目錄 Contents | 2 | 公司簡介 | Company Profile | | --- | --- | --- | | 3 | 財務摘要 | Financial Summary | | 6 | 銷售網絡 | Sales Network | | 7 | 主席報告 | Chairman's Statement | | 8 | 集團架構 | Group Structure | | 10 | 管理層討論與分析 | Management Discussion and Analysis | | 22 | 展望 | Prospects | | 23 | 環境、社會及管治報告 | Environmental, Social and Governance Report | | 138 | 企業管治報告 | Corporate Governance Report | | 169 | 董事及高階管理人員簡介 | Directors and Senior Management Profile | | 175 | 董事會報告 | Directors' Report | | 193 | 獨立核數師報告 | Independen ...

Investment Rating - The report maintains a "Buy" rating for the company [10] Core Insights - The company has optimized its product structure, leading to price increases and sustained improvement in profitability, with strong shareholder return value highlighted [2][8] - In the fiscal year 2024, the company achieved a revenue of 80.65 billion, a year-on-year increase of 0.3%, and a net profit of 3.734 billion, reflecting a growth of 19.8% [4][8] Summary by Sections Revenue and Profitability - For the first half of 2024, the company reported a revenue of 39.45 billion, a slight decline of 0.2%, while the gross margin improved by 3.3 percentage points to 33.6%, resulting in a net profit of 1.849 billion, up 25.0% year-on-year [4][7] Product Performance - The instant noodle segment generated revenue of 28.414 billion, down 1.3% year-on-year, with high-priced noodles experiencing a significant decline of 6.3% for the year [5] - The beverage segment achieved revenue of 51.62 billion, a year-on-year increase of 1.3%, with tea drinks maintaining strong growth at 21.7 billion, up 8.2% [6] Margin Improvement - The company's sales net profit margin increased by 1.0 percentage points to 5.4%, with gross margin rising by 2.7 percentage points to 33.1% [7] - The report indicates that the trend of margin improvement is strengthening, although there is a slight increase in expenses [7] Shareholder Returns - The company maintained a high dividend payout ratio of 100%, resulting in a dividend yield of 5.6% based on the current market capitalization, showcasing strong shareholder return value [2][8]

Investment Rating - The report maintains an "Outperform" rating for the company [6][10]. Core Views - The company's profitability has improved due to price increases and declining costs, with expectations for revenue acceleration in 2025 [6][10]. - The beverage segment, particularly tea drinks, continues to show strong momentum, contributing significantly to overall profitability [8][10]. - The company is focused on enhancing its core products, optimizing gross margin structure, and innovating product offerings to meet changing consumer trends [9][10]. Financial Summary - Main revenue for 2023 is projected at 80,418 million, with a year-on-year growth of 2% [7]. - Net profit for 2023 is expected to be 3,117 million, reflecting a year-on-year decrease of 18% [7]. - The gross margin is anticipated to improve to 33.10% in 2024, up from 30.42% in 2023 [7]. - The company plans to distribute a total cash dividend of 37.45 billion for 2024, with a payout ratio of 100% [8]. Segment Performance - The beverage business achieved revenue of 516.21 billion in 2024, with a year-on-year growth of 1.3% [8]. - The tea beverage segment generated revenue of 217 billion, marking an 8.2% increase year-on-year [8]. - The instant noodle segment reported revenue of 284.14 billion, a slight decline of 1.3% year-on-year, but with improved gross margin [8][9]. Profitability Forecast - The company forecasts net profits of 4,239 million, 4,694 million, and 5,154 million for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.75, 0.83, and 0.91 [10]. - The report suggests a PE valuation range of 18-22 times for 2025, translating to a per-share value range of 13.50-16.50 HKD [10].

Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time recommendation [1][8]. Core Insights - The company demonstrates stable revenue growth and accelerated profit release, with 2024 revenue and net profit reaching 80.65 billion and 3.73 billion respectively, reflecting a year-on-year increase of 0.29% and 19.79% [5]. - The beverage segment shows significant growth, particularly in container noodles and tea drinks, with revenues increasing by 3.74% and 8.18% respectively [6][7]. - The company's high-quality development strategy is effective, with a steady recovery in market share and a notable improvement in gross margin, leading to a robust cash flow performance [8]. Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 33.10% and a net profit margin of 4.63%, with respective year-on-year increases of 2.68 and 0.75 percentage points [5]. - The operating cash flow for 2024 is reported at 12.46 billion, indicating a significant year-on-year growth of 50.39% [5][11]. Revenue Breakdown - The revenue from beverages, instant noodles, and other segments for 2024 is 51.62 billion, 28.41 billion, and 615 million respectively, with the beverage segment showing a positive growth trend [6]. - The company maintains a competitive edge in the packaging water sector by not engaging in price wars, focusing instead on high-quality development [6]. Profitability Forecast - The report forecasts revenues for 2025, 2026, and 2027 to be 82.37 billion, 84.45 billion, and 86.67 billion respectively, with corresponding EPS of 0.74, 0.81, and 0.88 [10][11]. - The expected PE ratios for the upcoming years are projected at 16, 15, and 14 times, indicating a favorable valuation [8].

Investment Rating - The report assigns a "Buy" rating for the company, marking it as a first-time recommendation [1][8]. Core Insights - The company demonstrates stable revenue growth and accelerated profit release, with 2024 revenue and net profit reaching 80.65 billion and 3.73 billion respectively, reflecting a year-on-year increase of 0.29% and 19.79% [5]. - The beverage segment shows significant growth, particularly in container noodles and tea drinks, with revenues increasing by 3.74% and 8.18% respectively [6][7]. - The company's high-quality development strategy is effective, with a steady recovery in market share and a notable improvement in gross margin [8]. Summary by Sections Financial Performance - In 2024, the company achieved a gross margin of 33.10% and a net profit margin of 4.63%, with respective year-on-year increases of 2.68 and 0.75 percentage points [5]. - The operating cash flow for 2024 was 12.46 billion, showing a significant year-on-year increase [11]. Revenue Breakdown - The revenue from beverages, instant noodles, and other segments for 2024 was 51.62 billion, 28.41 billion, and 0.615 billion respectively, with the beverage segment showing a year-on-year growth of 1.34% [6]. Profitability Forecast - The report forecasts revenues of 82.37 billion, 84.45 billion, and 86.67 billion for 2025, 2026, and 2027 respectively, with corresponding EPS of 0.74, 0.81, and 0.88 [10][11].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 80,650,914 thousand, representing a 0.3% increase from RMB 80,418,075 thousand in 2023[2] - Gross profit margin improved to 33.1%, up by 2.7 percentage points from 30.4% in the previous year[2] - Group gross profit increased by 9.1% to RMB 26,695,643 thousand, compared to RMB 24,467,089 thousand in 2023[2] - EBITDA rose by 17.3% to RMB 9,627,802 thousand, up from RMB 8,206,526 thousand in 2023[2] - Net profit for the year was RMB 4,322,135 thousand, a 22.9% increase from RMB 3,516,667 thousand in 2023[2] - Profit attributable to shareholders increased by 19.8% to RMB 3,734,429 thousand, compared to RMB 3,117,461 thousand in 2023[2] - Basic earnings per share rose to RMB 66.28, an increase of 10.95 cents from RMB 55.33 in 2023[2] Cash and Equity - Cash and cash equivalents, including long-term deposits, amounted to RMB 16,002,668 thousand, an increase of RMB 1,264,287 thousand from the previous year[2] - Total equity increased to RMB 17,615,351 thousand in 2024 from RMB 