高盛-農(nóng)夫山泉 1H24 Earnings Review Prioritizes restoring water market share;Beverage sales to maintain DD% in 2024 0829 2024d

28August2024|8:53PMHKT

NongfuSpring(9633.HK)

Buy

1H24EarningsReview:Prioritizesrestoringwatermarketshare;BeveragesalestomaintainDD%in2024

9633.HK12mPriceTarget:HK$45.00Price:HK$27.05Upside:66.4%

Nongfuprintedalargelyin-linesetof1H24resultsonAug27,withsales/NPup8%/8%yoyrespectively,andhostedanearnings

brie?ngonAug28.Keytakeawaysfromthebrie?nginclude:1)ManagementloweredthepriorguidanceofDD%salesgrowthacrossallcategoriesdatedearlierthisyear(brie?ngtakeawaysin

March),insteadnowprioritizessteadilyrestoringthesales

growthofwatersegmentbacktohealthylevel,whileitremains

con?dentinDD%salesgrowthfrombeverages(mainlydrivenbyTeasegmentandnewproductsinJuice/Functionaldrinks);2)Water:Managementnotedtheirwatersegment’smarketshareimproved

sequentiallyinrecentmonthsperNielsendata,whilestillyetbacktothelevelbeforethenegativepublicopinionevents;Thecompanyalsonotedcontinuedcoveragepenetrationpotentialforitsgreen

bottleandhighlightthatgreenbottle(puri?edwater)isonly

competingin550mlsmall-bottleSKUandbundlesaleswith

tactical/agilepricingconsideration,whileredbottle(naturalwater)iscompetingacrosspackage/consumptionscenario;3)Margin:2H24NPMisexpectedtobelowerthan1H’s28.1%duetoseasonality

andeffortstorestorewatermarketsharewhilethebranding

_

investmentassociatedwithOlympicsalsoconcentratedinJuly-Aug.Meanwhile,managementstillviewslong-term20-25%NPMrangeasamorereasonableandhealthylevelbenchmarktoglobalpeers’historicaltrackrecord(seeourCorpDaytakeaways).

Weseethenear-termslowrecoveryinwatermarketsharesand

earningsgrowthcouldleadtoincreasinginvestorconcerns,while

thewatersalesdisruptionseenin1H24wasalsolargelyinlinewithourestimates.Inaddition,strongbeveragesales(1H+39%yoy

excl.water)couldcontinuetoofferbuffertooverallcompanygrowthduringthedisruptiveperiod.In2H24E,welookforsequentialsalesgrowthslowdownto7.4%yoylappinghighbasecompsinteaand

LeafLiu

+852-3966-4169|leaf.liu@GoldmanSachs(Asia)L.L.C.

HongdaZhong

+852-2978-2300|hongda.zhong@GoldmanSachs(Asia)L.L.C.

ChristinaLiu

+852-2978-6983|christina.liu@GoldmanSachs(Asia)L.L.C.

JuliaMu

+852-2978-1219|julia.mu@GoldmanSachs(Asia)L.L.C.

KeyData

Marketcap:HK$304.2bn/$39.0bnEnterprisevalue:HK$277.6bn/$35.6bn 3mADTV:HK$303.0mn/$38.8mnchina

chinaconsumerstaples

M&ARank:3Leasesincl.innetdebt&EV?:yes

GSForecast

Revenue(Rmbmn)New

Revenue(Rmbmn)OldEBITDA(Rmbmn)

EPS(Rmb)New

EPS(Rmb)OldP/E(X)

P/B(X)

Dividendyield(%)CROCI(%)

EPS(Rmb)

