Click 'Read Original' for details. Uni-President Group, which sold its Shanghai Starbucks stake last year, reported a 174.3% year-on-year increase in net profit after tax on the 28th of this month, yet the market widely worries about how it will fill this profit gap this year. Recently, at the Uni-President Group shareholders' meeting held at the Tainan headquarters, Chairman Lo Chih-hsien reassured everyone, saying that he has not yet seen this gap. He also stated that after two years of adjustment, Uni-President China (0220.HK, referred to as Uni-President China) is now in a smooth and comfortable state, but will maintain its current shipment pace. According to data, Uni-President's revenue last year was NT$399.9 billion (New Taiwan dollars, same below), with net profit after tax of NT$39.8 billion, and earnings per share of NT$7.01, setting a historic high. Additionally, Uni-President's May revenue this year was NT$37.996 billion, and cumulative revenue for the first five months was NT$177.598 billion, also setting records, indicating that Uni-President will achieve exciting 'harvest' this year. Uni-President 2018 Monthly Revenue Table Mainland still focuses on food, praises Sichuan Pepper Beef Noodles Lo Chih-hsien pointed out that after selling Shanghai Starbucks, Uni-President's focus in Mainland China is mainly on food and the 7-ELEVEN stores in Shanghai and Zhejiang. Lo said that the entire food market in Mainland China is upgrading, and in the future, many demands will move towards refinement and personalization, so small-batch production will also be a new trend. As consumption trends change, traditional instant noodles are no longer suitable for current lifestyles. Noodles as a food will not disappear, but the form and method will change significantly, ultimately depending on consumer choices. As for the booming food delivery market, it does not affect the overall demand for instant noodles. Lo also shared his views on new products in the Mainland market. He believes that the Mainland market is vast, and there is no issue with the quantity of new products. Many of Uni-President's products can be new in different markets, and there is great room for product portfolio expansion. Regarding product flavors, it is difficult to create a single product that satisfies everyone; one can only start from a small scope. He also praised Uni-President's Sichuan Pepper Beef Noodles launched last year, saying that the product's market acceptance exceeded expectations, and that others following suit proves they did the right thing. Lo said that there are many large and excellent food companies in Mainland China, so when doing business in the Chinese market, you don't need to look at what competitors are doing; you need to ask yourself if you are ready and if you have adjusted to market changes. Only then can you secure a place in the rapidly changing market. Uni-President China has adjusted its production and sales to the best position in the past two years, and this year it will be very smooth. Driving Uni-President's Operational Growth: Uni-President's business categories are extensive, and currently 'everything that can be done has been done.' The future focus will be on deepening and upgrading in various fields, hoping to keep operations progressing on track every year. Regarding Uni-President's operational outlook, Lo said that driving growth is not only a personal goal but also a responsibility to the company. He emphasized that a lifestyle industry like Uni-President, unlike the tech industry, has no standard scale to follow and must adjust to market changes at any time. Price Increase: Just Restoring to the Market's Proper Price Level: At the beginning of this year, the 'price increase wave' that started with beer spread to the beverage industry, and Uni-President was among them. Yesterday, Lo spoke extensively about price increases at the meeting, believing that every manufacturer has a target price in mind, but often forgets this price when entering the market and is greatly influenced by the industry, so this price has never been realized in the market. Lo believes that although the market perceives it as a price increase, it is actually just restoring prices to the level they should have been, 'not really a price increase.' Zero Inventory Strategy: No Cancellation of Distributor Discounts: Regarding investor questions about whether discounts to beverage distributors were removed, Lo said that in the past, around the Lunar New Year, beverage manufacturers typically had a 'good start' practice, which essentially meant moving company inventory to the channel, but the 'warehouse transfer' function exceeded market needs because the weather was still cold. He stated that Uni-President still pursues delivering beverages to consumers as quickly as possible, 'so saying the discount was canceled is incorrect because I didn't use its warehouse.' This year, Uni-President broke away from the traditional mass production approach, with a production line producing only 90 bottles of beverages in small batches, emphasizing product refinement. The benefit of small batches is more effective inventory control. Of course, such products cannot be profitable initially, but Uni-President sees the future potential and treats it as tuition to promote. Second 7-ELEVEN Unmanned Store in Preparation: Lo confirmed that the second 7-ELEVEN unmanned store is in preparation, to be located in a busy commercial area, hoping to open before the end of the year. Lo said that there is a phenomenon in the retail industry now: small stores want to become large, and large stores want to become small. Regardless of space size, one must consider space planning and product content. Based on 7-ELEVEN's experience with large stores, although large stores have higher costs, they provide more opportunities to generate revenue. The development of unmanned stores is also about finding a new operational direction. After six months of operation, there is indeed still much room for adjustment. This article is compiled by New Distribution from Xiaoshidai and Food Board. In late August, the '2018 China Digital Innovation Conference (2018FDIC)' with the theme 'Finding New Engines for Growth' will be held in Shanghai, hosted by the China FMCG Industry Association and organized by New Distribution. The conference will last three days, focusing on two main themes: marketing and supply chain, with six parallel forums on brand, channel, communication, B2B, same-city logistics, and innovative retail. We will invite industry experts, CEOs, and brand executives to deeply interpret the trends and drivers of digital transformation in the FMCG industry. This conference will have over 5,000+ enterprises participating, bringing together outstanding explorers and promoters of digital transformation across industries to share case practices of digital transformation for industry enterprises and partners, discuss trends and cutting-edge applications of digital technology, and build a bridge for brand owners, distributors, retail enterprises, and marketing agencies to help FMCG manufacturers obtain the latest information and understand best application practices. Help brand owners and distributors find new engines for digital growth in the Internet era! The following is the list of invited enterprises Conference Time August 22-24, 2018 Conference Venue Shanghai Baohua Marriott Hotel Conference Content August 22: Full-day check-in Afternoon 14:00-17:30 Distributor Same-City Logistics Parallel Forum Evening 18:30-21:00 New Distribution Night Gala Dinner August 23: Theme: Marketing Digital Innovation Morning 9:00-12:00 Marketing Digital Innovation Main Forum Afternoon 14:00-17:30 Brand, Channel, Communication Parallel Forums August 24: Theme: FMCG Supply Chain Digital Upgrade Full day: FMCG Supply Chain Conference Registration Method Registration is now open. Long press the QR code below or click 'Read Original' to register. Limited to 200 early bird tickets at half price, while supplies last! Registration Consultation Ticket inquiries: Media cooperation inquiries: New Distribution Previous Conference Highlights Click the links below to review the first, second, and third FMCG + Internet conferences: -END-