统一企业中国(00220) - 2019 - 年度财报

Corporate Information This section provides essential company details, including listing information, key addresses, board and committee members, and professional advisors - The company's basic information includes its listing on the Hong Kong Stock Exchange (code 220), registered address, principal place of business, board and committee members, principal bankers, auditors, and legal advisors[9][10] Financial Summary This section presents a five-year financial overview, including key performance indicators and balance sheet summaries Five-Year Performance Summary (As at December 31) | Indicator | 2019 | 2018 | 2017 (Restated) | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue (RMB '000) | 22,019,737 | 21,772,240 | 20,821,949 | 20,985,532 | 22,101,871 | | Gross Profit (RMB '000) | 7,918,290 | 7,288,599 | 6,576,938 | 7,227,800 | 8,140,733 | | Profit Before Income Tax (RMB '000) | 1,971,360 | 1,539,774 | 1,276,824 | 1,067,972 | 1,170,761 | | Profit for the Year (RMB '000) | 1,366,212 | 1,029,704 | 878,216 | 607,329 | 834,505 | | Basic Earnings Per Share (RMB Cents) | 31.63 | 23.84 | 20.33 | 14.06 | 19.32 | Five-Year Balance Sheet Summary (As at December 31) | Indicator | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets (RMB '000) | 21,757,042 | 21,732,558 | 20,036,552 | 20,705,427 | 21,606,419 | | Total Liabilities (RMB '000) | 8,124,112 | 8,510,251 | 7,221,075 | 8,665,316 | 10,004,016 | | Total Equity (RMB '000) | 13,632,930 | 13,222,307 | 12,815,477 | 12,040,111 | 11,602,403 | Chairman's Statement The Chairman's statement highlights steady growth driven by value marketing and product innovation, with a proposed dividend and a forward-looking strategy addressing the COVID-19 pandemic 2019 Performance Overview | Indicator | Amount (RMB Million) | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue | 22,019.7 | +1.1% | | Profit After Tax | 1,366.2 | +32.7% | - The company maintained steady growth amidst intense industry competition by adhering to "value marketing" and "healthy operations," stabilizing channel prices, continuously investing in brands, and managing product freshness; star products "Uni-President Assam Milk Tea" and "Master Kong Soup Noodle" achieved sustained double-digit revenue growth, becoming key growth engines[15] - The company actively innovated, developing new product formats such as "Tea King" sugar-free tea and "Kai Xiao Zao" self-heating meals, and expanded the boundaries of convenience food by applying self-heating technology[15] - The Board recommended a final cash dividend of RMB 31.63 cents per share for the year ended December 31, 2019, totaling approximately RMB 1,366.2 million[16] - Looking ahead to 2020, in response to the COVID-19 pandemic, the Group actively cooperated with epidemic prevention measures and strived for work resumption, while also seizing opportunities from the "stay-at-home economy" driven shift in e-commerce consumption patterns[16] Management Discussion & Analysis This section provides an in-depth analysis of the company's operational and financial performance, strategic initiatives, and market outlook Economic Environment In 2019, China's GDP grew by 6.1%, with economic growth slowing due to US-China trade friction, but government stimulus measures stabilized livelihoods; the food industry saw increased competition due to lower raw material costs and favorable policies, with consumption trends driven by product richness and innovation, while the early 2020 COVID-19 pandemic had no significant impact on the Group's business at the time of reporting - In 2019, China's GDP grew by 6.1%, a 0.5 percentage point decrease from the previous year, with government measures like tax cuts stabilizing the national economy and the food industry continuing to thrive[21] - The food industry experienced declining raw material prices, easing cost pressures, but faced intensified market competition, fluctuating channel prices, and diversified marketing strategies[21] - As of the annual report release date, the Group had not identified any significant impact from the early 2020 COVID-19 pandemic on its business and will closely monitor its long-term effects[21] Business Review In 2019, the Group's total revenue reached RMB 22,019.7 million, a 1.1% year-on-year increase, with