17,222,244 thousand in 2023, representing a growth of 2.3%[11] - The company's issued share capital increased marginally from RMB 196,681 thousand in 2023 to RMB 196,684 thousand in 2024[11] - The reserve increased to RMB 13,244,526 thousand in 2024 from RMB 12,910,832 thousand in 2023, reflecting a growth of approximately 2.6%[11] Liabilities and Assets - Non-current liabilities decreased significantly from RMB 6,734,396 thousand in 2023 to RMB 3,110,279 thousand in 2024, a reduction of approximately 53.8%[11] - Current liabilities rose to RMB 32,423,225 thousand in 2024, up from RMB 29,193,014 thousand in 2023, indicating an increase of about 7.6%[11] - The company's total liabilities slightly decreased from RMB 35,927,410 thousand in 2023 to RMB 35,533,504 thousand in 2024, a decrease of about 1.1%[11] - The total assets for 2024 amounted to RMB 53,148,855 thousand, slightly down from RMB 53,149,654 thousand in 2023, showing a negligible decrease[34][36] Revenue Breakdown - Revenue from customer contracts for 2024 reached RMB 80,582,017 thousand, a slight decrease from RMB 80,348,163 thousand in 2023, representing a decline of approximately 0.3%[30][32] - The instant noodle business generated revenue of RMB 28.414 billion in 2024, a year-on-year decline of 1.3%, accounting for 35.2% of total group revenue[56] - The beverage segment achieved revenue of RMB 51.621 billion in 2024, a year-on-year growth of 1.3%, representing 64.0% of total group revenue[62] Operational Efficiency - The group's total revenue for 2024 increased by 0.3% to RMB 80.65 billion, with instant noodles revenue declining by 1.3% and beverage revenue growing by 1.3%[54] - The overall gross profit for the group increased by 9.1% to RMB 26.696 billion, with a gross profit margin of 33.1%, up 2.7 percentage points from the previous year[57] - The group's inventory turnover period improved to 17.6 days from 19.5 days year-on-year, indicating better inventory management[75] Product Innovation and Market Strategy - The company aims to enhance product innovation, brand building, and channel expansion in 2025[4] - The company introduced new products such as "Fresh Q Noodles," which set a new benchmark in the non-fried noodle market, and received positive consumer feedback[59] - The company is focusing on health-oriented products, launching sugar-free options and expanding product categories to enhance operational efficiency[62] - The company is actively optimizing its product mix and marketing strategies to adapt to changing consumer preferences and shopping behaviors[56] Sustainability and Social Responsibility - The company emphasizes a commitment to food safety and green development while supporting consumer aspirations for a better life[4] - The group is actively promoting sustainable development concepts through various consumer engagement initiatives, including partnerships with social media platforms[68] - The company has been recognized for its achievements in sustainable development, becoming a founding member of the UN Food Systems Committee and being listed among the "Top 20 Cases of 20 Years" by the UN Global Compact[82] Governance and Risk Management - The company has established a risk management framework based on the COSO model, ensuring effective internal controls and compliance with regulations[94] - The company will continue to enhance its governance practices to improve accountability and transparency, adhering to the Hong Kong Stock Exchange's corporate governance code[87] Dividends and Share Options - The company plans to distribute a special final dividend of RMB 0.3314 per share, totaling RMB 1.87 billion, and a final dividend of the same amount[46] - The board proposed a final dividend of RMB 0.3314 per ordinary share and a special final dividend of RMB 0.3314 per ordinary share for the year ending December 31, 2024, pending approval at the annual general meeting[107]

