China Food

Yibao’s report card has been released! Over 10 billion yuan for three consecutive years, profit growth accelerated, and a lot of new information was revealed

In the national college entrance examination since yesterday began to release the list, at the same time, China’s local packaging water giant China Resources Yibao also handed in an annual report card.

Xiaoshidai noted that yesterday, the company released the “China Resources Yibao 2019 social responsibility report”, which for the first time disclosed the performance data in 2019, summarized the product innovation work last year, and mentioned the measures to deal with the epidemic situation this year.

All products of China Resources Yibao

Next, snack generation will give you to “draw the key points.”.

The annual income is nearly 10.4 billion

Let’s take a look at the performance in 2019.

According to the report data of the snack agent, in 2019, Yibao’s business income was 10.396 billion yuan, compared with 10.435 billion yuan in the same period of last year; the total profit was 863 million yuan, which was 727 million yuan in the same period last year.

Looking over the past three years, Yibao’s operating revenue has basically stabilized at around 10 billion yuan since 2017, when it first broke through the 10 billion yuan mark. However, compared with the income, the profit growth accelerated, with a year-on-year growth of 15.21% in 2018 and 18.7% in 2019.

Key performance data of China Resources Yibao (2017-2019)

“In 2019, the overall performance of China Resources Yibao will continue to maintain the momentum of steady development, achieving a year-on-year growth of 7%, becoming one of the core enterprises contributing to incremental contribution in the beverage industry, further enhancing the enterprise value and creating incremental value for investors.” Zhang Weitong, CEO of China Resources Yibao beverage (China) Co., Ltd., said in the report. (Note: the statistical caliber of turnover index and business income index are different)

According to the data quoted by Yibao, in 2019, the turnover of the beverage industry decreased by 5.2% year-on-year. The overall growth of the beverage industry was negative, and the growth rate of terminal sales slowed down. Therefore, Yibao “still maintains its competitive position”.  

Last year, China Resources Yibao paid 921 million yuan of tax according to law, but actually paid 917 million yuan.

In terms of organizational structure, Yibao mentioned that in 2019, it will further sort out and optimize the management interface and key business processes, orderly promote the transformation of the organizational structure from three levels to two levels, and establish a marketing center.

According to reports, the newly established “marketing center” is responsible for the specific operation and management of various regions and regions. At the same time, there are marketing department, sales management department, new product development department, sales operation Department, sales finance department and comprehensive management department.  

截至2019年底,华润怡宝总部有17个职能部门,下设9家分公司、9家自有工厂、32家OEM工厂,员工超过12000人。

China Resources Yibao operation area

Xiaoshidai noted that, according to the report, in November last year, general manager Wang Xiangming of China Resources Group went to Yibao headquarters and Shenzhen factory to conduct on-site investigation, had a discussion and exchange with the management of China Resources Yibao on the key work of enterprise development, and put forward guiding opinions on the current mixed reform work of China Resources Yibao.  

In terms of market development, Yibao mentioned that it added business in Hong Kong last year. “In 2019, on the basis of consolidating the market share leading position of the existing base areas, China Resources Yibao will actively expand its business in Hong Kong, build a regional organization in Hong Kong and respond to the participation in the construction of Guangdong, Hong Kong and Macao Bay area.” The company said.

At present, China Resources Yibao is the second largest domestic bottled water company after Nongfu mountain spring.

According to the data of the third-party market research institutions obtained by snack agents, in the Chinese bottled water market in 2019, Nongfu mountain spring ranked first in terms of sales volume, with a market share of 11.7%, followed by Yibao (10.4%), Jingtian (5.5%), Master Kang (5.3%) and Wahaha (3.3%).

In terms of channel innovation, Yibao pointed out in the report released today that relying on the supply chain and the combination of online and offline, the company has established a “beverage distribution service provider model” for special distribution of drinks.

“In the traditional mode, dealers used to be channel operators with many levels and low profit margins; distributors in the mode of distributors were flat channels, and distributors as distributors were directly facing the terminal, so the profit space was large, which improved the enthusiasm of customers to expand sales, and also ensured the freshness of beverage products.” At the same time, Yibao said, it could also be more “responsive.”.

In terms of production and supply, according to Yibao, the utilization rate of new production capacity will be more than 80% in 2019, and the logistics cost in the area where the new factory is located will drop significantly. Meanwhile, in 2019, the overall production efficiency of the company’s drinking water production line will be increased from 92% to 93%, and the effective production capacity will be 11.85 million boxes.  

