Financial Performance - In 2020, the Group's revenue reached RMB 67.62 billion, an increase of 9.5% from RMB 61.98 billion in 2019[8] - Profit before taxation for 2020 was RMB 6.53 billion, up 20.7% from RMB 5.41 billion in 2019[8] - The profit for the year attributable to owners of the Company was RMB 4.06 billion, representing a 22% increase from RMB 3.33 billion in 2019[8] - Basic earnings per share for 2020 were RMB 72.23, an increase from RMB 59.25 in 2019[8] - Total revenue for 2020 was RMB 67,618 million, an increase from RMB 61,978 million in 2019, representing an 8.6% growth[10] - Gross profit margin improved to 33.17% in 2020 from 31.88% in 2019, indicating a positive trend in profitability[10] - EBITDA rose by 9.59% to RMB 9.361 billion year-on-year[27] - Profit attributable to shareholders increased by 21.95% to RMB 4.062 billion[27] Market Position and Share - The Group maintained a market share of 43.7% in instant noodles and 43.6% in ready-to-drink teas in 2020, solidifying its market leadership[4] - The overall juice drink market share was 17.3%, ranking the Group second in the market[4] - Revenue from the instant noodles business increased by 16.64% to RMB 29.510 billion, accounting for 43.64% of total revenue[29] - The beverage segment maintained a market share of 43.6% in ready-to-drink tea, leading the market despite a 6.2% decline in the overall beverage industry sales[43] Operational Growth - As of December 31, 2020, the Group operated 365 sales offices and 236 warehouses, serving 47,898 wholesalers and 210,366 direct retailers[6] - The number of direct retailers increased to 210,366 in 2020, up from 185,789 in 2019, reflecting a 13.2% growth in retail presence[12] - The number of employees increased to 60,654 in 2020, up from 58,182 in 2019, indicating a 4.3% growth in workforce[12] Strategic Initiatives - The Group aims to become the largest Group for Chinese Instant Food & Beverage in the world, focusing on food manufacture, sales, and distribution[7] - The company aims to embrace new technologies and promote digital transformation to maintain competitive advantages in the food and beverage industry[15] - The Group's 2021 strategy will focus on "Consolidate, Reform and Develop," aiming to strengthen brand, channel, and product competitiveness[73] Corporate Social Responsibility - The Chairman emphasized the commitment to corporate social responsibility and improving environmental, social, and corporate governance ratings[15] - Master Kong's mission is to promote Chinese food and beverage culture while adhering to a "Cash Is King" philosophy for sustainable operations[74] - Master Kong was recognized as an excellent business case in a UNDP report for its outstanding performance in promoting sustainable development and ESG among nearly 100 invited companies[82] Health and Safety Measures - The company aims to create a healthy and safe working environment, supporting COVID-19 prevention and ensuring employee safety[85] - Master Kong quickly resumed work and production in response to the COVID-19 epidemic, demonstrating corporate responsibility through donations and proactive measures[90] - The company implemented strict health and safety measures for employees returning to work, including daily health checks and disinfection protocols[99] Environmental Initiatives - In 2020, Master Kong's overall energy consumption per ton of output reduced by approximately 6.4 kilowatt hours, representing a decrease of 1.86% compared to 2019[153] - The instant noodle business saved approximately 3,200 tons of steam annually through the recycling of clean steam generated from frying processes[154] - Master Kong's water consumption per ton of output declined by approximately 53.2 liters, representing a decrease of 1.99% compared to 2019[161] Innovation and Product Development - The launch of the new product "Handmade Noodle" and upgraded "Dried Noodle" in May 2020 aimed to meet the quality demands of the new generation and middle-class consumers[37] - New product developments in 2020 included low-sugar options such as "sugar-free cold brew green tea" and "low-sugar oolong tea," responding to consumer demand for healthier products[114] - Master Kong's food safety management system was enhanced through the establishment of AIB+ demonstration factories in Tianjin and Hangzhou, driving improvements across all production bases[109] Employee Development and Training - In 2020, Master Kong provided a total of 6.4506 million hours of training, averaging 113.67 hours of training per employee[191] - The company has established long-term partnerships with well-known consulting firms to enhance employee knowledge and skills[192] - Master Kong implemented a nine-level training system (M0 to M8) for management skills improvement, with M0-M4 conducted online and M5-M8 offline[193] Marketing and Brand Engagement - Master Kong collaborated with the popular domestic comic IP "Douro Mainland" in 2020, integrating its Rattan Pepper Beef Noodle into the animation and mobile game, resulting in significant brand recognition and market feedback[135] - The "New Year Blessing from Master Kong" marketing campaign launched in early 2020 aimed to strengthen emotional connections with consumers during the Spring Festival, enhancing brand favorability[145] - Master Kong's marketing efforts in 2021 included collaborations with celebrities and digital platforms to enhance brand recognition and consumer engagement[138]

