Company Overview - Nongfu Spring Co., Ltd. is a leading company in the packaged drinking water and beverage industry in China, established in 1996 and listed on the Hong Kong Stock Exchange in September 2020[5][6]. - The company operates a dual growth engine strategy focusing on packaged drinking water and beverages, supported by a nationwide sales network covering all provinces and municipalities in China[8]. - The company emphasizes the use of high-quality raw materials, sourcing all packaged drinking water from quality natural water sources containing natural mineral elements[7]. - Nongfu Spring has implemented a multi-brand strategy, enhancing its brand communication capabilities and establishing itself as a super brand in the PRC soft beverage market[8]. Financial Performance - The company reported significant growth in revenue and market share, although specific financial figures are not provided in the extracted content[10]. - The company recorded total revenue of RMB 42,896 million in 2024, representing an increase of 0.5% compared to 2023[24]. - Profit attributable to the owners of the parent amounted to RMB 12,123 million in 2024, remaining generally flat compared to 2023[26]. - The overall profit/loss ratio maintained an industry-leading position at 28.3%[24]. - Revenue from packaged water products declined by 21.3% for the full year, despite maintaining the number one market share in China[25]. - The company plans to distribute a final cash dividend of RMB 0.76 per share, amounting to approximately RMB 8,547 million[27]. Product Development and Innovation - Future outlook includes continued expansion in product categories such as tea beverages, functional beverages, and juice beverages, aiming to capture a larger market share[5]. - The company is actively involved in research and development for new products and technologies to enhance its competitive edge in the market[10]. - The tea beverage products gained more consumer acceptance, becoming a strong engine for the company's growth[28]. - The company plans to continue improving and innovating in product R&D technology, aiming to evolve into a R&D-oriented enterprise in the beverage industry[28]. - The Group relaunched its purified drinking water product in April 2024, aiming to help consumers distinguish between purified and natural water[48]. Market Strategy and Expansion - The company plans to further expand its market presence through strategic partnerships and potential acquisitions in the beverage sector[10]. - The company aims to explore overseas markets to develop its products internationally and create new growth opportunities[169]. - The company will deepen efforts in agricultural collaboration, expanding successful projects into tea farming and other agricultural areas[29]. Environmental, Social, and Governance (ESG) Initiatives - Environmental, social, and governance (ESG) initiatives are a focus area, reflecting the company's commitment to sustainable practices in its operations[10]. - The company has established a robust ESG governance structure, integrating sustainable development into its corporate strategy and community investment policies[176]. - During the reporting period, 99% of plastic packaging for water and beverage products was recyclable, with a target of 100% recyclability by 2025[180]. - Nongfu Spring focuses on sustainable water use through water-efficient design, upgrades, and management practices[180]. - The company actively engages in philanthropic activities in disaster relief, poverty alleviation, educational improvement, and support for public sports[177]. Corporate Governance - The company adheres to high standards of corporate governance and has adopted sound governance and disclosure practices[188]. - The Board consists of nine Directors, including five executive Directors and three independent non-executive Directors[196]. - The Company has established three specialized committees: Audit Committee, Nomination Committee, and Remuneration Committee[199]. - The Board oversees corporate governance, risk management, and compliance with legal and regulatory requirements[200]. Employee Relations and Incentives - The total number of employees exceeded 20,000, with total employee benefit expenses amounting to RMB 4,301 million[142]. - The employee share incentive scheme allows a maximum of 5% of the total issued share capital to be acquired by the trustee, with individual participants limited to 1%[144]. - The company believes that granting awards to experts and senior technical personnel will enhance long-term development and contributions to the group[159]. Challenges and Future Outlook - In 2024, the company faced challenges due to online public opinions affecting brand reputation and sales of packaged drinking water products, but remains confident in its capabilities[166]. - The Central Economic Work Conference emphasized boosting consumption and improving investment returns as key tasks for 2025, indicating a stable growth trend in the consumer market[164].