both food and beverage businesses growing by 0.9%; the company achieved steady operational improvements by focusing on brand building, value marketing, "healthy operations" to stabilize market prices, and optimizing product structure 2019 Segment Business Revenue | Business Segment | Revenue (RMB Million) | Year-on-Year Growth | | :--- | :--- | :--- | | Food Business | 8,500.7 | +0.9% | | Beverages Business | 12,730.5 | +0.9% | | Total | 22,019.7 | +1.1% | Food Business The food business addressed new consumer demands for quality and convenience by applying self-heating technology and developing quick-cook fresh noodles; instant noodle revenue reached RMB 8,500.7 million, a 0.9% year-on-year increase, primarily driven by the sustained double-digit growth of the mid-to-high-end brand "Master Kong Soup Noodle", while innovative products like "Kai Xiao Zao" self-heating meals and "Q Xiaoxian" fresh noodles expanded the product line Instant Noodle Business Performance | Indicator | 2019 | Year-on-Year Growth | | :--- | :--- | :--- | | Revenue (RMB Million) | 8,500.7 | +0.9% | - Instant noodle business growth was primarily attributed to the mid-to-high-end brand "Master Kong Soup Noodle," which continued to achieve double-digit revenue growth[22][34] - The company launched a series of innovative products, such as "Teng Jiao" rattan pepper beef noodles, "Du Hui Xiao Guan" spicy fatty intestine noodles, "Uni-President Qie Huang" tomato and egg noodles, and the premium lifestyle noodle "Man Han Da Can"[23][29][31][36] - In other food categories, the "Kai Xiao Zao" self-heating meal series was well-received and expanded with new flavors, while "Q Xiaoxian" fresh noodles entered the Shanghai market, catering to the needs of middle-class families[37][38] Beverages Business The beverages business generated RMB 12,730.5 million in revenue in 2019, a 0.9% year-on-year increase, by adhering to value marketing, stabilizing channel prices, and focusing on brand building; milk tea business achieved double-digit growth for three consecutive years, up 13.1%, fruit juice business grew by 1.3%, and tea beverage business met high-end market demands with new products like "Tea King" sugar-free tea, while the company continued youth-oriented marketing through collaborations with popular media like e-sports and idol endorsements Beverage Business Segment Performance | Business Segment | 2019 Revenue (RMB Million) | Year-on-Year Growth | | :--- | :--- | :--- | | Total Beverage Business | 12,730.5 | +0.9% | | Tea Beverages | 5,616.3 | - | | Juice | 1,746.6 | +1.3% | | Milk Tea | - | +13.1% | - In the tea beverage business, "Uni-President Iced Tea" and "Uni-President Green Tea" performed stably, "Xiao Ming Tong Xue" sales were weaker, and newly launched "Tea King" sugar-free tea and "Tea Instant Fresh" refrigerated tea jointly met high-end market demands[42] - The juice business achieved 1.3% growth by signing idol Wang Yuan as the endorser for "Uni-President Fresh Orange", attracting a new generation of consumers[51][53] - The milk tea business achieved double-digit growth for three consecutive years, with "Uni-President Assam Milk Tea" maintaining its position as a category leader and continuing to be favored by consumers[63][64] - In other beverages, the company focused on operating "ALKAQUA" natural mineral water and launched new products such as the premium refrigerated coffee "Left Bank Coffee" and sweet sake "Qian Bai Du"[71][74][84] Research and Development The Group's R&D center, guided by consumer demand, integrates innovation resources and focuses on value and category innovation; as of December 2019, it held 81 authorized patents and 49 pending patent applications, with food R&D deepening in Chinese cuisine, sterilization and preservation, and self-heating technologies, leading to new flavors for "Kai Xiao Zao" and the upgraded "Master Kong Soup Noodle Extreme Flavor" series, while beverage R&D aligned with health trends by upgrading "Tea King" sugar-free tea, and core technologies like original broth processing and segmented sterilization were successfully applied to new products - As of December 2019, the R&D center held 81 authorized patents and 49 pending patent applications, continuously building technological barriers[86] - Food R&D focused on extending the "Kai