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21st Century Business Herald reporter He Hongyuan and intern Han Chang report

Energy drinks are becoming increasingly popular.

On August 6, 2024, Dongpeng Beverage disclosed an investor communication memorandum showing that the company's flagship product Dongpeng Special Drink has become more popular. "The drinking group of Dongpeng Special Drink is quietly changing. The consumers of energy drinks seem to have transitioned from the new blue-collar group to the Internet, education and training, advertising and marketing and other industries, and the group is gradually spreading to the white-collar group." The company mentioned.

Therefore, Dongpeng Beverage believes that the energy drink market is far from reaching its ceiling.

"Energy drinks are a very promising track, and we can take this train to connect with more consumers. We did not diversify the flavors, nor did we integrate the zero-sugar and carbonated flavors that foreign consumers like into the products. Mainstream manufacturers maintain this tacit understanding, but in fact we can do more. It can fully meet the needs in many drinking scenarios, such as working overtime, driving, making reports in meetings, or some exam scenarios, all of which can meet the need for refreshment. Looking at the current market, we have found that the domestic functional beverage drinking group has expanded, and more people have the demand for refreshment and anti-fatigue." The company further explained.

At present, some changes in the workplace may explain this trend.

For example, according to multiple media reports, CATL is promoting the "896" work system. The so-called "896" means that the working hours from Monday to Friday are from 8:00 to 21:00, and you will be on duty on Saturday and leave at 17:00. You will not receive any additional salary. If you leave early, you must report to your supervisor. Chery Holdings' internal publication mentioned that "three people are truly doing the work of five people, but getting the salary of four people."

Judging from Dongpeng Beverage’s performance, the company’s statement about its expanding market has been confirmed.

The announcement shows that in the first half of the year, Dongpeng Beverage expects to achieve revenue of 7.86-8.08 billion yuan, a year-on-year increase of 43.95% to 47.98%. Currently, Dongpeng Special Drink is its most important core product, and the company is promoting nationalization with special drinks as the main force. In 2023, Dongpeng Special Drink's revenue accounted for 91.87%.

On August 6, Dongpeng Beverage closed at 239.13 yuan per share, up 2.57%.

On the same day, the Shanghai Composite Consumer 80 Index closed at 4200.64 points, up 0.75%.

Macro

UK: Total retail sales in July increased by 0.5% year-on-year

On August 6, according to the latest data from the British Retail Consortium (BRC), UK retail sales recovered modestly in July, with total sales up 0.5% year-on-year. Although this growth is not large, it exceeds the three-month average of 0.3%, but is lower than the 12-month average of 1.4%. The food industry has become a bright spot, with sales increasing by 2.6% in the three months ending in July, although the increase is lower than the 8.4% in July 2023. In contrast, non-food sales, including fashion, continued to struggle, falling by 1.7% over the same period, a larger decline than the 0.5% decline in the same period last year. The online non-food industry showed signs of stabilization, with a year-on-year growth of 0.3% in July, a significant improvement from the 6.9% decline in the same period last year. The online penetration rate of non-food items rose to 35.5% from 34.9% in July 2023, but it is still lower than the 12-month average of 36.3%.

Consumer Personnel

Adidas board member Martin Shankland resigns

On August 6, Adidas announced that Martin Shankland, a member of the executive board of global operations at Adidas, has decided to step down after 27 years at the brand. The company also said that Hoa Ly, senior vice president of procurement, will be responsible for all procurement operations at Adidas and report to CEO Bjørn Gulden. Adidas Chief Financial Officer Harm Ohlmeyer will assume additional responsibilities for supply chain and technology.

agriculture

Average pork prices rise in agricultural product wholesale markets nationwide

On August 6, according to the monitoring of the Ministry of Agriculture and Rural Affairs, as of 14:00 on the same day, the average price of pork in the national agricultural product wholesale market was 25.81 yuan/kg, up 1.5% from yesterday.

New Hope: Pig sales revenue in July was 2.391 billion yuan, up 16.12% year-on-year

On August 6, New Hope announced that the company sold 1.262 million pigs in July 2024, a month-on-month change of -1.90% and a year-on-year change of -8.59%; revenue was 2.391 billion yuan, a month-on-month change of 3.33% and a year-on-year change of 16.12%; the average price of commercial pigs was 18.80 yuan/kg, a month-on-month change of 4.04% and a year-on-year change of 33.43%. The reason for the large year-on-year change in the average price of commercial pigs is that the previous pig production capacity continued to be reduced, resulting in a reduction in industry supply.

