Friday, March 29, 2024
 
Columnist
Martin Hennecke
 
HUIYUAN JUICE
HKEx Stock Code : 01886 
 
Corporate Profile
Principally engaged in the manufacturing and sales of juice beverages in the People's Republic of China (the ˇ§PRCˇ¨).

Business Review - For the year ended December 31, 2012

For the year ended 31 December 2012, the Group recorded revenues of RMB3,980.8 million, representing an increase of 4.1% as compared to 2011. Gross profi t reached RMB1,115.2 million. Overall gross profi t margin increased from 25.2% in 2011 to 28.0% in 2012. Profi t attributable to equity holders was RMB16.2 million as compared with RMB310.5 million in 2011. The adjusted profi t attributable to equity holders was RMB101.9 million as compared with RMB36.9 million in 2011. The board of directors of the Company (the ˇ§Boardˇ¨) did not recommend any fi nal dividend payment for the year.

The Company's results in 2012 fully reflect the challenging operating environment we faced, with slowing economic growth, increased consumer awareness of food safety issues, and keen market competition. Huiyuan has benefitted from its long established position as the most trusted, nationally recognized brand name in the juice industry in China. Our 100% juices and nectars have retained leadership in their respective markets for the past six consecutive years. This year has been no different. According to Nielsen, the Group commanded a 54.2% share in China's 100% juice sector and a 44.1% share in the nectar sector in terms of sales volume. We remain committed to providing the highest quality product to all of the Group's customers.

As consumers' awareness of food safety issues grows, we believe there is significant room to educate consumers about the health and wellness benefits of juice and vegetable drinks. We continue to invest in this effort. Our investment in grass-root promotions, our in-store profi le, and in sponsored television events and advertising campaigns as well as online promotions have all centered around this theme. We believe this will yield long-term benefits for the Company.

In 2012, we continued to refine our business and expand our nationwide production and distribution network. Currently, the Group has 43 advanced production plants in China. Our nationwide network of distributors, direct sales branches, and sales representatives work to further our penetration into our target markets.

2012 marked the 20th anniversary of the founding of Huiyuan Juice. While we are proud to have reached this historic milestone, we humbly recognize that this is an achievement that belongs to all of our stakeholders. The significant and collective contributions of our employees and their families, our shareholders, partners, and our customers are the driving force behind our success. We thank them for their immeasurable support over the years.

In 2012, we won numerous awards including ˇ§Leading Company in China Juice Beverage Industryˇ¨, ˇ§First Choice of Juice Brand for Consumers in Chinaˇ¨, ˇ§China's Top 100 Green Companies of 2012ˇ¨, ˇ§2012 Annual Influential Group in Beverage Industryˇ¨, ˇ§Platinum Award in Reader's Digest Trusted Brandˇ¨, ˇ§China Food Health Seven Star Awardˇ¨, ˇ§Official Strategic Partner of China Lunar Exploration Programˇ¨, ˇ§Hua Pu China Brand Award 2012ˇ¨. Additionally, as the only authorized supplier of fruit juice beverage products for the China Lunar Exploration Program and Deep Space Exploration Program, the Company celebrated the successful space mission of ˇ§Shenzhou 9ˇ¨ and the safe return of its astronauts.

We are proud of the recognition we have received from the market for our products and our brand but in the end, what we value most is the trust of our customers.

Business Outlook - For the year ended December 31, 2012

During the review period, we worked to reposition our business to better capture the future market opportunity. We invested in consumer education, streamlined our product offers, improved our manufacturing efficiency, and realigned our sales network to increase product focus. In the end of 2012, we won the exclusive advertising rights for the popular TV show ˇ§Avenue of the Starsˇ¨, our association with which will significantly enhance our market exposure and drive greater demand for our products. We believe that the groundwork we have laid out this past year through these different initiatives will come to fruition in 2013.

It remains our mission to be the leading high quality healthy fruit and juice beverage company in China. We are extremely enthusiastic about the future of our Company and the overall industry. As China continues to develop, urbanization and rising consumption will drive demand for higher quality healthy beverages. China's new leadership has indicated a continuation of macroeconomic policy, pushing forward with economic reforms and a lower overall growth rate in favor of rebalancing economic growth. Economic growth in 2013 is expected to decrease slightly to 7.5% from 2012 levels. We believe the government's favorable agricultural policies and efforts to stimulate domestic demand will drive growth in the overall juice beverage market.

Looking ahead to 2013, we will work to maintain our leadership position in 100% juice and nectars. We will increase investment in marketing activities to educate consumers and promote our products. We will expand our sales and distribution network to penetrate deeper into our target markets. While staying true to our core products, we will introduce new and differentiated products into the market as we push strategically into new product categories. We will explore future opportunities to leverage our brand and other assets, and will work tirelessly to create value for all our stakeholders. As the clear leader in China's 100% juice and nectar markets, we believe our unique market position will enable us to take advantage of the favorable growth trends in the market.

Source: Huiyuan Juice (01886) Annual Results Announcement
Chairman ZHU Xinli Issued Capital (shares) 1,478M
Par Value USD 0.00001 Market Capitalisation (HKD) 4,596M
 
Login
Password
Register  Forget Password
Advanced Search
© 2024 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend