Today's Headlines Highlight 1: Paper prices soar! In May, the entire food industry faces another price hike Recently, multiple paper mills in Tianjin, Hebei, Shandong and other provinces have issued price increase notices, announcing a rise of 50-100 yuan per ton for high-strength corrugated paper and carton board. At the same time, news from Fuyang, Hangzhou indicates a general increase of 100 yuan per ton for white cardboard. Affected by this, downstream cardboard factories have been inundated with price hike notices. A price increase notice from a paper company in Shantou The paper crisis has led to a series of significant increases in raw material prices in the food industry, coupled with ongoing factory rectifications mandated by the environmental protection bureau. The reporter estimates that prices across the entire food industry will have to follow suit. Highlight 2: Former Wahaha executive takes helm at Carabao China, core team surfaces, vowing '10x growth in three years' On April 27, the reporter learned that Carabao China has recently completed the formation of its core management team. Notably, the new leader now in charge of Carabao China's business is Huang Bao, a veteran with over 22 years of experience in the domestic food and beverage FMCG industry, formerly the head of Wahaha Group's South China and Southwest regions. A source close to the matter told reporters that the core members of Carabao China's management team are 'basically senior business backbone from the national food and beverage FMCG industry,' and they are currently making a full-court press on channels and sales. There are also reports that Carabao's internal goal is '10x growth in three years.' Highlight 3: Fonterra partners with Alibaba to launch blockchain technology pilot On April 27, it was reported that Fonterra's Anchor dairy products have become the first batch of products under Alibaba Group's cross-border food traceability mutual trust framework cooperation pilot. These products are shipped from New Zealand to China, and consumers can purchase them through Alibaba's Tmall Global. Blockchain technology, often referred to as the 'trust network,' was originally developed to track the transfer of Bitcoin and other cryptocurrencies. These technologies authenticate, verify, permanently record, and provide ongoing reports on the transfer of ownership of goods, including food. Highlight 4: Liu Qiangdong and his wife donate 200 million yuan to Tsinghua University On April 28, Liu Qiangdong, Chairman and CEO of JD.com, and his wife Zhang Zetian announced a donation of 200 million yuan to Tsinghua University to support the construction and development of Schwarzman College, the Student Global Competence Development Center, and projects in quantum computing, AI research, supply chain, and logistics. In addition, JD.com signed a strategic cooperation agreement with Tsinghua University to deepen cooperation in collaborative innovation, technology R&D, and talent cultivation, exploring new paths and models for industry-academia-research collaborative development and the application of independent innovation achievements. In June 2017, Liu Qiangdong donated 300 million yuan to his alma mater, Renmin University of China, establishing the Renmin University of China JD Fund. Highlight 5: Qiaqia Food faces transformation difficulties, 40% of net profit from subsidies and financial lending Recently, Qiaqia Food released its 2017 annual report and this year's Q1 report. Benefiting from the Spring Festival sales peak, the company performed outstandingly in Q1, achieving double growth in revenue and net profit. However, looking at the full-year 2017 performance, Qiaqia Food still faces significant survival pressure. Specifically, Qiaqia Food's non-recurring income mainly comes from government subsidies and increased investment returns. Among them, government subsidies accounted for 56.304 million yuan, investment product returns accounted for 39.714 million yuan, and income from entrusted loans to external parties was 26.133 million yuan. In other words, 122 million yuan of Qiaqia Food's net profit came from government subsidies, investment products, and external lending. On one hand, there are government bonuses and investment/lending income; on the other hand, the company's main business revenue growth is slowing down. Qiaqia Food is encountering bottlenecks in its development. New Products Highlight 1: Avengers × Coca-Cola, cheers before watching the movie Taking advantage of the release of 'Avengers: Infinity War,' Coca-Cola and Marvel have collaborated to launch character-themed Coke cans, and they are Coke Zero. However, according to the reporter, these character cans are limited-time and limited-quantity, so whether you can grab one is hard to say! Highlight 2: Calbee launches new coffee-flavored potato chips On April 27, the reporter learned that Calbee has launched a new sweet potato chip, 'Calbee Coffee-Flavored Potato Chips,' aiming to bring Mocha-flavored surprises to snack fans. The official website also teaches a new way to enjoy: refrigerate the chips first, then take them out to enjoy, for a doubled taste experience. It is reported that 'Calbee Coffee-Flavored Potato Chips' weigh 55 grams net, are entirely produced in Hong Kong, and are available at major supermarkets, convenience stores, and retail outlets. Highlight 3: Nestlé launches first chocolate bar with new sugar-reduction technology, Milkybar Wowsomes On April 27, the reporter learned that food and beverage giant Nestlé will launch its first chocolate bar using new sugar-reduction technology in the UK and Ireland—Milkybar Wowsomes. Without using any sweeteners, it achieves a healthy 30% sugar reduction by simply altering the sugar structure, meeting the growing demand from parents for healthy snacks. Financial Reports Overview Highlight 1: Moutai's Q1 net profit up nearly 40% On the evening of April 27, Kweichow Moutai released its Q1 report, stating that Q1 profit reached 8.51 billion yuan, a year-on-year increase of nearly 40%, with operating revenue of 17.5 billion yuan. Highlight 2: Bright Dairy's Q1 revenue and net profit both decline On April 26, Bright Dairy released its 2018 Q1 report. For January-March 2018, the company achieved operating revenue of 5.099 billion yuan, a year-on-year decrease of 4.98%; net profit was 134 million yuan, a year-on-year decrease of 28.55%. Highlight 3: PepsiCo's Q1 revenue reaches $12.56 billion, up 4.3% year-on-year PepsiCo announced Q1 results