香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 TINGYI (CAYMAN ISLANDS) HOLDING CORP. 康師傅控股有限公司 * （在開曼群島註冊成立之有限公司） （股份編號：0322） 海外監管公告 公司秘書 葉沛森 香港，2025年8月4日 於本公告日期，本公司之執行董事為魏宏名先生、井田純一郎先生、魏宏丞先生、筱 原幸治先生、高橋勇幸先生及曾倩女士；本公司之獨立非執行董事為徐信群先生、栃尾雅也 先生及文暮良先生。 網址: http://www.masterkong.com.cn http://www.irasia.com/listco/hk/tingyi *僅供識別 康師傅控股有限公司臺灣存託憑證流通及兌回情形月報表 本公告是由康師傅控股有限公司 (「本公司」) 根據香港聯交所有限公司證券上市規則 第 13.10B 條而作出。 以下附件是本公司依臺灣證券交易所股份有限公司規定於2025年 8月4日在臺灣證券交易 所股份有限公司 ...

格隆汇7月30日丨康师傅控股(00322.HK)宣布，公司将于2025年8月11日(星期一)举行董事会会议，藉以 (其中包括)批准刊发公司及其附属公司截至2025年6月30日止六个月的中期业绩公告，以及考虑派发中 期股息(如适用)。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 TINGYI (CAYMAN ISLANDS) HOLDING CORP. 公司秘書 葉沛森 香港，2025年7月30日 於本公告日期，本公司之執行董事為魏宏名先生、井田純一郎先生、魏宏丞先生、筱原幸治先生、 高橋勇幸先生及曾倩女士；本公司之獨立非執行董事為徐信群先生、栃尾雅也先生及文暮良先生。 （於開曼群島註冊成立之有限公司） （股份編號：0322） 董事會召開日期 康師傅控股有限公司「（本公司」）之董事會「（董事會」）宣佈，本公司將於2025年8月 11日（星期一）舉行董事會會議，藉以（其中包括）批准刊發本公司及其附屬公司截至 2025年6月30日止六個月之中期業績公告，以及考慮派發中期股息（如適用）。 承董事會命 康師傅控股有限公司 康師傅控股有限公司* * 僅供識別 網址： http://www.masterkong.com.cn http://www.irasia.com/listco/hk/ ...

Core Viewpoint - CICC maintains its profit forecast for Master Kong Holdings (00322) for 2025/26, with current trading at 14/13 times P/E for 2025/26, and a target price of HKD 14, corresponding to 17/16 times P/E for 2025/26, indicating a 21% upside potential, while maintaining an "outperform" rating [1] Group 1: Revenue and Market Share - For the first half of 2025, the company is expected to see a 2% decline in revenue, with both instant noodles and beverage segments experiencing similar declines [2] - The decline in instant noodles is attributed to price increases in July of the previous year, leading to a loss of market share, compounded by a weak macro consumption environment [2] - The company has initiated promotional activities in regional markets to stabilize market share, including increasing the quantity of classic series products without raising prices [2] Group 2: Profit Margin Improvement - The company is projected to achieve better-than-expected gross margin improvements due to price increases and a decrease in raw material costs such as PET, sugar, and flour [3] - Gross margin for instant noodles is expected to improve by 0.5-1 percentage points, while beverage gross margin is anticipated to rise by nearly 2 percentage points, leading to an overall gross margin increase of 1.5 percentage points [3] - Operating profit margin (OPM) is expected to improve by 1-1.5 percentage points, with net profit margin projected to increase by 0.8 percentage points, resulting in a 15% year-on-year growth in net profit, slightly above market expectations [3] Group 3: Long-term Investment Value - The company’s pricing strategy is seen as a short-term pressure on market share but is expected to benefit long-term profit margins and channel profitability [4] - New product launches, including vitamin juice and traditional health drinks, are anticipated to contribute positively to revenue growth [4] - The company aims to double its profits over the next 3-5 years from the 2023 baseline, with expectations of annual double-digit growth in profits and a 100% dividend payout, highlighting its long-term investment value [4]

Group 1 - Macquarie downgraded the rating of Master Kong Holdings to Neutral with a target price of HKD 13.80 [1]

Core Viewpoint - The "2025 World Brand Moganshan Conference" emphasized the importance of brand-driven high-quality development, with a focus on consumer-centric approaches and innovation as key drivers for success in the market [1][12]. Group 1: Company Overview - Master Kong has been recognized as a national brand for over 30 years, achieving a consumer penetration rate of 85% and being listed as a top consumer brand in China for 12 consecutive years [1][12]. - The company’s operational philosophy is centered around sincerity, pragmatism, and innovation, which has contributed to its sustained growth and consumer trust [1][12]. Group 2: Product Innovation - Master Kong is focusing on product innovation as a foundation for high-quality development, transitioning from "manufacturing" to "creation" through technological advancements and patent iterations [3][17]. - The