12/2342,667.2

42,667.217,428.1

1.07

1.0736.915.6 1.924.6

12/23

0.57

12/24E46,030.1

46,182.318,475.2

1.11

1.1122.3 8.5 3.225.3

6/24

0.55

12/25E52,559.0

52,801.220,956.2

1.26

1.2619.7 7.3 3.625.2

12/24E

0.56

12/26E59,228.0

59,580.823,140.5

1.39

1.4317.8 6.33.925.7

--

--

GSFactorPro?le

Growth

FinancialReturns

Multiple

Integrated

Percentile20th40th60th80th100th

9633.HKrelativetoAsiaex.JapanCoverage9633.HKrelativetoChinaConsumerStaples

Source:Companydata,GoldmanSachsResearchestimates.Seedisclosuresfordetails.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,

investorsshouldbeawarethatthe?rmmayhaveacon?ictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcerti?cationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html.Analystsemployedbynon-USaf?liatesarenotregistered/quali?edasresearchanalystswithFINRAintheU.S.

GoldmanSachs

NongfuSpring(9633.HK)

阝uv

RatingsinceMay18,2023

Ratios&Valuation

P/E(X)P/B(X)

FCFyield(%)

EV/EBITDAR(X)

EV/EBITDA(excl.leases)(X)CROCI(%)

ROE(%)

Netdebt/equity(%)

Netdebt/equity(excl.leases)(%)Interestcover(X)

Daysinventoryoutst,salesReceivabledays

DayspayableoutstandingDuPontROE(%)

Turnover(X)Leverage(X)

Grosscashinvested(excash)(Rmb)Averagecapitalemployed(Rmb)

BVPS(Rmb)

12/23

36.9 15.6 2.824.424.524.645.9(73.2)(73.5)159.522.2 4.433.842.3 0.91.7

56,596.7

9432.2

,

2.54

12/24E

22.3 8.5 4.3 13.7 13.8 25.341.0(74.4)(74.7)147.125.4 4.536.238.4 0.91.6

,

64751.0

7,924.62.91

12/25E

19.7 7.3 5.2 11.8 11.925.240.0(79.0)(79.3)167.224.7 4.435.137.2 0.91.6

,

72544.1

,

8084.3

3.38

12/26E

17.8 6.3 5.9 10.4 10.525.738.2(83.5)(83.7)184.324.7 4.435.435.7 0.81.6

,

75754.7

,

7518.9

3.90

Growth&Margins(%)

12/2312/24E12/25E12/26E

Totalrevenuegrowth

EBITDAgrowthEPSgrowth

DPSgrowth

EBITmargin

EBITDAmargin

Netincomemargin

7.9 6.0 3.3 3.933.140.127.3

14.213.413.212.732.939.926.9

12.710.410.710.732.239.126.4

28.434.246.410.334.740.828.3

PricePerformance

9633.HK(HK$)HangSengChinaEnt.

509,000

458,000

407,000

356,000

305,000

254,000

Apr-24

Jul-24

Oct-23Jan-24

6m

(38.7)%(44.0)%

12m(36.7)%(36.4)%

3m

(37.7)%(33.1)%

Absolute

Rel.totheHangSengChinaEnt.

Source:FactSet.Priceasof28Aug2024close.

NongfuSpring(9633.HK)

IncomeStatement(Rmbmn)

12/2312/24E12/25E12/26E

Totalrevenue

costofgoodssoldSG&A

R&D

otheroperatinginc./(exp.)EBITDA

Depreciation&amortizationEBIT

Netinterestinc./(exp.)

lncome/(loss)fromassociates

Pfit

ProvisionfortaxesMinorityinterest

Preferreddividends

Net。inc.。(pre-exceptionaIs)Post-taxexceptionals

Net。inc.。(post-exceptionaIs)

EPS。(basic,。pre-except)。(Rmb)

EPS。(diIuted,。pre-except)。(Rmb)EPS。(basic,。post-except)。(Rmb)EPS。(diIuted,。post-except)。(Rmb)DPS(Rmb)

Div.payoutratio(%)

42,667.2(17,260.4)

(11,446.4)

836.317,428.1(2,631.4)14,796.7891.5

--

15,688.2(3,608.7)

--

--

12,079.5(6.2)

12,073.3

1.071.071.071.070.7569.8

46,030.1(18,521.4)

(13,002.2)

712.218,475.2(3,256.5)15,218.71,075.5

--

16,294.2(3,748.1)

