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农夫山泉(09633) - 2022 - 年度财报
09633NONGFU SPRING(09633)2023-04-14 10:32

Financial Performance - Nongfu Spring's total revenue for 2022 reached RMB 33.2 billion, representing a year-on-year increase of 11.9%[1] - The company's net profit for 2022 was RMB 7.2 billion, up 14.8% compared to the previous year[1] - Total revenue for 2022 reached RMB 33,239 million, an increase of 11.9% compared to 2021[28] - Profit attributable to owners of the parent increased to RMB 8,495 million in 2022, up from RMB 7,162 million in 2021[28] - Gross profit for 2022 was RMB 19,095 million, compared to RMB 17,656 million in 2021[28] - The company's gross profit margin improved to 59.7% in 2022, up from 58.8% in 2021[1] - Net profit for 2022 increased by 18.6% to RMB8,495 million compared to RMB7,162 million in 2021[73] - Earnings per share increased to RMB 0.76 in 2022, up from RMB 0.64 in 2021[28] - The company will recommend a cash dividend of RMB0.68 per share for the year ended December 31, 2022, amounting to a total dividend of approximately RMB7,647.6 million[32] - The company proposed a final cash dividend of RMB0.68 per share for the year ended December 31, 2022, totaling approximately RMB7,647.6 million[74][79] - The company's profit for the year increased by 18.6% from RMB7,162 million in 2021 to RMB8,495 million in 2022[78] Revenue Breakdown by Product Segment - Nongfu Spring's packaged drinking water segment contributed RMB 17.0 billion to total revenue, accounting for 51.2% of total sales[1] - The beverage segment, including tea, functional, and juice drinks, generated RMB 16.2 billion in revenue, representing 48.8% of total sales[1] - Revenue from packaged drinking water products accounted for 54.9% of total revenue in 2022, reaching RMB18,263 million, a 7.1% increase from 2021[42] - Revenue from tea beverage products accounted for 20.8% of total revenue in 2022, reaching RMB6,906 million, a significant increase from 15.4% in 2021[41] - Revenue from functional beverage products accounted for 11.5% of total revenue in 2022, reaching RMB3,838 million, slightly down from 12.4% in 2021[41] - Revenue from juice beverage products accounted for 8.7% of total revenue in 2022, reaching RMB2,879 million, slightly down from 8.8% in 2021[41] - Revenue from other products accounted for 4.1% of total revenue in 2022, reaching RMB1,353 million, down from 6.0% in 2021[41] - Packaged drinking water products revenue in 2022 was RMB18,263 million, a 7.1% increase from 2021, accounting for 54.9% of total revenue[43] - Tea beverage products revenue in 2022 was RMB6,906 million, a 50.8% increase from 2021, accounting for 20.8% of total revenue[45][46] - Functional beverage products revenue in 2022 was RMB3,838 million, a 3.9% increase from 2021, accounting for 11.5% of total revenue[51][53] - Juice beverage products revenue in 2022 was RMB2,879 million, a 10.1% increase from 2021, accounting for 8.7% of total revenue[52] - Revenue from juice beverage products in 2022 was RMB2,879 million, a 10.1% increase compared to 2021, accounting for 8.7% of total revenue[55] - Revenue from other products decreased by 22.7% to RMB1,353 million in 2022, accounting for 4.1% of total revenue[57][58] Operational Highlights - The company's operating cash flow increased by 18.5% year-on-year to RMB 9.8 billion in 2022[1] - The company's R&D expenditure in 2022 was RMB 320 million, representing 1.0% of total revenue[1] - The company completed and put into operation a new production base in Daming Mountain, Guangxi, increasing the number of water sources to 12[29] - The company continued to strengthen channel construction and development of sales outlets, particularly during the COVID-19 pandemic[30] - Information technology development was enhanced, including upgrades to the digital marketing system and optimization of production and logistics management[30] - The company introduced new packaging sizes for drinking water, such as 4.5L and 6L, to promote sales of larger-sized packaged drinking water[42] - The company launched new 4.5L and 6L capacity specifications for packaged drinking water to improve the product matrix[43] - "Tea π" introduced two new flavors, "Citrus Pu'er Lemon Tea" and "Green Grape Oolong Tea," and expanded its product matrix with 900ml packages[45][47] - "Oriental Leaf" launched seasonal limited products, including "Longjing Spring Tea" and "Osmanthus Oolong," to promote Chinese tea culture[48][49] - The company launched a new carbonated tea product, "Sparkling Tea Drink," with three innovative flavors in March 2022[50] - "Scream" beverage collaborated with Ultraman for co-branded bottles and themed