2025-03-25 11:09Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 42,896 million, an increase of 0.5% year-on-year[5]. - Profit attributable to equity holders of the parent company was RMB 12,123 million, reflecting a year-on-year increase of 0.4%[5]. - Basic earnings per share for the year was RMB 1.078, up 0.4% compared to the previous year[5]. - Gross profit for the year was RMB 24,916 million, with a gross margin of approximately 58.0%[6]. - Operating profit before tax was RMB 15,788 million, with a tax expense of RMB 3,665 million[6]. - Total comprehensive income for the year was RMB 12,124 million, slightly up from RMB 12,079 million in the previous year[7]. - The adjusted profit before tax for the company was RMB 15,787,858 thousand for the year ended December 31, 2024, compared to RMB 15,688,202 thousand in 2023, indicating a stable performance[23]. - The pre-tax profit for the group in 2024 was RMB 17,980,277,000, compared to RMB 17,260,392,000 in 2023, reflecting a growth in sales cost[29]. - The total income tax expense for 2024 was RMB 3,664,554,000, slightly up from RMB 3,608,704,000 in 2023[30]. - The group reported a loss of RMB 29,561,000 from the sale of assets in 2024[28]. - The group achieved total revenue of RMB 42,896 million in 2024, a 0.5% increase from RMB 42,667 million in 2023, with a gross profit of RMB 24,916 million, down 1.9% from RMB 25,407 million[72]. - The gross margin decreased from 59.5% in the previous year to 58.1%, primarily due to promotional impacts from new pure water products and rising raw material prices for juice[72]. Dividends - The proposed final dividend per ordinary share is RMB 0.76, totaling approximately RMB 8,547 million in dividends[5]. - The proposed final dividend for 2024 is RMB 0.76 per share, amounting to approximately RMB 8,547,314,000, pending shareholder approval[35]. - The board proposed a final dividend of RMB 0.76 per share for the year ending December 31, 2024, totaling approximately RMB 8,547 million[108]. - The company emphasizes that past dividend declarations do not guarantee future distributions, as the board considers various factors before declaring dividends[110]. Assets and Liabilities - Non-current assets totaled RMB 34,088 million, while current assets amounted to RMB 19,072 million as of December 31, 2024[8]. - Total liabilities were RMB 19,985 million, resulting in a net asset position of RMB 32,287 million[9]. - The company reported a cash and bank balance of RMB 10,722 million, indicating strong liquidity[9]. - As of December 31, 2024, the group recorded net current liabilities of RMB 912,863,000[10]. - The group holds long-term bank deposits in mainland China amounting to RMB 10,630,882,000, which can be freely converted to cash[11]. - Trade receivables amounted to RMB 618,481 thousand in 2024, with a significant portion (RMB 522,376 thousand) being within 90 days[39]. - Trade payables and notes payable totaled RMB 1,499,397 thousand in 2024, down from RMB 1,770,098 thousand in 2023[42]. - The expected credit loss for trade receivables at year-end 2024 was RMB 37,109 thousand, compared to RMB 34,680 thousand in 2023[41]. - Inventory increased from RMB 3,092 million on December 31, 2023, to RMB 5,013 million on December 31, 2024, with inventory turnover days rising from 55.0 days to 82.3 days[80]. - The capital debt ratio as of December 31, 2024, was 11.6%, slightly up from 11.2% on December 31, 2023, mainly due to increased use of receivable financing[83]. Segment Performance - The segment performance for bottled water was RMB 4,970,517 thousand, while ready-to-drink tea, functional beverages, and juice beverages reported segment performances of RMB 7,562,635 thousand, RMB 2,081,961 thousand, and RMB 1,017,117 thousand respectively[23]. - The revenue from packaged drinking water products declined by 21.3% over the year, although the company maintained the leading market share in China[44]. - The tea beverage products generated revenue of RMB 16,745 million, representing 39.0% of total revenue, down from 47.5% in 2023[52]. - The functional beverage products contributed RMB 4,932 million, accounting for 11.5% of total revenue, compared to 29.7% in the previous year[52]. - The juice beverage products generated RMB 4,085 million, which is 9.5% of total revenue, consistent with the previous year's performance[52]. - The tea beverage segment recorded revenue of RMB 16,745 million, a year-on-year increase of 32.3%, accounting for 39.0% of total revenue[59]. - The juice beverage segment recorded revenue of RMB 4,085 million in 2024, a 15.6% increase year-over-year, accounting for 9.5% of total revenue[64]. - Other products, including soda and flavored drinks, generated revenue of RMB 1,182 million, a 9.8% decrease year-over-year, accounting for 2.8% of total revenue[66]. Research and Development - Research and development costs for 2024 amounted to RMB 306,436,000, compared to RMB 349,148,000 in 2023[29]. - The company has invested in a new water source in Anhui Huangshan, further solidifying its competitive advantage in quality water sources[44]. - The company developed a non-toxic navel orange seedling in Jiangxi Gan Nan, with plans for expansion in 2024 and expected availability of non-toxic grafts by 2025[68]. - The company trained search dogs to assist in identifying trees infected with Huanglongbing disease, achieving a detection accuracy rate of 99%[69]. - The company upgraded its classic products to meet consumer demand for cleaner and healthier juice options, emphasizing no added sugar or preservatives[65]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as of December 31, 2024[116]. - The roles of the Chairman and CEO are held by the same individual, Zhong Shanshan, who has been pivotal in the company's growth since its establishment in 1996[117]. - The board consists of five executive directors, one non-executive director, and two independent non-executive directors, ensuring a higher degree of independence in management[118]. - The company has complied with the Standards for Securities Transactions by Directors and Supervisors as of December 31, 2024[119]. - The independent auditor, Ernst & Young, has agreed that the financial statements for the year ending December 31, 2024, are based on the group's annual consolidated financial statements[115]. Employee and Compensation - Employee benefits expenditure for the year 2024 amounts to RMB 4,301 million, covering over 20,000 employees[96]. - The company has adopted an employee stock incentive plan to retain key employees and drive sustainable business development, allowing a maximum of 5% of the total issued share capital to be allocated under this plan[98]. - The company has established a competitive salary system to enhance employee retention and overall competitiveness[97]. - The company implemented a performance management system to ensure competitive compensation and attract quality talent[97]. - The company granted a total of 6,636,400 H-shares under the employee stock incentive plan, representing 0.059% of the total issued shares and 0.1318% of the issued H-shares[99]. Market Strategy and Expansion - The company aims to explore international market opportunities and expand its product offerings globally[48]. - The company plans to enhance its product line by launching a new pure water product to differentiate between pure and natural water[55]. - The company is actively pursuing legal actions against malicious rumors affecting its brand and sales[54]. - The company plans to gradually utilize the net proceeds from the listing by December 31, 2026, depending on market conditions[93]. - The company has a cautious development strategy in response to post-pandemic economic recovery uncertainties and geopolitical changes[93]. - The company aims to explore overseas markets to expand its product reach and become a leading international enterprise[107]. Miscellaneous - The company has no significant investments or acquisitions as of December 31, 2024[90]. - The company has complied with all relevant laws and regulations in China and Hong Kong, with no significant violations reported in 2024[95]. - The annual report for 2024 will be made available to shareholders and published on the company's website[120]. - The announcement was made by the Chairman, Zhong Shanshan, on March 25, 2025, indicating ongoing governance and transparency efforts[121].