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MarketScreener Homepage  >  Equities  >  Hong Kong Stock Exchange  >  Uni-President China Holdings Ltd    220   KYG9222R1065

UNI-PRESIDENT CHINA HOLDINGS LTD

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Uni President China : ANNOUNCEMENT OF 2019 INTERIM RESULTS(Download A)

08/06/2019 | 08:20am EST

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

(a company incorporated in the Cayman Islands with limited liability)

(Stock Code: 220)

ANNOUNCEMENT OF 2019 INTERIM RESULTS

  • Revenue amounted to RMB11,469.5 million, up by 2.2%
  • Group gross margin of 36.6%, up by 3.1 percentage points
  • EBITDA of RMB2,090.3 million, up by 19.8%
  • Profit for the period, attributable to equity holders of the Company of RMB997.5 million, up by 39.6%

The board (the "Board") of directors (the "Directors") of Uni-President China Holdings Ltd. (the "Company") is pleased to present the unaudited interim condensed consolidated financial information of the Company and its subsidiaries (together, the "Group", "we" or "us") for the six months ended 30 June 2019 (the "Period under Review"). The interim condensed consolidated financial information is unaudited but has been reviewed by the audit committee of the Board (the "Audit Committee") and PricewaterhouseCoopers, the independent auditors of the Company, in compliance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants.

ECONOMIC ENVIRONMENT

In the first half of 2019, the gross domestic product ("GDP") of the People's Republic of China (the "PRC") increased 6.3% year on year, which was in line with forecast. China's national economy operated stably in general. The Chinese government has adopted measures including cutting taxes and administrative fees to promote economic development, economic improvement stimulated consumption upgrading and consumer spending maintained steady growth with good momentum.

- 1 -

FINANCIAL RESULTS

Revenue and Gross Profit

The Group has recorded a revenue of RMB11,469.5 million during the Period under Review (first half of 2018: RMB11,223.9 million), representing an increase of 2.2% as compared with the corresponding period last year. During the Period under Review, the gross profit of the Group increased to RMB4,195.3 million (first half of 2018: RMB3,757.3 million), representing an increase of 11.7% as compared with the corresponding period last year, while its gross profit margin increasing by 3.1 percentage points to 36.6% from 33.5% for the corresponding period last year. The increase in revenue was mainly due to the continuous growth in revenue of "Soup Daren (湯達人)" lifestyle noodles and "Uni Assam Milk Tea" (統一阿薩姆奶茶), and the increase in the gross profit margin was mainly attributable to the decreasing price of raw materials, the preferential policy of tax and fee reduction implemented by the PRC government, as well as the Group's continuous effort in optimising its product structure.

Selling and Marketing Expenses

Selling and marketing expenses increased to RMB2,531.9 million (first half of 2018: RMB2,444.7 million), representing an increase of 3.6% as compared to the corresponding period last year, which was mainly attributable to the increased investments in channels and brand marketing, and boosting the promotion of newly launched products during the Period under Review.

Administrative Expenses

Administrative expenses were RMB481.5 million (first half of 2018: RMB498.5 million), representing a decrease of 3.4% as compared to the corresponding period last year, which was mainly benefited from the value added tax reduction policy by the PRC government during the Period under Review, which lead to the reduction of the corresponding surtax.

Operating Profit

Benefited from the growth in revenue and the increase in the gross profit margin, operating profit was RMB1,305.3 million for the Period under Review, increasing by 40.0% from the operating profit of RMB932.5 million for the first half of 2018.

Profit for the Period Attributable to Equity Holders of the Company

During the Period under Review, profit attributable to equity holders of the Company was RMB997.5 million, representing an increase of 39.6% compared with RMB714.3 million of the corresponding period last year.

- 2 -

BUSINESS REVIEW

Food Business

The Group continued to promote and develop a variety of new-style foods by virtue of consumer lifestyles, provided convenient dietary mode in diverse scenes based on the existing instant noodles business, and enriched the dietary mode and flavor based on the improving demand for the quality of life with the advancement of the times to achieve synchronous development with the consumption trend.