更多资料加入知识星球：水木调研纪要 关注公众号：水木Alpha Nongfu Spring (9633 HK) Buy: 2025 still an investment year to gain share Weaker-than-expected earnings in 2024: Nongfu's 2H24 revenue declined by 7% y-o-y, 15% below our estimate, due to widening in the y-o-y decline in its revenue from bottled water and decelerating growth in its beverage revenue over a much higher base. Its OP in 2H24 missed our estimate by 5%, due to weaker-than-expected margin for bottled water, partially offset by better-than-expected margin for its beve ...

Core Viewpoint - The performance of Nongfu Spring in H2 2024 fell short of market expectations across all core businesses, primarily due to intensified price competition in the bottled water segment, leading to significant revenue declines [1][5][11]. Bottled Water Business - The bottled water segment reported revenue of 7.42 billion yuan, a year-on-year decline of 24%, and a continued slowdown from the previous half-year's decline of 18%, significantly missing the market expectation of 10.09 billion yuan [2][12]. - The introduction of low-priced green bottle water helped increase market share from 27% to around 30%, but overall revenue impact was limited due to aggressive competition from brands like Wahaha and Yibao [12][13]. - The operating profit margin for the bottled water segment dropped to 30%, marking one of the lowest levels in recent years, primarily due to the increased proportion of low-margin green bottle water [13][17]. Tea Beverage Business - The tea beverage segment achieved revenue of 8.32 billion yuan, a year-on-year growth of 12.8%, although it also missed market expectations of 9.19 billion yuan [2][14]. - The segment's operating profit margin improved to 46%, making it the most profitable category for the company, aided by cautious spending on marketing [14][18]. - The market share of the company's sugar-free tea brand, Dongfang Shuye, increased to around 70%, benefiting from a strong first-mover advantage [15]. Functional Beverages & Juice - The performance of functional beverages and juice remained lackluster, with limited investment and no significant highlights, despite some individual products performing well [2][16]. Financial Overview - Total revenue for H2 2024 was 20.72 billion yuan, a year-on-year decline of 6.7%, with net profit at 6.07 billion yuan, down 3.8%, marking the first negative growth in the company's semi-annual performance in three years [11]. - The overall gross margin decreased to 57.3%, influenced by the increased share of low-margin green bottle water, despite a decline in core raw material costs [3][17]. - The company maintained a stable expense ratio, with core operating profit declining by 11% year-on-year, falling short of market expectations [3][18].

农夫山泉 20250326 摘要 Q&A 2024 年农夫山泉的整体财务表现如何？ 2024 年，农夫山泉录得总收益人民币 428.96 亿元，比 2023 年增长 0.5%。毛利 为人民币 249.16 亿元，同比减少 1.9%，毛利率从去年同期的 59.5%下降至 58.1%，主要由于纯净水产品新品上市促销、包装饮用水产品销量下降以及果汁 原料价格上升所致。销售及分销开支占总收益比例从 21.8%下降至 21.4%，尽管 广告及促销开支有所提升，但物流费率因产品销售量品类组合影响而有所下降。 行政开支为人民币 19.62 亿元，占总收益的 4.6%，比 2023 年的占比下降 0.5 个百分点。基于以上变动，本集团的年内利润增加 0.4%至人民币 121.23 亿元， 整体损益率保持在 28.3%。 • 2024 年农夫山泉总收益增长 8.3%，但年内利润仅增长 0.4%至人民币 121.23 亿元，整体损益率维持在 28.3%，主要受纯净水促销、包装饮用水 销量下滑及果汁原料价格上升影响。 • 包装饮用水全年收益下滑 21.3%，但仍保持行业第一；茶饮料同比增长 32.3%，成为业绩增长引擎；果汁饮料同 ...

