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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 AC Nielsen SCAN TRACK EXPRESS, based on sales volume, year-to-date December 2014, the Group was the market leader in instant noodles, ready-to-drink teas, bottled water and egg rolls, gained 46.8%, 53.9%, 20.8% and 18.3% market shares respectively. In the overall juice drink market, the Group gained 23.9% market share, ranked No. 2 in the market. According to Canadean December 2014 data, based on sales volume, Pepsi carbonated drinks gained 30.3% 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 582 sales offices and 77 warehouses serving 36,837 wholesalers and 118,359 direct retailers as of 31 December 2014. 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.
The Company was listed on The Stock Exchange of Hong Kong Limited in February 1996. Market capitalisation as at 31 December 2014 was US$12.8 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, Tingyi was named one of the 50 best listed companies in Asia by Forbes for its solid financial track record, excellent management and entrepreneurial skills.
Master Kong has always upheld customer food safety as its responsibility, which targets to build a positive cycle of quality and safety management. All thanks to Master Kong’s dedicated support for the guiding principle of total quality control “from field to dining table” . Master Kong invested heavily to control food safety from the source and closely monitored the upstream supply chain through tight management of the raw materials and suppliers. Food safety and product quality have been the top priority related to life and health, and also the foundation of enterprises. Being a leading enterprise in the fast moving consumer goods industry, Master Kong holds the important responsibility of food safety and quality guarantee. Master Kong constantly builds and improves ISO220000 management system, establishes risk prevention management system, implements entire control over food safety and ensures product quality and safety.
“Food is No. 1 need and food safety is the first consideration”.Food safety is the key variable of future development of enterprise. Establishing food safety and maintaining food quality is a heavy responsibility and long way to go. Being a leading brand in the fast moving consumer goods industry, Master Kong has no doubt to hold the industry responsibility of food safety and quality guarantee. Master Kong will constantly strive for product quality and food safety, as well as provide consumers with safe, tasty and healthy food.
Food safety has always been the core concern for Master Kong through the combined efforts on energy-saving and environmental protection, social charities, talent development and cross-strait cultural exchanges. Also, Master Kong was awarded the honor of the “2014 “Food Safety Cup” Most Popular Best Ten Food Safety Enterprise” jointly organized by Chinese Food Safety Publicity Web and Food Safety Mall, Daily, as well as being recognized and acclaimed at the important annual conference on food safety for six consecutive years, and being recognized the honor of the “Most Favorite Brand of University Student” for nine consecutive years. Besides, Master Kong was being awarded “2014 Asia Brand 500”, being listed in the World’s Most Innovative Companies published by Forbes, being listed in the top of 2014 Top 50 Chinese FMCG Brands Footprint of 2014 Global Brand Footprint published by Kantar Worldpanel, a research institute. Master Kong’s instant noodle/tea drinks/bottled water was being awarded Top Brand in 2014 C-BPI published by Ministry of Industry and Information Technology for four consecutive years. Master Kong also won the “Best Product Brand Award” and the “Best Food & Beverage Brand Award” granted by the German Brands Association in March 2014.
Based on the society needs and its own needs of sustainable development, Master Kong has started the world elite universities scholarship program, and combined with the resources of Waseda University, a prestigious university in Japan with over 100 years of history, and co-operated with seven universities in the cross-strait, namely Fudan University, Shanghai Jiao Tong University, Tongji University, Zhejiang University, Shanghai University of Finance and Economics, National Taiwan University and National Chengchi University, will support outstanding students between the cross-strait to further studies. In the past decade, nearly 10,000 students in total students overseas further studied in Waseda University, and actively contributed to society. On the ground of such exchanges, Master Kong decided to co-operate with Waseda University of the scholarship program. As of the end of 2014 many students, around 314 studied in Waseda University though this scholarship program, we expect that totally over 400 outstanding students will further study in Waseda University in the future. In order to provide more opportunities to outstanding youths dedicated to study, in align with the world elite universities scholarship program, Master Kong synchronously launched the “Master Kong Creative Challenges” (dvγзsDx|) activity, in addition to such seven cooperated universities, which also offers a special selection opportunity to the youths with the characteristic of creativity to further study in Waseda University. “Master Kong Creative Challenges” (dvγзsDx|) beyond the restriction of academic results, but invite youths to raise more creative ideas about the daily events which we should concern. After the recognition from the adjudication panel which comprises with professionals, such youth can be entitled to the special selection qualification to compete for the opportunity of further study in Waseda University. The “Master Kong Creative Challenges” program has penetrated into nearly a hundred schools on both sides of the Taiwan Straits since 2010 and the number of persons involved through the online platform also reached 170 million.
