Tingyi Reports 2023 Revenue Growth and Margin Improvement

Tingyi (Cayman Islands) Holding Corp., widely known as Master Kong, has reported its financial results for the full year ended December 31, 2023. The company announced on March 26, 2024, that its revenue grew by 2.16% year-on-year to RMB 80.418 billion (approximately $11.1 billion).

The company's gross profit margin saw an improvement, increasing by 1.33 percentage points to 30.42%. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose by 13.82% to RMB 8.207 billion. The board of directors proposed a total dividend payout ratio of 100% for the year.

In response to market conditions, Tingyi focused on "high-quality development." The revenue from its instant noodle segment reached RMB 28.793 billion, while its beverage segment generated RMB 50.939 billion. For instant noodles, a decline in raw material prices and enhanced selling prices led to a 3.05 percentage point increase in gross profit margin to 27%.

The beverage business division saw its revenue grow by 5.39% to RMB 50.939 billion. While its gross profit margin improved slightly to 32.10%, an increase in distribution costs impacted segment profitability. The company noted a consumer shift towards rational purchasing, favoring value and health-conscious products.

Tingyi stated that its strategies in 2023 involved consolidating core products, driving innovation, and developing channels to meet evolving consumer demands. The company also highlighted its continued role as a "Cooperative Partner of China Space" for the seventh consecutive year.