introduction of "Fresh Q Noodles" utilizes a new generation of "0-fried" patented technology to enhance the texture and flavor of instant noodles, addressing consumer demands for taste and health [3][4]. - The "pH9.0 Electrolyzed Alkaline Water" product is developed without adding baking soda, using patented electrolytic processes to ensure a pure and smooth drinking experience, which has received international recognition [6][12]. Group 3: Food Safety and Quality Control - Master Kong has invested billions in establishing an international-level food safety research management center, conducting over 1,500 food safety monitoring indicators and more than 3.5 million quality inspections annually [15][17]. - The company is implementing a comprehensive traceability system from farm to table, enhancing food safety management and aiming to improve the quality of life for consumers [17]. Group 4: Global Market Expansion - The company is actively expanding its international market presence, having established operations in 16 countries and regions, and aims to represent Chinese culinary culture globally [18][20]. - Master Kong is collaborating with leading global companies like Pepsi, Starbucks, and Asahi to explore innovative business models and has been recognized by the United Nations for its sustainable food systems initiatives [20]. Group 5: Future Aspirations - Master Kong aims to continue its focus on innovation, green manufacturing, and quality control to enhance productivity and drive high-quality development across the industry [20]. - The company is committed to creating new value in healthy eating, guiding consumers towards a better quality of life through joyful dining experiences [20].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 80,650,914, an increase from RMB 80,418,075 in 2023, representing a growth of 0.29%[13] - Profit before taxation increased to RMB 6,059,654 in 2024, up from RMB 4,779,461 in 2023, marking a growth of 26.8%[13] - The profit attributable to owners of the company reached RMB 3,734,429 in 2024, compared to RMB 3,117,461 in 2023, reflecting a year-on-year increase of 19.7%[13] - The basic earnings per share for 2024 was reported at 66.28 RMB cents, compared to 55.33 RMB cents in 2023, indicating a significant increase[13] - For the full year 2024, the Group's revenue grew 0.3% year-on-year to RMB 80.651 billion[58] - EBITDA grew 17.3% year-on-year to RMB 9.628 billion[58] - Profit attributable to shareholders increased by 19.8% year-on-year to RMB 3.734 billion[58] - Basic earnings per share rose by RMB 10.95 cents to RMB 66.28 cents[58] Market Position and Strategy - The company's market capitalization as of December 31, 2024, was HK$57 billion[12] - The company aims to strengthen its logistics and sales network with the goal of becoming the largest group for Chinese instant food and beverages globally[12] - The company has established a strategic alliance with PepsiCo for the beverage business in China, enhancing its market position[9] - The company plans to enhance investment in product innovation, branding, and channel expansion to ensure robust operations through 2025[35] - The company aims to strengthen the emotional connection with young consumer groups through targeted marketing strategies[34] - The company is focused on integrating digital technologies to enhance operational efficiency and consumer engagement[34] Sales and Distribution - The group operates an extensive sales network with 357 sales offices and 271 warehouses, serving 67,215 wholesalers and 220,623 direct retailers as of December 31, 2024[11] - The number of direct retailers increased to 217,087 in 2023, up from 254,975 in 2022, indicating a strategic focus on refining channel operations[29] - The company reported a total of 76,875 wholesalers in 2023, a slight increase from 76,528 in 2022, indicating stable distribution channels[29] Product Performance - Revenue from instant noodles declined 1.3% year-on-year to RMB 28.414 billion, accounting for 35.2% of total revenue[60] - Revenue from beverages grew 1.3% year-on-year to RMB 51.621 billion, representing 64.0% of total revenue[60] - The gross profit margin for