Investment Rating - Buy rating for the company [3] Core Views - The company is a dual leader in the instant noodles and soft drink industries, with a continuously optimizing revenue structure [3] - The company has a solid channel foundation and scale advantage, enabling it to take the initiative in product upgrades and pricing [3] - The company is expected to lead a new round of price increases in the industry, improving the competitive landscape and enhancing profitability [4] - The company's profitability is expected to improve, with shareholder returns becoming more prominent [4] Industry Overview Soft Drink Industry - The soft drink industry is driven by high-quality and health-conscious trends, with the bottled water segment leading in market share [33] - The market size of the soft drink industry reached 6435 88 billion yuan in 2023, with a CAGR of 6 68% from 2009 to 2023 [33] - The bottled water segment has seen its market share increase from 21 61% in 2009 to 35 21% in 2023 [33] - The sugar-free tea and carbonated drink segments are growing rapidly, with sugar-free carbonated drinks accounting for 23 04% of the carbonated drink market in 2023 [3] Instant Noodle Industry - The instant noodle industry is entering a phase of stable volume and rising prices, with a CAGR of 8 18% from 2017 to 2022 [58] - The average price of instant noodles increased at a CAGR of 5 87% from 2020 to 2022, driven by product upgrades and consumer demand for higher quality [59] Company Performance - In 2023, the company achieved total revenue of 80 418 billion yuan, with instant noodles and beverages contributing 35 80% and 63 34% respectively [3] - The CAGR for instant noodles and beverage revenues from 2017 to 2023 were 4 10% and 6 58% respectively [3] - The company's gross profit margin for instant noodles and beverages in 2023 were 27 00% and 32 10% respectively [15] Product and Channel Strategy - The company has a strong product portfolio, with container noodles and high-priced bagged noodles accounting for 46 91% and 41 16% of instant noodle sales in 2023 [13] - The company has implemented a channel reform strategy, reducing the size of regions and increasing the number of small distributors to improve product and channel responsiveness [3] - As of the end of 2023, the company had 348 business offices, 303 warehouses, 76,875 distributors, and 217,087 direct retailers [3] Future Outlook - The company is expected to benefit from the industry's upgrade towards healthier and higher-quality products, such as sugar-free tea, sugar-free carbonated drinks, and premium bottled water [3] - The company's leading position in the industry and its ability to replicate past successes are expected to help it capture a significant share of new market trends [3] - The company's EPS for 2024 and 2025 are projected to be 0 64 and 0 73 yuan respectively, with corresponding PE valuations of 18 and 16 times [4]

Financial Performance - Revenue increased by 0.7% to RMB 41,201,208 thousand in the first half of 2024 compared to the same period in 2023[2] - Gross profit margin improved by 2.1 percentage points to 32.6% in the first half of 2024[2] - EBITDA rose by 12.2% to RMB 4,824,605 thousand in the first half of 2024[2] - Net profit attributable to shareholders increased by 15.1% to RMB 1,885,310 thousand in the first half of 2024[2] - Basic earnings per share increased by RMB 4.39 cents to RMB 33.46 cents in the first half of 2024[2] - The company's profit for the period was RMB 1.89 billion, contributing to total comprehensive income of RMB 1.82 billion for the six months ended June 30, 2024[9] - Total comprehensive income for the six months ended June 30, 2024 was RMB 2.17 billion, including minority interests[9] - Revenue from customer contracts reached RMB 41,166.58 million, with the beverage segment contributing RMB 27,063.46 million and the instant noodle segment contributing RMB 13,768.26 million[14] - Profit before tax for the beverage segment grew to RMB 1,988.96 million, up 27.6% from RMB 1,558.80 million in H1 2023[14][15] - The company's total profit for the period was RMB 2,235.07 million, up 16.2% from RMB 1,922.88 million in H1 2023[14][15] - Revenue increased by 0.7% YoY to RMB 41.201 billion, with beverage revenue growing by 1.7% and instant noodle revenue declining by 1.0%[41] - EBITDA grew by 