TINGYI(HK:00322) 2 1 Shi Ji Jing Ji Bao Dao·2025-12-21 14:42Core Viewpoint - The appointment of Wei Hongcheng as the new CEO of Master Kong Holdings marks a significant leadership transition, with expectations for innovative strategies to revitalize the company's performance amid current revenue challenges [2][5]. Group 1: Leadership Transition - Wei Hongcheng, aged 43, will take over as CEO starting January 1, 2026, creating a "brotherly co-management" situation within the company [2]. - Wei holds degrees from Imperial College London and Harvard Business School, along with a master's degree from Waseda University in Japan [2]. - He has over 10 years of experience in the beverage sector of Master Kong, having served as the chairman of the beverage division since 2019 [2][3]. Group 2: Financial Performance - In the first half of 2023, Master Kong reported revenues of approximately 40 billion yuan, with core business segments experiencing declines, including a 2.5% drop in instant noodle and beverage revenues [6]. - The beverage division, which is the largest segment, saw revenue growth from 35.6 billion yuan in 2019 to an expected 51.6 billion yuan in 2024 [3]. - Despite a decline in tea and juice revenues, the carbonated and other beverages segment grew by 6.3%, reaching 10.256 billion yuan, and the beverage gross margin improved by 2.5 percentage points [6]. Group 3: Strategic Initiatives - Wei Hongcheng is expected to focus on product innovation to meet the demands of younger consumers, with initiatives in the ready-to-drink tea segment aimed at creating a diverse product matrix [7]. - New product launches include low-sugar and health-oriented options, such as "sugar-free jasmine tea" and herbal drinks, to cater to the growing health-conscious market [7]. - The company aims to revitalize its core products, including its popular instant noodles and teas, to align with the preferences of the "new generation" [7].