Beverage category

With the continuous enrichment of its beverage products, the second largest domestic packaging water giant is further driving the sales growth of beverage business.

“In 2019, according to different consumption scenarios of different groups, China Resources Yibao has six products, including honey water Baixiang and honey water white pomelo, high-end coffee series of double lattes, flavored tea, grape holiday, and afternoon high-end milk tea (i.e.” wish tea “) Yibao disclosed in the report.

In this diversified transformation process, Yibao’s style is quite “stable and steady”.

As introduced by the snack agent, Yibao usually goes through the “trial sale stage” in some markets for a period of time, accumulates certain new product performance and market feedback through the joint implementation of beverage development department and marketing department, and then decides to expand the sales scope to enter more cities and channels.

For example, the last three of the six new products mentioned above were all on trial sale last year. Among them, “Zuo Wei Cha Shi” is Yibao’s first sugar free tea product. It was first listed in East China in April last year, and then successively entered convenience systems such as Beijing, Shanghai, Guangshen, Ka system, traditional stores and catering stores. The afternoon milk tea “tea of wishes” was put on trial sale in Shanghai in November last year.

The honey water series, which had passed through the “trial sale” stage before, began to market products with three flavors nationwide last year.

“Since the new taste of” honey water Baixiang “and” honey water white pomelo “have been put on the market, they have become the top selling drinks of China Resources Yibao in 2019.” In a report released yesterday, Yibao said that the follow-up high-end coffee new taste hot coffee double latte, the first fruit juice drink grape holiday, and the first sugar free tea flavoring tea were put on trial sale in e-commerce, convenience stores, self-made machines and other channels, “all have good repercussions”.

With more “product chips” in hand, Yibao obviously wants to “drink” more shares in the beverage market other than bottled water.

According to the report, as of the end of 2019, China Resources Yibao had 29 SKUs on sale, including purified water, mineral water, milk tea, coffee, functional drinks, lactic acid drinks, fruit drinks, etc. It has its own brand “Yibao”, “Jialinshan”, “magic”, “honey water lemon”, “xiaozhujun”, “grape holiday”, as well as “afternoon milk tea” and “Huojia” series authorized by Japan Kirin company.

For Yibao, new products are contributing more and more revenue. An interesting data is that Yibao mentioned in the report that the sales volume of new products in 2019 is about 252 million yuan, which has increased for three consecutive years. Previously, it was 86.71 million yuan in 2018 and 61.41 million yuan in 2017.

It is reported that the company will continue to increase investment in beverage R & D this year, while in the direction of new product research and development, it will focus on meeting the demand of “diversified consumption scenarios”. According to the report, Yibao’s R & D investment in 2019 is 18 million yuan, which has increased for three consecutive years.

Epidemic response

In the report released today, Yibao also talked about the company’s response measures since the outbreak of the epidemic this year.

“We attach great importance to the production and supply guarantee during the epidemic period.” The company said that from February 3 to 10, its Xinjin, Zhuhai, Nanning, Jiangmen, Ningxiang and Lu’an factories were back in operation. And have done well in advance to return to work record and factory epidemic prevention work.

In addition, Yibao said that during the epidemic period, we had close communication with partners to monitor the market price in real time to ensure the price stability of Yibao products.

China Resources Yibao factory

At the same time, in order to meet the needs of consumers for drinking water, Yibao flexibly adjusted its sales model during the epidemic period.

For example, a new “unmanned retail” site will be set up in the community. “Due to traffic and shop closures, shopping is very inconvenient in extraordinary times. Since February 20, China Resources Yibao has specially launched unmanned retail service, setting up unmanned retail service points near residential buildings and residential areas in major cities, so as to facilitate consumers’ independent payment and pickup. ” The company said.  

New “unmanned retail service points” set up by China Resources Yibao during the epidemic period

Today, xiaoshidai learned from Yibao that this unmanned retail site was a special sales method adopted by the company during the epidemic period. It was only opened in March this year, “it has not been used at present”.

In addition to setting up a 24-hour retail service, Yibao’s sales department has also adopted a variety of other sales models, including increasing community store agents, recruiting community partners, and using bottled water stations to distribute a full range of Yibao products, so as to continue to supply drinking water to consumers during the epidemic.

“This (a series of measures) has reduced the impact of the epidemic on the sales of our products.” The company previously said in June.

However, the impact of this year’s epidemic on production and sales is still not small. Yibao said last month that although the company has returned to work and production 100%, the epidemic has brought “unprecedented difficulties” to “slow down sales in the market, shortage of start-up orders, and rising costs”.

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