TINGYI(HK:00322) Sou Hu Cai Jing·2025-08-14 10:07Core Insights - The company reported a revenue of 400.92 billion RMB for the first half of 2025, a year-on-year decrease of 2.7%, while net profit attributable to shareholders increased by 20.5% to 22.71 billion RMB [2][4] Revenue Breakdown - The two main business segments, instant noodles and beverages, both experienced a decline in revenue. Instant noodle revenue was 134.65 billion RMB, down approximately 3.5 billion RMB year-on-year, while beverage revenue was 263.59 billion RMB, down about 7 billion RMB [3][8] - The company’s gross profit margin improved by 1.9 percentage points to 34.5% due to cost structure optimization and enhanced operational efficiency [5] Distributor and Channel Dynamics - The number of distributors decreased to 63,806, down by 3,409 from the end of 2024, indicating a consolidation of the distribution network [6] - The company aims to support high-quality partners while phasing out inefficient distributors, which has led to a decline in traditional channel sales [6] Financial Health - Total liabilities reached 398.82 billion RMB, an increase of 4.3 billion RMB from the previous year, with a debt ratio of 71.28%, up 4.42 percentage points [6] Instant Noodle Segment - Instant noodle sales saw a revenue decline of 2.5%, with a net profit increase of 11.9% to 9.51 billion RMB. The company implemented price adjustments in May 2024, which contributed to a rise in gross profit margin for this segment [7] - Management indicated that sales in July showed signs of recovery, suggesting a stabilization in the instant noodle business [7] Beverage Segment - Beverage revenue was 263.59 billion RMB, a year-on-year decrease of 2.6%, with net profit increasing by 19.6% to 17.52 billion RMB [8] - Sales of tea beverages, water, and juice declined, while carbonated and other drinks saw a slight increase. The gross profit margin for beverages improved by 2.5 percentage points to 37.7% [9] - The company plans to gradually increase the price of its 500ml beverages from 3 RMB to 3.5 RMB, while maintaining current pricing for other products to enhance profitability [10]