--

--

12,546.1(72.1)

12,474.0

1.121.121.111.110.7869.8

52,559.0(21,112.3)

(14,870.9)

713.420,956.2(3,667.0)

17,289.21,080.7

--

18,369.9

(4,225.6)

--

--

14,144.3(18.1)

14,126.2

1.261.261.261.260.8869.8

59,228.0(23,690.8)

(17,189.2)

713.623,140.5 (4,079.0)

19,061.61,266.5

--

20,328.1

(4,676.0)

--

--

15,652.1(14.1)

15,638.0

1.391.391.391.390.9769.8

BalanceSheet(Rmbmn)

12/2312/24E12/25E12/26E

cash&cashequivalentsAccountsreceivable

lnventory

othercurrentassets

Totalcurrentassets

NetPP&E

Netintangibles

Totalinvestments

otherlong-termassets

Totalassets

Accountspayableshort-termdebt

short-termleaseliabilitiesothercurrentliabilities

Totalcurrentliabilities

Long-termdebt

Long-termleaseliabilitiesotherlong-termliabilities

Totallong-termliabilitiesTotalliabilities

Preferredshares

Totalcommonequity

Minorityinterest

Totalliabilities&equity

Netdebt,adjusted

24,125.2 547.03,091.7697.5

28,461.4

18,126.6 74.2 0.02,474.9

49,137.1

1,770.13,120.658.0

14,927.8

19,876.6

--

31.3658.4

689.7

20,566.2

28,570.9

--

49,137.1

(21,004.6)

26,824.3 590.13,317.6752.2

31,484.3

19,684.958.0

0.02,474.9

53,702.1

1,899.42,425.158.0

15,947.7

20,330.2

--

31.3658.4

689.7

21,019.9

32,682.2

--

53,702.1

(24,399.2)

32,605.2 673.83,781.7858.5

37,919.2

21,120.041.5

0.02,474.9

61,555.6

2,165.12,425.158.0

18,151.9

22,800.1

--

31.3658.4

689.7

23,489.8

38,065.8

--

61,555.6

(30,180.1)

39,114.2 759.34,243.6967.1

45,084.3

22,191.224.7

0.02,474.9

69,775.0

2,429.62,425.158.0

20,331.5

25,244.2

--

31.3658.4

689.7

25,933.8

43,841.2

--

69,775.0

(36,689.1)

CashFlow(Rmbmn)

12/23

12/24E

12/25E

12/26E

Netincome

12,079.5

12,546.1

14,144.3

15,652.1

D&Aadd-back

2,631.4

3,256.5

3,667.0

4,079.0

Minorityinterestadd-back

--

--

--

--

Net(inc)/decworkingcapital

3,404.4

825.4

1,815.8

1,788.1

Otheroperatingcashflow

(810.4)

--

--

--

Cashflowfromoperations

17,304.9

16,628.1

19,627.1

21,519.1

Capitalexpenditures

(4,862.8)

(4,798.6)

(5,085.5)

(5,133.4)

Acquisitions

--

--

--

--

Divestitures

--

--

--

--

Others

(9,421.1)

--

--

--

Cashflowfrominvesting

(14,283.8)

(4,798.6)

(5,085.5)

(5,133.4)

Repaymentofleaseliabilities

Dividendspaid(common&pref)

(7,646.3)

(8,434.9)

(8,760.7)

(9,876.7)

Inc/(dec)indebt

695.5

(695.5)

Otherfinancingcashflows

66.0

0.0

0.0

0.0

Cashflowfromfinancing

(6,966.5)

(9,130.4)

(8,760.7)

(9,876.7)

Totalcashflow

(3,945.4)

2,699.1

5,780.9

6,509.1

Freecashflow

12,442.2

11,829.5

14,541.6

16,385.7

Source:Companydata,GoldmanSachsResearchestimates.

