Business Operations - China Foods holds an exclusive franchise to manufacture and distribute Coca-Cola products across 19 provincial-level regions, covering approximately 50% of mainland China's population[10]. - The company has around 10,000 salespersons serving over 2.5 million customers, with controllable business orders accounting for nearly 90% of overall business[10]. - The smart retail business achieved rapid revenue growth during the interim period, with equipment units ranking among the best in the industry[11]. - COFCO Yuexiang Club saw a year-on-year revenue increase, with gross profit margins improving and its D2C business more than doubling[11]. - The sparkling drinks category maintained a market share of over 50% in operating regions, outperforming major competitors[24]. - The ready-to-drink coffee segment experienced a double-digit year-on-year revenue increase, driven by the introduction of new flavors like Vanilla Cheesecake Latte and Hazelnut White Chocolate Latte[31][32]. - The smart retail business expanded its device count, achieving nationwide coverage across 31 provinces and over 280 cities, with continued rapid year-on-year revenue growth[35][36]. Financial Performance - In the first half of 2024, China Foods reported a revenue of RMB 11,335.1 million, a decline of 9.0% compared to RMB 12,455.9 million in the same period of 2023[21]. - The gross profit margin decreased by 0.9 percentage points year-on-year, reflecting challenges in the sparkling drinks category due to reduced demand[21]. - The overall revenue decreased by 9.0% year-on-year, primarily due to a 15.7% drop in sales volume[38][42]. - Other income, gains, and losses decreased by 41% year-on-year, largely due to a one-off gain from asset disposal recorded in the previous period[40][44]. - The company reported a profit and total comprehensive income of RMB 5,077,951 for the period ended June 30, 2024, up from RMB 4,694,741 for the same period in 2023, reflecting a growth of approximately 8.2%[94]. - The profit before tax for the first half of 2024 was RMB 1,269,297,000, compared to RMB 1,327,611,000 in the first half of 2023, indicating a decrease of about 4.4%[146]. - Profit before tax was RMB 1,269,297, a decrease of 4.4% from RMB 1,327,611 in the prior year[86]. Market Trends - China's GDP reached RMB 61.68 trillion in the first half of 2024, with a year-on-year growth of 5.0%[17]. - Per capita consumption expenditure in China grew by 6.7% year-on-year, supporting overall sales in the non-alcoholic ready-to-drink sector[17]. Product Development - The "Minute Maid" brand launched a new visual identity system to strengthen consumer connections, enhancing brand image and product packaging[26]. - The new "Chun Yue pH9.0+ White Peach Flavoured Soda Water" was introduced, achieving tens of millions in revenue shortly after launch[28]. - The newly launched "Pure Joy pH9.0+ Sparkling Water" and "LOHAS Natural Sparkling Water" have achieved significant sales, with the latter becoming a million-unit seller within months of its launch[30]. - China Foods plans to enhance the profitability of its water segment by promoting mainstream and premium water products[29]. Corporate Governance - The Company complied with the Corporate Governance Code throughout the reporting period, except for specific provisions C.2.1 and F.2.2[66]. - The Chairman and Chief Executive roles are held by the same individual, Mr. Qing Lijun, which is an exception to the governance code[67]. - The new appointments and resolutions reflect the company's ongoing commitment to corporate governance and transparency[75]. Financial Position - As of June 30, 2024, the Group's net assets attributable to owners of the parent were approximately RMB6,167 million, an increase from RMB6,015 million as of December 31, 2023[47]. - The Group's net cash position was approximately RMB3,662 million as of June 30, 2024, up from RMB2,293 million as of December 31, 2023, with a gearing ratio of nil[47]. - Current assets increased to RMB 6,673,432, up from RMB 5,975,180 as of December 31, 2023[88]. - Total equity attributable to owners of the Company rose to RMB 6,166,675, compared to RMB 6,015,432 at the end of 2023[90]. - The total equity as of June 30, 2024, was RMB 10,203,025, compared to RMB 9,405,608 as of June 30, 2023, indicating an increase of about 8.5% year-over-year[94]. Employee and Management - The Group employed 17,821 staff as of June 30, 2024, down from 18,889 as of December 31, 2023[50]. - The Group emphasizes a "contributor-oriented" talent development concept, providing a robust career development platform and comprehensive training[54]. - The total compensation to key management personnel was RMB 8,423,000, a decrease of 8.3% from RMB 9,185,000 in the same period of 2023[157]. Cash Flow and Investments - For the six months ended June 30, 2024, the net cash from operating activities was RMB 1,639,722, an increase from RMB 1,478,089 in the same period of 2023, representing a growth of approximately 10.9%[96]. - The net cash used in investing activities for the six months ended June 30, 2024, was RMB 211,619, slightly higher than RMB 202,245 in the same period of 2023[96]. - Cash and cash equivalents at the end of the period on June 30, 2024, were RMB 3,661,582, compared to RMB 2,276,257 at the end of June 30, 2023, showing a significant increase of approximately 60.8%[98]. Shareholder Information - As of June 30, 2024, China Foods (Holdings) Limited holds 2,072,688,331 shares, representing approximately 74.10% of the issued shares[60]. - The total number of issued shares of the Company as of June 30, 2024, is 2,797,223,396 shares[65]. - The Group's weighted average number of ordinary shares remained constant at 2,797,223,396 for both periods[122][126].
中国食品(00506) - 2024 - 中期财报