Xiao Zao" self-heating meal product line, launching the upgraded "Master Kong Soup Noodle Extreme Flavor" series, and the newly introduced "Uni-President Qie Huang" tomato and egg noodles[86][87] - Beverage R&D prioritized health trends, comprehensively upgrading "Tea King" and launching two sugar-free teas[92] Food Safety The Group upholds the "Three Goods and One Fair" philosophy, establishing a Food Safety Committee and Center to promote a food safety culture; by improving supply chain oversight, managing suppliers at the source, and introducing third-party evaluations, the company ensures quality and safety from raw materials to finished products, with its Food Safety Testing Center accredited by CNAS, and 27 subsidiaries ISO9001 certified and 25 ISO22000 certified, guaranteeing product safety and deliciousness - The Group established a Food Safety Committee and Food Safety Center, dedicated to promoting food safety culture, building assurance systems, and formulating policies[95] - The Group continuously improved raw material supply chain oversight, implemented supplier qualification reviews and on-site evaluations, and actively promoted source management for suppliers[97][98] - As of 2019, 27 subsidiaries of the Group had obtained ISO9001 certification, and 25 subsidiaries had obtained ISO22000 certification[99] Production Strategies To achieve resource focus and maximize efficiency, the Group maintains its own production capacity while forming long-term strategic alliances with professional beverage co-manufacturers, including independent third parties and associated enterprises; this collaborative model allows the Group to flexibly adjust capacity through outsourced production beyond its basic capacity, thereby more effectively allocating resources to core operational areas such as product R&D, brand building, and sales channel development - In addition to its own production capacity, the Group maintains long-term strategic alliances with professional beverage co-manufacturers (including external independent third parties and associated enterprises) to adjust capacity, focusing resources and maximizing efficiency[99][100] Financial Results For the year 2019, the Group reported revenue of RMB 22,019.7 million, a 1.1% year-on-year increase; gross profit grew by 8.6% to RMB 7,918.3 million, with gross margin improving from 33.5% to 36.0% due to product structure optimization, lower raw material prices, and tax reduction policies; operating profit significantly increased by 35.6% to RMB 1,806.3 million, and profit attributable to equity holders was RMB 1,366.2 million, up 32.7%, with earnings per share at RMB 31.63 cents 2019 Key Financial Data | Indicator | 2019 (RMB Million) | 2018 (RMB Million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 22,019.7 | 21,772.2 | +1.1% | | Gross Profit | 7,918.3 | 7,288.6 | +8.6% | | Gross Margin | 36.0% | 33.5% | +2.5pp | | Operating Profit | 1,806.3 | 1,331.9 | +35.6% | | Profit Attributable to Equity Holders | 1,366.2 | 1,029.7 | +32.7% | | Earnings Per Share (RMB Cents) | 31.63 | 23.84 | +32.7% | - The increase in gross margin was primarily due to the Group's continuous optimization of product structure, a decline in raw material prices, and the implementation of a series of tax reduction and fee cut policies by the Chinese government[100] - Selling and marketing expenses increased to RMB 5,367.6 million due to increased channel and brand promotion investments, while administrative expenses decreased to RMB 1,007.2 million due to lower value-added tax and reduced surcharges[100] Financial Analysis As of the end of 2019, the Group's cash and bank balances increased to RMB 6,483.5 million, and total financial liabilities decreased by 39.3% to RMB 1,207.1 million; the capital gearing ratio improved from -31.78% to -63.14%, indicating a further strengthened net cash position, with capital expenditure at RMB 409.0 million primarily for equipment upgrades, and inventory turnover days increasing from 33 to 41 days mainly due to early stocking for increased production and sales during the Spring Festival Capital Gearing Ratio (As at December 31) | Indicator (RMB '000) | 2019 | 2018 | | :--- | :--- | :--- | | Total Borrowings (including lease liabilities) | 1,207,108 | 1,987,726 | | Less: Cash and Bank Balances | (6,483,500) | (5,176,478) | | Net Cash | (5,276,392) | (3,188,752) | | Total Equity | 13,632,930 | 13,222,307 | | Capital Gearing Ratio | (63.14%) | (31.78%) | Key Turnover Days (For the Year Ended December 31) | Indicator | 2019 (Days) | 2018 (Days) | | :--- | :--- | :--- | | Trade Receivables Turnover Days | 9 | 9 | | Inventory Turnover Days | 41 | 33 | | Trade Payables Turnover Days | 42 | 37 | - Capital expenditure in 2019 was RMB 409.0 million, a year-on-year decrease, primarily used for purchasing upgraded equipment and R&D equipment investments[109][110] - The Group sold approximately 9% of its equity in Wandashan Dairy in December 2019 for RMB 334 million, generating a post-tax gain of RMB 92.1 million[117] Human Resources and Remuneration Policy As of the end of 2019, the Group had 29,494 employees; the company adheres to a strategy of "lean staffing and merit-based employment," enhancing team capabilities through internal training and job rotation, primarily promoting from within, with remuneration policies determined by employee performance, qualifications, and market conditions, and a performance bonus plan in place, resulting in a total annual employee cost of RMB 3,416.1 million - As of December 31, 2019, the Group had a total of 29,494 employees[119] - The total employee cost for the year (including directors' emoluments) was RMB 3,416.1 million[118][119] Report of the Directors This report details the Group's principal activities, proposed dividend distribution, ongoing connected transactions with major shareholders, and the anticipated impact of the COVID-19 pandemic - The Group's principal businesses are the production and sale of beverages and instant noodles in China[120] - The Board recommended a final dividend of RMB 31.63 cents per share for the year ended December 31, 2019, totaling approximately RMB 1,366.2 million[120] - The report disclosed continuing connected transactions with major shareholder Uni-President Enterprises Corporation (UPE) and its group, including sales, procurement, logistics services, and technical support service agreements, confirming that transaction amounts did not exceed annual caps[139][141][142][144][146][148] - Following the reporting period, the COVID-19 pandemic emerged, and the Group anticipates temporary and limited impacts on transportation and production costs in some regions, though no significant impact was identified as of the report date[181][184] Directors' Profile This section provides detailed biographies of the executive, non-executive, and independent non-executive directors, including their age, position, industry experience, other listed company appointments, and educational backgrounds - This section provides detailed biographies of the executive directors, non-executive directors, and independent non-executive directors, including their age, position, industry experience, appointments in other listed companies, and educational backgrounds[187][189][191][193][195] Senior Management's Profile This section provides detailed biographies of the company's senior management team members, including the general manager, CFO, heads of various business units, and the company secretary, covering their personal backgrounds, tenure within the Group, and professional experience - This section provides detailed biographies of the company's senior management team members, including the general manager, CFO, heads of various business units, and the company secretary, covering their personal backgrounds, tenure within the Group, and professional experience[196][197][198][200] Corporate Governance Report The company confirms compliance with all code provisions of the HKEX Corporate Governance Code for 2019, with a Board comprising eight directors meeting independence requirements, and details the composition, responsibilities, and meeting frequency of its Audit, Nomination, Remuneration, and Investment, Strategy & Development Committees, while also affirming the effectiveness of its risk management and internal control systems - The company confirmed its compliance with all code provisions of the Hong Kong Stock Exchange's Corporate Governance Code for the year 2019[202] - The Board comprises 8 directors, including 2 executive directors, 2 non-executive directors, and 4 independent non-executive