农夫山泉(09633) - 2024 - 中期财报

Economic Performance and Market Trends - China's GDP for the first half of 2024 reached RMB 61.7 trillion, a year-on-year increase of 5.0%[15] - Total retail sales of consumer goods in China for the first half of 2024 reached RMB 23.6 trillion, a year-on-year increase of 3.7%[15] - The soft beverage market in China is shifting towards healthier and more natural products, with sugar-free tea experiencing rapid growth[17] Revenue and Product Performance - Revenue for the first half of 2024 was RMB 22,173 million, an increase of 8.4% compared to the same period last year[20] - Revenue from packaged drinking water products decreased by 18.3% to RMB 8,531 million, accounting for 38.5% of total revenue[20][23] - Revenue from beverage products increased by 36.7% to RMB 13,542 million, accounting for 61.1% of total revenue[20] - Tea beverage products revenue grew by 59.5% to RMB 8,430 million, representing 38.0% of total revenue[21][34] - Functional beverage products revenue increased by 3.8% to RMB 2,550 million, accounting for 11.5% of total revenue[21] - Juice beverage products revenue rose by 25.4% to RMB 2,114 million, representing 9.5% of total revenue[21] - The company's tea beverage products recorded a revenue of RMB8,430 million, representing a 59.5% increase compared to the same period last year, accounting for 38.0% of total revenue[37] - Functional beverage products generated a revenue of RMB2,550 million, a 3.8% increase year-over-year, contributing 11.5% to total revenue[42][45] - Juice beverage products achieved a revenue of RMB2,114 million, a 25.4% increase compared to the previous year, making up 9.5% of total revenue[43][48] - Other products, including soda water and coffee beverages, recorded a revenue of RMB548 million, a 7.3% decrease year-over-year, accounting for 2.5% of total revenue[54][55] New Product Launches and Marketing - The company launched a new 19-liter PET barreled natural drinking water product in January 2024, derived from high-quality natural water sources[27][31] - In April 2024, the company introduced a purified drinking water product, marking its return to the purified water market after 24 years[26][29] - From April to May 2024, over 200 video clips were posted by top vloggers about the company's water sources, with nearly 500 million exposures and more than 10 million interactions[30] - The company launched a new product, "Nongfu Spring" edible ice, which has been introduced in multiple convenience store chains across 14 cities[33] - The "Oriental Leaf" product sold out 50,000 cases in 17 hours for its first batch and the second batch sold out in just 1 hour[38] - The "Tea π" new flavor launch and themed exhibition reached over 5 million people across nine cities[41][44] - The "Scream" brand launched two new flavors and conducted campus activities to enhance its sports image[46] - The "Victory" Vitamin Water collaborated with Color Run 2024 and organized the "V-Break Dance Battle" for the third year[47] - The "Farmer's Orchard" upgraded its classic products to meet cleaner and healthier trends, gaining consumer attention[50][51] - The "TANBING" coffee launched a 900ml sugar-free black coffee at RMB9.9, expanding its product matrix and reinforcing its brand image[54][56] - The company launched a new blood orange flavor of "Water Soluble C100" after a decade, with each 445ml bottle containing ≥100mg of vitamin C[152][154] - The company introduced a 900ml large-sized sugar-free classic black coffee under the "TANBING" brand, made from dark roasted Arabica coffee beans[152][154] - The company upgraded its 100% tomato and carrot mixed fruit and vegetable juices, ensuring no added sugar or food additives while preserving freshness[152][154] Financial Performance and Expenses - Revenue increased by 8.4% to RMB22,173 million compared to RMB20,462 million in the first half of last year[60][62] - Gross profit grew by 5.9% to RMB13,032 million, with gross profit margin decreasing by 1.4 percentage points to 58.8%[60][62] - Profit for the period rose by 8.0% to RMB6,240 million from