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 32,934,421 thousand, an increase of 8.00% compared to RMB 30,495,309 thousand for the same period in 2019[3] - Gross profit margin improved to 33.43%, up 1.50 percentage points from 31.93% in the previous year[3] - EBITDA increased by 24.37% to RMB 5,166,659 thousand, compared to RMB 4,154,177 thousand in the prior year[3] - Net profit for the period rose by 47.26% to RMB 2,653,381 thousand, compared to RMB 1,801,832 thousand in the same period last year[3] - Profit attributable to shareholders increased by 58.37% to RMB 2,380,431 thousand, up from RMB 1,503,085 thousand in 2019[3] - Basic earnings per share rose to RMB 42.33, an increase of 15.59 cents from RMB 26.74 in the previous year[5] Cash and Liquidity - Cash and cash equivalents as of June 30, 2020, were RMB 23,307,312 thousand, an increase of RMB 5,876,925 thousand compared to December 31, 2019[3] - The net debt to equity ratio stood at -45.62% as of June 30, 2020[3] - Operating cash inflow for the first half of 2020 was RMB 6,657,683, a significant increase from RMB 4,656,956 in the same period of 2019, representing a growth of approximately 43%[11] - Net cash from operating activities reached RMB 5,695,644, up from RMB 3,699,697 in 2019, indicating a year-on-year increase of about 54%[11] - The company incurred a net cash outflow from investing activities of RMB 1,719,750, compared to RMB 289,405 in the previous year, indicating a significant increase in investment expenditures[11] Assets and Liabilities - Total assets increased to RMB 63,764,595 thousand from RMB 57,959,667 thousand as of December 31, 2019[7] - Total liabilities increased to RMB 41,935,674 thousand as of June 30, 2020, up 20.1% from RMB 34,913,560 thousand as of December 31, 2019[8] - The company's current liabilities rose to RMB 35,864,304 thousand, an increase of 26.6% from RMB 28,307,428 thousand in the previous period[8] - The total equity attributable to minority interests was RMB 3,354,873 thousand, down from RMB 3,467,533 thousand, a decrease of 3.2%[8] Segment Performance - Revenue from instant noodles segment was RMB 14,905,255, while beverage segment revenue was RMB 17,603,780, contributing to total revenue of RMB 32,892,576[13] - The instant noodle business achieved a revenue of RMB 14.910 billion, a year-on-year growth of 29.16%, accounting for 45.27% of the group's total revenue[42] - The beverage segment's revenue for the first half of 2020 was 17.617 billion RMB, a decline of 4.09% year-on-year, accounting for 53.49% of the group's total revenue[47] Market Trends and Strategies - The group reported a rebound in demand for instant noodles, with the industry experiencing accelerated growth during the first half of 2020[39] - E-commerce retail penetration increased from 26% to 30%, indicating a significant shift towards online shopping channels[39] - The company emphasized digital operations and supply chain optimization during the pandemic, enhancing production layout and efficiency[41] - The company is expanding its high-end product offerings, including a new "No Sugar Tea Series" aimed at health-conscious consumers[49] Shareholder Information - The company declared a special dividend of RMB 3,330,981 thousand during the period, impacting the overall equity position[10] - The company did not declare any dividends for the first half of 2020, consistent with the previous year[20] - The company’s major shareholder holds 1,882,927,866 shares directly[73] Corporate Governance - The board of directors includes six executive members and three independent non-executive members, ensuring a mix of governance perspectives[82] - The company has established a risk management framework based on the COSO model to ensure effective internal controls and compliance with regulations[67] Social Responsibility and Sustainability - The group actively participated in social responsibility initiatives, donating supplies to 837 medical institutions across 26 provinces during the pandemic[57] - The group has implemented energy-saving projects and upgraded water systems to improve efficiency and reduce emissions[57]