activities, while "Vitamin Water" engaged in music and dance events[54] - "Nongfu Orchard" underwent a comprehensive upgrade, launching five new 30% mixed juice beverages with new branding and packaging in 2022[52] - The Group launched new flavors for "Tea π" and upgraded the "Farmer's Orchard" product line in 2022[59][62] - The Group upgraded its digital marketing system and launched order management and warehousing logistics systems in 2022[63] Corporate Governance and Board Structure - The company's executive directors include Mr. Zhong Shanshan (Chairman and General Manager), Mr. Guo Zhen, Mr. Zhou Li, Ms. Zhou Zhenhua, and Mr. Liao Yuan[11] - The company's independent non-executive directors include Mr. Stanley Yi Chang, Mr. Yang Lei Bob, and Mr. Lu Yuan[12] - The company's supervisor committee includes Mr. Zhong Jigang (Chairman), Mr. Liu Xiyue, and Mr. Rao Minghong[13] - The Board consists of five executive Directors, one non-executive Director, and three independent non-executive Directors, ensuring a strong independence element[130] - The Board consists of nine Directors, including five executive Directors, one non-executive Director, and three independent non-executive Directors as of December 31, 2022[132][134] - The Board is responsible for determining business strategies, investment plans, and implementing resolutions passed at Shareholders' general meetings[136][137] - The Board has established three special committees: Audit Committee, Nomination Committee, and Remuneration Committee to advise on decisions[138][141] - The Company has set up the Office of Public Policy & Sustainable Development to assist the Board in identifying and monitoring sustainable development risks[138] - The Chairman of the Board and General Manager roles are both performed by Mr. Zhong Shanshan[140] - The Board approved the "Mechanism for the Board to Obtain Independent Views and Opinions" to ensure independent perspectives are available[143] - The Board regularly reviews compliance with domestic and overseas regulatory requirements and internal corporate governance policies[142] - The Supervisor Committee oversees the performance of duties by the Board and senior management, as well as financial activities and risk management[138] - No changes in Directors, Supervisors, and senior management during the Reporting Period[145] - The term of the seventh session of the Board of Directors and Supervisory Committee will expire on March 5, 2023, with the eighth session to be established[146] - Nomination of candidates for the eighth session of the Board of Directors and Supervisory Committee, including Mr. Zhong Shanshan, Ms. Wu Limin, Mr. Xiang Xiansong, and Ms. Han Linyou as executive Directors[146] - Mr. Rao Minghong re-elected as the employee representative Supervisor of the eighth session of the Supervisory Committee on March 2, 2023[147] - The eighth session of the Board of Directors and Supervisory Committee will have a term of three years, effective from the date of approval at the Annual General Meeting[148] - Adjustments to senior management, including the appointment of Ms. Wu Limin as Chief Financial Officer and Authorized Representative, effective from the date of approval at the Annual General Meeting[150] - During the Reporting Period, the Company held 4 Board meetings and 2 general meetings, with all Directors attending all meetings[154] - The senior management provided timely information to the Board regarding business activities and development, with executive Directors frequently communicating with non-executive Directors[155] - The Company arranged and funded suitable training for Directors, ensuring compliance with the Corporate Governance Code and enhancing awareness of good corporate governance practices[157] Audit and Financial Controls - The Audit Committee reviewed the annual result announcement for the year ended December 31, 2022, confirming compliance with all applicable accounting standards and regulations, and sufficient disclosures were made[170] - The Audit Committee reviewed the Group's financial, operational, and compliance controls, as well as risk management for 2022, and was satisfied with the effectiveness and sufficiency of the internal control mechanism[170] - The Audit Committee recommended re-appointing Pan-China Certified Public Accountants LLP as the domestic auditors and Ernst & Young as the overseas auditors for 2023, subject to shareholder approval[170] - The Audit Committee held three meetings during the reporting period, with all members attending all meetings[168] - The Audit Committee reviewed the interim report for the six months ended June 30, 2022, confirming compliance with applicable accounting