Core Viewpoint - The bottled water market in China is experiencing intense competition, with major players like Nongfu Spring, Wahaha, and China Resources Beverage adjusting their strategies to capture market share after Nongfu Spring's re-entry into the pure water segment [4][5][9]. Group 1: Company Performance - Nongfu Spring reported a revenue of approximately 428.96 billion yuan for 2024, a year-on-year increase of 0.5%, and a net profit of about 121.23 billion yuan, up 0.4% [5]. - China Resources Beverage achieved a revenue of approximately 135.21 billion yuan, a slight increase of 0.05%, with a net profit of 16.37 billion yuan, reflecting a growth of 23.12% [5]. - Wahaha's overall performance returned to 700 billion yuan, marking an increase of nearly 200 billion yuan from the previous year, driven primarily by its bottled water and AD calcium milk businesses [4][5]. Group 2: Market Trends - The retail market for bottled drinking water in China grew by 2.5% year-on-year in 2024, with pure water accounting for 56.1% of the market [6]. - The natural mineral water market is expected to surpass 21.3 billion yuan in 2024, with a year-on-year growth rate of 17%, significantly outpacing the overall industry growth [6]. Group 3: Competitive Strategies - Nongfu Spring's re-entry into the pure water market has led to a price war, prompting competitors like Wahaha and China Resources Beverage to adjust their strategies [8][9]. - Nongfu Spring has launched a low-priced pure water product, with retail prices as low as 1 yuan per bottle, aiming to penetrate lower-tier markets [7][8]. - The competition has intensified, leading to increased product diversity and innovation, while also pushing smaller companies out of the market, thereby increasing industry concentration [8][11]. Group 4: Brand Positioning and Marketing - Nongfu Spring emphasizes its "high-quality natural water source" in its marketing, despite the lack of specific requirements for pure water [7]. - The company has upgraded its packaging to highlight its twelve major water sources, reinforcing its brand image of "natural and healthy" [9][10]. - China Resources Beverage is expanding its product range and has launched new brands to enhance its market presence following its listing on the Hong Kong Stock Exchange [10].

受舆论影响，农夫山泉2024年净利增速创上市以来 最低，包装水收入骤降21.3% | 财报见闻 收入表现：2024年总收入达428.96亿元，同比增长0.5%； 盈利能力：归属母公司的净利润同比增长0.4%至121.23亿元，低于分析师预期的125亿元；毛利率为 58.1%，同比下降1.4个百分点。 核心业务表现：包装饮用水产品收入下降21.3%至159.52亿元，受网络舆论负面影响明显；茶饮料产品 收入大幅增长32.3%至167.45亿元，首次超过包装饮用水成为最大业务板块。 产品创新：重新推出纯净水产品，推出食用冰新品类，升级380ml及550ml天然水包装；茶饮料方面持 续开发季节限定产品，扩充产品矩阵。 股东回报：计划派发期末股息每股0.76元，共计约85.47亿元。 包装水收入大幅下滑，茶饮崛起成为第一大业务板块 2024年对农夫山泉是充满挑战的一年，网络舆情风波给其品牌形象和包装饮用水业务带来明显冲击，导 致其全年净利增速创下2020年上市以来最低纪录。尽管如此，公司其他业务线仍实现了强劲增长，其中 茶饮料收入大增32%，首次超过包装饮用水成为最大业务板块。 25日周二，农夫山泉公布2024年业绩 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 42,896 million, an increase of 0.5% year-on-year[5]. - Profit attributable to equity holders of the parent company was RMB 12,123 million, reflecting a year-on-year increase of 0.4%[5]. - Basic earnings per share for the year was RMB 1.078, up 0.4% compared to the previous year[5]. - Gross profit for the year was RMB 24,916 million, with a gross margin of approximately 58.0%[6]. - Operating profit before tax was RMB 15,788 million, with a tax expense of RMB 3,665 million[6]. - Total comprehensive income for the year was RMB 12,124 million, slightly up from RMB 12,079 million in the previous year[7]. - The adjusted profit before tax for the company was RMB 15,787,858 thousand for the year ended December 31, 2024, compared to RMB 15,688,202 thousand in 2023, indicating a stable performance[23]. - The pre-tax profit for the group in 2024 was RMB 17,980,277,000, compared to RMB 17,260,392,000 in 2023, reflecting a growth in sales cost[29]. - The total income tax expense for 2024 was RMB 3,664,554,000, slightly up from RMB 3,608,704,000 in 2023[30]. - The group reported a loss of RMB 29,561,000 from the sale of assets in 2024[28]. - The group achieved total revenue of RMB 42,896 million in 2024, a 0.5% increase from RMB 42,667 million in 2023, with