Tingyi (Cayman Islands) Holding Corp.'s "product structure + operational efficiency" continues to optimize, focusing on long-termism.

Tingyi (Cayman Islands) Holding Corp. continues to optimize its "product structure + operational efficiency" with a focus on long-termism.

- Gross profit margin increased to 34.5% in the first half of 2025, with EBITDA up 13.0% year-on-year

Tingyi (Cayman Islands) Holding Corp. (0322.HK, hereinafter referred to as the "Company", together with its subsidiaries, the "Group") announced its interim results for the first half of 2025. During this period, the Group keenly seized development opportunities, focused on the refined operation of its core businesses, continuously optimized cost structure and operational efficiency, and steadily advanced the process of high-quality development, achieving stable overall performance and continuous improvement in key financial indicators. For the six months ended June 30, 2025, the Group's revenue decreased by 2.7% year-on-year to RMB 40.092 billion. Among this, the instant noodle business contributed RMB 13.465 billion, while the beverage business contributed RMB 26.359 billion. The gross profit margin increased by 1.9 percentage points year-on-year to 34.5%, and EBITDA rose by 13.0% year-on-year to RMB 5.451 billion. Driven by the improved gross profit margin, the profit attributable to shareholders of the Company increased by 20.5% year-on-year to RMB 2.271 billion.

Financial Highlights

In the first half of 2025, China's economy maintained steady growth amid structural challenges. The consumer market exhibited diversified characteristics, with consumers seeking a balance between health needs and leisure enjoyment, personalized pursuits and mass choices, while placing greater emphasis on product quality, emotional resonance, and differentiated experiences. Consumer behavior showed a trend of "high frequency, low volume." The instant retail format rapidly emerged, interest-based e-commerce became the core entry point for online traffic, discount stores and membership stores expanded rapidly, and omnichannel integration and county-level penetration became new growth areas. Against this backdrop, companies with keen market insights, the ability to innovate product portfolios around health and scenario-based needs, and deep multi-channel penetration to achieve user reach and conversion will more efficiently respond to market changes, continuously strengthen user stickiness, and achieve high-quality development.

In the first half of 2025, the gross profit structure of the instant noodle business continued to improve. The instant noodle business generated revenue of RMB 13.465 billion, accounting for 33.6% of the Group's total revenue. During the period, due to product upgrades and price adjustments, the gross profit margin of the instant noodle business increased by 0.7 percentage points year-on-year to 27.8%. Driven by the improved gross profit margin, the profit attributable to shareholders of the Company from the instant noodle business increased by 11.9% year-on-year to RMB 951 million. Faced with an increasingly diversified consumption trend and accelerating channel transformation, the instant noodle business actively responded to challenges, adhered to the concept of high-quality development, and achieved continuous business growth by optimizing the structure of core categories and innovating product portfolios. By building a multi-tiered product matrix, it comprehensively met consumers' diverse needs for instant deliciousness. In brand marketing, leveraging collaborations with well-known IPs and celebrity endorsements, it effectively deepened the emotional value of the brand, precisely reaching young consumer groups and establishing deep resonance. In channel strategy, it focused on emerging channels such as snack wholesale and membership stores, launching differentiated scenario products to precisely match segmented market demands. As a pioneer in applying aerospace technology in the instant noodle industry, it was the first to introduce aerospace technology and standards into noodle production. "Tianxuan Good Noodles" reshaped the quality core with aerospace standards, delivering a trustworthy and excellent experience to consumers.

The beverage business firmly implemented the dual-drive development strategy of "stabilizing growth and adjusting structure." The beverage business generated total revenue of RMB 26.359 billion, accounting for 65.7% of the Group's total revenue. During the period, due to favorable raw material costs and improved management efficiency, the gross profit margin of the beverage business increased by 2.5 percentage points year-on-year to 37.7%. Driven by the improved gross profit margin, the profit attributable to shareholders of the Company from the beverage business increased by 19.7% year-on-year to RMB 1.335 billion. During the period, the beverage business continuously enhanced product competitiveness and consolidated its leading position in core categories by optimizing product flavor innovation, packaging upgrades, and process improvements. At the same time, it deepened consumer insights, precisely grasped market demands, and accelerated product upgrades with strong R&D capabilities. In operational strategy, it actively embraced the trend of channel diversification, built an omnichannel marketing system, and strengthened the synergy between online and offline channels. In digital transformation, it accelerated strategic upgrades with AI technology as the core, built an enterprise-level data platform, empowered business decision-making and operational efficiency, and continuously consolidated and expanded its competitive advantages in the market.

Mr. Chen Yingrang, CEO of Tingyi (Cayman Islands) Holding Corp., said: "Looking ahead to the second half of 2025, the government will continue to strengthen policies to promote consumption and expand domestic demand, and the potential of household consumption is expected to be further unleashed. Against this backdrop, the Group will firmly implement the strategic principle of 'consolidation, innovation, and development,' adhere to the long-termism development concept, base itself on consumer needs, focus on the meticulous cultivation of core businesses, and strive to achieve healthy and high-quality development. At the product level, by optimizing product structure and increasing R&D investment, the Group will build a multi-tiered, high-quality product matrix to continuously enhance product strength and differentiated competitive advantages. In brand building, it will implement diversified marketing strategies, strengthen emotional connections with consumers, and achieve dual improvements in brand visibility and emotional value. In operational management, it will accelerate the digital transformation process, focus on building an enterprise-level data platform, deepen the application of AI technology, and build an intelligent operational system to empower business decision-making. In terms of operational quality, it will continuously optimize cost structure, improve profitability, and ensure stable development and high-quality growth in performance. We will incorporate the concept of sustainable development into our business practices, firmly fulfill our social responsibilities, keenly seize market opportunities, and strive to achieve synergistic development of economic benefits and social value. We will work hand in hand with our partners to serve consumers with high-quality products, reward shareholders with generous returns, and strive to become a comprehensive food and beverage 'national brand' recognized by the government, trusted by partners, and preferred by consumers."

About Tingyi (Cayman Islands) Holding Corp. (0322.HK)

Tingyi (Cayman Islands) Holding Corp. ("the Company") and its subsidiaries ("the Group") are primarily engaged in the production and sale of instant noodles and beverages in China. The Group began producing instant noodles in 1992 and expanded its business to include convenience foods and beverages in 1996. In March 2012, the Group further expanded its beverage business by completing a strategic alliance with PepsiCo's beverage business in China, becoming exclusively responsible for the manufacturing, bottling, packaging, sales, and distribution of PepsiCo's non-alcoholic beverages in China. "Master Kong," a household name in China, has won the love and support of Chinese consumers through years of cultivation and accumulation.$TINGYI(00322.HK)