12.2% YoY to RMB 4.825 billion, with net profit attributable to shareholders increasing by 15.1% to RMB 1.885 billion[41] - Instant noodle business revenue declined by 1.0% YoY to RMB 13.814 billion, but gross margin improved by 1.3 percentage points to 27.1%[42][44] - Beverage business revenue grew by 1.7% YoY to RMB 27.065 billion, with gross margin improving by 2.5 percentage points to 35.2%[42][48] - Net profit for the beverage business increased by 26.9% YoY to RMB 1.115 billion, driven by gross margin improvement[48] Cash Flow and Liquidity - Cash and bank deposits (including long-term time deposits) increased by RMB 3,191,904 thousand to RMB 17,930,285 thousand as of June 30, 2024[2] - Bank balances and cash rose to RMB 10,790,607 thousand as of June 30, 2024, compared to RMB 6,754,466 thousand at the end of 2023[6] - Operating cash flow increased to RMB 4,405.46 million in H1 2024, up 15.3% from RMB 3,821.84 million in H1 2023[10] - Net cash from operating activities rose to RMB 3,510.43 million, a 23.5% increase compared to RMB 2,842.99 million in the same period last year[10] - The company's cash and cash equivalents increased to RMB 10,816.89 million as of June 30, 2024, compared to RMB 14,283.72 million in the same period last year[10] - The company's operating cash inflow was RMB 3.51 billion, with a net cash increase of RMB 3.192 billion in bank deposits and cash (including long-term fixed deposits)[54] - The company's net cash position was RMB 2.87 billion, an increase of RMB 1.861 billion compared to December 31, 2023[54] Assets and Liabilities - Total assets grew to RMB 56,019,751 thousand as of June 30, 2024, up from RMB 53,149,654 thousand at the end of 2023[6] - Inventory decreased to RMB 4,028,366 thousand as of June 30, 2024, compared to RMB 4,385,268 thousand at the end of 2023[6] - Accounts receivable increased to RMB 2,111,989 thousand as of June 30, 2024, up from RMB 1,579,983 thousand at the end of 2023[6] - Total liabilities increased to RMB 40.25 billion as of June 30, 2024, compared to RMB 35.93 billion as of December 31, 2023[7] - Net current liabilities worsened to RMB -13.08 billion as of June 30, 2024, from RMB -8.72 billion as of December 31, 2023[7] - Total equity decreased to RMB 15.77 billion as of June 30, 2024, from RMB 17.22 billion as of December 31, 2023[7] - Current liabilities increased to RMB 34.92 billion as of June 30, 2024, compared to RMB 29.19 billion as of December 31, 2023[7] - Long-term interest-bearing borrowings decreased to RMB 3.99 billion as of June 30, 2024, from RMB 5.25 billion as of December 31, 2023[7] - Reserves decreased to RMB 11.51 billion as of June 30, 2024, from RMB 12.91 billion as of December 31, 2023[7] - Minority interests decreased to RMB 3.27 billion as of June 30, 2024, from RMB 3.33 billion as of December 31, 2023[7] - Total assets increased to RMB 56,019,751 thousand as of June 30, 2024, compared to RMB 53,149,654 thousand as of December 31, 2023, reflecting growth in the company's asset base[16] - The beverage segment's assets grew to RMB 32,673,296 thousand as of June 30, 2024, up from RMB 32,415,379 thousand as of December 31, 2023, indicating continued investment in this key segment[16] - Total liabilities increased to RMB 40,250,703 thousand as of June 30, 2024, compared to RMB 35,927,410 thousand as of December 31, 2023, reflecting higher financial obligations[16] - The company's total assets and total liabilities as of June 30, 2024, were RMB 56.02 billion and RMB 40.251 billion, respectively, with a debt ratio of 71.9%, up 4.3 percentage points from the end of 2023[54] Segment Performance - The beverage segment's revenue grew by 1.7% year-over-year, reaching RMB 27,065.28 million in H1 2024[14] - The instant noodle segment's profit before tax increased by 3.4% to RMB 1,128.52 million in H1 2024[14] - The beverage segment experiences strong seasonal demand during Q2 and Q3, with peak sales occurring from June to August due to hot weather conditions[17] - The company focused on premium and high-end instant noodle products, such as "Soup Master" and "Yupin Feast," to meet consumer demand