principles, standards, and requirements[169] - The Audit Committee reviewed the remuneration of the auditors for 2022 and made recommendations for their re-appointment[170] - The Audit Committee ensured coordination between the internal audit department and the external audit agency[165] - The Audit Committee reviewed the Company's policies and practices on financing and accounting[165] - The Audit Committee ensured proper channels were established for employees to report potential improprieties in financial reporting or internal controls confidentially[165] - The Audit Committee reviewed the Explanatory Letter on Audit submitted by the external audit agency and any material questions raised regarding accounting records or internal controls[165] Sustainability and Corporate Responsibility - The company reduced water intensity by 12.7% compared to 2020, achieving 63.4% of the 2030 strategic target for water intensity reduction[115] - The company achieved 99% recyclable plastic packaging for water and beverage products[118] - The company established a three-level sustainable development structure with the Board of Directors as the top leader, assisted by the Office of Public Policy & Sustainable Development[109] - The company actively identified and updated the impact of climate change on its business in real time, formulating systematic response strategies[113] - The company improved energy efficiency and promoted clean energy replacement, while strengthening low-carbon management in the value chain[114] - The company optimized waste water, exhaust gas, and waste management, reducing the impact of operations on the natural environment[117] - The company committed to sustainable agriculture development, focusing on the potential impacts of agricultural production on water resources, soil health, and climate change[118] - The company has released its 2022 Sustainability Report, focusing on promoting social sustainable development[124] - The company has adopted sound governance and disclosure practices, aiming to establish a highly ethical corporate culture[127] - The company is committed to building a sustainable supply chain and improving supplier performance in environment, human rights, and integrity[122] Shareholder Communication and Governance - The Company has adopted a Shareholder Communication Policy to ensure equal and timely access to information for shareholders and investors[199][200] - The Company publishes updated business operations, financial data, and corporate governance practices on its website for public access[199][200] - The Board of Directors reviewed the implementation and effectiveness of the Shareholder Communication Policy during the reporting period and found it to be appropriate and effective[199] - Shareholders holding more than 3% of voting shares can propose new agenda items for the general meeting, with the convener required to issue a supplementary notice within 2 days[198] - The Company's Articles of Association were not amended during the reporting period[198] Employee and Management Incentives - Total employee benefit expenses, including directors' remuneration, amounted to RMB3,261 million in 2022[102] - The Group granted 6,636,400 H Shares under the Employee Share Incentive Scheme, representing 0.059% of total issued shares and 0.1318% of issued H Shares[106] - 2,610,000 incentive shares met the First Tranche Vesting conditions, while 44,184 shares were confiscated and sold in the open market[107] - The grant price for the Employee Share Incentive Scheme was HK13.22pershare,calculatedas3013.22 per share, calculated as 30% of the average closing price of H Shares in the 120 trading days before the grant date[107] - The Company's Employee Share Incentive Scheme was approved by the Remuneration Committee during the reporting period[188][189] Financial Position and Capital Management - Total assets grew to RMB 39,255 million in 2022, up from RMB 32,896 million in 2021[28] - Cash and bank balances increased to RMB 15,211 million in 2022, compared to RMB 14,784 million in 2021[28] - The company's long-term bank deposits, pledged deposits, cash, and bank balances increased by 21.4% to RMB19,316 million as of December 31, 2022, compared to RMB15,909 million in 2021[75][80] - Inventories increased by 16.5% to RMB2,108 million as of December 31, 2022, with inventory turnover days decreasing from 54.8 days to 50.5 days[82][83] - Trade and bills payables increased to RMB1,425 million as of December 31, 2022, with turnover days increasing from 30.8 days to 33.3 days[85][87] - The company's gearing ratio decreased to 10.5% as of December 31, 2022, compared to 12.5% in 2021, due to slower growth in interest-bearing