the instant noodles business improved by 1.6 percentage points to 28.6% year-on-year, which helped offset the revenue decline[65] - The beverage business generated a gross profit of RMB 18,236.19 million with a gross profit margin of 35.3%, reflecting an 11.5% increase in gross profit year-on-year[62] Innovation and Product Development - The Group introduced advanced aerospace food technology, becoming the first instant noodle company to obtain a patent for aerospace application, enhancing product quality and technological strength[69] - The "Fresh Q Noodles" set a new benchmark in the non-fried noodle market, leading industry innovation with its fresh and chewy texture[73] - The "Golden Stock Beef" flavor from the "Soup Chef" line received widespread consumer praise, indicating successful product innovation[73] - The "Master Kong Mini Bucket" product line targeted outdoor and midnight snack scenarios, achieving steady sales growth[70] - The "Sugar-free Jasmine Green Tea" was launched, made from 100% hand-picked Hengzhou jasmine, catering to the health-conscious consumer trend[80] Financial Management and Cash Flow - The Group generated a net cash inflow of RMB8.264 billion from operating activities and a net cash outflow of RMB2.856 billion from investing activities during the year[93] - As of December 31, 2024, the Group's bank deposits and cash amounted to RMB16.003 billion, an increase of RMB1.264 billion compared to December 31, 2023[94] - The Group's total assets and total liabilities were RMB53.149 billion and RMB35.534 billion respectively, with a debt ratio of 66.9%, down by 0.7 percentage points from the previous year[95] - The gearing ratio improved from -7.3% as of December 31, 2023 to -19.3% in the current period[95] Sustainability and ESG Initiatives - The company is committed to social responsibility, aiming to create lasting value for consumers and rich returns for shareholders[112] - The Sustainable Development Committee oversees the Group's ESG governance and performance, ensuring compliance with relevant laws and regulations[126] - Master Kong emphasizes sustainable development with a mission to promote Chinese food culture and aims to resonate its development with consumer interests[131] - The Company has identified five core ESG tasks: food safety construction, product responsibilities, energy conservation and environmental protection, win-win partnerships, and corporate contribution[133] - Master Kong actively promotes research projects on salt reduction, sugar reduction, fat reduction, and nutritional fortification to meet consumer health needs[141] Food Safety Management - The company has established a food safety management structure that includes various specialized groups to ensure comprehensive supervision of the food safety system[190] - Master Kong has implemented the Management Measures for Retrospective Withdrawal of Products to trace production factors and recover defective products promptly[190] - The company conducts over 1,500 food safety risk monitoring indicators and performs more than 3.5 million quality tests annually[189] - In 2024, there were no product recalls for safety and health reasons in products sold or shipped by Master Kong[192] Employee Development and Talent Management - The Group recruited over 3,500 fresh graduates and hosted nearly 1,000 college students for internships, enhancing its grassroots talent pool[105] - The Leadership Empowerment Center was launched in May 2024, focusing on empowering core talent in management and strategy[99] Awards and Recognition - Master Kong was selected for the 2024 Fortune China 500 List, reflecting its exceptional innovation capabilities and profitability[165] - The Chief Financial Office of Master Kong received the "Value Cooperation Partner" title from China Merchants Bank for its focus on digital financial innovation[167] - Master Kong was honored with two Forbes China 2024 ESG Awards for its achievements in product innovation and sustainable development[168]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 80,650,914 thousand, representing a 0.3% increase from RMB 80,418,075 thousand in 2023[2] - Gross profit margin