Instant Noodles Business

The instant noodles business of the Group recorded a revenue of RMB4,268.0 million for the first half of 2019, representing an increase of 2.8% as compared with the corresponding period last year. Insisting on building brand value and taking consumers' needs and satisfaction as the highest indicators, the Group constantly introduced new products, developed delicious products, and established the Group's sales rules which do not engage in price competition in the market and promote new order.

The Group's "Uni-President Lao Tan Pickled Cabbage and Beef Flavoured Noodles (統一老 壇酸菜牛肉麵)" co-operated with the Mainland China's domestic original animation in 2019. Centering on "Authentic Sourness and Crunchiness, Our Originality (正宗酸爽,我站原創)", the Group launched the crossover animation package and the "Eat Uni-President Lao Tan, Get Gift Through Scanning the QR Code (吃統一老壇碼上有禮)" event to attract the attention and strike a chord with the animation favoured by young consumers and communication with young people and striving for new "Uni-President Lao Tan" fans, to strengthen the leading position in respect of product category and the vitality of brand.

The Group created "Teng Jiao Wu Yu (藤嬌物語)" under "Teng Jiao (藤嬌)" and introduced a new series of "Wu Yu (物語)" package on which a QR code is available for scanning to read "Short-short stories (觸電小小說)", allowing consumers to feel the love scenarios in three minutes while waiting for instant noodles, to reach more target consumers and expand brand awareness. Meanwhile, through the new packaging posters, the Group established connection with the youth literary writers, which aroused the attention of netizens; and the binding of youth online dramas and inclusion of video in output creativity were widely acclaimed by the audience after launch, and the in-depth interaction with starring characters in the drama on the Internet further enhanced the brand exposure of "Teng Jiao (藤嬌)".

"Soup Daren (湯達人)" continued to achieve double-digit growth in revenue in the first half of 2019 and lead the mainstream consumption of RMB5 or above. The cooperation with Liu Haoran (劉昊然), one of the new generation of actors also featured by "focus, youth, sunshine and vitality (專注、青春、陽光、元氣)", strengthened the emotional connection between the brand and the new youth generation; moreover, the Group promoted injection of vitality into life through music and held "Genki Music Festival (元氣音樂節)" to create the brand spirit with "Genki (元氣)" as the core, striving to become the first choice for the new generation of users.

- 3 -

"Mix-up in Town with you (香拌一城)" focuses on the development of the most representative foods in various regions and refines the element of "fragrance ()", allowing consumers to enjoy the delicious flavors of the various cities. Through the dedicated research and development of the Group's research team, the Group has restored the flavor of northern Shaanxi and launched two flavors of noodles, namely "Sour and Spicy Cold Noodles (酸 辣涼皮)" and "Sesame Sauce Cold Noodles (麻醬涼皮)", which represent the new types of cold noodles officially launched by the Group. The "Sour and Spicy Cold Noodles (酸辣涼 皮)" adopts the secretly-made chili oil prepared with traditional "cook chili to dark brown, with good smell and spicy taste (一煳、二香、三辣)" oil application process and is then topped with vinegar, delivering sour and refreshing cold noodles with red and fragrant chili oil. The "Sesame Sauce Cold Noodles (麻醬涼皮)" served with fragrant sesame paste and vinegar, creating a mellow taste and chewy and smooth texture. Initially, they were launched on the Internet sales platform and spread by new media channels including the big gun live broadcast with the slogan of "Mixed like this, taste so good (這麼拌,真香!)". They were well received by consumers and seized the market of mixed noodles when first introduced to the market.

In addition, the Group inherits Chinese cuisine, and the high-end brand "Imperial Big Meal (滿漢大餐)" with "Hitting the market with beef (用肉打江山)" and focuses on in-depth interaction with consumers with "large piece of genuine beef (真的有大塊肉)". Following the "Taiwan Braised Beef and Beef Tendon Noodles (台式半筋半肉牛肉麵)", the Group launched the new sour and spicy tastes of "Royal Lao Tan Pickled Cabbage and Beef Noodles (禦品老 壇酸菜牛肉麵)" and "Sichuan-style Spicy Beef Noodles (川式銷魂麻辣牛肉麵)", providing richer choices for high-end consumers who enjoy the quality of life.