RMB5,775 million in the first half of last year[69][73] - Selling and distribution expenses increased by 5.9% to RMB4,971 million, accounting for 22.4% of total revenue[64][65] - Administrative expenses decreased by 4.8% to RMB913 million, representing 4.1% of total revenue[66][70] - Other income and gains increased by 15.4% to RMB1,040 million, mainly due to higher interest income from term deposits[67][71] - Inventory increased to RMB3,337 million, with inventory turnover days rising from 55.0 to 64.2 days[78] - Trade receivables and bills increased to RMB703 million, with turnover days rising from 4.4 to 5.1 days[79] - Long-term bank deposits, pledged deposits, cash, and bank balances totaled RMB27,136 million, up 5.8% from the end of 2023[77] - The company did not declare an interim dividend for the six months ended June 30, 2024[76][80] - The Group's long-term bank deposits, pledged deposits, cash, and bank balances increased by 5.8% to RMB27,136 million as of June 30, 2024, compared to RMB25,639 million as of December 31, 2023[81] - Interest-bearing borrowings increased by 23.6% to RMB3,857 million as of June 30, 2024, compared to RMB3,121 million as of December 31, 2023[81] - Inventories increased to RMB3,337 million as of June 30, 2024, up from RMB3,092 million as of December 31, 2023, with inventory turnover days rising from 55.0 days to 64.2 days[82] - Trade and bills receivables increased to RMB703 million as of June 30, 2024, up from RMB547 million as of December 31, 2023, with turnover days increasing from 4.4 days to 5.1 days[83] - Trade and bills payables increased to RMB1,859 million as of June 30, 2024, up from RMB1,770 million as of December 31, 2023, with turnover days increasing from 33.8 days to 36.2 days[85][88] - The Group's gearing ratio increased to 14.9% as of June 30, 2024, compared to 11.2% as of December 31, 2023, mainly due to increased use of bills receivable financing[86][89] - The Group recorded net current liabilities of RMB4,950 million as of June 30, 2024, primarily due to an increase in long-term time deposit arrangements[86][90] - The Group held HK$1,553 million, US$475 million, and a small amount of other foreign currencies as of June 30, 2024, with exchange rates for USD and HKD against RMB increasing[95][100] - Capital commitments amounted to approximately RMB5,708 million as of June 30, 2024, mainly for the construction of production plants and purchase of production equipment[97][102] - The Company plans to invest RMB5 billion in the "Nongfu Spring Jiande Drinking Water and Beverage Comprehensive Industrial Base Project," with a wholly-owned subsidiary established during the reporting period[105][107] Employee and Shareholder Information - Total number of employees exceeded 20,000 as of June 30, 2024, with total employee benefit expenses amounting to RMB1,983 million[112][114] - Employee share incentive scheme granted 6,636,400 H shares in March 2022, accounting for 0.059% of total issued shares and 0.1318% of issued H shares[117][119] - Grant price for employee share incentive scheme was HK$13.22 per share, 30% of the average closing price of H shares in the 120 trading days before the grant date[117][119] - 108 scheme participants were granted shares, including 4 directors and 1 employee from Yangshengtang Group[117][119] - 1,837,234 shares met the third vesting condition in April 2024, while 19,692 shares were forfeited due to unmet conditions and 29,282 shares were forfeited due to employee exits[122] - Employee share incentive scheme has a validity period of 10 years, with approximately 7 years remaining as of the report date[117][119] - Maximum number of H shares that can be acquired under the employee share incentive scheme is 5% of total issued share capital, with no single participant exceeding 1%[116][118] - 2,610,000 shares met the first vesting condition in April 2022, while 44,184 shares were forfeited[122] - 1,708,200 shares met the second vesting condition in April 2023, while 285,048 shares were forfeited due to unmet conditions and 102,760 shares were forfeited due to