directors, meeting the requirement that independent non-executive directors constitute at least one-third of the Board[203][205] - The Board has established an Audit Committee, Nomination Committee, Remuneration Committee, and Investment, Strategy & Development Committee, with detailed explanations of each committee's composition, responsibilities, and annual meeting frequency[204][211][215][221][223] - The report outlines the company's risk management and internal control systems, which the Board has reviewed annually and deemed effective and adequate[226][227] Independent Auditor's Report PricewaterhouseCoopers, the auditor, concluded that the consolidated financial statements fairly and accurately reflect the Group's financial position as of December 31, 2019, and its financial performance and cash flows for the year then ended, in accordance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance, while identifying revenue recognition from goods sales and deferred income tax assets as key audit matters due to their complexity and judgment involved - Auditor PricewaterhouseCoopers believes that the consolidated financial statements truly and fairly reflect the Group's consolidated financial position as of December 31, 2019, and its financial performance and cash flows for the year then ended, prepared in compliance with Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[240][242] - The report identified two key audit matters: 1. Revenue recognition: sales of goods - highlighted due to the significant volume of transactions, diverse product range, and numerous customers[244] 2. Deferred income tax assets - noted for complexity and judgment involved in confirming recognition, which requires forecasting future taxable income[247] Consolidated Financial Statements This section presents the Group's comprehensive financial statements, including the consolidated income statement, balance sheet, and cash flow statement, providing a detailed overview of its financial performance and position Consolidated Income Statement For the year 2019, the company's revenue was RMB 22.02 billion, a 1.1% year-on-year increase; gross profit was RMB 7.92 billion, up 8.6%; operating profit was RMB 1.81 billion, a 35.6% increase; and profit for the year was RMB 1.37 billion, growing by 32.7% Consolidated Income Statement Summary | Item (RMB '000) | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 22,019,737 | 21,772,240 | | Cost of Sales | (14,101,447) | (14,483,641) | | Gross Profit | 7,918,290 | 7,288,599 | | Operating Profit | 1,806,321 | 1,331,925 | | Profit Before Income Tax | 1,971,360 | 1,539,774 | | Income Tax Expense | (605,148) | (510,070) | | Profit for the Year | 1,366,212 | 1,029,704 | Consolidated Balance Sheet As of the end of 2019, the company's total assets were RMB 21.76 billion, largely consistent with the previous year; total liabilities decreased to RMB 8.12 billion, and total equity increased to RMB 13.63 billion, with non-current assets increasing and current assets decreasing Consolidated Balance Sheet Summary (As at December 31) | Item (RMB '000) | 2019 | 2018 | | :--- | :--- | :--- | | Total Assets | 21,757,042 | 21,732,558 | | Non-current Assets | 14,739,130 | 14,082,292 | | Current Assets | 7,017,912 | 7,650,266 | | Total Equity | 13,632,930 | 13,222,307 | | Total Liabilities | 8,124,112 | 8,510,251 | | Non-current Liabilities | 483,010 | 420,749 | | Current Liabilities | 7,641,102 | 8,089,502 | Consolidated Cash Flow Statement In 2019, net cash inflow from operating activities was RMB 2.87 billion, net cash outflow from investing activities was RMB 1.47 billion, and net cash outflow from financing activities was RMB 1.91 billion; this resulted in a net decrease in cash and cash equivalents of RMB 506 million, with an ending balance of RMB 1.06 billion Consolidated Cash Flow Statement Summary | Item (RMB '000) | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 2,869,341 | 2,563,204 | | Net Cash Used in Investing Activities | (1,469,822) | (3,389,508) | | Net Cash (Used in) / From Financing Activities | (1,905,391) | 33,085 | | Net Decrease in Cash and Cash Equivalents | (505,872) | (793,219) | | Cash and Cash Equivalents at Beginning of Year | 1,563,945 | 2,356,350 | | Cash and Cash Equivalents at End of Year | 1,056,780 | 1,563,945 |