improved to 33.1%, up by 2.7 percentage points from 30.4% in the previous year[2] - Group gross profit increased by 9.1% to RMB 26,695,643 thousand, compared to RMB 24,467,089 thousand in 2023[2] - EBITDA rose by 17.3% to RMB 9,627,802 thousand, up from RMB 8,206,526 thousand in 2023[2] - Net profit for the year was RMB 4,322,135 thousand, a 22.9% increase from RMB 3,516,667 thousand in 2023[2] - Profit attributable to shareholders increased by 19.8% to RMB 3,734,429 thousand, compared to RMB 3,117,461 thousand in 2023[2] - Basic earnings per share rose to RMB 66.28, an increase of 10.95 cents from RMB 55.33 in 2023[2] Cash and Equity - Cash and cash equivalents, including long-term deposits, amounted to RMB 16,002,668 thousand, an increase of RMB 1,264,287 thousand from the previous year[2] - Total equity increased to RMB 17,615,351 thousand in 2024 from RMB 17,222,244 thousand in 2023, representing a growth of 2.3%[11] - The company's issued share capital increased marginally from RMB 196,681 thousand in 2023 to RMB 196,684 thousand in 2024[11] - The reserve increased to RMB 13,244,526 thousand in 2024 from RMB 12,910,832 thousand in 2023, reflecting a growth of approximately 2.6%[11] Liabilities and Assets - Non-current liabilities decreased significantly from RMB 6,734,396 thousand in 2023 to RMB 3,110,279 thousand in 2024, a reduction of approximately 53.8%[11] - Current liabilities rose to RMB 32,423,225 thousand in 2024, up from RMB 29,193,014 thousand in 2023, indicating an increase of about 7.6%[11] - The company's total liabilities slightly decreased from RMB 35,927,410 thousand in 2023 to RMB 35,533,504 thousand in 2024, a decrease of about 1.1%[11] - The total assets for 2024 amounted to RMB 53,148,855 thousand, slightly down from RMB 53,149,654 thousand in 2023, showing a negligible decrease[34][36] Revenue Breakdown - Revenue from customer contracts for 2024 reached RMB 80,582,017 thousand, a slight decrease from RMB 80,348,163 thousand in 2023, representing a decline of approximately 0.3%[30][32] - The instant noodle business generated revenue of RMB 28.414 billion in 2024, a year-on-year decline of 1.3%, accounting for 35.2% of total group revenue[56] - The beverage segment achieved revenue of RMB 51.621 billion in 2024, a year-on-year growth of 1.3%, representing 64.0% of total group revenue[62] Operational Efficiency - The group's total revenue for 2024 increased by 0.3% to RMB 80.65 billion, with instant noodles revenue declining by 1.3% and beverage revenue growing by 1.3%[54] - The overall gross profit for the group increased by 9.1% to RMB 26.696 billion, with a gross profit margin of 33.1%, up 2.7 percentage points from the previous year[57] - The group's inventory turnover period improved to 17.6 days from 19.5 days year-on-year, indicating better inventory management[75] Product Innovation and Market Strategy - The company aims to enhance product innovation, brand building, and channel expansion in 2025[4] - The company introduced new products such as "Fresh Q Noodles," which set a new benchmark in the non-fried noodle market, and received positive consumer feedback[59] - The company is focusing on health-oriented products, launching sugar-free options and expanding product categories to enhance operational efficiency[62] - The company is actively optimizing its product mix and marketing strategies to adapt to changing consumer preferences and shopping behaviors[56] Sustainability and Social Responsibility - The company emphasizes a commitment to food safety and green development while supporting consumer aspirations for a better life[4] - The group is actively promoting sustainable development concepts through various consumer engagement initiatives, including partnerships with social media platforms[68] - The company has been recognized for its achievements in sustainable development, becoming a founding member of the UN Food Systems Committee and being listed among the "Top 20 Cases of 20 Years" by the UN Global Compact[82] Governance and Risk Management - The company has established a risk management framework based on the COSO model, ensuring effective internal controls and compliance with regulations[94] - The company will continue to enhance its governance practices to improve accountability and transparency, adhering to the Hong Kong Stock Exchange's corporate governance code[87] Dividends and Share Options - The company plans to distribute a special final dividend of RMB 0.3314 per share, totaling RMB 1.87 billion, and a final dividend of the same amount[46] - The board proposed a final dividend of RMB 0.3314 per ordinary share and a special final dividend of RMB 0.3314 per ordinary share for the year ending December 31, 2024, pending approval at the annual general meeting[107]