for quality and health[46] - The beverage business launched new sugar-free tea products, including "Sugar-Free Jasmine Tea" and "Sugar-Free Oolong Tea," to align with health trends[49] - The company leveraged celebrity endorsements and IP collaborations, such as with Disney's Zootopia, to enhance brand visibility and drive sales[45][49][50] - The company launched new products such as "Starbucks Raw Coffee" series and "Gatorade Electrolyte Drink," expanding its market presence in specific consumer segments[53] - The company's "Chun Cui Zero Sugar" tea drink and "Speed Noodle House" reduced-salt beef noodles were recognized as landmark achievements in the food industry's nutrition and health initiatives[57] - The company's "Pure Joy" brand collaborated with the "Sweet Potato Travel Agency" IP and China National Geographic to create the "Pure Journey" campaign, enhancing brand visibility[52] - The company's "Juice" product line introduced new flavors and packaging upgrades, focusing on health and regional ingredient preferences[51] Tax and Financial Expenses - The company's tax payments decreased to RMB 809.13 million, down 17.1% from RMB 690.50 million in H1 2023[14][15] - The company's tax expenses for the first half of 2024 totaled RMB 809,130 thousand, up from RMB 690,497 thousand in the same period of 2023, driven by higher current tax payments[18] - Financial expenses decreased to RMB 214,229 thousand in the first half of 2024, down from RMB 264,353 thousand in the same period of 2023, reflecting lower interest costs[18] - The company benefits from tax incentives in China's western regions, where certain subsidiaries enjoy a reduced corporate income tax rate of 15%[19] - In Singapore, the company qualifies for partial tax exemption schemes, with 75% exemption on the first SGD 10,000 of taxable income and 50% on the next SGD 190,000[19] - The company has engaged tax experts to assist with the implementation of OECD's Pillar Two model rules, which are not expected to have a material impact on operations[20] Shareholder and Dividend Information - The company approved final and special final dividends totaling RMB 3.12 billion for 2023, reducing total equity[9] - Basic earnings per share increased to 33.46 RMB cents in the first half of 2024, up from 29.07 RMB cents in the same period of 2023[21] - Diluted earnings per share rose to 33.46 RMB cents in H1 2024 compared to 29.04 RMB cents in H1 2023[21] - The total number of share options under the 2008 Share Option Plan as of June 30, 2024, was 15,722,000, with 9,137,000 options canceled or expired during the period[69] - No share options under the 2008 Share Option Plan were exercised during the six months ended June 30, 2024[69] - Under the 2018 Share Option Plan, 2,478,000 share options were granted on April 27, 2018, with an exercise period from April 30, 2021, to April 26, 2028[72] - Under the 2018 Share Option Plan, 5,626,000 share options were granted on April 27, 2018, with an exercise period from April 30, 2021, to April 26, 2024[72] - The total number of share options under the 2018 Share Option Plan as of June 30, 2024, was 2,478,000, with 3,785,000 options canceled or expired during the period[73] - No share options under the 2018 Share Option Plan were exercised during the six months ended June 30, 2024[73] - As of June 30, 2024, Executive Director Wei Hongming held 5,000,000 shares, representing 0.09% of the total shares, with 1,385,000 shares held by beneficial owners[75] - As of June 30, 2024, Executive Director Wei Hongcheng held 5,000,000 shares, representing 0.09% of the total shares, with 1,385,000 shares held by beneficial owners[75] - As of June 30, 2024, CEO Chen Yingrang held 1,380,000 shares, representing 0.02% of the total shares[75] - No other directors or their immediate family members were granted any rights to acquire shares or debentures of the company during the period ended June 30, 2024[75] - The board of directors includes executive directors Wei Hongming, Ida Junichiro, Wei Hongcheng, Shinohara Koji, Takahashi Yukiyuki, and Zeng Qian, as well as independent non-executive directors Xu