Financial Performance - In 2023, China Foods reported a revenue of RMB 21,446 million, representing a 2.3% increase from RMB 20,968 million in 2022[6] - Adjusted EBITDA rose by 13.3% to RMB 2,607 million in 2023, compared to RMB 2,302 million in 2022[6] - Earnings per share increased by 26.2% to RMB 29.76 cents in 2023, up from RMB 23.59 cents in 2022[6] - The revenue growth for the company in 2023 was 2.3% year-on-year, while sales volume growth was only 0.5%[90] - The sales volume increased by 0.5% year-on-year, although the gross profit margin declined by 0.6 percentage points due to rising sugar prices[63] - Other income and gains increased by 136.9% year-on-year, primarily due to one-off gains from investment disposals and government grants[92] - Income tax expense amounted to RMB 460 million, reflecting a 13.5% increase, consistent with profit growth[100] - The net assets attributable to owners of the company were approximately RMB 6,015 million, an increase from RMB 5,520 million in the previous year[108] - The company has no interest-bearing bank borrowings as of December 31, 2023, maintaining a nil gearing ratio[108] Market and Product Development - The launch of COFCO "Lohas" Changbai Mountain natural mineral water achieved annual sales of RMB 35.8 million in 2023[20] - The D2C business of COFCO Yuexiang Club recorded a remarkable increase of 76%, providing full-scenario services for consumers[39] - The company launched new products, including "Coca-Cola Strawberry Flavor" and "League of Legends," aimed at enhancing customer experience and targeting the young consumer market[65][66] - The company launched new products, including the sugar-free Minute Maid Bergamot Sparkling Drink, contributing to the growth in the juice segment[72] - The overall sales volume for the water category decreased slightly due to product upgrades and price increases, but new product launches are expected to enhance profitability[75] - The juice segment achieved double-digit revenue growth, driven by strong sales of orange juice and new sparkling fruit drinks[71] - The market share of the ready-to-drink coffee brand Costa exceeded 10%, maintaining its position as the second-largest brand in key markets[77] Operational Efficiency and Supply Chain - The integration of the non-sparkling supply platform was successfully completed, enhancing the overall supply chain strength[11] - China Foods focused on optimizing the supply chain and enhancing operational efficiency through regional integration and centralized procurement[30] - The company completed the acquisition of five subsidiaries from Coca-Cola Bottlers Manufacturing Holdings Limited, enhancing supply chain capacity and improving overall profit margins[53] - The Coca-Cola bottling business has aligned with Coca-Cola on mid-to-long-term development goals, focusing on market share and profitability improvements[44] - The company completed the acquisition of Coca-Cola Bottlers Manufacturing Holdings Limited, enhancing supply chain capabilities and reducing production management costs for non-carbonated beverages[55] Sustainability and Corporate Responsibility - Seven plants received National Green Factory Certification, contributing to sustainability efforts[13] - The management is committed to sustainable development, aiming for low-carbon green development while ensuring product quality and community responsibility[58] - The group maintains a strong focus on employee welfare and sustainable development as a foundation for its long-term growth[121] - The company is committed to achieving high standards of corporate governance to safeguard the interests of shareholders, investors, customers, and staff[172] Employee and Management - The workforce as of December 31, 2023, consisted of 18,889 employees, a decrease from 19,243 in the previous year[116] - The group provides various employee benefits including retirement plans, life insurance, and medical insurance, adhering to local laws and market practices[121] - The company emphasizes talent development and has established policies to ensure employee rights and prevent discrimination based on ethnicity, age, or gender[121] - The company has established a network with local and international stakeholders to enhance its operations and governance[172] Governance and Board Composition - The board currently consists of seven directors, including one executive director, two non-executive directors, and three independent non-executive directors, ensuring a balance of skills and experience for independent decision-making[193] - The board has assessed the independence of all independent non-executive directors and confirmed that they meet the independence criteria set out in the listing rules[194] - The Company has established mechanisms to ensure that at least one-third of the Board members are independent non-executive directors, promoting board independence[198] - The Board adopted a diversity policy in August 2013, emphasizing the importance of various factors such as gender, age, and professional experience in achieving board diversity[199] Future Outlook - In 2024, the company aims to reshape its operational efficiency through rebranding and restructuring its marketing network and supply system[44] - The management anticipates that domestic economic challenges and uncertainties will persist in 2024, but aims to maintain stable performance throughout the year[93] - The company plans to focus on upgrading the product mix and optimizing the business portfolio to improve gross profit margins in 2024[89]
中国食品(00506) - 2023 - 年度财报