a gross profit of RMB 24,916 million, down 1.9% from RMB 25,407 million[72]. - The gross margin decreased from 59.5% in the previous year to 58.1%, primarily due to promotional impacts from new pure water products and rising raw material prices for juice[72]. Dividends - The proposed final dividend per ordinary share is RMB 0.76, totaling approximately RMB 8,547 million in dividends[5]. - The proposed final dividend for 2024 is RMB 0.76 per share, amounting to approximately RMB 8,547,314,000, pending shareholder approval[35]. - The board proposed a final dividend of RMB 0.76 per share for the year ending December 31, 2024, totaling approximately RMB 8,547 million[108]. - The company emphasizes that past dividend declarations do not guarantee future distributions, as the board considers various factors before declaring dividends[110]. Assets and Liabilities - Non-current assets totaled RMB 34,088 million, while current assets amounted to RMB 19,072 million as of December 31, 2024[8]. - Total liabilities were RMB 19,985 million, resulting in a net asset position of RMB 32,287 million[9]. - The company reported a cash and bank balance of RMB 10,722 million, indicating strong liquidity[9]. - As of December 31, 2024, the group recorded net current liabilities of RMB 912,863,000[10]. - The group holds long-term bank deposits in mainland China amounting to RMB 10,630,882,000, which can be freely converted to cash[11]. - Trade receivables amounted to RMB 618,481 thousand in 2024, with a significant portion (RMB 522,376 thousand) being within 90 days[39]. - Trade payables and notes payable totaled RMB 1,499,397 thousand in 2024, down from RMB 1,770,098 thousand in 2023[42]. - The expected credit loss for trade receivables at year-end 2024 was RMB 37,109 thousand, compared to RMB 34,680 thousand in 2023[41]. - Inventory increased from RMB 3,092 million on December 31, 2023, to RMB 5,013 million on December 31, 2024, with inventory turnover days rising from 55.0 days to 82.3 days[80]. - The capital debt ratio as of December 31, 2024, was 11.6%, slightly up from 11.2% on December 31, 2023, mainly due to increased use of receivable financing[83]. Segment Performance - The segment performance for bottled water was RMB 4,970,517 thousand, while ready-to-drink tea, functional beverages, and juice beverages reported segment performances of RMB 7,562,635 thousand, RMB 2,081,961 thousand, and RMB 1,017,117 thousand respectively[23]. - The revenue from packaged drinking water products declined by 21.3% over the year, although the company maintained the leading market share in China[44]. - The tea beverage products generated revenue of RMB 16,745 million, representing 39.0% of total revenue, down from 47.5% in 2023[52]. - The functional beverage products contributed RMB 4,932 million, accounting for 11.5% of total revenue, compared to 29.7% in the previous year[52]. - The juice beverage products generated RMB 4,085 million, which is 9.5% of total revenue, consistent with the previous year's performance[52]. - The tea beverage segment recorded revenue of RMB 16,745 million, a year-on-year increase of 32.3%, accounting for 39.0% of total revenue[59]. - The juice beverage segment recorded revenue of RMB 4,085 million in 2024, a 15.6% increase year-over-year, accounting for 9.5% of total revenue[64]. - Other products, including soda and flavored drinks, generated revenue of RMB 1,182 million, a 9.8% decrease year-over-year, accounting for 2.8% of total revenue[66]. Research and Development - Research and development costs for 2024 amounted to RMB 306,436,000, compared to RMB 349,148,000 in 2023[29]. - The company has invested in a new water source in Anhui Huangshan, further solidifying its competitive advantage in quality water sources[44]. - The company developed a non-toxic navel orange seedling in Jiangxi Gan Nan, with plans for expansion in 2024 and expected availability of non-toxic grafts by 2025[68]. - The company trained search dogs to assist in identifying trees infected with Huanglongbing disease, achieving a detection accuracy rate of 99%[69]. - The company upgraded its