employee exits[122] - 6,636,400 shares were granted under the 2022 employee share incentive scheme, with 6,155,434 shares vested and 480,966 shares forfeited[123][127] - In April 2022, 2,610,000 awards met the first tranche vesting conditions, while 44,184 awards were forfeited[124] - In April 2023, 1,708,200 awards met the second tranche vesting conditions, while 285,048 awards were forfeited due to unmet conditions and 102,760 awards were forfeited due to employee resignations and demotions[125] - In April 2024, 1,837,234 awards met the third tranche vesting conditions, while 19,692 awards were forfeited due to unmet conditions and 29,282 awards were forfeited due to employee resignations and demotions[126] - The weighted average closing price prior to vesting date during the reporting period was HKD 45.080[130][133] - As of January 1, 2024, 1,886,208 awards were unvested, and by June 30, 2024, all unvested awards had been vested or forfeited[133] - The total number of awards granted to other employee participants was 6,067,400, with 1,666,424 vested and 48,974 forfeited during the reporting period[133] - Total number of awards unvested as at January 1, 2023 was 3,982,216 shares, with 1,708,200 shares vested during 2023 at a weighted average closing price of HKD45.080[135] - The company did not grant any awards during the reporting period[135] Sustainability and Corporate Responsibility - The company aims to reduce carbon emission intensity and comprehensive energy consumption intensity by 20% by 2030 against the 2019 baseline[139] - The company targets to make plastic packaging for water and beverage 100% recyclable/reusable/compostable by 2025[139] - The company released the 2023 Sustainability Report (ESG Report) in April 2024, showcasing its commitments and achievements in sustainable development[138] - The company focuses on sustainable water use, paying attention to water resource risks in operation locations[141] - The company is dedicated to reducing food waste and promoting the reuse of food residues as part of its circular economy initiatives[141] - The company has conducted biodiversity risk assessments and protection efforts, promoting sustainable agriculture[141] - The company is committed to energy conservation and emission reduction, promoting the use of clean energy[141] - The company has intensified monitoring emission efforts and solidified environmental audit processes to minimize negative environmental impacts[141] - The company continued its classic public welfare project, providing free water to outdoor workers during high temperatures for the ninth consecutive year[143][145] - The company visited multiple tea-producing regions to conduct on-site audits of tea leaf harvesting and processing, ensuring tea leaves meet raw material standards[144][146] - The company established a closed-loop quality assurance system covering raw materials, research and development, manufacturing, and sales channels[152][154] - The company implemented a three-tier sustainable development governance structure led by the Board, ensuring compliance with laws and regulations[153][155] - The company conducted a series of special audits to control risks comprehensively and safeguard the interests of shareholders and stakeholders[153][155] - The company continued to invest in rich learning resources and customized high-quality training programs for employees[149][150] - The company enforced policies related to employee occupational health and safety, conducting regular safety emergency drills and strengthening safety culture[149][150] Shareholder and Ownership Structure - Mr. Zhong Shanshan holds 6,211,800,000 domestic shares, representing 100% of the relevant class and 55.2333% of the total issued share capital[167] - Mr. Zhong Shanshan holds 1,303,252,410 H shares through controlled corporations, representing 25.8856% of the relevant class and 11.5881% of the total issued share capital[167] - Mr. Zhong Shanshan is the beneficial owner of 1,929,249,240 H shares, representing 38.3193% of the relevant class and 17.1543% of the total issued