TINGYI(00322)2023-04-21 04:00Financial Performance - Revenue for 2022 was RMB 78,717,420, an increase of 6% from RMB 74,082,292 in 2021[10] - Profit for the year decreased to RMB 3,075,834, down 30% from RMB 4,383,667 in 2021[10] - Profit attributable to owners of the Company was RMB 2,632,312, a decline of 31% compared to RMB 3,802,482 in the previous year[10] - Basic earnings per share for 2022 was 46.73 RMB cents, down from 67.57 RMB cents in 2021[10] - The gross profit margin for the year declined by 1.30 percentage points to 29.09%, while the ratio of distribution costs to revenue rose by 0.15 percentage points to 21.35%[25][28] - EBITDA decreased by 14.07% year-on-year to RMB 7.210 billion, and profit attributable to shareholders contracted by 30.77% to RMB 2.632 billion[25][28] Market Position and Strategy - As of December 31, 2022, the Company had a market capitalization of US$10 billion[8] - The Group aims to become the largest Group for Chinese Instant Food & Beverage in the world, focusing on food manufacture, sales, and distribution[8] - The Group's strategy for 2022 included consolidating, reforming, and developing its market presence, particularly in mass consumer and middle-class markets[25][27] - Master Kong has been ranked among the Top Three Brands as First Choice by Chinese Consumers for ten consecutive years according to the Kantar Brand Footprint Report[27] Product Development and Innovation - The company launched a variety of sugar-reduced and oil-reduced products in response to the "Healthy China" initiative[16] - New product launches such as "Golden Stock Beef Noodles" and "Light Spicy Pickled Vegetables Beef Flavor Noodles" saw rapid increases in product penetration rates[33] - The company launched new flavors such as "Rock Candy Red Grapefruit" and "NutriLight Fruits" to enhance its juice product offerings[38] - The bottled water segment introduced a 5L super-large packaging to cater to household and catering consumption needs[40] - "Starbucks Ready-to-Drink Coffee" saw an upgrade in its Bottled Frappuccino and launched new Mini Bottled Frappuccino and Oat Latte flavors, achieving outstanding overall sales performance[43] Sales and Distribution - The Group operates an extensive sales network with 337 sales offices and 322 warehouses serving 76,528 wholesalers and 254,975 direct retailers[7] - The beverage business generated a total revenue of RMB 48.336 billion in 2022, representing a year-on-year growth of 7.89% and accounting for 61.40% of the Group's total revenue[35] - The instant noodles segment generated revenue of RMB 29.634 billion, accounting for 37.65% of total revenue, with a gross margin of 23.95%[29][30] Employee and Organizational Development - Master Kong's employee count increased to 64,302 in 2022, up from 62,107 in 2021, marking a growth of about 3.5%[14] - The Group aims to enhance its core competitiveness by focusing on scale, brand, innovation, system, and talent, while continuing to expand its main operating business[53] - The company is focused on digital transformation and building a team of professional talents for long-term development[17] Sustainability and ESG Initiatives - The Company aims to build a trustworthy "Chinese National Brand" in the food and beverage sector, ensuring satisfaction for government, business partners, and consumers[57] - In 2022, the Company adhered to ESG-related laws and regulations, integrating ESG management into its strategic development and daily operations[68] - Master Kong's Sustainable Development Committee is chaired by the Chairman and CEO, focusing on ESG strategy and performance evaluation through four working groups: Beverage Resources, Instant Noodle Resources, Product Research and Development, and Communication[75] - The company emphasizes health-oriented products and expanded consumer purchase channels to meet diverse consumer needs[35] Food Safety and Quality Control - The company has implemented its own standard "K-GMP" (Good Manufacturing Practices) to strengthen food safety and quality management systems[103] - Master Kong's food safety management system includes external inspections of raw material suppliers and comprehensive testing throughout the production process[102] - The company emphasizes the importance of food safety as a foundation for building consumer trust in its brand[101] - Master Kong has conducted food safety publicity month campaigns for 9 consecutive years, focusing on safety awareness and risk investigation, leading to over 30 food safety theme activities with nearly 20 key raw material suppliers[105] Digital Transformation and Technology - The company is focusing on digital transformation and enhancing supply chain efficiency to better serve customers and consumers[27][31] - Master Kong completed equipment renovation and digitalization of daily business processes in its digital pilot factories in 2022, achieving real-time monitoring and management of equipment status[199] - The digital factory will establish a full production process from material input to shipment, collecting all quality-related data to build a quality database for full life-cycle traceability[199] Environmental Management - Master Kong aims to reduce plastic usage and promote recycling through various internal management systems and waste management measures[186] - The company has established management policies and systems for energy conservation, emission reduction, and sustainable raw material procurement[163] - By the end of 2022, Master Kong installed 90 sets of exhaust gas disposal equipment, reducing emissions by approximately 1,100 tonnes of exhaust gas per year[182] Customer Engagement and Feedback - The company has established a Customer Service Management Procedure to manage customer feedback and ensure timely responses[128] - Master Kong received 12,545 customer complaints during the year, achieving a satisfactory resolution rate of 96%[128] - The company has established a customer service team to facilitate the collection and feedback of consumer suggestions and inquiries[129]