classic products to meet consumer demand for cleaner and healthier juice options, emphasizing no added sugar or preservatives[65]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as of December 31, 2024[116]. - The roles of the Chairman and CEO are held by the same individual, Zhong Shanshan, who has been pivotal in the company's growth since its establishment in 1996[117]. - The board consists of five executive directors, one non-executive director, and two independent non-executive directors, ensuring a higher degree of independence in management[118]. - The company has complied with the Standards for Securities Transactions by Directors and Supervisors as of December 31, 2024[119]. - The independent auditor, Ernst & Young, has agreed that the financial statements for the year ending December 31, 2024, are based on the group's annual consolidated financial statements[115]. Employee and Compensation - Employee benefits expenditure for the year 2024 amounts to RMB 4,301 million, covering over 20,000 employees[96]. - The company has adopted an employee stock incentive plan to retain key employees and drive sustainable business development, allowing a maximum of 5% of the total issued share capital to be allocated under this plan[98]. - The company has established a competitive salary system to enhance employee retention and overall competitiveness[97]. - The company implemented a performance management system to ensure competitive compensation and attract quality talent[97]. - The company granted a total of 6,636,400 H-shares under the employee stock incentive plan, representing 0.059% of the total issued shares and 0.1318% of the issued H-shares[99]. Market Strategy and Expansion - The company aims to explore international market opportunities and expand its product offerings globally[48]. - The company plans to enhance its product line by launching a new pure water product to differentiate between pure and natural water[55]. - The company is actively pursuing legal actions against malicious rumors affecting its brand and sales[54]. - The company plans to gradually utilize the net proceeds from the listing by December 31, 2026, depending on market conditions[93]. - The company has a cautious development strategy in response to post-pandemic economic recovery uncertainties and geopolitical changes[93]. - The company aims to explore overseas markets to expand its product reach and become a leading international enterprise[107]. Miscellaneous - The company has no significant investments or acquisitions as of December 31, 2024[90]. - The company has complied with all relevant laws and regulations in China and Hong Kong, with no significant violations reported in 2024[95]. - The annual report for 2024 will be made available to shareholders and published on the company's website[120]. - The announcement was made by the Chairman, Zhong Shanshan, on March 25, 2025, indicating ongoing governance and transparency efforts[121].

Core Viewpoint - The chairman of Nongfu Spring, Zhong Shanshan, stated that the production of the green bottle water was a hasty decision and expressed concerns about the long-term consumption of pure water by families [1][2]. Group 1: Company Statements - Zhong Shanshan indicated that the green bottle pure water is not suitable for long-term consumption, raising questions about its safety and quality control [2]. - The company has not issued any health warnings on the packaging of the green bottle water, despite the chairman's admission regarding its unsuitability for prolonged use [2]. Group 2: Public Response and Actions - A science popularization blogger, Xiang Dongliang, reported Nongfu Spring to the Hangzhou West Lake District Market Supervision Bureau, citing potential public health risks associated with the green bottle water [1][2]. - The blogger emphasized that the essential minerals and trace elements for the human body are primarily obtained from food, and that the cleanliness of drinking water is paramount, suggesting that the brand's admission of safety issues warrants scrutiny [2].

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