Financial Performance - Revenue for the year ended December 31, 2022, was RMB 12,775,914 thousand, representing a 10.6% increase from RMB 11,547,825 thousand in 2021[6] - Gross profit for 2022 was RMB 7,703,488 thousand, up from RMB 7,247,982 thousand in 2021, reflecting a growth of 6.3%[6] - Adjusted comparable EBITDA for 2022 was RMB 1,971,876 thousand, compared to RMB 1,851,915 thousand in 2021, marking a 6.5% increase[6] - Net profit for 2022 was RMB 611,783 thousand, a 20.3% increase from RMB 508,484 thousand in 2021[6] - The company achieved an adjusted comparable net profit of RMB 731,172 thousand, down 23.3% from RMB 952,854 thousand in the previous year[6] - The adjusted comparable EBITDA margin decreased to 15.4% in 2022 from 16.0% in 2021, a decline of 0.6 percentage points[6] Strategic Focus - The company focused on three strategic pillars: core growth areas, globalization and diversification, and future strategic investments[10] - The company continues to attract new consumers in key markets through consumer-oriented innovations and aims to become a leader in global family nutrition and health[10] - The company continues to focus on consumer-driven innovation as a key strategy for growth in both adult and infant nutrition segments[16] Market Performance - The infant nutrition and care segment in mainland China has stabilized, with a positive growth trajectory in 2022, attributed to enhanced brand awareness and effective consumer education initiatives[11] - The ultra-premium infant formula series recorded positive retail sales growth, achieving a market share of 12.1%, compared to a market decline of 2.1%[11] - The probiotics business in mainland China has successfully returned to growth, maintaining a strong market share and becoming a key player in the children's probiotics market in Hong Kong[13] - In France, the company holds the number one position in the organic infant formula category with a market share of 41.7% and in the goat milk category with a market share of 41.5%[14] - The adult nutrition and care segment achieved a remarkable growth of 12.5% in 2022, with Swisse ranking first in the online vitamin, herbal, and mineral supplement market in mainland China[15] - Swisse's retail sales in the local market recorded a growth of 12.9%, surpassing the industry average growth of 7.4%[15] - The company is expanding its presence in new Asian markets, driven by online and offline channel distribution, with significant growth momentum expected[16] Product Development - The company plans to expand its product offerings in the infant formula segment, having submitted applications for eight series of infant formula products in mainland China[18] - The launch of the new Swisse Plus+ series and Swisse Me functional food series has been well-received, promoting health and wellness among consumers[16] - The company continues to focus on high-end pet food categories and innovative product development to capitalize on market trends in both China and North America[17] Financial Management - Over 98.5% of the adjusted comparable EBITDA for 2022 was converted into operating cash flow, enhancing the company's ability to manage its capital structure[10] - The company successfully refinanced all existing loan facilities, improving its capital structure and liquidity to better withstand currency fluctuations and higher interest rates[10] - The company has secured a $1.125 billion three-year term loan for refinancing existing loans, linked to sustainability targets[20] - The company maintains a stable dividend payout ratio of 50% of adjusted comparable net profit, ensuring returns to shareholders[20] Sustainability Initiatives - The company reduced water intensity in its production facilities by 18.9% compared to 2021, reflecting its commitment to sustainability[21] - 98% of the company's packaging materials are recyclable, biodegradable, or compostable, demonstrating a strong focus on circular economy initiatives[21] - The company is committed to resource conservation and waste management, participating in carbon offset programs in Australia to enhance its environmental initiatives[46] - The company received an "A" rating from MSCI for environmental, social, and governance performance, reflecting its commitment to responsible business practices[20] Governance and Management - The management team includes experienced professionals with over 20 years in their respective fields, enhancing the company's strategic direction and risk management[47][48] - The company emphasizes employee development through clear career planning and regular training programs[46] - The company has a strong commitment to corporate governance and risk management, led by its experienced board of directors[47] - The board consists of eight members, including two executive directors, three non-executive directors, and three independent non-executive directors[62] Risk Management - The company has established a robust risk management system, which is essential for corporate governance and commitment to environmental, social, and governance practices[90] - The company conducts annual risk assessments and holds risk workshops for middle and senior management to gather insights on risks, which are then presented to senior management and the audit committee for strategic decision-making[95] - The audit committee reviews risk and control management effectiveness every six months, ensuring the adequacy of resources for internal audit and risk management functions[101] Shareholder Communication - The company emphasizes effective communication with shareholders, holding dialogues through annual general meetings and other gatherings to enhance understanding of business performance and strategies[103] - The company has a shareholder communication policy to promote effective interaction with shareholders and encourage them to exercise their rights[110] - The company is committed to maintaining transparency and timely disclosure of information to facilitate informed investment decisions by shareholders[103] Corporate Social Responsibility - The company made charitable donations of RMB 4.2 million for the year ended December 31, 2022, consistent with the previous two years[118] - The company has established a charitable foundation in collaboration with the Red Cross, demonstrating its commitment to social responsibility[118] Audit and Compliance - The independent auditor, Ernst & Young, has issued an unqualified opinion on the consolidated financial statements for the year ended December 31, 2022[192] - The audit committee reviewed the interim and annual results for the periods ended June 30, 2022, and December 31, 2022, respectively[185] - The company has adopted its own code of conduct regarding securities trading by directors, which meets or exceeds the standards set out in the listing rules[186]
H&H国际控股(01112) - 2022 - 年度财报