– Optimization in 1H24, with GPM Improving to 32.6% and EBITDA Rising 12.2% YoY
On August 26, 2024, Tingyi (Cayman Islands) Holding Corp. (HKG: 0322, the Company, together with its subsidiaries, the Group) is pleased to announce its interim results for the six months ended 30 June 2024. In the first half of 2024, the Group proactively embraced opportunities and challenges, adhering to a long-term approach and strengthening the development and innovation of its core business. As a results, the Group achieved high-quality growth and optimization of its revenue structure, with major financial indicators showing robust improvement. For the six months ended on June 30, 2024, the Groups revenue grew 0.7% year-on-year to RMB41.201 billion. Among which, the revenue from instant noodles was RMB13.814 billion, while the revenue from beverages was RMB27.065 billion. Gross profit margin improved by 2.1 percentage points year-on-year to 32.6%. EBITDA grew 12.2% year-on-year to RMB 4.825 billion.
Financial Summary
In the first half of 2024, Chinas economy was generally running steadily. With the growth in outdoor traveling, total retail sales of social consumer goods grew 3.7% year-on-year. In response, consumers were paying more attention to the quality-price ratio of products, and the shopping channels were shifting, which galvanized the growth of warehouse membership stores, discount stores, preference-based e-commerce platforms, among other channels. Enterprises with strong product power, brand power and channel control are able to better adapt to changes and serve consumers, thus driving the results to grow.
In the first half of 2024, the gross profit structure of the Instant Noodles Business continued to improve. The revenue from Instant Noodles Business was RMB13.814 billion, declined by 1.0% year-on-year due to market pressures and product structure adjustment, accounting for 33.5% of the Groups total revenue. During the period, attributed to the favorable optimization of raw materials and product mix, the gross profit margin of instant noodles grew 1.3 percentage points year-on-year to 27.1%. As a result of the year-on-year increase in gross profit margin, the profit attributable to shareholders of the Company in the instant noodles segment grew 5.4% year-on-year to RMB850 million. During the period, facing the continuous differentiation of consumption trends, the Instant Noodles Business kept meeting the diversified demands of consumers with a variety of offerings in price bands, flavors and sizes. Efforts have been made on upgrading core products, promoting innovative products, deploying high-potential products; adapting to the transformation of consumers shopping modes, and actively expanding channels such as warehouse membership stores and preference-based e-commerce. Consistently upholding product quality, and providing consumers with delicious and reassuring products.
In the first half of 2024, revenue and gross margin in the Beverage Business continued to improve. The overall revenue from Beverage Business was RMB27.065 billion, with a year-on-year growth of 1.7%, accounting for 65.7% of the Groups total revenue. During the period, the gross profit margin of beverage grew 2.5 percentage points year-on-year to 35.2% through product mix optimization and management efficiency enhancement. Due to the year-on-year increase in gross profit margin, the profit attributable to the shareholders of the Company in the beverage segment grew 26.9% year-on-year to RMB1.115 billion. During the period, the Beverage Business was accelerating to build up the advantages of scale. Focused on core categories, continuously refined innovative tastes and optimized marketing strategies. Followed the trend of sugar-free health, launched a suite of products of sugar-free tea, driving the growth of ready-to-drink tea category. Continued to deploy freezers with investment in a more scientific manner.
Mr. Richard Chen, Chief Executive Officer, commented, In the second half of 2024, the domestic demand is expected to be one of the key drivers of economic growth. To Consolidate, Reform and Develop is the strategy that the Group remains committed to. The Group will give full play to the advantages of intensive channel development and production capacity, actively expand consumption scenarios and sales point coverage, and take multiple measures to stimulate the consumption vitality of target groups. The Group has always attached importance to the buildup of growth momentum in the long run. On the basis of the goal of results growth, efforts will be made to keep increasing investment in fundamental research, accelerate talent echelon development, invest in brand building, improve digital operation capability, and strengthen food safety control and management. We advocate sustainable development, continuously fulfill social responsibilities, seek and seize development opportunities, and work together with partners to contribute actively to society. We are committed to better serving customers and consumers, creating values for shareholders, and shaping a comprehensive food and beverage National Brand that assures the government, delights partners, and reassures consumers.
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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 Peoples 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 Relations Team, Tingyi (Cayman Islands) Holding Corp.
E-mail: ir@tingyi.com
Christensen China Limited
E-mail: stephanie.chen@christensencomms.com
Tel:+852 2117 0861