2020-09-08 08:55Financial Performance - For the six months ended June 30, 2020, the turnover was RMB 17,408 million, a decrease of 7.5% compared to RMB 18,825 million in 2019[9] - Profit attributable to shareholders for the same period was RMB 2,079 million, an increase of 11.1% from RMB 1,871 million in 2019[9] - Basic earnings per share increased to RMB 0.64 from RMB 0.58, while the interim dividend per share rose to RMB 0.128 from RMB 0.12[9] - Equity attributable to shareholders increased to RMB 21,612 million from RMB 19,670 million, reflecting a growth of 9.6%[9] - The total equity as of June 30, 2020, was RMB 21,673 million, up from RMB 19,727 million in 2019[9] - The consolidated net cash position was RMB 8,663 million, compared to RMB 1,897 million in 2019, indicating a significant improvement[9] - Earnings before interest and taxation increased by 6.0% to RMB 2,790,000,000, while profit attributable to shareholders rose by 11.1% to RMB 2,079,000,000[16] - Gross profit for the first half of 2020 decreased by 1.3% year-on-year to RMB 7,030,000,000[20] - The total comprehensive income for the period was RMB 2,088 million, reflecting the company's profitability during the first half of 2020[39] - The profit for the period increased to RMB 2,084,000,000, up 11.3% from RMB 1,872,000,000 in 2019[34] Regional Performance - The Eastern region's turnover decreased by 7.7% to RMB 8,980 million, while the Southern region's turnover decreased by 2.6% to RMB 4,435 million[13] - Earnings before interest and taxation for the Southern region increased by 56.3% to RMB 894 million, while the Eastern region's earnings decreased by 16.6% to RMB 1,149 million[14] - The total turnover for the six months ended 30 June 2020 was RMB 17,408 million, with external sales of RMB 8,621 million in the Eastern region, RMB 4,453 million in the Central region, and RMB 4,334 million in the Southern region[57] - The segment result for the six months ended 30 June 2020 was RMB 2,853 million, with the Eastern region contributing RMB 1,149 million, the Central region RMB 810 million, and the Southern region RMB 894 million[57] Liquidity and Cash Flow - The company reported a current ratio of 0.70, improving from 0.49 in the previous year, indicating better liquidity[9] - As of June 30, 2020, the Group's consolidated cash and bank deposits amounted to RMB 8,663,000,000, maintaining a net cash position[24] - Net cash from operating activities for the six months ended June 30, 2020, was RMB 6,525 million, up from RMB 5,864 million in the same period of 2019, reflecting an increase of about 11.2%[37] - Cash and cash equivalents as of June 30, 2020, reached RMB 8,597 million, significantly higher than RMB 4,061 million as of June 30, 2019, indicating a year-over-year increase of approximately 112.4%[37] - The net cash used in investing activities for the first half of 2020 was RMB 473 million, a significant improvement compared to a net cash outflow of RMB 4,113 million in the same period of 2019[37] Operational Highlights - The Group recognized impairment loss on fixed assets of RMB 263,000,000 and ceased operations at 2 breweries during the review period[22] - As of June 30, 2020, the Group operated 72 breweries across 25 provinces in Mainland China, with an annual production capacity of approximately 19,600,000 kiloliters[22] - The overall average selling price decreased by 2.4% compared to the same period last year, while the overall cost of sales declined by 11.3%[20] - The overall beer sales volume decreased by 5.3% year-on-year to approximately 6,039,000 kiloliters, outperforming the industry[18] - The sales volume of mid-to-high-end beer decreased by 6.2%, but sub-high-end and above beer sales increased by 2.9% year-on-year[20] Strategic Initiatives - The company completed a strategic partnership with Heineken Group in 2019, enhancing its market position[2] - The Group plans to enhance its competitiveness in the high-end market through strategic cooperation with Heineken and the launch of international brands[23] - The Group aims to implement various high-quality growth measures and explore new sales channels for high-end products[23] - The Group has launched several sales programs to enhance competitiveness and prepare for rapid growth post-pandemic[50] Corporate Governance and Compliance - The Company has implemented its own corporate governance standards since November 2003, with the Corporate Governance Manual revised multiple times, most recently on 21 November 2018[151] - The Company has complied with the Code Provisions of the Corporate Governance Code during the period, except for the vacancy of the Chairman position since 11 July 2019[152] - The Group has not faced any litigation or major breaches related to corruption, bribery, extortion, fraud, or money laundering during the review period[128] - Directors confirmed compliance with the required standards set out in the Model Code during the six months ended 30 June 2020[152] Social Responsibility and Environmental Initiatives - The company donated RMB15 million to Wuhan City for emergency medical supplies during the COVID-19 pandemic[103] - The group has established a management organization for energy conservation and environmental protection at three levels: headquarters, regional companies, and local breweries[103] - The company strictly adheres to environmental protection laws and has implemented internal control standards that exceed national pollutant discharge standards[103] - The Group launched or was in the process of launching 12 environmental protection, energy conservation, and emission reduction projects with a total investment of RMB 31 million[107] - Coal consumption and nitrogen oxide (NOX) emissions decreased by more than 40% year-on-year, while sulfur dioxide (SO2) emissions dropped by over 70% year-on-year[107] Employee Development and Training - The total online training hours of staff increased significantly from nearly 30,000 hours in the first half of 2019 to more than 550,000 hours in the first half of 2020[116] - The Group's total staff training hours reached 570,000 hours in the first half of 2020, with an average training hours per person reaching 20 hours[116] - The Group launched key training programs targeting management personnel and core business staff to enhance employees' knowledge and skills for job competency[115] - The Group has adopted a development strategy of "building a strong enterprise through talents" to provide diverse training and development opportunities[115] Quality Control and Safety Management - In the first half of 2020, the Group achieved a 100% pass rate in ex-factory quality tests, with 193 batches inspected by the National Safety Supervision and Inspection also achieving a 100% pass rate[120] - The Group's quality and food safety management system integrates international advanced management system requirements to achieve excellent performance[122] - The Group emphasized safety education and training, with approximately 270,000 training hours on safety education and over 320 emergency drills conducted in the first half of 2020[120] - The Group's safety management system is continuously improved to enhance the level of safety management[120]