_

28August20242

GoldmanSachsNongfuSpring(9633.HK)

functionalbeveragewithwaterbusinessexpectedtopartlyrecoverto?attishsalesgrowth,andweexpect-3%declineyoyinNPduetohighcompbaseandcontinuedinvestmentintowaterbusinessandoverallNongfubrandequityamidOlympics.

Meanwhile,weexpectgrowthmomentumtoresumetoteens%levelin2025-2026.

Tofactorinthe1H24run-rateofstrongteabeveragegrowth,milderfunctionbeveragedevelopmentandalsonear-termstrategicactionsinthewatersegment,we?ne-tuned2024-26Esales/EPSestimatesdownby0-1%/0-3%onaverage.Wealsolowerour

target2026EP/Eto35X(from38X,stilldiscountbackto2024YE)byreferencing1

standarddeviationbelowitshistoricalaverageforwardP/EsinceitsHKlistingtore?ectnear-termin?ateduncertaintiesoverwaterbusiness.Consequently,ourTPisloweredtoHK$45(fromHK$50prior).

Brie?nghighlights

FY24/2H24guidance:

nTopline:managementnotedthedisruptionstocompany’sbrandandoperations

fromnegativesocialmediaeventssinceend-Febcreateduncertaintiestonear-termgrowthtrajectoryespeciallyforwaterbusiness.Hencemanagementprioritizes

steadilyrestoringthesalesgrowthofwatersegmentbacktohealthylevel,which

managementthinkswillstilltakesomeadditionaltime.Managementremains

con?dentinbeverage’sDD%salesgrowthtrendin2H24withthecompanylookingforcontinuedmomentuminbothnon-sugarteaandsweetenedtea,aswellasnewproductsmomentuminJuice/Functionaldrinks.

nOnpro?tfront,companymaintainedcon?denttodeliversustainablelong-term

operatingpro?tgrowthandprioritizepro?tscalegrowthratherthansimplymarginlevels;thetargetofahealthylong-termnetmarginrangeof20%-25%is

unchanged.Whilefor2H24,managementexpectssimilarbottomlineseasonalityasprioryearsthattheNPMwillberelativelysomewhatlowerthan1H24(28.1%).

Water:Withtherecentlaunchofthe550mlpuri?edwater(greenbottle)inlateApr,

_

companyisstillworkingonchannelbuild-up,consumereducationandretailpromotionsforthisSKUandmaintaindiscountsforpuri?edwatertoberelativelydeeperthanthatfornaturalwater(redbottle)toenhancetheredbottle’sbrandimageofqualityand

nutritionalbene?ts,whilemanagementviewtheaccordinglyincreasedspendingis

controllabletooverall?nancialsatthemoment.Managementsharedthattheywill

continuetodevelopbothtypesofwaterproductstoexploitlong-termgrowthpotentialviadifferentiatedadvertisingandchannelinvestment,asthatoffersmorechoicesto

consumers,whileitwouldtakesometimeforrestoringmarketsharesduetothe

negativepublicopinions.Asdiscussedinourpreview,oursimpli?edvaluechainanalysissuggestedthegreenbottlecouldlikelyseeagapofc.20ppmarginvs.redbottlefor

Nongfu’sP&Lcurrently,whilemanagementalsoremindedinvestorsthattherewouldbealsohigherpromotionsinsummerseasonsasinprioryearsevenifnogreenbottle

launches.

RTDtea:OrientalLeafandTeaPiebothdeliversolidgrowthatDD%+in1H24,andcompanystillseepotentialofchannel/retailPOSpenetrationinlower-tiercities.

28August20243

GoldmanSachsNongfuSpring(9633.HK)

HowevertheythinktheOPMofteasegmenthasbeenquitehigh(at44%in1H,+1ppyoy),andtendnottosimplyfocusonincreasingthemarginlevelsgoingforwardbutlookforoverallscalegrowthandsustainabledevelopment.

Juice:companyrecorded25%salesgrowthinJuicesegment,signi?cantly

outperformingthedecliningmarketin1H24,forwhichmanagementattributedtotheirconsistentstrategicmovestobuildbrands,productsandchannels.

