TINGYI(HK:00322)2022-04-26 04:04Financial Performance - In 2021, the Group's revenue reached RMB 74,082,292, an increase of 9.1% from RMB 67,617,835 in 2020[11]. - The profit for the year was RMB 4,383,667, a decrease of 4.2% compared to RMB 4,573,684 in 2020[11]. - The basic earnings per share for the year was RMB 67.57, down from RMB 72.23 in 2020[11]. - The company reported a profit attributable to owners of RMB 4,062 million in 2021, compared to RMB 3,331 million in 2019, an increase of 22.0%[17]. - Profit attributable to shareholders decreased by 6.39% to RMB 3.802 billion, with basic earnings per share declining by RMB 4.66 cents to RMB 67.57 cents[32]. - The gross profit margin decreased by 2.78 percentage points to 30.39%[32]. - EBITDA fell by 10.37% to RMB 8.390 billion[32]. Market Position - The Group maintained a market share of 45.7% in instant noodles and 43.4% in ready-to-drink teas, solidifying its leadership position in the market[6]. - The overall juice drink market share was 18.9%, ranking the Group second in the industry[6]. - Master Kong held a market share of 45.7% in sales volume and 48.0% in sales value in the instant noodles market[35]. - The ready-to-drink (RTD) tea segment maintained a market share of 43.4%, leading the market in 2021[43]. - The juice segment held a market share of 18.9%, ranking second in the industry[43]. Operational Expansion - As of December 31, 2021, the Group operated 340 sales offices and 341 warehouses, serving 80,726 wholesalers and 256,567 direct retailers[8]. - The number of direct retailers increased to 256,567 in 2021, up from 210,366 in 2020, representing a growth of 21.9%[21]. - The number of warehouses increased to 341 in 2021, up from 236 in 2020, a growth of 44.6%[21]. - The number of production lines decreased to 570 in 2021 from 584 in 2020, a reduction of 2.4%[21]. 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[9]. - The strategic alliance with PepsiCo has enhanced the Group's beverage business since 2012, allowing exclusive manufacturing and distribution of PepsiCo products in China[7]. - The company aims to optimize its product mix and promote digital transformation to enhance consumer services[23]. - The company launched products with reduced fat, sugar, and salt to support the "Healthy China" initiative[24]. Sustainability and ESG Efforts - The company has become a participant of the United Nations Global Compact, emphasizing its commitment to sustainability[24]. - The Company upgraded its Corporate Social Responsibility Committee to a Sustainable Development Committee in 2021 to enhance ESG governance and disclosure[77]. - The Company has set environmental development goals to better manage its environmental impact, with regular reviews by the Board and the Sustainability Committee[77]. - The Company identified five core ESG tasks: food safety, product responsibility, energy saving and environmental protection, win-win partnership, and corporate contribution[80]. - Master Kong joined the United Nations Global Compact (UNGC) in May 2021, committing to corporate responsibility and the ten principles of the Global Compact[87]. Food Safety and Quality Control - The Group continues to prioritize food safety and quality, implementing comprehensive control measures to ensure product safety[8]. - Master Kong emphasizes food safety as its foundation, adhering strictly to relevant laws and regulations to ensure consumer trust[101]. - Master Kong's food safety management includes a zero-tolerance approach to risks, supported by advanced equipment and professional capabilities[102]. - The company has expanded its food safety and quality control professional team to over 1,800 members, ensuring comprehensive monitoring of the supply chain through various inspection processes[102]. - In 2021, over 90% of Master Kong's normal operating instant noodle factories were certified under FSSC22000, ensuring food safety management[113]. Product Development and Innovation - The company launched new high-end products to cater to the upgrading consumption needs of the middle class[38]. - The company developed new products focusing on nutrition, including vegetable-based meat and recipes for 24 product categories, enhancing their health quality[114]. - The company launched smaller pack products such as "Soup Chef" cup noodles (55g) and "Sugar-free Jasmine Tea" (350mL) to cater to young consumers[115]. - Master Kong's "Udon" won the 2020-2021 Outstanding Product Innovation Award in China's instant food industry[114]. Environmental Management - The company aims to reduce combined energy consumption per RMB million of revenue by 12% by 2025, using 2017 as the base year[154]. - Water abstraction per RMB million of revenue is targeted to decrease by 8% by 2025, also using 2017 as the base year[154]. - Greenhouse gas emissions per RMB million of revenue are expected to decrease by 18% by 2025, based on 2017 figures[157]. - The recycling rate of main production-based raw material waste is set to be no less than 97%[157]. - Master Kong has established energy and water conservation projects across its production bases to enhance sustainability efforts[159]. Customer Engagement and Feedback - The company established a customer service center to facilitate the collection and feedback of consumer suggestions, inquiries, and demands[124]. - Master Kong received 13,401 customer complaints during the year, achieving a satisfactory resolution rate of 97.3%[124]. - The company emphasizes the training of food safety talents, recruiting graduates from key universities and providing specialized training for quality control managers[111]. Supply Chain Management - The company has established a comprehensive supplier management system to ensure high-quality products for consumers[132]. - Master Kong conducts on-site audits to evaluate suppliers' factory environments, production management, and compliance with food safety standards[133]. - The company has implemented a Supplier Relationship Management (SRM) system to achieve paperless operations and improve work efficiency[135]. Marketing and Brand Strategy - Master Kong launched themed brand marketing campaigns in 2021, collaborating with popular national comics to engage young consumers[146]. - The company plans to use "Bring blessings to CNY with Kang" as a communication theme during the 2022 Chinese New Year, leveraging new technologies like AR[147]. - Master Kong aims to strengthen its brand influence among young consumers by exploring their interests and creating engaging brand activities[145].