financial Position and Cash Flow - As of June 30, 2022, the Group's total cash at bank and on hand was RMB7,092.0 million, an increase from RMB6,078.3 million as of December 31, 2021[48]. - The Group's total borrowings, including lease liabilities, amounted to RMB2,848.3 million as of June 30, 2022, compared to RMB149.7 million as of December 31, 2021[50]. - The net cash position was RMB(4,243.7) million as of June 30, 2022, a decrease from RMB(5,928.6) million as of December 31, 2021[50]. - The gearing ratio improved to (33.75%) as of June 30, 2022, from (43.07%) as of December 31, 2021[50]. - The Group recorded a net decrease in cash and cash equivalents of RMB233.9 million compared to the same period last year, with net cash inflow from operating activities of RMB180.4 million[54]. Employee and Governance - As of June 30, 2022, the total number of employees in the Group was 33,593[72]. - The total employee benefits expenses, including Directors' emoluments, amounted to RMB 2,090.8 million during the Period under Review[75]. - The Group emphasizes innovation and R&D to drive growth despite economic uncertainties, focusing on consumer emotional healing and corporate social responsibility[71]. - The Group has established performance bonuses and incentive schemes to reward employees based on the performance of the Group and individual business units[74]. - The Group does not have any share option scheme for its employees[75]. Financial Risk Management - The Group maintains a conservative approach in financial risk management, primarily dealing in Renminbi due to its revenue sources[63]. - The Group's financial information is prepared on a going concern basis, indicating confidence in operational performance and cash inflows[130]. - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[145]. Compliance and Audit - The interim financial information has been reviewed by the audit committee and independent auditors[11][13]. - The Audit Committee has reviewed the unaudited interim results for the period and recommended their adoption by the Board[95]. - The company has complied with the Corporate Governance Code during the review period[93]. - All Directors confirmed full compliance with the Model Code for Securities Transactions throughout the review period[94].