Functionalwatersaw3.8%yoysalesgrowthin1H,forwhichmanagement

acknowledgedthattheirresourcesweremorefocusedonwaterandteain1H,whiletheyarecon?dentonlonger-termgrowthpotentialforthesegment.

Costsandcommercialinvestments:companyseesimilarscaleofimpacttothe1.4pptGPMdeclinesin1Hfrom1)increasedpromotionsforpuri?edwater,2)moresharesof

?xedcostsonwatervolumedeclines,3)rawmaterialcostheadwindsforJuice.In

2H24,companyexpectsPETpricestobelargelystable.Managementnotedthe

advertisingspendingduringOlympicgamesthisyearwasconcentratedinJuly-August.

Exhibit1:Posttoday’ssharepriceweakness,itistradingatc.20XforwardP/E

FwdP/E(x):Nongfu

Sep-20

Nov-20

Jan-21

Mar-21

96.086.076.066.056.046.036.026.016.06.0

NongfuFwdPEPE(-1STD)

Nongfuavg.PEPE(+1STD)

61.5

48.1

34.7

May-21

Jul-21

Sep-21

Nov-21

Jan-22

Mar-22

May-22

Jul-22

Sep-22

Nov-22

Jan-23

Mar-23

May-23

Jul-23

Sep-23

Nov-23

Jan-24

Mar-24

May-24

Jul-24

19.6

asofAug28,2024

Source:Re?nitivEikon

_

28August20244

GoldmanSachsNongfuSpring(9633.HK)

Earningsestimateschange

Exhibit2:Nongfuearningsrevisions

Newvs.old

NongfuSpring(9633.HK)

RMBmn20202021202220232024E2025E2026E2024E2025E2026E2024E2025E2026E

ConsolidatedP&LNewOld%Change

Revenue

Packageddrinkingwaterproduct13,96617,05818,26320,26218,31220,10922,03118,67020,50522,466(1.9%)(1.9%)(1.9%)

Teabeverageproducts3,0884,5796,90612,65917,26020,99024,76817,00520,67924,4011.5%1.5%1.5%

Functionalbeverageproducts2,7923,6953,8384,9025,1495,5606,0055,1985,7186,290(1.0%)(2.8%)(4.5%)

Juicebeverageproducts1,9772,6142,8793,5344,0644,5925,0514,0644,5925,0510.0%0.0%0.0%

Otherproducts1,0541,7501,3541,3111,2451,3081,3731,2451,3081,3730.0%0.0%0.0%

Total22,87729,69633,23942,66746,03052,55959,22846,18252,80159,581(0.3%)(0.5%)(0.6%)

YOYGrowth%Revenue

Packageddrinkingwaterproduct-3%22%7%11%-10%10%10%-8%10%10%

Teabeverageproducts-2%48%51%83%36%22%18%34%22%18%

Functionalbeverageproducts-26%32%4%28%5%8%8%6%10%10%

Juicebeverageproducts-14%32%10%23%15%13%10%15%13%10%

Otherproducts136%66%-23%-3%-5%5%5%-5%5%5%

Total-5%30%12%28%8%14%13%8%14%13%

Operatingprofit

Packageddrinkingwaterproduct5,0556,5756,4437,3475,4765,8776,5065,5996,0246,685(2.2%)(2.4%)(2.7%)

Teabeverageproducts1,3141,8322,7535,6227,6279,26311,0607,3898,97210,7193.2%3.2%3.2%

Functionalbeverageproducts1,0791,5951,5342,0682,2182,4622,6902,2902,5902,885(3.1%)(4.9%)(6.7%)

Juicebeverageproducts3955035809469401,0791,1881,0901,2501,379(13.8%)(13.7%)(13.8%)