share capital[167] - Mr. Xiang Xiansong holds 32,400 H shares as a beneficial owner, representing 0.0006% of the relevant class and 0.0003% of the total issued share capital[167] - Mr. Rao Minghong holds 59,400 H shares as a beneficial owner, representing 0.0012% of the relevant class and 0.0005% of the total issued share capital[167] - Mr. Jiang Xiaodong holds 471,250 H shares as a beneficial owner, representing 0.0094% of the relevant class and 0.0042% of the total issued share capital[167] - The total issued share capital of the company as of June 30, 2024, is 11,246,466,400 shares[170] - Mr. Zhong Shanshan directly holds 98.38% equity interest in Yangshengtang and indirectly holds 1.62% through Hangzhou Youfu, wholly owned by him[171] - Yangshengtang, wholly-owned by Mr. Zhong Shanshan, purchased 7,000,000 H Shares of the Company from July 9 to July 26, 2024, increasing his indirect holdings to 1,310,252,410 H Shares, representing 26.02% of H Shares and 11.65% of total share capital[171] - Mr. Xiang Xiansong owns a beneficial interest in 32,400 H Shares of the Company, corresponding to vested incentive shares under the Employee Share Incentive Scheme[171] - Mr. Rao Minghong owns a beneficial interest in 59,400 H Shares of the Company, corresponding to vested incentive shares under the Employee Share Incentive Scheme[171] - Mr. Zhong Shanshan holds a 17.66% beneficial interest in Beijing Wantai Biological Pharmaceutical Enterprise Co., Ltd., with controlled corporations holding an additional 55.65%[172] - Mr. Zhong Shanshan holds a 63.50% interest in Xiamen Youmaike Medical Instruments Co., Ltd. through controlled corporations[172] - Mr. Zhong Shanshan holds a 60.00% interest in Beijing Tairun Innovation Technology Incubator Co., Ltd. through controlled corporations[172] - Mr. Zhong Shanshan holds a 94.93% interest in JWT (Beijing) Biotechnology Company Limited through controlled corporations[174] - Mr. Zhong Shanshan holds a 90.00% beneficial interest in Guanzi Management Consulting (Lishui) Partnership, with controlled corporations holding an additional 10.00%[174] - Mr. Zhong Shanshan holds a 24.81% beneficial interest in Guanzi Equity Investment (Lishui) Partnership, with controlled corporations holding an additional 74.94%[174] - Mr. Zhong Shanshan directly holds 98.38% equity interest in Yangshengtang, the controlling shareholder of the company, and indirectly holds 1.62% through Hangzhou Youfu[177] - Yangshengtang Pharmaceutical Co., Ltd., a non-wholly owned subsidiary of Yangshengtang, is 97.53% indirectly owned by Mr. Zhong Shanshan through Yangshengtang[177] - Beijing Wantai Biological Pharmaceutical Enterprise Co., Ltd. has a total share capital of 1,268,206,999 shares, with Mr. Zhong Shanshan directly holding 17.66% and indirectly holding 55.65% through Yangshengtang[177] - Xiamen Youmaike Medical Instruments Co., Ltd. is 63.50% owned by Beijing Wantai Biological Pharmaceutical Enterprise Co., Ltd., with Mr. Zhong Shanshan indirectly holding interest through the latter[177] - Beijing Tairun Innovation Technology Incubator Co., Ltd. is 60.00% owned by Beijing Wantai Biological Pharmaceutical Enterprise Co., Ltd., with Mr. Zhong Shanshan indirectly holding interest through the latter[177] - JWT (Beijing) Biotechnology Company Limited is 94.93% owned by Beijing Wantai Biological Pharmaceutical Enterprise Co., Ltd., with Mr. Zhong Shanshan indirectly holding interest through the latter[177] - Xiamen Innobiomax Biotechnology Co., Ltd. is 60.00% owned by Xiamen Innodx Biotechnology Co., Ltd., a wholly owned subsidiary of Beijing Wantai Biological Pharmaceutical Enterprise Co., Ltd., with Mr. Zhong Shanshan indirectly holding interest through the latter[181] - Guanzi Management Consulting (Lishui) Partnership (Limited Partnership) is 90.00% directly and 10.00% indirectly owned by Mr. Zhong Shanshan through Guanzi Private Equity Fund Management (Hangzhou) Co., Ltd.[181] - Guanzi Equity Investment (Lishui) Partnership (Limited Partnership) is 24.81% directly and 74.44% indirectly owned by Mr. Zhong Shanshan through Yangshen