Financial Performance - Revenue increased by 0.7% to RMB 41,201,208 thousand in the first half of 2024 compared to the same period in 2023[2] - Gross profit margin improved by 2.1 percentage points to 32.6% in the first half of 2024[2] - EBITDA rose by 12.2% to RMB 4,824,605 thousand in the first half of 2024[2] - Net profit attributable to shareholders increased by 15.1% to RMB 1,885,310 thousand in the first half of 2024[2] - Basic earnings per share increased by RMB 4.39 cents to RMB 33.46 cents in the first half of 2024[2] - The company's profit for the period was RMB 1.89 billion, contributing to total comprehensive income of RMB 1.82 billion for the six months ended June 30, 2024[9] - Total comprehensive income for the six months ended June 30, 2024 was RMB 2.17 billion, including minority interests[9] - Revenue from customer contracts reached RMB 41,166.58 million, with the beverage segment contributing RMB 27,063.46 million and the instant noodle segment contributing RMB 13,768.26 million[14] - Profit before tax for the beverage segment grew to RMB 1,988.96 million, up 27.6% from RMB 1,558.80 million in H1 2023[14][15] - The company's total profit for the period was RMB 2,235.07 million, up 16.2% from RMB 1,922.88 million in H1 2023[14][15] - Revenue increased by 0.7% YoY to RMB 41.201 billion, with beverage revenue growing by 1.7% and instant noodle revenue declining by 1.0%[41] - EBITDA grew by 12.2% YoY to RMB 4.825 billion, with net profit attributable to shareholders increasing by 15.1% to RMB 1.885 billion[41] - Instant noodle business revenue declined by 1.0% YoY to RMB 13.814 billion, but gross margin improved by 1.3 percentage points to 27.1%[42][44] - Beverage business revenue grew by 1.7% YoY to RMB 27.065 billion, with gross margin improving by 2.5 percentage points to 35.2%[42][48] - Net profit for the beverage business increased by 26.9% YoY to RMB 1.115 billion, driven by gross margin improvement[48] Cash Flow and Liquidity - Cash and bank deposits (including long-term time deposits) increased by RMB 3,191,904 thousand to RMB 17,930,285 thousand as of June 30, 2024[2] - Bank balances and cash rose to RMB 10,790,607 thousand as of June 30, 2024, compared to RMB 6,754,466 thousand at the end of 2023[6] - Operating cash flow increased to RMB 4,405.46 million in H1 2024, up 15.3% from RMB 3,821.84 million in H1 2023[10] - Net cash from operating activities rose to RMB 3,510.43 million, a 23.5% increase compared to RMB 2,842.99 million in the same period last year[10] - The company's cash and cash equivalents increased to RMB 10,816.89 million as of June 30, 2024, compared to RMB 14,283.72 million in the same period last year[10] - The company's operating cash inflow was RMB 3.51 billion, with a net cash increase of RMB 3.192 billion in bank deposits and cash (including long-term fixed deposits)[54] - The company's net cash position was RMB 2.87 billion, an increase of RMB 1.861 billion compared to December 31, 2023[54] Assets and Liabilities - Total assets grew to RMB 56,019,751 thousand as of June 30, 2024, up from RMB 53,149,654 thousand at the end of 2023[6] - Inventory decreased to RMB 4,028,366 thousand as of June 30, 2024, compared to RMB 4,385,268 thousand at the end of 2023[6] - Accounts receivable increased to RMB 2,111,989 thousand as of June 30, 2024, up from RMB 1,579,983 thousand at the end of 2023[6] - Total liabilities increased to RMB 40.25 billion as of June 30, 2024, compared to RMB 35.93 billion as of December 31, 2023[7] - Net current liabilities worsened to RMB -13.08 billion as of June 30, 