Tingyi (Cayman Islands) Holding Corp. (HKG: 322, Master Kong or the Company, together with its subsidiaries, the Group) is pleased to announce its interim results for the six months ended 30 June 2023. The Company’s fundamentals demonstrated exceptional resilience, with sustained growth in its two primary business lines of instant noodles and beverages. The Group’s revenue reached RMB40.907bn, an increase of 7.04% year-on-year. Revenue from instant noodles increased by 2.97% year-on-year, while revenue from beverages increased by 9.50% year-on-year. The gross profit margin increased to 30.47%, up 2.25 percentage points year-on-year. Profit attributable to shareholders of the Company increased by 30.66% year-on-year to RMB1.638bn. Basic earnings per share increased by RMB6.82 cents to RMB29.07 cents.
In the first half of 2023, the macro environment continued to improve, everyday economic activity returned to normal and the government gradually implemented various policies and measures to expand consumption, generating positive impacts on the overall consumer goods industry. Chinese consumers exhibited more rational behavior, with an increasing demand for healthy products. In the first half year, Master Kong continued to prioritize its strategic focus on “Serving Consumers Comprehensively and Perfectly”, and upheld its key strategies of “Consolidate Core Businesses” and “Drive Innovative Businesses”. Placing the consumer at the center, the Company comprehensively met consumers’ diversified demands by improving the competitiveness of its brand, products and channels.
In the first half of 2023, the Group’s revenue from the instant noodle business was RMB13.95bn, representing year-on-year growth of 2.97%, and accounting for 34.10% of the Group’s total revenue. During the period, the gross profit margin of instant noodles increased by 5.20 percentage points year-on-year to 25.83%, due to favorable selling prices and raw material prices. In the first half of 2023, as a result of the year-on-year improvement in gross profit margin, the profit attributable to shareholders of the Company in the instant noodle segment increased by 48.11% year-on-year to RMB806m. In the first half year, with the increase in population mobility, the instant noodle business leveraged its scale advantages and made a sustained effort to meet consumers’ diversified demands with a varied offering in terms of price bands, flavors and sizes. Sales volume and market share both showed steady growth, positioning Master Kong at the forefront of the industry and driving overall recovery in the sector. During the period, Master Kong’s instant noodle business emphasized consolidating its core products, promoting innovative new product flavors, and laying the groundwork for premium products. Taking advantage of its healthy operating status, the business intensified its channel development and brand investment efforts. The business also maintained its firm commitment to product quality and won the title of “China Space Program Support Supplies Partner” in the convenience food category.
In the first half of 2023, beverage consumption picked up across the board as consumers travelled more. Revenue from the beverage business was RMB26.606bn, representing year-on-year growth of 9.50%, and accounting for 65.04% of the Group’s total revenue. The gross profit margin of beverages increased by 0.52 percentage point year-on-year to 32.66%. The profit attributable to the shareholders of the Company in the beverage segment increased by 18.06% year-on-year to RMB879m in the first half of 2023. During the period, the beverage business of Master Kong continued to take the advantage of its comprehensive product portfolio and seize the trend towards the consumer focus on health, launching sugar-free tea, sugar-free carbonated soft drinks, sugar-free coffee drinks, and other health-oriented products. Its efforts were geared consistently towards optimizing the product portfolio across multiple channels and consumption occasions. To capture demand in the peak season, capital expenditure to support outdoor consumption was moderately increased.
Mr. Chen Yinjang, Chief Executive Officer, commented, “Looking ahead to the second half of 2023, we maintain an optimistic outlook on the Chinese economy. Domestic circulation will remain the main engine of domestic economic growth going forward. Consumers will always be at the center of our operations, and we will leverage our scale advantage to consolidate our core businesses and develop innovative businesses, to strengthen our competitive advantage across the entire price range of instant noodles and the full beverage product portfolio. We expect to benefit substantially from the recovery of consumption scenarios, increased purchasing power and consumer focus on health. We will continue to invest in product research and development, brand building and channel expansion, maintaining a long-term perspective. Ensuring the operational safety and sustainable development of the Company will also remain a key focus. We will adopt a forward-looking approach, strengthen our core competitiveness, operate in a healthy manner, and create long-term value for both consumers and shareholders.”
About Tingyi (Cayman Islands) Holding Corp. (HKG: 322)
Tingyi (Cayman Islands) Holding Corp. (the “Company”), and its subsidiaries (the “Group”) specialise in the production and distribution of instant noodles and beverages in the People’s Republic of China (the “PRC”). The Group started its instant noodle business in 1992, and expanded into instant food business and beverage business in 1996. In March 2012, the Group further expanded its beverage business by forming a strategic alliance with PepsiCo for the beverage business in the PRC. The Company exclusively manufactures, bottles, packages, distributes and sells PepsiCo soft drinks in the PRC. After years of hard work and accumulation, “Master Kong” has become one of the best-known brands among consumers in the PRC.
For enquiries, please contact:
Investor Enquiries
Investor Relation Team, Tingyi (Cayman Islands) Holding Corp.
E-mail: ir@tingyi.com
Christensen China Limited
E-mail: stephanie.chen@christensencomms.com
Tel: +852 2117 0861