Otherproducts1562262803963693723993553573834.1%4.4%4.2%

Margin

39%40%43%19%13%

2021Actual29,696-12,040

17,656

-8,984

404

9,077

-2,370

-8

11,455

278

-0

9,354

-2,193

35%40%40%20%21%

2022Actual33,239-14,144

19,095

-9,656

1,063

10,503

-2,478

-9

12,990

547

36%43%39%20%15%

2020Actual22,877-9,369

13,508

-6,835

244

6,917

-1,913

-13

8,843

69

0

6,986

-1,709

PackageddrinkingwaterproductTeabeverageproducts

FunctionalbeverageproductsJuicebeverageproducts

Otherproducts

ConsolidatedP&L

TotalSalesCOGS

GrossProfitSG&A

Otheroperatingincome/(expenseEBIT

DepreciationAmortizationEBITDA

Netfinancecosts

-

11,050

-2,555

Othernon-op.rev/(exp)Pretaxincome

Provisionsfortaxes

_

-

-

-

5,277

-304

5,581

8,495

246

8,249

7,162

-119

7,280

Minorityinterest(I/Sitem)ReportedNPAT

Less:netone-off'sRecurringNPAT

0.50

0.65

0.73

EPS(Adj.,diluted,RMB/Sh)

-4.8%1.5%-5.1%9.8%10.1%6.6%1.7%

59.0%29.9%30.2%38.7%23.1%24.4%

29.8%30.7%31.4%31.2%29.5%35.7%30.4%

59.5%30.3%30.6%38.6%24.1%24.5%

11.9%8.2%7.5%15.7%13.4%18.6%13.3%

57.4%29.0%31.6%39.1%25.6%24.8%

YoYGrowth%Sales

GP

SG&A

EBIT

EBITDANPAT

RecurringNPAT

Margins(ontotalsales)GP

SG&A

EBIT

EBITDANPAT

RecurringNPAT

36%44%42%27%30%

2023Actual42,667-17,260

25,407

-11,446

836

14,797

-2,620

-11

17,428

892

30%44%43%23%30%

2024E

29%44%44%23%28%

2025E

46,030

-18,521

27,509

-13,002

712

15,219

-3,239

-18

18,475

1,076

52,559

-21,112

31,447

-14,871

713

17,289

-3,649

-18

20,956

1,081

-

-

-

15,688

-3,609

16,294

-3,748

18,370

-4,226

-

-

-

12,079

6

12,546

72

12,474

14,144

18

12,073

14,126

1.07

1.11

1.26

28.4%33.1%18.5%40.9%34.2%42.2%46.4%

59.5%26.8%34.7%40.8%28.3%28.3%

7.9% 8.3%13.6% 2.9% 6.0% 3.9%3.3%

59.8%28.2%33.1%40.1%27.3%27.1%

14.2%14.3%14.4%13.6%13.4%12.7%13.2%

59.8%28.3%32.9%39.9%26.9%26.9%

30%43%44%27%28%

2024E

30%45%45%24%29%

2026E

46,182

-18,731

27,451

-12,904

712

15,259

-3,239

-18

18,516

1,076

59,228

-23,691

35,537

-17,189

714

19,062

-4,061

-18

23,141

1,267

-

-

16,335

-3,757

20,328

-4,676

-

-

12,577

72

12,505

15,652

14

15,638

1.11

1.39

8.2% 8.0%12.7% 3.1% 6.2%4.1%3.6%

59.4%27.9%33.0%40.1%27.2%27.1%

12.7%13.0%15.6%10.3%10.4%10.7%10.7%

60.0%29.0%32.2%39.1%26.4%26.4%

29%43%45%27%27%

2025E

52,801

-21,366

31,435

-14,778

713

17,371

-3,649

-18

21,038

1,087

-

18,458

-4,246

-

14,212

18

14,194

1.26

14.3%14.5%14.5%13.8%13.6%13.0%13.5%

59.5%28.0%32.9%39.8%26.9%26.9%

(0.1%)0.7%(1.0%)(3.7%)1.2%

2024E

30%44%46%27%28%

2026E

-0.3%-1.1%0.2%0.8%0.0%-0.3%0.0%0.0%-0.2%0.0%