Xinqun, Li Changfu, and Tochio Masaya[77] - The announcement was made by Chairman Wei Hongming on August 26, 2024, in Hong Kong[78] Investments and Capital Expenditures - Investment in property, plant, and equipment increased to RMB 1,829.87 million, up 30.4% from RMB 1,402.83 million in H1 2023[10] - Capital expenditure commitments for property, plant, and equipment increased to RMB 1,263,837 thousand, up 17.4% from RMB 1,076,179 thousand in 2023[37] - Investment funds increased from RMB 254,349 thousand to RMB 384,126 thousand, a growth of 51.0%[30] - Structured deposits grew from RMB 50,000 thousand to RMB 323,072 thousand, a significant increase of 546.1%[30] - Non-listed equity securities decreased slightly from RMB 158,518 thousand to RMB 154,560 thousand, a decline of 2.5%[30] Risk Management and Internal Controls - The company has established a risk management and internal control system based on the COSO framework, aiming to control overall risk at an acceptable level and ensure operational efficiency and compliance[63] - The company has implemented a three-line defense organizational structure for risk management, with the audit committee assisting the board in reviewing the effectiveness of the system[64] ESG and Corporate Responsibility - The company has been recognized for its ESG contributions, including being awarded the "2024 ESG Annual Case" by People's Daily and the "Green and Low-Carbon Partner" title by the Shanghai Energy Conservation Promotion Week Organizing Committee[58] Future Outlook and Strategy - The company expects domestic demand to remain a key driver of economic growth in the second half of 2024, with a focus on consolidating, innovating, and developing its business strategies[59] - The company plans to expand its instant noodle product offerings with different specifications, prices, and flavors to cater to consumer needs and drive industry growth[59] - The beverage division aims to accelerate the establishment of scale advantages, focusing on core products and expanding innovative offerings to meet diverse consumer scenarios and boost sales growth[59] - The company emphasizes long-term development by increasing investment in basic research, talent development, brand building, digital operations, and food safety control[59] Accounts Receivable and Payable - Accounts receivable aged 0-90 days increased to 2,014,920 thousand RMB as of June 30, 2024, from 1,490,555 thousand RMB at December 31, 2023[23] - Total accounts payable grew to 9,455,348 thousand RMB as of June 30, 2024, up from 8,572,717 thousand RMB at December 31, 2023[26] Loans and Financial Instruments - The company issued new bank loans totaling 8,408,387 thousand RMB in the first half of 2024, compared to 10,666,968 thousand RMB in the same period of 2023[25] - Repayments of bank loans amounted to 7,211,969 thousand RMB in H1 2024, down from 10,820,642 thousand RMB in H1 2023[25] - Financial assets measured at fair value through profit or loss totaled 1,123,441 thousand RMB as of June 30, 2024, compared to 1,314,415 thousand RMB at December 31, 2023[28] - Level 3 financial assets (unobservable inputs) increased to 861,758 thousand RMB as of June 30, 2024, from 1,145,230 thousand RMB at December 31, 2023[28] - The company's notes payable had a fair value of 3,479,117 thousand RMB as of June 30, 2024, up from 3,333,928 thousand RMB at December 31, 2023[25] Related Party Transactions - Sales to joint ventures increased from RMB 455,357 thousand to RMB 485,253 thousand, a growth of 6.6%[38] - Purchases from companies controlled by directors and their relatives decreased from RMB 3,031,420 thousand to RMB 2,860,992 thousand, a decline of 5.6%[38] - Distribution costs paid to companies controlled by directors' family members decreased slightly from RMB 886,256 thousand to RMB 870,636 thousand, a decline of 1.8%[38] - Promotional expenses paid to companies controlled by major shareholders increased from RMB 25,893 thousand to RMB 26,713 thousand, a growth of 3.2%[38] - Rental income from investment properties and property, plant, and equipment decreased from RMB 17,842 thousand to RMB 