TINGYI(00322)2021-04-16 04:00Financial Performance - In 2020, the Group's revenue reached RMB 67.62 billion, an increase of 9.5% from RMB 61.98 billion in 2019[8] - Profit before taxation for 2020 was RMB 6.53 billion, up 20.7% from RMB 5.41 billion in 2019[8] - The profit for the year attributable to owners of the Company was RMB 4.06 billion, representing a 22% increase from RMB 3.33 billion in 2019[8] - Basic earnings per share for 2020 were RMB 72.23, an increase from RMB 59.25 in 2019[8] - Total revenue for 2020 was RMB 67,618 million, an increase from RMB 61,978 million in 2019, representing an 8.6% growth[10] - Gross profit margin improved to 33.17% in 2020 from 31.88% in 2019, indicating a positive trend in profitability[10] - EBITDA rose by 9.59% to RMB 9.361 billion year-on-year[27] - Profit attributable to shareholders increased by 21.95% to RMB 4.062 billion[27] Market Position and Share - The Group maintained a market share of 43.7% in instant noodles and 43.6% in ready-to-drink teas in 2020, solidifying its market leadership[4] - The overall juice drink market share was 17.3%, ranking the Group second in the market[4] - Revenue from the instant noodles business increased by 16.64% to RMB 29.510 billion, accounting for 43.64% of total revenue[29] - The beverage segment maintained a market share of 43.6% in ready-to-drink tea, leading the market despite a 6.2% decline in the overall beverage industry sales[43] Operational Growth - As of December 31, 2020, the Group operated 365 sales offices and 236 warehouses, serving 47,898 wholesalers and 210,366 direct retailers[6] - The number of direct retailers increased to 210,366 in 2020, up from 185,789 in 2019, reflecting a 13.2% growth in retail presence[12] - The number of employees increased to 60,654 in 2020, up from 58,182 in 2019, indicating a 4.3% growth in workforce[12] Strategic Initiatives - The Group aims to become the largest Group for Chinese Instant Food & Beverage in the world, focusing on food manufacture, sales, and distribution[7] - The company aims to embrace new technologies and promote digital transformation to maintain competitive advantages in the food and beverage industry[15] - The Group's 2021 strategy will focus on "Consolidate, Reform and Develop," aiming to strengthen brand, channel, and product competitiveness[73] Corporate Social Responsibility - The Chairman emphasized the commitment to corporate social responsibility and improving environmental, social, and corporate governance ratings[15] - Master Kong's mission is to promote Chinese food and beverage culture while adhering to a "Cash Is King" philosophy for sustainable operations[74] - Master Kong was recognized as an excellent business case in a UNDP report for its outstanding performance in promoting sustainable development and ESG among nearly 100 invited companies[82] Health and Safety Measures - The company aims to create a healthy and safe working environment, supporting COVID-19 prevention and ensuring employee safety[85] - Master Kong quickly resumed work and production in response to the COVID-19 epidemic, demonstrating corporate responsibility through donations and proactive measures[90] - The company implemented strict health and safety measures for employees returning to work, including daily health checks and disinfection protocols[99] Environmental Initiatives - In 2020, Master Kong's overall energy consumption per ton of output reduced by approximately 6.4 kilowatt hours, representing a decrease of 1.86% compared to 2019[153] - The instant noodle business saved approximately 3,200 tons of steam annually through the recycling of clean steam generated from frying processes[154] - Master Kong's water consumption per ton of output declined by approximately 53.2 liters, representing a decrease of 1.99% compared to 2019[161] Innovation and Product Development - The launch of the new product "Handmade Noodle" and upgraded "Dried Noodle" in May 2020 aimed to meet the quality demands of the new generation and middle-class consumers[37] - New product developments in 2020 included low-sugar options such as "sugar-free cold brew green tea" and "low-sugar oolong tea," responding to consumer demand for healthier products[114] - Master Kong's food safety management system was enhanced through the establishment of AIB+ demonstration factories in Tianjin and Hangzhou, driving improvements across all production bases[109] Employee Development and Training - In 2020, Master Kong provided a total of 6.4506 million hours of training, averaging 113.67 hours of training per employee[191] - The company has established long-term partnerships with well-known consulting firms to enhance employee knowledge and skills[192] - Master Kong implemented a nine-level training system (M0 to M8) for management skills improvement, with M0-M4 conducted online and M5-M8 offline[193] Marketing and Brand Engagement - Master Kong collaborated with the popular domestic comic IP "Douro Mainland" in 2020, integrating its Rattan Pepper Beef Noodle into the animation and mobile game, resulting in significant brand recognition and market feedback[135] - The "New Year Blessing from Master Kong" marketing campaign launched in early 2020 aimed to strengthen emotional connections with consumers during the Spring Festival, enhancing brand favorability[145] - Master Kong's marketing efforts in 2021 included collaborations with celebrities and digital platforms to enhance brand recognition and consumer engagement[138]