2021-09-08 09:02Financial Performance - For the six months ended June 30, 2021, the turnover was RMB 19,634 million, representing a 12.8% increase from RMB 17,408 million in the same period of 2020[9]. - Profit attributable to shareholders for the same period was RMB 4,291 million, up from RMB 2,079 million, marking a significant increase[9]. - Basic earnings per share increased to RMB 1.32 from RMB 0.64, reflecting strong financial performance[9]. - The interim dividend per share was RMB 0.264, compared to RMB 0.128 in the previous year, indicating a positive outlook for shareholders[9]. - The total equity attributable to shareholders rose to RMB 25,087 million from RMB 21,217 million, showing robust growth in shareholder value[9]. - The consolidated net cash position improved significantly to RMB 11,815 million from RMB 4,614 million, indicating strong liquidity[9]. - Earnings before interest and taxation for the Eastern region surged by 181.2% to RMB 3,231 million, highlighting strong regional performance[13]. - The Central region's earnings before interest and taxation increased by 69.1% to RMB 1,370 million, demonstrating effective market strategies[13]. - The Southern region also saw a 50.4% increase in earnings before interest and taxation, reaching RMB 1,345 million, contributing to overall growth[13]. - Overall beer sales volume increased by 4.9% to approximately 6,337,000 kilolitres compared to the same period last year[15]. - Sales volume of sub-premium and above beer reached 1,000,000 kilolitres, representing a 50.9% increase year-on-year[15]. - Average selling price increased by 7.5% compared to the same period last year, contributing to an overall gross profit increase of 18.1% to RMB 8,305,000,000[15]. - Gross profit for the same period was RMB 8,305 million, up from RMB 7,030 million, indicating a significant improvement in profitability[31]. - Profit before taxation increased to RMB 5,991 million, compared to RMB 2,831 million in the previous year, reflecting a growth of 111.5%[31]. - The Group's profit for the period was RMB 4,296 million, more than doubling from RMB 2,084 million in the prior year[31]. Cash Flow and Liquidity - As of June 30, 2021, the Group had cash and bank deposits of RMB 11,815,000,000 with no borrowings[18]. - Net cash from operating activities for the six months ended June 30, 2021, was RMB 6,350 million, slightly down from RMB 6,525 million in the same period of 2020[37]. - Cash and cash equivalents increased to RMB 11,723 million as of June 30, 2021, up from RMB 8,597 million as of June 30, 2020[37]. - The Group's current liabilities were RMB 21,937 million, with a current ratio of 0.86, indicating a stable liquidity position[22]. - The Group anticipates no significant net cash outflow from current liabilities due to offsets from trade receivables and future sales discounts[22]. - The Group's bank deposits pledged for notes payable increased to RMB 92 million as of June 30, 2021, from RMB 76 million at the end of 2020[25]. Strategic Initiatives - The company has established a strategic partnership with Heineken Group, enhancing its market position and operational capabilities[4]. - The Group plans to continue focusing on premiumization and innovation while exploring opportunities in non-beer alcoholic beverages to enhance business diversification[17]. - The Group plans to enhance its competitive position by focusing on premium market segments and improving innovation and R&D efforts[19]. - The Group launched several new brands, including super premium product "Li" and premium product "Löwen Fruit Beer," to enhance its product portfolio[16]. Corporate Governance and Compliance - The Company has implemented its own corporate governance standards and objectives since November 2003, ensuring compliance with the Corporate Governance Code[153]. - All directors confirmed compliance with the required standards set out in the Model Code during the six months ended 30 June 2021[159]. - The Company adopted a Code of Ethics on 8 April 2005, which has been amended multiple times, with the latest revision on 7 December 2015[159]. - The position of the Chairman has been vacant since the annual general meeting on 18 May 2021 and remains unfilled as of the report date[158]. Sustainability and Corporate Social Responsibility - The Group emphasizes sustainability and has implemented policies for environmental protection and energy conservation[105]. - The Group's independent "Environmental, Social and Governance Report" outlines its performance and commitments in sustainability[105]. - The Group actively donated approximately RMB250,000 to a local charity federation in April 2021, demonstrating its commitment to corporate social responsibility[105]. - The Group's Xiaoshan factory in Zhejiang Province participated in a volunteer drive, donating school supplies to left-behind children in May 2021[105]. - In the first half of 2021, the Group launched or was in the process of launching 12 environmental protection, energy conservation, and emission reduction projects with a total investment of approximately RMB 22 million[106]. - The Group achieved a year-on-year decrease in sulfur dioxide (SO2) emissions by over 35% and nitrogen oxide (NOX) emissions by more than 15% during the review period[106]. - Cumulative gasoline consumption decreased by over 45% year-on-year, while diesel consumption decreased by more than 25% year-on-year, and natural gas consumption decreased by over 15% year-on-year[107]. - The Group's Chemical Oxygen Demand (COD) emissions and nitrogen emissions both dropped by more than 20% year-on-year[107]. - The recycle rate of dry distiller's grains and dry waste yeast remained at 100% in the first half of 2021[107]. Employee and Training Initiatives - In the first half of 2021, the Group's total staff training hours reached nearly 136,000 hours, with a full-time employee training coverage rate of 100%[111]. - The Group invested over RMB 30 million in dedicated project funds for work safety in the first half of 2021[111]. - The Group's recruitment practices strictly comply with the "Labour Law" and "Labour Contract Law," prohibiting the hiring of individuals under the age of 18[109]. - The Group's remuneration and welfare system was optimized in 2020, unifying remuneration items and structures across the country[109]. Risk Management - The Group has established a robust internal control and risk management system, with no significant concerns identified affecting operational and financial reporting[102]. - Corporate risk management is prioritized across all business segments to protect shareholder value and ensure sustainable growth[102]. - The existing risk management and internal control systems remain effective and adequate as of June 30, 2021[102]. Market Performance and Recognition - In the first half of 2021, the Group held approximately 135 meetings with over 2,800 fund managers and analysts to strengthen market confidence[103]. - The Company's stock price slightly decreased during the period, closing at HK$69.75 on June 30, 2021, with a total market capitalization impacted by the COVID-19 pandemic[103]. - The Group received eight prestigious awards in the consumer staples sector in Asia, including "Most Honored Company" and "Best CEO (first place)"[103]. - The Group's financial reports have been recognized for their high quality, receiving the "MERCURY Excellence Awards 2020/2021" from MerComm, Inc.[103].