Tsingtao Brewery(SH:600600)2019-03-28 16:00Financial Performance - The total operating revenue for 2018 was RMB 26,575,255,205, representing a 1.13% increase from RMB 26,277,051,684 in 2017[14]. - The net profit attributable to shareholders of the listed company was RMB 1,422,199,705, an increase of 12.60% compared to RMB 1,263,017,188 in the previous year[14]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1,053,742,612, reflecting an 8.05% increase from RMB 975,265,769 in 2017[14]. - The net cash flow from operating activities was RMB 3,992,008,401, a significant increase of 72.65% from RMB 2,312,191,214 in the previous year[14]. - The total assets at the end of 2018 were RMB 34,075,265,005, which is a 10.01% increase from RMB 30,974,711,779 at the end of 2017[14]. - The net assets attributable to shareholders of the listed company were RMB 17,970,471,086, marking a 4.81% increase from RMB 17,145,228,423 in 2017[14]. - Basic earnings per share for 2018 was CNY 1.053, an increase of 12.60% compared to CNY 0.935 in 2017[15]. - The weighted average return on equity increased to 8.10% in 2018, up by 0.55 percentage points from 7.55% in 2017[15]. - The company's operating revenue reached approximately RMB 26.575 billion, representing a year-on-year growth of 1.13%, and a comparable growth of 5.15% under the new revenue standards[27][30]. - The net profit attributable to shareholders was approximately RMB 1.422 billion, reflecting a year-on-year increase of 12.60%[27]. Market and Product Development - The brand value of Tsingtao Beer reached CNY 145.575 billion in 2018, maintaining the top position in the Chinese beer industry[23]. - The company launched several new products in 2018, including Tsingtao Beer Aogute and Tsingtao Beer IPA, to meet market demand[23]. - The company operates 62 wholly-owned and controlled breweries across 20 provinces in China, leading the domestic beer market[22]. - In 2018, the company achieved beer sales volume of 8.03 million kiloliters, a year-on-year increase of 0.8%[27]. - The company's main brand, Tsingtao Beer, achieved sales volume of 3.914 million kiloliters, a year-on-year increase of 3.97%[26]. - High-end products, including "Aogute" and "Classic 1903," achieved sales volume of 1.733 million kiloliters, a year-on-year increase of 5.98%[26]. - The company actively expanded its global marketing network, selling products in over 100 countries and regions[26]. - The company continued to innovate with new product launches, including "Classic 1903" and "Tsingtao IPA," enhancing its product portfolio[26]. Financial Management and Costs - The company's operating costs increased by 5.98% year-on-year, primarily due to rising packaging material prices and changes in product structure[30]. - Direct material costs for beer sales amounted to CNY 11,223,453, representing 67.79% of total costs, an increase of 7.54% compared to the previous year[34]. - Research and development expenses increased by 5.71% year-on-year, totaling CNY 19,756, which is 0.07% of total revenue[39]. - Management expenses rose by 13.12% year-on-year, mainly due to increased employee compensation[37]. - Investment income decreased by 64.62% year-on-year, influenced by the implementation of new financial instrument standards[38]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of RMB 0.48 per share (including tax) for the 2018 fiscal year[3]. - The cash dividend for 2018 represents 45.60% of the net profit attributable to ordinary shareholders, which was RMB 1,422,200,000[70]. - The cumulative distributable profit available for distribution after the 2018 dividend payout will be RMB 6,671,899,491[69]. - The company has not proposed any cash profit distribution plan for the reporting period despite having positive distributable profits[71]. Corporate Governance and Compliance - The company has adhered to its commitment regarding long-term incentive plans for management, with plans to submit these for shareholder approval by June 2020[73]. - The audit firm PwC Zhongtian has been retained for 2018, with an audit fee of RMB 6.6 million[78]. - The company has not faced any risks of suspension or termination of listing during the reporting period[78]. - There were no significant accounting errors or non-standard audit opinions reported for the period[76]. - The company has established a management system for the changes in shares held by directors, supervisors, and senior management[176]. Environmental and Social Responsibility - The company has prepared an environmental, social, and governance report as per stock exchange requirements[107]. - The company is classified as a key pollutant discharge unit in the liquor manufacturing industry[109]. - The company reported wastewater discharge concentrations: COD at 26 mg/L, suspended solids at 8 mg/L, and ammonia nitrogen at 7.52 mg/L, all within regulatory limits[109]. - The company actively monitors and regulates its environmental impact as part of its corporate responsibility[109]. - The company has established emergency response plans for environmental incidents and conducts regular training to enhance the skills of environmental protection personnel[122]. Employee and Management Structure - The total number of employees in the parent company is 13,243, while the total number of employees in major subsidiaries is 26,077, resulting in a combined total of 39,320 employees[151]. - The professional composition includes 16,991 production personnel, 11,643 sales personnel, 2,805 technical personnel, 1,302 financial personnel, and 6,579 administrative personnel[151]. - The company has established a comprehensive incentive system based on salary incentives, career development, emotional engagement, and cultural motivation, enhancing the growth-sharing mechanism in 2018[152]. - The company has conducted various training programs to empower employees, utilizing diverse learning technologies and platforms[153]. Strategic Initiatives and Future Outlook - The company plans to enhance its digital marketing strategies, allocating 200 million RMB to improve online engagement and sales channels[143]. - The management team emphasized the importance of sustainability initiatives, aiming to reduce carbon emissions by 25% over the next five years[143]. - The company is investing 500 million RMB in research and development for new brewing technologies aimed at improving production efficiency[143]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[143].