borrowings relative to equity[88][91] - The company held HK1,469 million, US443million,andasmallamountofotherforeigncurrenciesasofDecember31,2022,withincreasedexchangeratesforUSDandHKDagainstRMB[76][90][94]CapitalcommitmentsamountedtoapproximatelyRMB1,542millionasofDecember31,2022,primarilyfortheconstructionofproductionplantsandpurchaseofproductionequipment[96][97]ThecompanydidnothaveanysignificantcontingentliabilitiesasofDecember31,2022[95]ThecompanygraduallyusedtheproceedsfromtheinitialpublicofferingfortheintendedpurposessetoutintheProspectusfromSeptember8,2020,toDecember31,2022[98]TotalIPOproceedsandoverallotmentoptionnetproceedsamountedtoHK443 million, and a small amount of other foreign currencies as of December 31, 2022, with increased exchange rates for USD and HKD against RMB[76][90][94] - Capital commitments amounted to approximately RMB1,542 million as of December 31, 2022, primarily for the construction of production plants and purchase of production equipment[96][97] - The company did not have any significant contingent liabilities as of December 31, 2022[95] - The company gradually used the proceeds from the initial public offering for the intended purposes set out in the Prospectus from September 8, 2020, to December 31, 2022[98] - Total IPO proceeds and over-allotment option net proceeds amounted to HK9,377 million, with HK4,896million(52.24,896 million (52.2%) utilized as of December 31, 2022, leaving HK4,481 million unutilized[99] - Brand building utilized HK1,003millionoutofHK1,003 million out of HK2,344 million allocated, with HK1,341millionremaining[100]PurchasingsalesequipmentutilizedHK1,341 million remaining[100] - Purchasing sales equipment utilized HK371 million out of HK2,344millionallocated,withHK2,344 million allocated, with HK1,973 million remaining[100] - Purchasing production facilities and building new factories utilized HK1,434millionoutofHK1,434 million out of HK1,875 million allocated, with HK441millionremaining[100]StrengtheningfundamentalcapabilitiesutilizedHK441 million remaining[100] - Strengthening fundamental capabilities utilized HK212 million out of HK838millionallocated,withHK838 million allocated, with HK626 million remaining[100] Product Development and Innovation - The company introduced new packaging sizes for drinking water, such as 4.5L and 6L, to promote sales of larger-sized packaged drinking water[42] - The company launched new 4.5L and 6L capacity specifications for packaged drinking water to improve the product matrix[43] - "Tea π" introduced two new flavors, "Citrus Pu'er Lemon Tea" and "Green Grape Oolong Tea," and expanded its product matrix with 900ml packages[45][47] - "Oriental Leaf" launched seasonal limited products, including "Longjing Spring Tea" and "Osmanthus Oolong," to promote Chinese tea culture[48][49] - The company launched a new carbonated tea product, "Sparkling Tea Drink," with three innovative flavors in March 2022[50] - "Scream" beverage collaborated with Ultraman for co-branded bottles and themed activities, while "Vitamin Water" engaged in music and dance events[54] - "Nongfu Orchard" underwent a comprehensive upgrade, launching five new 30% mixed juice beverages with new branding and packaging in 2022[52] - The Group launched new flavors for "Tea π" and upgraded the "Farmer's Orchard" product line in 2022[59][62] Market Strategy and Expansion - The company implemented a multi-brand strategy and has built a super brand in the PRC soft beverage market[4] - The company's nationwide sales network covers all provinces, municipalities, and prefecture-level administrative divisions across China[3] - The company will continue to expand sales channels and market share in 2023, while exploring innovative and high-quality products to meet changing consumer needs[125] - The company will strengthen its understanding of consumer needs and adapt to market changes post-pandemic[125] - The company plans to strengthen the development and reserve of high-quality water resources and talent resources to ensure long-term sustainable development[33] Quality and Safety Management - Product external inspection and national random inspection qualification rate reached 100%[121] - The company has revised its internal health and safety system and set production safety management objectives to protect employee occupational health and safety[120] - The company adheres to the philosophy of developing "natural and healthy" products, integrating quality and safety into the entire product lifecycle[121] Corporate Culture and Ethics - The company achieved 100% employee coverage for the signed Code of Business Conduct and anti-corruption training[111] - The company has adopted sound