Financial Performance - In 2019, the Group's revenue reached RMB 61,978,158, an increase from RMB 60,685,645 in 2018, representing a growth of 2.1%[51] - The profit before taxation for 2019 was RMB 5,411,596, up 36.0% from RMB 3,979,334 in 2018[51] - The profit for the year attributable to owners of the Company was RMB 3,330,981, a significant increase of 35.2% compared to RMB 2,463,321 in 2018[51] - The earnings per share for 2019 were RMB 59.25, compared to RMB 43.85 in 2018, reflecting a growth of 35.1%[51] - EBITDA increased by 15.80% to RMB8.542 billion, benefiting from growth in gross profit margin and other net income[78] - Profit attributable to shareholders grew by 35.22% to RMB3.331 billion, with basic earnings per share rising by RMB15.40 cents to RMB59.25 cents[79] Market Position and Share - The market capitalization of the Company as of December 31, 2019, was US$9.6 billion[49] - The Group's market share in instant noodles and ready-to-drink teas was 43.3% and 45.7% respectively, maintaining its leading position in the market[46] - Master Kong held a market share of 43.3% in sales volume and 46.6% in sales value in the instant noodle market, ranking first[86] - The ready-to-drink tea segment accounted for 45.7% of the market share in terms of sales volume, maintaining the top position in the market[97] - The Group's juice section accounted for 15.9% of the market, ranking second in the market[97] Operational Expansion - As of December 31, 2019, the Group operated 371 sales offices and 182 warehouses, serving 36,186 wholesalers and 185,789 direct retailers[48] - The number of direct retailers increased to 185,789, while the number of warehouses rose to 182, indicating a focus on expanding distribution capabilities[2] - The number of employees increased to 58,182, reflecting the company's growth and expansion efforts[6] Strategic Initiatives - The Group aims to become "The largest Group for Chinese Instant Food & Beverage in the World" by strengthening its logistics and sales network[49] - The company is actively embracing new technologies and digital transformation to enhance agile management and accelerate internationalization[4] - The Group is positioned to capitalize on emerging market trends, including urbanization and the growth of the middle class, which are expected to drive demand for its products[8] - The management emphasizes the importance of adapting to changing consumer habits, particularly in online retail and convenience store channels, as part of its growth strategy[10] Product Development and Innovation - The Group is focusing on high-price and premium markets while developing super-premium markets to achieve sales growth[87] - The Group launched the "Express Chef's Noodle" series, achieving a hit rate of 200 million during the Double Eleven Shopping Festival[92] - The beverage business focused on core categories to meet consumer demand and steadily introduced high-end products in response to consumption upgrades[95] - The company launched innovative products such as "vegetable noodles" and "self-heating noodles" to meet consumer demands for nutrition and health[148] Corporate Social Responsibility and Sustainability - The company is focusing on fulfilling corporate social responsibility, striving for excellence in environmental, social, and governance areas[7] - Master Kong is committed to sustainable development and improving its corporate social responsibility (CSR) performance[132] - The company emphasizes food safety as its core mission, adhering to strict compliance with relevant laws and regulations[135] - Master Kong's initiatives in supplier management and environmental compliance are aimed at achieving sustainable development within its value chain[159] Financial Health and Investments - The Group's total equity as of December 31, 2019, was RMB 23,046,107, a decrease from RMB 23,612,431 in 2018[52] - The Group's net cash inflow from operating activities amounted to RMB7.831 billion, while net cash outflow from investment activities was RMB1.405 billion[109] - The Group plans to gradually reduce interest-bearing borrowings to achieve a more flexible financial structure[109] - The Group's cash and bank balances totaled RMB17.43 billion, an increase of RMB3.590 billion from the previous year, indicating strong liquidity[109] Environmental Impact and Energy Efficiency - Master Kong's overall energy consumption per 10,000 cartons of products decreased by approximately 5% compared to 2018[177] - In 2019, Master Kong's water consumption per 10,000 cartons of products decreased by approximately 13% compared to 2018[180] - The company has implemented various projects to reduce plastic use in packaging, ensuring product quality while minimizing environmental impact[194] - Master Kong reduced its total greenhouse gas emissions by approximately 7% in 2019 compared to 2018[186] Employee Welfare and Compliance - The company ensures compliance with various labor laws in China, including the Labor Law and the Employment Promotion Law, to protect employee rights[200] - The company is committed to creating a diverse workforce, providing equal employment and promotion opportunities regardless of gender, age, ethnicity, or religion[200] - The company guarantees no incidents of child labor or forced labor in its