Introduction: The secret to the record high lies in the steady development of new and old products. The best proof of a company's performance is its earnings report. Recently, Uni-President Enterprises China Holdings Ltd. (hereinafter referred to as "Uni-President China") released impressive financial results, showcasing its "good company" core to the outside world. Data shows that Uni-President China's 2023 revenue hit a record high of RMB 28.591 billion, a 1.2% increase year-on-year. The beverage business remained the largest contributor, with revenue of RMB 17.775 billion; the food business, though not exceeding RMB 10 billion this year, still reached RMB 9.846 billion. During the reporting period, net profit was RMB 1.667 billion, up 36.4% year-on-year. Meanwhile, the company's gross margin increased by 1.5 percentage points to 30.5% in 2023; EBITDA rose 16.8% year-on-year to RMB 3.425 billion. From a data perspective, reduced sales costs and growth in other income further boosted Uni-President China's net profit. Financial data shows that during the reporting period, Uni-President China's operating profit increased 33.5% year-on-year to RMB 1.997 billion, primarily due to a one-time gain of RMB 351 million from the disposal of part of the land of its plant in Hefei, China, and an increase in operating profit from its core business. Overall, although Uni-President China's growth rate did not show a leap, the more than 30% growth in both profit and gross profit truly surprised the outside world. This performance completely broke the previous skepticism about "increasing volume without increasing profit." Increasing volume and revenue, steady growth of the fundamental business Since 2020, due to macroeconomic conditions and shifts in market style, the FMCG industry has generally fallen into the awkward situation of increasing volume without increasing revenue. In recent years, competition among companies has not only been limited to market share battles but also, more importantly, the fight for survival. Because finding new growth in a stock market is essentially not a volume issue but a survival issue. In this unprecedented transformation in the FMCG industry, increasing both volume and revenue has become the main theme and important goal for many companies. Judging from Uni-President China's performance in recent years, it is undoubtedly one of the first companies in the industry to find incremental growth. In 2023, Uni-President China's performance in the beverage business, its fundamental segment, was extremely stable. The financial report mentioned that since the outbreak of the pandemic in 2020, the company's revenue compound annual growth rate (CAGR) reached 7.9%, with the beverage segment's revenue CAGR at 12.3%. Specifically, in 2023, beverage business revenue was RMB 17.776 billion, accounting for 62.2% of total revenue, an 8.4% increase compared to 2022. Among these, tea drinks, juices, and milk tea all saw growth. During the reporting period, tea drink revenue was RMB 7.58 billion, up 9% year-on-year; juice revenue was RMB 3.404 billion, up 13.3%, accounting for 19.2% of beverage revenue, hitting a seven-year high; milk tea revenue was RMB 6.305 billion, up 5.0% year-on-year. Among traditional FMCG brands, the several super single products launched by Uni-President China have made significant contributions in terms of market position and brand influence. Uni-President Green Tea insists on innovation and product optimization to build a national healthy tea brand; Hai Zhi Yan seized new consumption opportunities in the post-pandemic era, with revenue showing high double-digit growth year-on-year; Uni-President Assam Milk Tea further expanded drinking scenarios and maintained its industry leadership position. Continuous efforts in innovative business New products aggressively attack new scenarios Since 2023, with the fading of the pandemic, offline consumption scenarios have recovered, market demand has gradually rebounded, and consumption has become more rational. The FMCG market has undergone significant changes, such as the shift in consumption scenarios, but high cost-performance products remain the mainstream consumption trend. After the pandemic, consumers have placed more importance on product quality, health, and convenience. Their consumption decisions have become more rational, focusing on cost-performance, while also paying attention to quality, actual needs, and innovative products that can bring them emotional value. In this context, insisting on innovation has become the only way for all FMCG brands to find incremental growth. In innovation, Uni-President China not only promotes new versions of old products but also launches new products, ultimately forming a synergy. Among the old products, Hai Zhi Yan is worth mentioning. In 2023, Hai Zhi Yan switched to the "electrolyte water" track, seizing the current trend of young consumers supplementing electrolytes, and revitalized itself, achieving RMB 1 billion in sales that year. This business also helped Hai Zhi Yan establish a firm foothold in the electrolyte track, allowing it to move forward lightly in 2024. Uni-President Assam is another blockbuster product of Uni-President China, and its most magical aspect is its steady growth every year. In the past, Assam has always controlled its "volume," with inventory always at 7 days. In 2023, Assam launched a new product, introducing the popular new white peach flavor. Subsequently, the "Xidi" milk tea, with its exquisite packaging and rich taste, quickly achieved a sales breakthrough. This unique development path is the secret to Assam maintaining 5% growth even after surpassing 6 billion in sales. On the new product side, Uni-President China has also entered a harvest period. Uni-President has always been known for product innovation in the FMCG industry, and Uni-President Qie Huang is an innovative product that has been highly anticipated and achieved remarkable results. As a new brand launched in 2019, its launch came against the backdrop of a pressured instant noodle market and continuous consumption upgrading. Compared with the previous demand for just filling up, consumers' demand for health has become increasingly strong. Therefore, it is not that the market does not need instant noodles, but that it needs better and healthier instant noodles. Tomato, as a fruit and vegetable recognized by consumers as nutritious and healthy, is easier for consumers to perceive as a healthy and nutritious product compared to the common sour and spicy flavors used in instant noodles. The brand recognition of "Xinjiang tomatoes are a treasure, a bowl of Qie Huang is the right choice" has become deeply rooted in people's minds, greatly expanding the brand's customer base and helping the brand's revenue grow steadily. After nearly five years of development, Qie Huang has long become a favorite instant noodle product among consumers. Financial data shows that in 2023, Qie Huang, this blockbuster product, continued to gain market favor, with its revenue CAGR over the past three years showing a doubling growth trend. In addition, at the new product level, Uni-President China's brands such as Teng Jiao, Man Han Da Can, and Kai Xiao Zao also contributed good performance to the company. At the same time, in terms of scenario development, Uni-President China has also made new breakthroughs. For example, in mid-December 2023, Kai Xiao Zao entered the Spring Festival gift box market, launching a private kitchen home feast gift box, helping the company seize the lead in the high-end gifting market. Final Thoughts As a company with a development history of more than 30 years, Uni-President China has long been a household name in the Chinese market. Over the past 30 years, China's FMCG market has undergone multiple stages of change, and Uni-President China has accumulated rich experience in responding to these changes. In 2023, Uni-President China actively responded to the needs of target consumers, carried out product self-iteration, strengthened the health attributes of products, and improved consumers' purchase motivation, thereby driving performance growth. The steady growth of old products and the exploration of new scenarios by new products have also given it more vigorous vitality. For 2024, which will see more intense competition and a more complex external environment, Uni-President China is building on its steady 2023 performance, continuously adapting to changing consumer needs, and providing consumers with safe, high-quality, and innovative products to drive the company to achieve greater success in the market.