-0.2%-0.2%

-0.2%

-0.3%

59,581

-23,992

35,589

-16,661

714

19,641

-4,061

-18

23,720

1,276

-

20,917

-4,812

-

16,106

14

16,092

-0.3%

1.43

12.8%13.2%12.7%13.1%12.7%13.3%13.4%

ppt0.3%0.3%0.0%0.0%0.0%0.0%

59.7%28.0%33.0%39.8%27.0%27.0%

(0.2%)0.7%(1.0%)(3.7%)1.2%

2025E

-0.5%-1.2%0.0%0.6%0.0%-0.5%0.0%0.0%-0.4%-0.6%

-0.5%-0.5%

-0.5%

-0.5%

-0.5%

ppt0.3%0.3%0.0%0.0%0.0%0.0%

(0.2%)0.7%(1.1%)(3.8%)1.2%

2026E

-0.6%

-1.3%

-0.1%

3.2%

0.0%

-3.0%

0.0%

0.0%

-2.4%

-0.7%

-2.8%-2.8%

-2.8%

-2.8%

-2.8%

ppt0.3%1.1%-0.8%-0.7%-0.6%-0.6%

Source:Companydata,GoldmanSachsGlobalInvestmentResearch

28August20245

GoldmanSachsNongfuSpring(9633.HK)

Exhibit3:FinancialsSummary-bysegment

NongfuSpringRMBmn

ConsolidatedP&LRevenue

PackageddrinkingwaterproductsTeabeverageproducts

FunctionalbeverageproductsJuicebeverageproducts

Otherproducts

Total

Operatingprofit

PackageddrinkingwaterproductsTeabeverageproducts

FunctionalbeverageproductsJuicebeverageproducts

OtherproductsTotal

Operatingprofitmargin

PackageddrinkingwaterproductsTeabeverageproducts

FunctionalbeverageproductsJuicebeverageproducts

OtherproductsGroupOPM

ConsolidatedP<otalSales

COGS

GrossProfitSG&A

SellinganddistributionexpensesAdministrativeexpenses

Otheroperatingincome/(expense)EBIT

Netfinancecosts

Othernon-op.rev/(exp)Pretaxincome

Provisionsfortaxes

Minorityinterest(I/Sitem)ReportedNPAT

Less:netone-off'sRecurringNPAT

EPS(Adj.,diluted,RMB/Sh)

_

YoYGrowth%Sales

GP

SG&A

EBIT

EBITDANPAT

RecurringNPAT

1H21

8,919

2,182

2,004

1,224

846

15,175

3,539

967

874

327

107

5,814

40%44%44%27%13%38%

1H2115,175

-5,934

9,241

-4,217

-3,554

-663

213

5,237

89

-

5,327

-1,314

-

4,013

-

4,013

0.36

31.4%33.7%24.3%39.6%33.0%40.1%38.8%

2H21

8,139

2,397

1,691

1,390

904

14,521

3,036

865

721

177

118

4,918

37%36%43%13%13%34%

2H2114,521

-6,106

8,415

-4,767

-3,679

-1,088

191

3,839

188

-

4,028

-879

-

3,149

-119

3,267

0.29

28.1%27.5%38.5%21.2%25.7%30.5%21.5%

1H22A

2H22A

9,349

3,307

2,023

1,275

645

16,599

8,914

3,599

1,815

1,604

709

16,640

3,646

1,456

849

328

82

6,362

2,797

1,297

685

252

198

5,229

39%44%42%26%13%38%

1H22A16,599

-6,761

9,838

-4,488

-3,612

-876

484

5,834

236

31%36%38%16%28%31%

2H22A16,640

-7,383

9,258

-5,168

-4,209

-959

580

4,669

312

-

-

6,069

-1,461

4,981

-1,094

-

-

4,608

-72

4,680

3,887

318

3,569

0.42

0.32

9.4%6.5%6.4%11.4%11.1%14.8%16.6%

14.6%10.0% 8.4%21.6%16.1%23.4%9.2%

1H23A

10,442

5,286

2,458

1,686

591

20,462

3,802

2,280

986

497

158

7,724

36%43%