Other Food

The Group continued to put efforts in its other food products. Through in-depth research and development, the Group launched a new-styleself-heating rice meals "Premium Meal (開小 灶)", which is based on the evolution of lifestyle and mainly for outdoor consumption when it is not convenient to have a meal, with the slogan of "Premium Meal on the go (出門在外, 開小灶)". It has been well received by consumers since it was launched. Consumers have expressed that the experience of having "Premium Meal (開小灶)" refreshed the awareness of self-heating rice. The Group will gradually expand its promotion with e-commerce platforms and specific sales outlets.

In the second half of 2019, the Group will continue to optimise the product mix for food business, set precise positioning for each brand, continuously enhances brand value through value marketing, and make continuous innovation to meet consumer demands.

- 4 -

Beverages Business

The Group's beverages business recorded a revenue of RMB6,795.4 million for the first half of 2019, representing an increase of 0.6% as compared with the corresponding period last year. The Group continued to uphold product freshness management as the highest guiding principle of sales, insisted on creating brand value through brand building and aimed at improving profitability through continuous optimisation of the product structure. The performance of the Group's beverages segments in the first half of 2019 is set forth as follows:

Tea Drinks

Revenue from the Group's tea drinks business for the first half of 2019 amounted to RMB3,183.8 million.

"Stay Young for Ever, to Fight for Youth (青春無極限,不服就去戰)" remained as the theme for the "Uni Ice Tea (統一冰紅茶)" for the year. The Group engaged in in-depth interaction with the young people by joining hands with the popular games KPL (King Pro League) and integrating the game image, the Group launched the new package with the images of heroes for the "Uni Ice Tea (統一冰紅茶)". Meanwhile, event-based marketing through leveraging on the Spring finals of KPL and the live broadcasting of the games achieved accurate access to the new generation of game players with integrated marketing. In the second half of the year, "Uni Ice Tea (統一冰紅茶)", through the game platform, will continue to print the selected popular game slangs on bottles and launch such bottles with characters to enhance interaction with game players. In addition, the brand event "Extreme Fashion Party (極限潮 趴)" integrated the two-dimensional animation, eSports, trend market and cool music party to convey the brand spirit.

In 2019, on the basis of upholding a young, attitude-oriented, green and healthy lifestyle, "Uni Green Tea (統一綠茶)" focused on the cultivation of and communication with the new generation of consumers - college students. With the theme of "Experience the Nature, Implementation of Green Actions (親近自然,玩轉綠色行動)" for the year, we worked with the media to achieve eco-chain cooperation and conveyed new voices of brands through cross- border communication, resulting in an increase in young consumers; the Group connected with consumers through green riding, walking, orienteering, etc. targeting at attracting tens of millions of consumers to participate in the "Implementation of Green Actions (玩轉綠色行動)" and generate independent transmission energy. In the second half of the year, the "Challenge of Green Actions by Tens of Millions of People (千萬人綠色行動大挑戰)" will be the boosted event for "Uni Green Tea (統一綠茶)" to encourage consumers to create topics for automatic transmission by media and reach new consumers in a young and attitude-oriented way.

- 5 -

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Uni-President China Holdings Ltd. published this content on 06 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 August 2019 12:19:09 UTC


© Publicnow 2019
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Average target price 7,83 CNY
Last Close Price 7,54 CNY
Spread / Highest target 39,6%
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Spread / Lowest Target -15,7%
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Managers and Directors
NameTitle
Xin Hua Liu President & Executive Director
Chih Hsien Lo Chairman
Tzu Chiang Liu Chief Financial Officer
Sheng Te Chen Independent Non-Executive Director
Ren Da Fan Independent Non-Executive Director
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