--- title: "TINGYI's H1 Revenue Edges Up 1.1%; Product Mix Adjustment Boosts Profits" type: "News" locale: "en" url: "https://longbridge.com/en/news/295545226.md" description: "Amid low revenue growth, TINGYI is increasingly relying on product mix adjustments to bolster profits" datetime: "2026-08-11T13:36:30.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295545226.md) - [en](https://longbridge.com/en/news/295545226.md) - [zh-HK](https://longbridge.com/zh-HK/news/295545226.md) --- # TINGYI's H1 Revenue Edges Up 1.1%; Product Mix Adjustment Boosts Profits Amid low revenue growth, TINGYI is increasingly relying on product mix adjustments to bolster profits. On August 11, TINGYI released its unaudited interim results for the six months ended June 30, 2026. In the first half of the year, the company's revenue reached RMB 40.545 billion, a year-on-year increase of 1.1%; gross profit amounted to RMB 14.507 billion, up 5%; and profit attributable to shareholders was RMB 2.433 billion, an increase of 7.1%. Excluding one-time gains from the asset revitalization plan in the same period last year, the adjusted profit attributable to shareholders rose 15.2% year-on-year to RMB 2.433 billion. The profit growth rate was significantly faster than revenue growth, primarily driven by a 1.3 percentage point increase in the overall gross margin to 35.8%. This performance largely met market expectations on the profit front, though revenue growth was weaker. In its July earnings preview, Daiwa Capital Markets projected a 2% revenue growth for TINGYI in the first half; the actual revenue growth fell short of this forecast by 0.9 percentage points. Breaking down by business segment, instant noodle revenue was RMB 13.733 billion, up 2% year-on-year, with the gross margin rising 2.5 percentage points to 30.3%. Beverage revenue stood at RMB 26.541 billion, growing only 0.7%, while the gross margin increased 0.7 percentage points to 38.4%. TINGYI attributed the improvement in gross margins in both segments to product mix adjustments. The instant noodle business continues to cover multiple price tiers: "Xian Q Mian" focuses on non-fried noodles; "He Mian" targets ready-to-eat meal scenarios in instant retail; "Te Bie Te" and "Yu Pin Sheng Yan" penetrate the fresh brewed noodle and premium "single-serving" markets, respectively. Mid-priced products have added new flavors and customized specifications, extending into channels such as mass-market snack stores. Structural adjustments in the beverage business focus on sugar-free, low-sugar, and functional products. Ice Tea has expanded into energy drinks, with some fruit tea recipes reducing sugar content by 25%; "Jasmine White Tea" highlights zero sugar, zero sweeteners, and zero calories, while "Chuan Ren of Tea" continues its layout in premium teas. Starbucks Ready-to-Drink introduced new products such as Coconut Latte and Fruity Americano, and the plant-based beverage "Shen Nong Yang Fang" targets the light wellness demand. Over a longer timeframe, the profit-oriented strategy has become more pronounced. Using a consistent basis for the first half of each year, the gross margin for instant noodles rose from 25.8% in 2023 to 27.1%, 27.8%, and 30.3% in subsequent years, cumulatively increasing by 4.5 percentage points. The beverage gross margin increased from 32.7% to 35.2%, 37.7%, and 38.4%, cumulatively rising by 5.7 percentage points. Until 2025, raw material factors had not completely exited the logic behind TINGYI's gross margin improvement: the beverage segment's margin expansion still benefited from raw materials and management efficiency, while the instant noodle segment had shifted towards product upgrades and price adjustments. Brokerages remain divided on whether this profit improvement can be sustained. CICC estimated in July that cost pressures might be relatively controllable in the second half as pressure from rising raw material prices eases. Previously, Macquarie downgraded its gross margin forecasts for TINGYI over the next three years due to rising raw material costs, market competition, and increased promotions. This also constrains TINGYI's profit growth in the next phase. The company did not disclose the revenue, sales volume, or profit contributions of individual new products, making it impossible to quantify the specific impact of premiumization and health-focused products on gross margins. If revenue continues to grow at a low rate, whether product mix adjustments can continuously offset pressures from raw material prices such as PET and channel promotions will determine whether profit growth can continue to outpace revenue. ### Related Stocks - [00322.HK](https://longbridge.com/en/quote/00322.HK.md) - [8601.JP](https://longbridge.com/en/quote/8601.JP.md) - [SBUX.US](https://longbridge.com/en/quote/SBUX.US.md) - [03908.HK](https://longbridge.com/en/quote/03908.HK.md) - [601995.CN](https://longbridge.com/en/quote/601995.CN.md) - [MQG.AU](https://longbridge.com/en/quote/MQG.AU.md) - [MQBKY.US](https://longbridge.com/en/quote/MQBKY.US.md) ## Related News & Research - [Tingyi Adds Governance Clarification to 2025 Annual Report](https://longbridge.com/en/news/292740323.md) - [Tingyi sets board meeting to review interim results](https://longbridge.com/en/news/293725294.md) - [06:01 ETPUMPKIN SEASON ARRIVES EARLY: PANERA DROPS NEW FALL BAKERY AND BEVERAGE LINEUP ON AUGUST 19](https://longbridge.com/en/news/295388178.md) - [Mooncake prices hiked by up to 20% on rising costs](https://longbridge.com/en/news/295627487.md) - [Nicox says partner Ocumension submits NCX 470 NDA for China approval](https://longbridge.com/en/news/295361436.md)