TINGYI(HK:00322) Jing Ji Guan Cha Wang·2025-08-12 13:46Core Viewpoint - The financial report of Master Kong Holdings (00322.HK) for the first half of the year shows a decline in tea beverage sales, indicating challenges in maintaining market share due to price increases and competition from other brands [2][5]. Sales Performance - In the first half of the year, Master Kong's tea beverage sales amounted to 10.67 billion yuan, a year-on-year decrease of 6.3% [2]. - The overall beverage business sales for Master Kong reached 26.36 billion yuan, down 2.6% year-on-year, marking the first decline in beverage sales since 2021 [2]. - From 2021 to 2024, Master Kong's beverage sales were 44.80 billion yuan, 48.34 billion yuan, 50.94 billion yuan, and 51.62 billion yuan, with year-on-year growth rates of 20.18%, 7.89%, 5.39%, and 1.3% respectively [3]. Competitive Landscape - In comparison, Uni-President Enterprises (00220.HK) reported tea beverage revenue of approximately 5.07 billion yuan in the first half of the year, a year-on-year increase of 9.1%, and overall beverage revenue of about 10.79 billion yuan, up 7.6% [4]. Product Strategy and Marketing - Master Kong introduced new flavors for its iced tea products and launched various new products to cater to younger consumers, including a sugar-free green tea and a vitamin juice drink [4]. - The company has expanded its marketing channels, including live streaming and campus activities, to enhance brand awareness among younger demographics [4]. Financial Overview - Master Kong's overall revenue for the first half of the year decreased by 2.7% to 40.09 billion yuan, while net profit increased by 20.5% to 2.27 billion yuan, attributed to improved gross margin [5]. - The gross margin increased by 1.9 percentage points to 34.5%, driven by cost structure optimization and enhanced operational efficiency [5].