2024, from RMB -8.72 billion as of December 31, 2023[7] - Total equity decreased to RMB 15.77 billion as of June 30, 2024, from RMB 17.22 billion as of December 31, 2023[7] - Current liabilities increased to RMB 34.92 billion as of June 30, 2024, compared to RMB 29.19 billion as of December 31, 2023[7] - Long-term interest-bearing borrowings decreased to RMB 3.99 billion as of June 30, 2024, from RMB 5.25 billion as of December 31, 2023[7] - Reserves decreased to RMB 11.51 billion as of June 30, 2024, from RMB 12.91 billion as of December 31, 2023[7] - Minority interests decreased to RMB 3.27 billion as of June 30, 2024, from RMB 3.33 billion as of December 31, 2023[7] - Total assets increased to RMB 56,019,751 thousand as of June 30, 2024, compared to RMB 53,149,654 thousand as of December 31, 2023, reflecting growth in the company's asset base[16] - The beverage segment's assets grew to RMB 32,673,296 thousand as of June 30, 2024, up from RMB 32,415,379 thousand as of December 31, 2023, indicating continued investment in this key segment[16] - Total liabilities increased to RMB 40,250,703 thousand as of June 30, 2024, compared to RMB 35,927,410 thousand as of December 31, 2023, reflecting higher financial obligations[16] - The company's total assets and total liabilities as of June 30, 2024, were RMB 56.02 billion and RMB 40.251 billion, respectively, with a debt ratio of 71.9%, up 4.3 percentage points from the end of 2023[54] Segment Performance - The beverage segment's revenue grew by 1.7% year-over-year, reaching RMB 27,065.28 million in H1 2024[14] - The instant noodle segment's profit before tax increased by 3.4% to RMB 1,128.52 million in H1 2024[14] - The beverage segment experiences strong seasonal demand during Q2 and Q3, with peak sales occurring from June to August due to hot weather conditions[17] - The company focused on premium and high-end instant noodle products, such as "Soup Master" and "Yupin Feast," to meet consumer demand for quality and health[46] - The beverage business launched new sugar-free tea products, including "Sugar-Free Jasmine Tea" and "Sugar-Free Oolong Tea," to align with health trends[49] - The company leveraged celebrity endorsements and IP collaborations, such as with Disney's Zootopia, to enhance brand visibility and drive sales[45][49][50] - The company launched new products such as "Starbucks Raw Coffee" series and "Gatorade Electrolyte Drink," expanding its market presence in specific consumer segments[53] - The company's "Chun Cui Zero Sugar" tea drink and "Speed Noodle House" reduced-salt beef noodles were recognized as landmark achievements in the food industry's nutrition and health initiatives[57] - The company's "Pure Joy" brand collaborated with the "Sweet Potato Travel Agency" IP and China National Geographic to create the "Pure Journey" campaign, enhancing brand visibility[52] - The company's "Juice" product line introduced new flavors and packaging upgrades, focusing on health and regional ingredient preferences[51] Tax and Financial Expenses - The company's tax payments decreased to RMB 809.13 million, down 17.1% from RMB 690.50 million in H1 2023[14][15] - The company's tax expenses for the first half of 2024 totaled RMB 809,130 thousand, up from RMB 690,497 thousand in the same period of 2023, driven by higher current tax payments[18] - Financial expenses decreased to RMB 214,229 thousand in the first half of 2024, down from RMB 264,353 thousand in the same period of 2023, reflecting lower interest costs[18] - The company benefits from tax incentives in China's western regions, where certain subsidiaries enjoy a reduced corporate income tax rate of 15%[19] - In Singapore, the company qualifies for partial tax exemption schemes, with 75% exemption on the first SGD 10,000 of taxable income and 50% on the next SGD 190,000[19] - The company has engaged tax experts to assist with the implementation of OECD's Pillar Two model rules, which are not expected to have a material impact on operations[20] Shareholder and Dividend Information - The company approved final and special final dividends totaling RMB 3.12 billion for 2023, reducing total equity[9] - Basic earnings per share increased to 33.46 RMB cents in the first half of 2024, up from 29.07 RMB cents in the same period of 2023[21] - Diluted earnings per share rose to 33.46 RMB cents in H1 2024 compared to 29.04 RMB cents in H1 2023[21] - The total number of share options under the 2008 Share Option Plan as of June 30, 2024, was 15,722,000, with 9,137,000 options canceled or expired during the period[69] - No share options under the 2008 Share Option Plan were exercised during the six months ended June 30, 2024[69] - Under the 2018 Share Option Plan, 2,478,000 share options were granted on April 27, 2018, with an exercise period from April 30, 2021, to April 26, 2028[72] - Under the 2018 Share Option Plan, 5,626,000 share options were granted on April 27, 2018, with an exercise period from April 30, 2021, to April 26, 2024[72] - The total number of share options under the 2018 Share Option Plan as of June 30, 2024, was 2,478,000, with 3,785,000 options canceled or expired during the period[73] - No share options under the 2018 Share Option Plan were exercised during the six months ended June 30, 2024[73] - As of June 30, 2024, Executive Director Wei Hongming held 5,000,000 shares, representing 0.09% of the total shares, with 1,385,000 shares held by beneficial owners[75] - As of June 30, 2024, Executive Director Wei Hongcheng held 5,000,000 shares, representing 0.09% of the total shares, with 1,385,000 shares held by beneficial owners[75] - As of June 30, 2024, CEO Chen Yingrang held 1,380,000 shares, representing 0.02% of the total shares[75] - No other directors or their immediate family members were granted any rights to acquire shares or debentures of the company during the period ended June 30, 2024[75] - The board of directors includes executive directors Wei Hongming, Ida Junichiro, Wei Hongcheng, Shinohara Koji, Takahashi Yukiyuki, and Zeng Qian, as well as independent non-executive directors Xu Xinqun, Li Changfu, and Tochio Masaya[77] - The announcement was made by Chairman Wei Hongming on August 26, 2024, in Hong Kong[78] Investments and Capital Expenditures - Investment in property, plant, and equipment increased to RMB 1,829.87 million, up 30.4% from RMB 1,402.83 million in H1 2023[10] - Capital expenditure commitments for property, plant, and equipment increased to RMB 1,263,837 thousand, up 17.4% from RMB 1,076,179 thousand in 2023[37] - Investment funds increased from RMB 254,349 thousand to RMB 384,126 thousand, a growth of 51.0%[30] - Structured deposits grew from RMB 50,000 thousand to RMB 323,072 thousand, a significant increase of 546.1%[30] - Non-listed equity securities decreased slightly from RMB 158,518 thousand to RMB 154,560 thousand, a decline of 2.5%[30] Risk Management and Internal Controls - The company has established a risk management and internal control system based on the COSO framework, aiming to control overall risk at an acceptable level and ensure operational efficiency and compliance[63] - The company has implemented a three-line defense organizational structure for risk management, with the audit committee assisting the board in reviewing the effectiveness of the system[64] ESG and Corporate Responsibility - The company has been recognized for its ESG contributions, including being awarded the "2024 ESG Annual Case" by People's Daily and the "Green and Low-Carbon Partner" title by the Shanghai Energy Conservation Promotion Week Organizing Committee[58] Future Outlook and Strategy - The company expects domestic demand to remain a key driver of economic growth in the second half of 2024, with a focus on consolidating, innovating, and developing its business strategies[59] - The company plans to expand its instant noodle product offerings with different specifications, prices, and flavors to cater to consumer needs and drive industry growth[59] - The beverage division aims to accelerate the establishment of scale advantages, focusing on core products and expanding innovative offerings to meet diverse consumer scenarios and boost sales growth[59] - The company emphasizes long-term development by increasing investment in basic research, talent development, brand building, digital operations, and