Business Operations - China Foods holds an exclusive franchise to manufacture, market, and distribute Coca-Cola products across 19 provincial-level regions, covering approximately 50% of mainland China's population[11]. - The company has around 10,000 salespersons serving over 2.8 million customers, with controllable business orders accounting for nearly 90% of overall business[11]. - The smart retail business achieved over 100% revenue growth and ranked second in the industry in terms of equipment numbers[12]. - The company offers 10 major beverage types under 24 brands, including sparkling drinks, juices, and plant-based protein drinks[11]. - The Company launched new products including "Coca-Cola Strawberry Flavor" and "Minute Maid Bergamot Sparkling Drink," enhancing its product portfolio[25][30]. - The Company is involved in processing, bottling, and distribution of sparkling and still beverage products, indicating a focus on beverage market expansion[85]. Financial Performance - In the first half of 2023, China Foods reported revenue of RMB 12,455.9 million, a year-on-year increase of 4.7% compared to RMB 11,893.7 million in the same period of 2022[22]. - The sales volume increased by 5.5% year-on-year, indicating a recovery in market demand as domestic economic activities returned to normal[22]. - The gross profit margin declined by 0.7 percentage points year-on-year due to rising white sugar prices, despite a decrease in can prices[22]. - The domestic juice industry showed a double-digit revenue growth for the Company's juices segment, driven by successful new product launches[29]. - The revenue increased by 4.7% year-on-year, driven by a sales volume growth of 5.5%[38]. - Profit for the period reached RMB 1,016,876, up from RMB 879,769 in the previous year, reflecting a growth of approximately 15.6%[73]. - Basic earnings per share for the period was 21.47 RMB cents, compared to 17.21 RMB cents in the same period last year, marking an increase of about 24.5%[71]. - Other income and gains rose by 113% year-on-year, primarily due to one-off gains of RMB 91.61 million from the disposal of investments[40]. Strategic Initiatives - In early 2023, China Foods completed the acquisition of the non-sparkling beverage production business, enhancing supply chain capabilities and reducing production costs, which positively impacted overall profit margins[12]. - The company aims to become a world-class food and beverage group, focusing on high-quality and sustainable development[12]. - The strategic focus includes improving quality, enhancing efficiency, and promoting innovation while maintaining a commitment to green practices[13]. - China Foods continues to implement a strategic layout for developing a full-service beverage business while promoting innovative business practices[13]. - The company is focusing on digital transformation and optimizing supply chain structures to enhance efficiency and quality[16]. Corporate Social Responsibility - China Foods emphasizes corporate social responsibility and sustainable practices, setting ambitious goals for carbon reduction and environmental protection[13]. - The company is dedicated to fulfilling social responsibilities throughout its production and logistics processes[13]. Human Resources - As of June 30, 2023, the Group employed 19,027 staff in Mainland China and Hong Kong, a decrease from 19,243 staff as of December 31, 2022[49]. - The Group has established comprehensive policies for employee recruitment, remuneration, and benefits to protect employee interests and eliminate discrimination[50]. - The Group emphasizes a "contributor-oriented" talent development concept, providing a robust career development platform and comprehensive training system[51]. - The Group's human resources policies aim to ensure mutual development between the Group and its employees through continuous training and performance appraisal[50]. Financial Position - As of June 30, 2023, the group had unpledged cash and cash equivalents of approximately RMB 2,280 million, up from RMB 1,040 million at the end of 2022[46]. - The company has no interest-bearing bank borrowings as of June 30, 2023, maintaining a nil gearing ratio[46]. - The total assets as of June 30, 2023, amounted to RMB 16,089,450, an increase from RMB 15,062,955 as of December 31, 2022, representing a growth of 6.8%[76]. - Current assets increased to RMB 5,774,192 as of June 30, 2023, compared to RMB 4,566,293 at the end of 2022, reflecting a rise of 26.4%[76]. - Total liabilities reached RMB 6,683,842, up from RMB 6,200,743 at the end of 2022, indicating an increase of 7.8%[78]. - Net assets as of June 30, 2023, were RMB 9,405,608, compared to RMB 8,862,212 at the end of 2022, showing a growth of 6.1%[78]. Dividends and Share Capital - The company did not declare any interim dividend for the six months ended June 30, 2023, compared to nil for the same period in 2022[61]. - The Company declared a final dividend of RMB 337,361 during the period, impacting retained profits[81]. - The company’s issued and fully paid share capital remained at 2,797,223,396 shares as of June 30, 2023, equivalent to RMB 293,201,000[167]. Acquisitions and Investments - The Group acquired 100% equity interests in five subsidiaries of Coca-Cola Bottlers Manufacturing Holdings Limited on January 1, 2023, with a purchase consideration of RMB 541,535[137][138]. - The revenue contribution from the acquired subsidiaries since January 1, 2023, was RMB 32,000, while the net profit contribution was RMB 8,996,000[145]. - The Group disposed of equity interests in eleven entities, resulting in a disposal gain of RMB 91,606,000[153]. Cash Flow Management - Cash generated from operations for the six-month period ended June 30, 2023, was RMB 1,721,673,000, an increase from RMB 1,496,478,000 in the same period of 2022, representing a growth of approximately 15%[83]. - Net cash used in investing activities was RMB 202,245,000, a significant improvement compared to RMB 407,459,000 in the prior year, indicating a reduction of about 50%[83]. - The Group reported net current liabilities of RMB 333,042,000 at the end of the reporting period, which the Directors believe can be managed through expected net cash inflows from operations over the next twelve months[85].
中国食品(00506) - 2023 - 中期财报