16,076 thousand, a decline of 9.9%[38] Operational Metrics - The company's finished goods turnover period decreased to 16.7 days from 19.5 days, and the accounts receivable turnover period increased to 8.1 days from 7.7 days[55] - The company's current ratio decreased to 0.6x from 0.7x, and the net debt-to-capital ratio dropped to -23.0% from -7.3%[55] - The company's employee count as of June 30, 2024, was 64,797, with significant efforts in leadership and organizational capacity building[56]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][6][12] Core Views - The report highlights stable revenue and recovery in profitability, with expectations for expanded scale advantages [2][6] - The beverage segment, particularly tea drinks, has shown strong performance, contributing to overall profitability recovery [4][6] - The company has established scale advantages in its beverage business by focusing on core categories and optimizing marketing strategies [4][6] Summary by Sections Financial Performance - For the first half of 2024, the company reported total revenue of 415.50 billion (YOY -0.15%) and main business revenue of 412.01 billion (YOY +0.72%) [3][6] - The net profit attributable to shareholders reached 18.85 billion (YOY +15.12%), with a net profit margin increase of 0.57 percentage points [3][6] Beverage Business - The beverage segment achieved revenue of 270.65 billion (YOY +1.73%) with a compound annual growth rate (CAGR) of 5.54% from 2022H1 to 2024H1 [4][6] - The gross margin for the beverage business increased by 2.5 percentage points to 35.2%, leading to a profit increase of 26.9% to 11.15 billion [4][6] Instant Noodle Business - The instant noodle segment maintained stable revenue at 138.14 billion (YOY -0.98%) with an improved gross margin of 27.1% [6][8] - The company upgraded core products and expanded into high-potential products, adapting to changing consumer shopping habits [6][8] Financial Forecasts - Projected total revenues for 2024-2026 are 840.78 billion, 883.54 billion, and 914.66 billion respectively, with net profits of 37.25 billion, 41.94 billion, and 46.26 billion [5][6] - The report estimates EPS for 2024-2026 to be 0.66, 0.74, and 0.82 respectively, with a PE valuation range of 15-19 times for 2024E [5][6]

Investment Rating - The investment rating for the company is "Buy (Maintain)" [4] Core Views - The company achieved a revenue of 41.201 billion yuan in H1 2024, representing a year-on-year increase of 0.72%. The gross profit was 13.440 billion yuan, up 7.82% year-on-year, and the net profit attributable to shareholders was 1.885 billion yuan, reflecting a 15.12% increase year-on-year, overall in line with expectations [5][6] Summary by Relevant Sections Financial Performance - In H1 2024, the company reported revenue of 41.201 billion yuan, with a gross profit of 13.440 billion yuan and a net profit of 1.885 billion yuan, all showing positive year-on-year growth [5] - The company's gross margin improved to 32.62%, up 2.15 percentage points year-on-year, while the net profit margin increased to 4.58%, up 0.57 percentage points year-on-year [5] Business Segments - **Instant Noodles**: Revenue from instant noodles was 13.814 billion yuan, down 0.98% year-on-year, accounting for 33.5% of total revenue. The gross margin for this segment improved to 27.05%, with a net profit margin of 6.15% [5] - **Beverages**: The beverage segment generated revenue of 27.065 billion yuan, up 1.73% year-on-year, with tea beverages showing a significant growth of 13%. The gross margin for beverages increased to 35.24%, and the net profit margin rose to 5.41% [5] Profitability and Dividends - The company has shown strong profitability with a net cash flow from operations of 3.51 billion yuan, up 23.46% year-on-year. The company has a cash balance of 10.791 billion yuan, indicating a positive outlook for dividends [5] Earnings Forecast - The company is expected to achieve revenues of 85.082 billion yuan, 88.970 billion yuan, and 92.485 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 3.581 billion yuan, 3.872 billion yuan, and 4.165 billion yuan [5][6]