From 2010 to 2014, the “New generation with creativity and sound bite” Master Kong Creative Challenge has been successfully organized for five years. The program has become a branded and alluring annual charitable event for youths. In 2014, “Master Kong Creative Challenges” (dvγзsDx|) used “Big Change with Small Charity” (pq j) as its theme. Master Kong held school speech tours in 22 cities and 33 high schools on both sides of the Taiwan Straits, which shared charitable enthusiasm, and totally collected 1,679 charitable proposals from both sides of the Taiwan Straits, involving various areas, including environmental protection, education, caring for the weak and poor, cultural protecting. At the same time, in order to assist candidates to understand charity and realize charity and to further promote their chartable thinking, Master Kong has arranged a charity training camp for a period of three days with the selected theme “a teaching of fishing skills” as the starting point. As for winners, such challenges also provided a valuable opportunity to undergo a charity exchange in America, which established a connected world platform to outstanding candidates in the challenges.
On 22 January 2015, the 4th China Charity Festival promoted by mass media was held in Beijing, which “Master Kong Creative Challenges” won “2014 Best Charity Project Award” in the 4th China Charity Festival by virtue of its outstanding project planning and implementation, arousing general media concern and warm feedback from the public. This is another Corporate Social Responsibility Communication Award won by The Master Kong Creative Challenge program after it has been confirmed of winning the “Charity Communication Award in the Best Public Relations Case Competition in China” and “ The Best CSR Communication Prize”. Such award represents a fully reorganization and affirmation from community to the efforts and contributions in respect of charity area made by Master Kong.
Salvation and helping the poverty is one of the traditional virtues. Master Kong has always committed to develop the maximum value of people oriented activities. Salvation and helping the underprivileged is one of the traditional virtues. Upholding the operation philosophy of “obtaining from the people, using on the people and repaying the society for a sustainable operation”, Master Kong has contributed an aggregated amount of RMB500 million for social charitable work such as sponsoring education, fighting floods, relieving earthquakes, relieving poverty, supporting sports activities during past years. Master Kong always upholds the philosophy of empathy, feeling how others feel, by gathering all the power of subsidiaries and proactively devoting to various social charities, so as to fulfill more social responsibilities in education, cross-strait cultural exchange and poverty relief and disaster relief work. When flood, earthquake, typhoon, blizzard struck, the local people would suffer from disaster, but relentless disaster with enthusiastic people! Being a responsible corporate citizen, Master Kong has been contributed its humble effort to property relief, disaster relief and charity, as well as actively rewarded the society, more importantly, Master Kong wishes to motivate and bring more enthusiastic people to join, in order to jointly support charity and lend a helping hand to people in disaster area and help them to get through in the most difficult time.
On 3 August 2014, Ludian, Yunnan stuck by earthquake with a moment magnitude of 6.1, Master Kong started rescue immediately. First batch of supplies was delivered to receive counter Ludian County Civil Affairs Bureau on 4 August at 17:00, which successively donated 8,100 boxes of Master Kong instant noodle, 4150 boxes of mineral water, 2000 boxes of Pepsi Aquafina and 1,000 quilts, and upfront emergency relief supplies value amounted approximately RMB780,000.
In 2014, Master Kong was being listed in the World’s Most Innovative Companies published by Forbes. In March 2014, Master Kong received the “Best Product Brand Award” and the “Best Food & Beverage Brand Award” from The German Brands Association. And being recognized the honor of the “Most Favorite Brand of University Student” for nine consecutive years. Master Kong was awarded the honor of the “2014 ‘Food Safety Cup’ Most Popular Best Ten Food Safety Enterprise”. 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.
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 largest Group for Chinese Instant Food & Beverage in the World”.