On March 26, 2024, Tingyi (Cayman Islands) Holding Corp. (HKG: 322, Tingyi, Master Kong or the Company, together with its subsidiaries, the Group) is pleased to announce its 2023 annual results. In 2023, the Group proactively responded to the challenges from external environment, focused on high-quality development, and achieved steady development with healthy financial indicators. For the twelve months ended on December 31, 2023, the Group’s revenue grew 2.16% year-on-year to RMB80.418 billion. Among which, the revenue from instant noodles was RMB28.793 billion, while the revenue from beverages was RMB50.939 million. Gross profit margin grew 1.33 percentage points year-on-year to 30.42%. EBITDA grew 13.82% year-on-year to RMB8.207 billion. The board of directors proposed to distribute a special dividend of RMB0.2766 per common share and a final dividend of RMB0.2766 per common share. Dividend payout ratio for the year reached 100%.
Financial Summary
| For the twelve months ended 31 December | |||
| RMB’000 | 2023 | 2022 | Change |
| Revenue | 80,418,075 | 78,717,420 | ↑ 2.16% |
| Gross margin | 30.42% | 29.09% | ↑ 1.33ppt. |
| Gross profit of the Group | 24,467,089 | 22,899,417 | ↑ 6.85% |
| EBITDA | 8,206,526 | 7,209,990 | ↑ 13.82% |
| Profit for the period | 3,516,667 | 3,075,834 | ↑ 14.33% |
| Profit attributable to owners of the Company | 3,117,461 | 2,632,312 | ↑ 18.43% |
| Earnings per share(RMB cents) | |||
| Basic | 55.33 | 46.73 | ↑ 8.60 cents |
| Diluted | 55.31 | 46.71 | ↑ 8.60 cents |
In 2023, the domestic consumption market gradually recovered, with a significant recovery of the out-of-home consumptions. Since consumers have become more rational in making shopping decisions, they are pursuing healthy and high-value products, while also focusing on product cost-effectiveness. During the year, the Group centered its approach “Serving Consumers Comprehensively and Perfectly”, and implemented the strategy of “Consolidate, Reform and Develop” in all respects. At the same time of consolidating the core products, the Group also focused on product innovation, branding and channel development to consistently meet the dynamic needs of different consumers.
In 2023, the gross profit structure of the instant noodle business was improved step by step. Revenue of the instant noodle business was RMB28.793 billion, accounting for 35.80% of the Group’s total revenue. During the year, due to the decline in raw material prices and improvement in selling prices, the gross profit margin of instant noodles grew 3.05 percentage points to 27.00% year-on-year. As a result of gross profit margin expansion, the profit attributable to shareholders of the Company in the instant noodle segment grew 46.10% year-on-year to RMB2.008 billion for the full-year 2023. During the year, the instant noodle market faced changes such as shift in consumption scenarios. The business continued to consolidate core products, develop innovative flavors, accommodating the diverse needs of consumers. Meanwhile, the Group made active investment in the rejuvenation of the brand and the improvement of food safety risk management, making it a “A Cooperative Partner of China Space” for seven consecutive years.
In 2023, the beverage business was accelerating the strength of scale advantages as consumers travelled more. Growth realized in categories of tea, juices, water, and carbonated soft drinks. Revenue from beverage business was RMB50.939 billion, with a year-on-year growth of 5.39%, accounting for 63.34% of the Group’s total revenue. During the year, the gross profit margin of beverages grew 0.15 percentage points year-on-year to 32.10%, due to the decline in raw material prices and change of product-mix. Because of the year-on-year increase in distribution cost rate, the profit attributable to shareholders of the Company in the beverages segment declined 8.57% year-on-year to RMB1.260 billion for the full-year 2023. During the year, following the trend of sugar-free and health, the Group launched a suite of products including sugar-free tea, sugar-free carbonated soft drinks and sugar-free coffee. Through cross-sector collaborations, title sponsorships, packaging enhancements and other marketing methods, the beverage business continued to expand the penetration among young demographics, consistently enhancing brand preference and awareness.
Mr. Richard Chen, Chief Executive Officer, commented, “In 2024, it is expected that economic development will be stable and domestic demand will be released under the tone of “Consumption-Promotion Year”. The Group remains committed to its strategy to “Consolidate, Reform and Develop” and will keep working to expand and strengthen its business for the domestic market. The Group will continue to invest in product innovation, brand building, channel construction, increase investment in basic research, accelerate the development of talent echelons, strengthen system platform integration, and accelerate the construction of projects for digital transformation, food safety, and sustainable development. At the same time, it will drive business growth, better serve customers and consumers, create value for shareholders, and establish a comprehensive food and beverage “National Brand” that is trusted by the government, delightful for partners, and reassuring for consumers.”
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
Stephanie Chen
E-mail: stephanie.chen@christensencomms.com
Tel: +852 2117 0861