Tingyi (Cayman Islands) Holding Corp. (the “Company”), and its subsidiaries (the “Group”) specialise in the production and distribution of instant noodles, beverages and instant food products in the People’s Republic of China (“PRC”). The Group started its instant noodle business in 1992, and expanded into the instant food business and beverage business in 1996. In March 2012, the Group further expanded its beverage business, the strategic alliance between the Company and PepsiCo in the beverage business in the PRC was established. The Company is exclusively manufacture, bottle, package, distribute and sell PepsiCo non-alcoholic drinks in the PRC. The Group’s three main business segments have established leading market shares in the PRC’s food industry. According to ACNielsen SCAN TRACK EXPRESS, based on sales volume, year-to-date December 2013, the Group was the market leader in instant noodles, ready-to-drink teas, bottled water, overall juice and egg rolls, gained 44.1%, 51.8%, 23.6%, 25.9% and 19.8% market shares respectively. According to Canadean December 2013 data, based on sales volume, Pepsi carbonated drinks gained 31.8% market share and held a second position. After years of hard work and accumulation, “Master Kong” has become one of the best known brands among consumers in the PRC.
The Group distributed its products throughout the PRC through its extensive sales network consisting of 566 sales offices and 75 warehouses serving 33,504 wholesalers and 110,355 direct retailers as of 31 December 2013. This extensive sales network is a significant contributor to the Group’s leading market position and it enables the Group to introduce new products rapidly and effectively.
2013, Master Kong, for the sixth consecutive years was named one of the 50 best listed companies in Asia by Forbes, and for the eleventh consecutive years one of the top five of “Taiwan’s top ten international brands” by InterBrand UK and ranked No.2 in the year. The brand value of Master Kong has reached US$1,498 million. In March 2014, “best brands” uncovered the most powerful and successful brands in China, Master Kong received the “Best Product Brand Award” and the “Best Food & Beverage Brand Award” from The German Brands Association. The ranking is aiming to promote successful and innovative brand management. By obtaining these honors, the brand power and competitiveness of Master Kong were recognized, what’s more, we are encouraged to constantly endeavor, trying to provide consumers with more varieties of delicious and safe products.
Master Kong adheres to the philosophy of “from the people, to the people, giving back to the society, sustainable operation”. We use different ways to help the people in need, such as sponsoring education, fighting floods, relieving earthquakes, relieving poverty, environmental protection and supporting sports activities. In 2013, we continued to allocate resources to take our corporate social responsibility to enable the concurrent healthy development of the enterprise and the society. We actively supported the concept of total quality control“from farm to table”and strictly abided by the consumer food safety principles. While improving production efficiency, we also continuously implemented energy saving and emission reduction. We continued to initiate the world elite universities scholarship program to support outstanding students across the Strait to further their studies and held “Master Kong Creative Challenges” to allow more young people with an innovative quality have the opportunity to go to university to further their studies.
“Food is No. 1 need and food safety is the first consideration”. Food safety has become the top priority related to people’s livelihood. Being a leader in the instant noodle industry, Master Kong operates by focusing on “one core, six assurances” with food safety as the core. Product quality and safety are ensured through the supervision and management of suppliers, the guarantee of raw material quality and safety, the monitoring of key control points during the production stage, a stringent mechanism for the examination and management of finished products, the optimization of management in the circulation field and the supervision and review of the quality system. We have established the MIS execution information system to construct online shared platforms for quality information; made use of Six Sigma Management to improve product quality; initiated the informationization of the tracking system to increase product tracking capability; continuously promoted the food protection and management mechanism to reduce food safety accident risks, optimize quality management for warehouses of distributors and improve the quality of network warehouses; facilitated ISO22000 food safety and management system certification for suppliers to strengthen food safety management for suppliers.
The Company was listed on The Stock Exchange of Hong Kong Limited in February 1996. Market capitalisation as at 31 December 2013 was US$16.2 billion. The Company is a constituent stock of British’s FTSE All-World Asia Pacific Ex-Japan Index, Morgan Stanley Capital International (MSCI) Hong Kong Index and a component stock of Hong Kong‘s benchmark Hang Seng Index. For six consecutive years from 2008 to 2013, Tingyi was named one of the 50 best listed companies in Asia by Forbes for its solid financial track record and excellent management and entrepreneurial skills.
Focused on food manufacture, sales and circulation business, the Group will continue to strengthen its logistics and sales network in the PRC with target of becoming “The biggest Group for Chinese Instant Food & Beverage in the World”.