2023-09-06 08:47Financial Performance - For the six months ended June 30, 2023, the turnover increased by 13.6% to RMB 23,871 million compared to RMB 21,013 million in the same period of 2022[23]. - Profit attributable to shareholders rose to RMB 4,649 million, up from RMB 3,802 million, reflecting a significant increase of 22.4%[23]. - Basic earnings per share increased to RMB 1.43, compared to RMB 1.17 in the previous year, representing a growth of 22.2%[23]. - Earnings before interest and taxation for the same period were RMB 6,245 million, representing a 21.1% increase year-on-year[31]. - Profit for the period increased to RMB 4,698 million in the first half of 2023, up from RMB 3,803 million in the same period of 2022, reflecting a year-on-year growth of about 23.5%[74][76]. - The Group's profit attributable to shareholders in the first half of 2023 was RMB 4,649 million, up 22.3% from the previous year[48]. - The Group reported a gross profit of RMB 10,991 million for the six months ended June 30, 2023, compared to RMB 8,878 million for the same period in 2022, representing a growth of approximately 23.8%[74]. - The total income tax expense for the six months ended June 30, 2023, was RMB 1,620 million, compared to RMB 1,472 million in 2022, reflecting an increase of 10.0%[105]. Segment Performance - The beer segment's turnover reached RMB 23,692 million, an increase of 8.1% from RMB 21,919 million in 2022[26]. - The Baijiu segment reported a turnover of RMB 977 million, marking a 100% increase as it was not present in the previous year[26]. - The beer business recorded a sales volume increase of 4.4% year-on-year, with sub-premium and above beer sales growing significantly by 26.4%[35]. - The gross profit margin for the beer business improved by 2.9 percentage points to 45.2% due to increased sales volume and average selling prices[35]. - The baijiu business generated revenue of RMB 977 million and earnings before interest and taxation of RMB 71 million in the first half of 2023[36]. - The beer business turnover for the first half of 2023 was RMB 22,894 million, reflecting a 9.0% increase compared to the same period last year[48]. - Overall beer sales volume increased by 4.4% to approximately 6,571,000 kilolitres in the first half of 2023[49]. Regional Performance - The Eastern region contributed RMB 11,196 million to turnover, up 7.1% from RMB 10,455 million[26]. - The Central region's turnover increased by 8.2% to RMB 6,609 million, while the Southern region saw a 9.9% increase to RMB 5,887 million[26]. - The Eastern region generated external sales of RMB 10,645 million, while the Central and Southern regions reported RMB 6,408 million and RMB 5,841 million, respectively[96]. Cash and Liquidity - The consolidated net cash position decreased to RMB 4,110 million from RMB 9,129 million, indicating a reduction in liquidity[23]. - The current ratio improved slightly to 0.89 from 0.88, showing stable short-term financial health[23]. - As of June 30, 2023, the Group's consolidated cash and bank deposits amounted to RMB 12,985 million, with borrowings of RMB 8,875 million, including RMB 1,688 million repayable within one year[63][64]. - The current liabilities of the Group were RMB 26,493 million, with a current ratio of 0.89, indicating a stable liquidity position[64]. - For the six months ended June 30, 2023, net cash from operating activities was RMB 4,786 million, a decrease of 26.1% compared to RMB 6,478 million in the same period of 2022[80]. Investments and Acquisitions - The acquisition of Guizhou Jinsha has been integrated into the Group's financial statements, enhancing its organizational structure and operational management[34]. - The Group completed the acquisition of a 50.58% stake in Guizhou Jinsha for approximately RMB 11,273 million on January 10, 2023, increasing its total ownership to 55.19%[141]. - The Group completed the acquisition of Guizhou Jinsha, contributing RMB 17,541 million to non-current asset additions for the six months ended June 30, 2023[98]. - The identifiable assets acquired included fixed assets valued at RMB 611 million, other intangible assets at RMB 9,500 million, and cash and cash equivalents at RMB 1,467 million[145]. Dividends and Shareholder Returns - The company declared an interim dividend of RMB 0.287 per share, compared to RMB 0.234 per share in the first half of 2022[32]. - The total amount of interim dividend for 2023 is estimated to be RMB 931 million, compared to RMB 759 million in 2022, reflecting a growth of 22.7%[110]. - The Group's earnings per share for the six months ended June 30, 2023, was RMB 1.43, compared to RMB 1.17 for the same period in 2022, marking an increase of approximately 22.2%[74]. Operational Efficiency and Strategy - The Group aims to continue growth in the second half of 2023 by focusing on scale, quality, and competitive advantages[37]. - The Group's strategy emphasizes the dual empowerment model of "Beer + Baijiu" to strengthen its market position[36]. - The Group aims to optimize pricing and streamline expenses to consolidate competitive advantages and achieve balanced sales growth for the full year of 2023[39]. - The Group's strategy includes a focus on premiumization and restructuring to enhance operational efficiency and market position in both beer and baijiu sectors[40]. Employee and Corporate Governance - The Group employed approximately 27,000 staff as of June 30, 2023, an increase from 24,000 employees at the end of 2022, reflecting growth in operational capacity[67][72]. - The Group maintains a strict equal employment policy and complies with labor laws, ensuring fair recruitment practices[174]. - The Group has established a three-tier health insurance mechanism for employees, including basic medical insurance and annual health check-ups[174]. - The Group's commitment to corporate governance and investor relations has been recognized, aiming for long-term and high-quality investor relationships[165]. Environmental and Social Responsibility - The Group's ESG management received high praise during an inspection of the Dongguan factory, highlighting effective environmental management practices[192]. - The Group is advancing its "Carbon Neutral Factory" project and has developed a green factory construction plan for 2023-2025[192]. - In the first half of 2023, the Group's total greenhouse gas emissions decreased by more than 4% year-on-year[197]. - The Group utilized 2.81 million kWh of new energy in the first half of 2023 through rooftop photovoltaic power generation projects[198]. - Sulfur dioxide (SO2) emissions decreased by 17% year-on-year due to the low sulfur content of natural gas purchased by some plants[199]. Risk Management and Internal Control - The Group's internal control and risk management systems were reviewed, with no significant concerns identified that could materially affect operations or financial reporting[159]. - The ongoing risk management process aims to proactively identify and mitigate various risks, supporting sustainable business growth[160]. - The Group's risk management and internal control systems remain effective and adequate as of June 30, 2023[159].