Economic Overview - In the first half of 2022, China's GDP grew by 2.5%, while total retail sales of consumer goods decreased by 0.7% year-on-year[12][14]. Company Strategy and Operations - The company focused on creating value, managing risks, and enhancing flexibility amid ongoing challenges in sourcing raw materials and the impact of COVID-19[12][14]. - The company aims to adapt to changing consumer purchasing habits and the recurrent pandemic by continuously innovating products and enhancing operational capabilities[12][14]. - The company is building a flexible supply chain and integrating online and offline channels to achieve channel diversification[12][14]. - The company emphasizes the importance of prudent and agile organization to respond effectively to dramatic changes in the market environment[12][14]. - The company is committed to maintaining operational focus and resilience in the face of uncertainties[12][14]. - The company continues to enhance its operational capabilities to better respond to market changes[12][14]. - The company is integrating various sales channels to improve market reach and efficiency[12][14]. - The company recognizes the need for continuous innovation to meet evolving consumer demands[12][14]. Financial Performance - The Group recorded a revenue of RMB13,939.9 million in the first half of 2022, representing an increase of 7.2% compared to RMB13,006.7 million in the same period last year[15]. - The gross profit decreased to RMB4,198.8 million, a decline of 7.4% from RMB4,532.7 million in the first half of 2021, with a gross profit margin dropping by 4.7 percentage points to 30.1%[15]. - Selling and marketing expenses were RMB3,104.0 million, down 0.9% from RMB3,132.6 million in the first half of 2021[15]. - Administrative expenses decreased by 3.1% to RMB493.0 million from RMB508.9 million in the first half of 2021[15]. - The operating profit was RMB731.3 million, representing a decrease of 30.9% compared to RMB1,057.6 million in the same period last year[15]. - Profit attributable to equity holders of the Company was RMB614.4 million, down 27.5% from RMB847.3 million in the first half of 2021[15]. Segment Performance - The food business recorded a revenue of RMB5,368.8 million in the first half of 2022, an increase of 14.0% from RMB4,710.6 million in the same period last year[16]. - The instant noodles business generated revenue of RMB5,141.9 million, reflecting a growth of 16.9% compared to the first half of 2021[17]. - The beverage business recorded a revenue of RMB8,247.7 million in the first half of 2022, representing a year-on-year increase of 4.9% compared to RMB7,860.1 million in the same period last year[26]. - Revenue from tea drinks amounted to RMB3,650.9 million in the first half of 2022, also reflecting a year-on-year growth of 4.9%[26]. - Revenue from the juice business amounted to RMB1,401.1 million in the first half of 2022, representing a year-on-year increase of 25.7%[33]. - The revenue of the milk tea business in the first half of 2022 amounted to RMB2,970.2 million, maintaining a double-digit compound growth rate over the past five years[39]. Marketing and Consumer Engagement - The Group's marketing strategies included community group purchases and social group purchases, enhancing penetration and consumption frequency of fast-moving consumer goods[19]. - The Group maintained a focus on product quality and freshness to meet diverse consumer needs and improve satisfaction[18]. - The company launched the "Big Cup" series to cater to consumers with large appetites, extending product consumption scenarios[20]. - The company is actively expanding product specifications and enhancing input on new e-commerce channels to meet diverse consumer needs[26]. - The company is leveraging new marketing opportunities such as community group purchases and social e-commerce to adapt to changing consumer habits[26]. Financial Position and Cash Flow - As of June 30, 2022, the Group's total cash at bank and on hand was RMB7,092.0 million, an increase from RMB6,078.3 million as of December 31, 2021[48]. - The Group's total borrowings, including lease liabilities, amounted to RMB2,848.3 million as of June 30, 2022, compared to RMB149.7 million as of December 31, 2021[50]. - The net cash position was RMB(4,243.7) million as of June 30, 2022, a decrease from RMB(5,928.6) million as of December 31, 2021[50]. - The gearing ratio improved to (33.75%) as of June 30, 2022, from (43.07%) as of December 31, 2021[50]. - The Group recorded a net decrease in cash and cash equivalents of RMB233.9 million compared to the same period last year, with net cash inflow from operating activities of RMB180.4 million[54]. Employee and Governance - As of June 30, 2022, the total number of employees in the Group was 33,593[72]. - The total employee benefits expenses, including Directors' emoluments, amounted to RMB 2,090.8 million during the Period under Review[75]. - The Group emphasizes innovation and R&D to drive growth despite economic uncertainties, focusing on consumer emotional healing and corporate social responsibility[71]. - The Group has established performance bonuses and incentive schemes to reward employees based on the performance of the Group and individual business units[74]. - The Group does not have any share option scheme for its employees[75]. Financial Risk Management - The Group maintains a conservative approach in financial risk management, primarily dealing in Renminbi due to its revenue sources[63]. - The Group's financial information is prepared on a going concern basis, indicating confidence in operational performance and cash inflows[130]. - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[145]. Compliance and Audit - The interim financial information has been reviewed by the audit committee and independent auditors[11][13]. - The Audit Committee has reviewed the unaudited interim results for the period and recommended their adoption by the Board[95]. - The company has complied with the Corporate Governance Code during the review period[93]. - All Directors confirmed full compliance with the Model Code for Securities Transactions throughout the review period[94].
统一企业中国(00220) - 2022 - 中期财报