By the end of July, the total sales of sugar in China reached 8.2514 million tons, an increase of 866,800 tons year-on-year.

On August 6, according to the China Sugar Association, as of the end of July, the country's cumulative sales of sugar were 8.2514 million tons, an increase of 866,800 tons year-on-year, an increase of 11.74%; the cumulative sugar sales rate was 82.82%, an increase of 0.53 percentage points year-on-year. The sugar industry inventory was 1.7118 million tons, an increase of 122,700 tons year-on-year. As of the end of July, the average cumulative sales price of finished sugar by sugar industry enterprises nationwide during this sugar-making period was 6,544 yuan/ton, a year-on-year increase of 415 yuan/ton. In July 2024, the average sales price of finished sugar was 6,392 yuan/ton, a year-on-year decrease of 450 yuan/ton and a month-on-month decrease of 63 yuan/ton.

food and drink

Dongpeng Beverage: Reduction in freezer expenses in the second quarter led to an increase in profit margins

On August 5, according to the Dongpeng Beverage Investor Relations Activity Record, Dongpeng Beverage stated that in terms of expenses, it was mainly the placement of channel freezers. The entire industry is scrambling to seize the "freezing point", and this action will continue in the next few years to take frozen displays to the extreme. In the first half of this year, the freezer placement action was advanced, and the freezer expenses in the second quarter decreased, which led to an increase in the profit margin in the second quarter.

Tyson Foods turns losses around

On August 4, Tyson Foods announced its third-quarter results ending June 29, 2024. The financial report showed that during the period, the company's sales were US$13.353 billion, compared with US$13.14 billion in the same period last year; the company's net profit attributable to the quarter was US$191 million, compared with a net loss of US$417 million in the same period last year.

By-Health's net profit in the first half of the year fell 42.34% year-on-year

On August 6, By-Health announced that its operating revenue in the first half of 2024 was 4.613 billion yuan, a year-on-year decrease of 17.56%; and its net profit was 891 million yuan, a year-on-year decrease of 42.34%.

China Resources Beverages launches collective market expansion activities

On August 5, according to the official website of China Resources, China Resources Beverage recently launched a collective market launch activity with the theme of "Promoting Growth, Winning Strategy, Intensive Cultivation, and Greening the Star City". For this collective market launch, a total of more than 700 people from the headquarters of China Resources Beverage went to 10,962 terminal stores in Changsha. Next, China Resources Beverage will continue to carry out collective market launches around the important strategic markets of the "14th Five-Year Plan".

FOOD

KFC sales increased 5% year-on-year

On August 6, Yum China released its second quarter financial results for 2024. The report showed that in the second quarter of 2024, the company's revenue increased by 1% year-on-year to US$2.68 billion; net profit increased by 6.5% year-on-year to US$212 million. Among them, KFC's quarterly system sales increased by 5% year-on-year under the high base last year.

McDonald's China Technology R&D Center New Building Opens

On August 6, the new building of McDonald's China Technology Research and Development Center was officially opened. The new building is located in Baijiahui Innovation Community, Xuanwu District, Nanjing. Within five years, McDonald's China plans to invest 4 billion yuan in digital research and development and innovation. According to the company, by the end of June 2024, there will be more than 6,200 McDonald's restaurants in mainland China, with more than 200,000 employees.

E-commerce retail

Zalando's second quarter revenue up 3.4%

On August 6, German e-commerce company Zalando released its second-quarter financial report. The report showed that its second-quarter revenue increased by 3.4% to 2.6 billion euros, and its total merchandise volume (GMV) increased by 2.8% year-on-year to 3.8 billion euros; adjusted earnings before interest and taxes (EBIT) rose to 171.6 million euros, compared with 144.8 million euros in the same period last year. During the period, the EBIT margin rose by 0.8 percentage points to 6.5% of revenue. Zalando confirmed its full-year performance forecast for 2024, expecting GMV and revenue to grow by 5% from 2023. Adjusted EBIT is expected to be between 380 million and 450 million euros.