operations[200]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 30,495,309 thousand, a decrease of 1.62% compared to RMB 30,996,144 thousand in the same period of 2018[4] - Gross profit margin increased to 31.93%, up by 0.70 percentage points from 31.23% in 2018[4] - EBITDA for the period was RMB 4,154,177 thousand, reflecting an increase of 11.06% from RMB 3,740,573 thousand in the previous year[4] - Net profit for the period rose to RMB 1,801,832 thousand, a 21.07% increase compared to RMB 1,488,294 thousand in 2018[4] - Profit attributable to shareholders increased by 15.05% to RMB 1,503,085 thousand from RMB 1,306,478 thousand in the prior year[4] - Basic earnings per share increased to RMB 26.74, up by 3.48 cents from RMB 23.26 in the same period of 2018[4] Cash and Liquidity - Cash and cash equivalents as of June 30, 2019, were RMB 16,080,682 thousand, an increase of RMB 2,240,261 thousand compared to December 31, 2018[4] - Operating cash inflow for the first half of 2019 was RMB 4,656,956 thousand, a decrease of 15.4% compared to RMB 5,504,168 thousand in the same period of 2018[12] - Net cash from operating activities decreased to RMB 3,699,697 thousand from RMB 4,459,476 thousand, reflecting a decline of 17.0%[12] - The company reported a net cash outflow from investing activities of RMB 289,405 thousand, a significant decrease from the inflow of RMB 1,162,743 thousand in the first half of 2018[12] - Total bank balances and cash amounted to RMB 15,990,065 thousand, up from RMB 12,224,535 thousand year-on-year, indicating a rise of 30.5%[12] Assets and Liabilities - Total assets as of June 30, 2019, amounted to RMB 55,550,807 thousand, compared to RMB 53,002,669 thousand at the end of 2018[8] - The company's total liabilities increased to RMB 32,745,862 thousand, up from RMB 29,390,238 thousand, reflecting a rise of about 8.1%[9] - Total equity attributable to shareholders decreased to RMB 18,717,099 thousand as of June 30, 2019, down from RMB 19,653,476 thousand at the end of 2018, representing a decline of approximately 4.8%[9] - The total equity as of June 30, 2019, was RMB 22,804,945 thousand, a decrease from RMB 23,612,431 thousand at the end of 2018, reflecting a decline of about 3.4%[11] Segment Performance - Total revenue from customer contracts reached RMB 30,448.1 million, with instant noodles contributing RMB 11,542.0 million and beverages RMB 18,358.8 million[19] - The instant noodle business achieved a revenue of RMB 11.544 billion, representing a year-on-year growth of 3.68%, and accounted for 37.85% of the group's total revenue[48] - The beverage business generated revenue of RMB 18.367 billion, a decline of 4.08% year-on-year, accounting for 60.23% of the group's total revenue[52] - The company reported a segment profit (excluding financial expenses) of RMB 2,277.1 million, with instant noodles contributing RMB 1,244.7 million and beverages RMB 1,102.2 million[19] Market and Economic Environment - The overall economic environment in China showed stability with a GDP growth of 6.3% in the first half of 2019, positively impacting the group's performance[45] - The convenience noodle and packaged beverage industries maintained stable growth, driven by urbanization and rising consumer demand for high-end products[45] - The group is facing challenges from external uncertainties such as the US-China trade war and fluctuations in international financial markets, but tax reduction policies have provided positive effects[45] Strategic Initiatives - The company continues to focus on enhancing shareholder value through strategic initiatives and operational efficiencies[9] - The company is implementing supply chain rationalization strategies, optimizing production layout, and promoting smart manufacturing to improve operational efficiency[47] - The company is actively expanding diverse sales channels and enhancing cooperation with new retail to prepare for high-end market expansion[46] - The company is committed to digital transformation, utilizing big data and AI to assist in business decision-making[64] Shareholder and Governance - The company’s major shareholder, Wei Yingzhou, indirectly holds 44.925% of the shares through Profit Surplus Holdings Limited and 17.835% through Profit Surplus 3 Holdings Limited[76] - The company’s board of directors includes six executive directors and three independent non-executive directors as of the announcement date[86] - The company has complied with the corporate governance code, with all directors confirming adherence to the standards during the review period[71] Environmental and Social Responsibility - The group has actively participated in environmental protection initiatives, including the "Water Education" campaign, promoting water conservation among elementary school students[63] - The group signed a tripartite cooperation framework agreement with Peking University and Waseda University to conduct research in health big data, artificial intelligence, and nutrition[62]