2020-04-20 08:57Financial Performance - The Group's turnover for the year ended December 31, 2019, was RMB 33,190 million, an increase of 4.15% from RMB 31,867 million in 2018[34]. - Profit attributable to shareholders of the Company for 2019 was RMB 1,312 million, representing a 34.2% increase compared to RMB 977 million in 2018[34]. - Basic and diluted earnings per share increased to RMB 0.40 in 2019 from RMB 0.30 in 2018, marking a 33.3% growth[34]. - The interim dividend per share was RMB 0.120, up from RMB 0.09 in 2018, while the final dividend per share increased to RMB 0.045 from RMB 0.03[34]. - Equity attributable to shareholders of the Company as of December 31, 2019, was RMB 19,670 million, an increase from RMB 18,848 million in 2018[38]. - The Group's total equity reached RMB 19,727 million as of December 31, 2019, compared to RMB 18,910 million in 2018[38]. - The consolidated net cash position improved to RMB 1,897 million in 2019 from RMB 1,212 million in 2018[38]. - The gearing ratio was reported as net cash, indicating a strong financial position[38]. - The Group's consolidated profit attributable to shareholders increased by 34.3% to RMB 1,312 million, and earnings before interest and taxation rose by 47.6% to RMB 2,163 million in 2019[53]. - The Group's cash deposits were held in 6.0% in Hong Kong dollars, 84.7% in Renminbi, and 9.3% in US dollars as of December 31, 2019[64]. Market Position and Strategy - The Group completed a strategic partnership with Heineken Group, enhancing its development in the premium beer segment[13]. - The Group aims to leverage its collaboration with Heineken to promote premium segment growth to new heights[13]. - The Group aims to enhance brand competitiveness in the high-end segment through a strategic partnership with Heineken and various operational reforms[62]. - The Group is actively adjusting its competition strategy in response to changes in the Chinese beer market, focusing on product diversification and enhancing brand image, price competitiveness, and distribution network[126]. - The Group has initiated a production capacity modification plan to enhance efficiency, which may involve organizational and workforce restructuring, potentially leading to labor disputes and negative publicity[128]. Product Development and Marketing - The "Snow Marrs Green Beer" and "Löwen White Beer" were launched as new high-end products targeting the young and trendy market[14]. - A marketing event titled "Jiang Xin Lunar New Year's Eve Dinner" reached an audience of about 70 million through major social media platforms[14]. - The reality show "Street Dance of China" Season 2, sponsored by "Brave the World superX," achieved nearly 6 billion views, enhancing the brand's image[16]. - New high-end products "SNOW MARRSGREEN BEER" and "Löwen White Beer" were launched in 2019, supporting the growth of mid- to high-end beer sales[55]. - The Group continued to enhance its internet marketing strategies, including a partnership with JD.com for specialized products and online activities[55]. Awards and Recognition - China Resources Beer ranked 3rd in the 2019 Brand Value of China Listed Liquor Companies TOP 30[18]. - The company was recognized as the Most Honored Company in the Consumer Staples sector in the 2019 All-Asia Executive Team survey[19]. - The company received the Best Investor Relations Program award in the Consumer Staples sector, ranking first in the same category[19]. - The CEO of the company was awarded the Best CEO in the Consumer Staples sector in 2019[19]. - The Group was recognized as the top brand in the beer industry in the "BrandZ: Top 100 Most Valuable Chinese Brands 2019" list[25]. - The "Craftsmanship" products received multiple awards, including the "Gold Prize" at the China International Beer Challenge[30]. - The company received multiple awards for its investor relations, including Best Overall Investor Relations (large cap) and Best Investor Relations Officer (large cap) in 2019[19]. - The company was awarded the Bronze Award for Annual Reports in the Beer/Wine/Spirits category at the International Annual Report Competition[19]. Corporate Governance and Leadership - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2019, except for the vacancy of the Chairman position since July 11, 2019[184]. - The Board believes that the absence of a fixed term for Non-executive Directors provides sufficient flexibility to meet the Group's needs[189]. - The Company did not hold meetings with Independent Non-executive Directors without other Directors present from January 1, 2019, to July 10, 2019, which deviated from Code Provision A.2.7[188]. - The Corporate Governance Practice Manual was adopted on April 8, 2005, and has undergone multiple revisions to align with the Stock Exchange's Listing Rules[184]. - The Company provides updated business information to the Board as needed, rather than monthly updates, to assist in discharging their duties[190]. - The Board is committed to maintaining high standards of corporate governance, emphasizing accountability and open communication[183]. - The Company believes that a solid corporate governance framework is essential for successful growth and enhancing shareholder value[183]. - The Nomination Committee, Remuneration Committee, and Audit Committee are primarily composed of Independent Non-executive Directors to ensure diverse professional advice[182]. Risk Management - The Group's management has adopted various strategies for risk management, including risk reduction, transfer, and avoidance, based on identified significant risks and risk tolerances[116]. - The risk management structure is based on a "three lines of defense" model, clarifying roles and responsibilities across business units and management[116]. - The first line of defense involves business units responsible for daily risk management and risk assessment[116]. - The second line of defense consists of risk management functions that organize and monitor major and potential risks[116]. - The third line of defense is the internal audit function, responsible for supervising risk management and assessing internal controls[116]. - The Group emphasizes a robust and prudent operation strategy, balancing business development with risk-taking[115]. - Effective corporate risk management is crucial for protecting shareholder value and maintaining the Group's reputation[115]. - The Group continuously reviews its governance practices to align with the latest regulatory requirements[115]. Environmental and Social Responsibility - The Group has published its environmental, social, and governance report to inform the public about its performance and measures in sustainability, including the impact of climate change and energy consumption targets[131]. - The Group's use of externally sourced steam and natural gas reached 97%, while coal consumption decreased by over 70% year-on-year[142]. - Emissions of Sulphur Dioxide (SO2) decreased by approximately 10% and Nitrogen Oxide (NOx) emissions decreased by over 20% year-on-year[142]. - The recycling rate of waste generated from beer production, such as distiller's grains and waste yeast, is 100%[142]. - The Group's chemical oxygen demand (discharged to natural bodies of water) reduced by more than 60% year-on-year, and ammonia nitrogen emissions reduced by more than 50% year-on-year[142]. - In 2019, consolidated energy consumption per unit decreased by approximately 10% year-on-year[143]. - A total of 27 projects related to environmental protection and energy conservation were approved, with an investment of RMB 24.15 million[143]. - The Group has implemented policies to phase out coal-fired boilers and increase the proportion of clean energy consumption[141]. Employee Engagement and Training - The Group's average staff training hours reached 18.7 hours in 2019, with a full-time staff training coverage rate of 100%[149]. - The "Three Level Leaders" training program won the "1st Place in Gold Award in the National Learning and Design Competition" organized by the Chinese Society for Talent Development[149]. - The Group established a long-term talent incentive mechanism to improve employee engagement and support sustainable development[147]. - The Group's training programs included initiatives for middle and high-level management to enhance business skills and capabilities[149]. - The Group's commitment to employee care included assistance to over 20 employees in need through the "Snow Relief Fund" in 2019[152]. COVID-19 Response - The outbreak of COVID-19 has negatively impacted the sales, production, and operations of the beer business since late January 2020[123]. - The Group will closely monitor government epidemic control policies and market demand changes to minimize the impact of COVID-19 on operations and sales[123]. - The Group's response to the pandemic included regular meetings to coordinate emergency virus control efforts[172]. - The Group emphasized strict compliance with business ethics and confidentiality to protect information security[171]. - The Group created a checklist of essential anti-epidemic materials and mobilized resources for procurement[175].