on April 27, with revenue of $12.56 billion, a 4.3% year-on-year increase, beating the expected $12.4 billion. Organic revenue grew 2.3% year-on-year in Q1. Q1 net profit was $1.34 billion, or 94 cents per share, compared to $1.32 billion, or 91 cents per share, in the same period last year. Adjusted earnings per share were 96 cents. PepsiCo CEO Indra Nooyi said: 'Overall, we had a very strong first quarter. Most of our businesses performed well, including net revenue growth in developing and emerging markets. While we still face challenges in the North American beverage business, that division has shown sequential improvement since the fourth quarter of 2017.' Highlight 4: Weiwei Group's Q1 net profit of 49.15 million yuan, down 46% year-on-year On April 27, Weiwei Group released its 2018 Q1 report. For January-March 2018, the company achieved operating revenue of 1.528 billion yuan, a year-on-year increase of 9.98%; the average revenue growth rate for the beverage manufacturing industry was 17.72%; net profit attributable to shareholders of the listed company was 49.1505 million yuan, a year-on-year decrease of 46.29%, while the average net profit growth rate for the beverage manufacturing industry was 37.49%. The company's earnings per share were 0.03 yuan. Highlight 5: Yanjing Beer's 2017 net profit of 160 million yuan, Q1 2018 net profit of 54.15 million yuan Yanjing Beer released its 2017 annual report and 2018 Q1 report on April 28. The financial reports show that in 2017, Beijing Yanjing Brewery Co., Ltd. achieved operating revenue of 11,195,581,500 yuan, operating profit of 364,994,400 yuan, and net profit attributable to the parent company of 161,348,200 yuan. As of December 31, 2017, the company's total assets were 18,097,786,600 yuan, and equity attributable to the parent company was 12,849,893,100 yuan. Highlight 6: Chongqing Brewery announces Q1 2018 revenue of 813 million yuan, up 10.37% year-on-year Chongqing Brewery announced its Q1 2018 results on April 27. In Q1 2018, the company achieved operating revenue of 813 million yuan, an increase of 10.37% from 736 million yuan in the same period last year; net profit attributable to shareholders of the company was 75.5637 million yuan, an increase of 56.95% from 48.1454 million yuan in the same period last year. During the reporting period, Chongqing Brewery achieved beer sales of 214,100 kiloliters, an increase of 3.33% from 207,200 kiloliters in the same period last year. Highlight 7: Gongxiao Daji: 2017 net profit of 1.415 billion yuan, new retail strategy shows results Gongxiao Daji released its 2017 annual report, achieving operating revenue of 27.789 billion yuan, a year-on-year increase of 91.75%, and net profit attributable to shareholders of the listed company of 1.415 billion yuan, a year-on-year increase of 99.70%. The significant growth in both online and offline business is the main reason for Gongxiao Daji's performance explosion. Industry News Highlight 1: Multiple UK companies sign agreement to reduce plastic use On April 27, 42 major UK companies signed a plastics agreement, committing to achieve the goal of reducing plastic packaging use over the next seven years to jointly address plastic pollution. This is believed to be the world's first agreement related to reducing plastic packaging. Signatories include internationally renowned food and beverage companies and consumer brands such as Coca-Cola, PepsiCo, Procter & Gamble, Unilever, and Nestlé. These companies agreed to reduce unnecessary single-use plastic packaging by 2025 and ensure all plastic packaging is reusable, recyclable, or compostable. Additionally, they committed to using 30% recycled materials in their plastic usage in the future. Highlight 2: Suning launches new business format: 'Suning.com Select Store' Recently, Suning's first 'Suning.com Select Store' opened at Suning's headquarters. In fact, as early as July 20, 2017, Suning.com Select had already opened in Yangzhou, but at that time it focused mainly on 3C brands. According to reports, this newly opened Suning Select sells not only home appliances and 3C products but also categories such as maternal and infant products, fresh fruits, and dining. Additionally, it integrates other new Suning formats like Jingwuye Grain Pancakes, Suning Jiwu, and Suning Xiaodian. The store also features multiple self-checkout channels and scan-to-pay options, eliminating queues. In terms of store style, the Suning.com Select Store uses a wooden tone overall, emphasizing a multi-format collection covering daily necessities such as food, clothing, housing, and transportation. Highlight 3: Listed liquor companies beware: Environmental information disclosure may be mandatory by end of 2020 Recently, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission (CSRC), stated that relevant CSRC departments have been urging listed companies to take action in fulfilling their social responsibility for environmental protection, thereby reducing financing costs for green enterprises and providing incentives for companies to transition to green development. 'Our goal is to make it mandatory for all listed companies to disclose environmental information by the end of 2020.' It is understood that in recent years, regulatory authorities have become increasingly strict on environmental information disclosure in the capital market. In December 2017, the CSRC's new 'information disclosure' rules required listed companies that are key pollutant discharge units to disclose specific information such as pollutant discharge information and environmental self-monitoring plans in their annual and semi-annual reports; meanwhile, other listed companies were encouraged to disclose environmental information, and if not, they must explain the reasons. In March this year, the Shanghai Stock Exchange also issued a statement saying it plans to revise relevant 'information disclosure' guidelines based on the environmental information disclosure situation of listed companies after the completion of their 2017 annual reports. Some industry insiders point out that many funds and institutions currently have green and environmental requirements when purchasing stocks and bonds. With the improvement of the capital market's environmental information disclosure system, green enterprises will perform better in the stock and bond markets and will more easily obtain low-cost financing support. Today's Video Are those big shots on the Forbes list really self-made? Not necessarily! -END-