food safety control[59] Accounts Receivable and Payable - Accounts receivable aged 0-90 days increased to 2,014,920 thousand RMB as of June 30, 2024, from 1,490,555 thousand RMB at December 31, 2023[23] - Total accounts payable grew to 9,455,348 thousand RMB as of June 30, 2024, up from 8,572,717 thousand RMB at December 31, 2023[26] Loans and Financial Instruments - The company issued new bank loans totaling 8,408,387 thousand RMB in the first half of 2024, compared to 10,666,968 thousand RMB in the same period of 2023[25] - Repayments of bank loans amounted to 7,211,969 thousand RMB in H1 2024, down from 10,820,642 thousand RMB in H1 2023[25] - Financial assets measured at fair value through profit or loss totaled 1,123,441 thousand RMB as of June 30, 2024, compared to 1,314,415 thousand RMB at December 31, 2023[28] - Level 3 financial assets (unobservable inputs) increased to 861,758 thousand RMB as of June 30, 2024, from 1,145,230 thousand RMB at December 31, 2023[28] - The company's notes payable had a fair value of 3,479,117 thousand RMB as of June 30, 2024, up from 3,333,928 thousand RMB at December 31, 2023[25] Related Party Transactions - Sales to joint ventures increased from RMB 455,357 thousand to RMB 485,253 thousand, a growth of 6.6%[38] - Purchases from companies controlled by directors and their relatives decreased from RMB 3,031,420 thousand to RMB 2,860,992 thousand, a decline of 5.6%[38] - Distribution costs paid to companies controlled by directors' family members decreased slightly from RMB 886,256 thousand to RMB 870,636 thousand, a decline of 1.8%[38] - Promotional expenses paid to companies controlled by major shareholders increased from RMB 25,893 thousand to RMB 26,713 thousand, a growth of 3.2%[38] - Rental income from investment properties and property, plant, and equipment decreased from RMB 17,842 thousand to RMB 16,076 thousand, a decline of 9.9%[38] Operational Metrics - The company's finished goods turnover period decreased to 16.7 days from 19.5 days, and the accounts receivable turnover period increased to 8.1 days from 7.7 days[55] - The company's current ratio decreased to 0.6x from 0.7x, and the net debt-to-capital ratio dropped to -23.0% from -7.3%[55] - The company's employee count as of June 30, 2024, was 64,797, with significant efforts in leadership and organizational capacity building[56]

Investment Rating - The investment rating for the company is "Outperform the Market" [2][6][12] Core Views - The report highlights stable revenue and recovery in profitability, with expectations for expanded scale advantages [2][6] - The beverage segment, particularly tea drinks, has shown strong performance, contributing to overall profitability recovery [4][6] - The company has established scale advantages in its beverage business by focusing on core categories and optimizing marketing strategies [4][6] Summary by Sections Financial Performance - For the first half of 2024, the company reported total revenue of 415.50 billion (YOY -0.15%) and main business revenue of 412.01 billion (YOY +0.72%) [3][6] - The net profit attributable to shareholders reached 18.85 billion (YOY +15.12%), with a net profit margin increase of 0.57 percentage points [3][6] Beverage Business - The beverage segment achieved revenue of 270.65 billion (YOY +1.73%) with a compound annual growth rate (CAGR) of 5.54% from 2022H1 to 2024H1 [4][6] - The gross margin for the beverage business increased by 2.5 percentage points to 35.2%, leading to a profit increase of 26.9% to 11.15 billion [4][6] Instant Noodle Business - The instant noodle segment maintained stable revenue at 138.14 billion (YOY -0.98%) with an improved gross margin of 27.1% [6][8] - The company upgraded core products and expanded into high-potential products, adapting to changing consumer shopping habits [6][8] Financial Forecasts - Projected total revenues for 2024-2026 are 840.78 billion, 883.54 billion, and 914.66 billion respectively, with net profits of 37.25 billion, 41.94 billion, and 46.26 billion [5][6] - The report estimates EPS for 2024-2026 to be 0.66, 0.74, and 0.82 respectively, with a PE valuation range of 15-19 times for 2024E [5][6]