Asos plans to revamp pay package

On August 6, according to media reports, British e-retailer Asos proposed a proposal to amend its compensation plan to include a new value creation plan (VCP), which will be discussed at the shareholders' meeting on August 20. The company said it intends to amend the current dilution restrictions proposed in its 2022 incentive plan, deferred bonus plan and stock savings plan, aiming to align the interests of executive directors and senior leaders with the company's growth goals and increase employees' interest in long-term business goals. It is reported that Asos continued to lose money in the first half of this year, with an adjusted pre-tax loss of 120 million pounds and a sales drop of 18%.

Textiles and Apparel

Uniqlo parent company Fast Retailing reportedly suspends operations at Bangladesh factory

On August 6, according to media reports, Uniqlo's parent company Fast Retailing revealed that due to demonstrations in Bangladesh, the company had suspended the operation of all local clothing factories on August 5. It is reported that Fast Retailing purchases raw materials from 29 factories in Bangladesh.

Hugo Boss sells Russian business to Stockmann

On August 6, it was reported in the media that the German fashion brand Hugo Boss has sold its business in Russia to its wholesale partner Stockmann. The purchase price has not been disclosed, but it is reported that Russia requires foreign companies to sell assets at a discount of at least 50%. In its 2023 annual report, Hugo Boss valued its assets for sale in Russia at 27 million euros. In April this year, Hugo Boss announced that it hoped to completely withdraw from the Russian business. In 2021, the business in Russia and Ukraine contributed 3% of Hugo Boss's sales.

Crocs brand second quarter revenue increased nearly 10%

On August 5, the second quarter financial report of Crocs, an American casual footwear group, showed that revenue increased by 3.6% year-on-year to US$1.112 billion; operating profit increased by 2.3% year-on-year to US$326 million. By brand, Crocs brand revenue increased by 9.7% to US$914 million (of which the brand's revenue in the Americas market increased by 3% to US$490 million, and international market revenue increased by 18.7% to US$425 million); Heydude brand revenue fell by 17.5% to US$198 million, a decline for four consecutive quarters. Looking ahead to the whole year of 2024, Crocs expects revenue to increase by 3% to 5%, Crocs brand revenue to increase by about 7% to 9%, and Heydude brand revenue to decrease by about 10% to 8%.

Alo Yoga Opens New Flagship Store on London's Regent Street

On August 5, American leisure sports brand Alo Yoga announced that it will open a new flagship store on Regent Street in London. It is reported that the store covers a total area of ​​10,000 square feet and will sell the brand's full range of men's and women's clothing, as well as neutral-style home clothes, suits and high-end casual wear.

Travel

Shenzhen Border Inspection: Since July, the main station has inspected nearly 24 million people entering and leaving the country

On August 6, according to CCTV News, since July this year, the West Kowloon Border Inspection Station has checked a total of 2.47 million people entering and leaving the country, a month-on-month increase of 16%, and the average number of people entering and leaving the country on weekends exceeded 100,000. Since July, the Shenzhen Border Inspection Station has checked a total of nearly 24 million people entering and leaving the country, of which 921,800 people entered and left the country on August 4, setting a new record since the full resumption of customs clearance. At the same time, affected by the expansion of the scope of visa exemption and other policies to expand opening up, 210,000 foreigners entered Shenzhen in July, of which 95,000 came to Shenzhen for tourism, and more foreign friends came to China to check in for the "China Tour".

Baiyun Airport: Passenger throughput in July increased by 10.83% year-on-year

On August 6, according to the announcement of Baiyun Airport, the number of take-offs and landings at Baiyun Airport in July was 44,862, a year-on-year increase of 9.63%, of which 35,375 were domestic routes, a year-on-year increase of 3.78%, 386 were regional routes, a year-on-year decrease of 1.78%, and 9,101 were international routes, a year-on-year increase of 41.25%. The passenger throughput was 6,699,941, a year-on-year increase of 10.83%, of which 5,393,510 were domestic routes, a year-on-year increase of 4.84%, 58,344 were regional routes, a year-on-year increase of 3.75%, and 1,248,087 were international routes, a year-on-year increase of 47.85%. The cargo and mail throughput was 198,289.83 tons, a year-on-year increase of 13.72%.