Tingyi Cayman Islands : PRESENTATION ON 2020 INTERIM RESULTS

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

TINGYI (CAYMAN ISLANDS) HOLDING CORP.

康 師 傅 控 股 有 限 公 司*

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 0322)

PRESENTATION ON 2020 INTERIM RESULTS

A presentation in relation to the results of Tingyi (Cayman Islands) Holding Corp. and its subsidiaries for the Interim Results for the Six Months ended 30 June 2020 is appended to this announcement.

By order of the Board

Tingyi (Cayman Islands) Holding Corp.

Ip Pui Sum

Company Secretary

Hong Kong, 24 August 2020

As at the date of this announcement, Mr. Wei Hong-Ming, Mr. Junichiro Ida, Mr. Wei Hong-Chen, Mr. Koji Shinohara, Mr. Yuko Takahashi and Ms. Tseng Chien are executive Directors of the Company. Mr. Hsu Shin-Chun, Mr. Lee Tiong-Hock and Mr. Hiromu Fukada are independent non-executive Directors of the Company.

* For identification purposes only

website: http://www.masterkong.com.cn http://www.irasia.com/listco/hk/tingyi

Tingyi Holding Corp.

1H2020 Interim Results

24 August 2020

Disclaimer

The information contained in this presentation is intended solely for your personal reference. Such information is subject to change without notice and no representation or warranty express or implied is made as to, and no reliance, should be placed on, the fairness, accuracy, completeness or correctness of the information contained in this presentation. This presentation does not intend to provide, and you may not rely on this presentation as providing, a complete or comprehensive analysis of the Company's financial or trading position or prospects. None of the Company nor any of its respective affiliates, advisors or representatives shall have any liability (in negligence or otherwise) whatsoever for any loss or damage howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation contains projections and forward-looking statements that may reflect the Company's current views with respect to future events and financial performance. Readers are cautioned not to place undue reliance on these forward-looking statements which are subject to various risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This presentation does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments or the provision of any investment advice, and no part of it shall form the basis of or be relied upon in connection with any contract, commitment or investment decision in relation thereto, nor does this presentation constitute a recommendation regarding the securities or financial instruments of the Company.

2	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Financial Highlights

RMB in Million	1H2020	1H2019	YOY
Revenue	32,934	30,495	8.00%
Gross Profit	11,010	9,736	13.08%
Gross Margin	33.43%	31.93%	1.50ppt
EBITDA	5,167	4,154	24.37%
Net Profit	2,653	1,802	47.26%
Profit Attributable to	2,380	1,503	58.37%
Owners of the Company
Net Margin	7.23%	4.93%	2.30ppt
EPS (cents)	42.33	26.74	15.59cents

3	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Revenue by Segment

Business Review

Revenue by Segment

		Revenue Change				Revenue Structure
		1H2020 Vs. 1H2019				1H2020 Vs. 1H2019
35,000							RMB in
30,000
						Million
		14,910
25,000			11,544			45.27%	37.85%
							Instant
20,000
15,000							Noodles
10,000		17,617		18,367		Beverages	53.49%	60.23%
5,000		407		584		Others		1.24%		1.92%
0
		1H2020	1H2019				1H2020	1H2019
		Revenue Change				Revenue Structure
RMB in Million	1H2020	1H2019	YOY		1H2020	1H2019	YOY
Instant Noodles	14,910	11,544	29.16%		45.27%	37.85%	7.42ppt
Beverages	17,617	18,367	-4.09%		53.49%	60.23%	-6.74ppt
Others		407	584		-30.22%		1.24%	1.92%	-0.68ppt
Total		32,934	30,495	8.00%		100%	100%

4	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Instant Noodle Revenue by Product

1H2020

Mid end Snack Noodle

	Packet	& Others
	8%
Business Review	1%
Revenue by		Bowl
	46%

	1H2019
Mid end	Snack Noodle
Packet	& Others
1%
9%

Bowl

Product	High end
Packet
	45%

High end

Packet 40%

50%

RMB in Million	1H2020
Bowl	6,824
High end Packet	6,797
Mid end Packet	1,183
Snack Noodle & Others	106
Total	14,910

1H2019YOY

5,74918.71%

4,59847.84%

1,1156.16%

8227.35%

11,54429.16%

5	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Beverage Revenue by Product

1H2020

1H2019

Business Review	38%
	CSD & Others	Tea
		41%

Revenue by

Product

JuiceWater

12%9%

RMB in Million

1H2020

Tea7,241

Water1,542

Juice2,129

CSD & Others

6,705

Total17,617

CSD & Others

34%

Juice

13%

1H2019

8,137

1,689

2,344

6,197

18,367

Tea

44%

Water

9%

YOY

-11.01%

-8.71%

-9.20%

8.20%

-4.09%

6	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Net Profit

Business Review

Net Profit

RMB in Million

3000
2500
2000
1500
1000
500
0
17H1	17H2	18H1	18H2	19H1	19H2	20H1
		Total	Instant Noodles	Beverages
RMB in Million		1H2020		1H2019		YOY
Instant Noodles		1,694		875		93.67%
Beverages		1,111		1,011		9.92%
Others		-152		-84		-81.26%
Total		2,653		1,802		47.26%

7	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Profit Attributable to Owners of the Company

Business Review

Profit Attributable

to Owners of the

Company

RMB in Million

2500

2000

1500

1000

500

0

17H1	17H2	18H1	18H2		19H1	19H2	20H1
			Total		Instant Noodles			Beverages
RMB in Million			1H2020		1H2019		YOY
Instant Noodles			1,694		875		93.54%
Beverages			838		706		18.73%

Others	-152	-78	-94.06%
Total	2,380	1,503	58.37%

8	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Gross Margin

Business Review

Gross Margin %

Gross Margin %

37

35

33

31

29

27

25

17H1	17H2	18H1	18H2		19H1	19H2	20H1
			Total		Instant Noodles			Beverages
%			1H2020		1H2019		YOY
Instant Noodles			30.35		28.16		2.19ppt
Beverages			35.78		34.24		1.54ppt
Others			44.53		33.66		10.87ppt
Total			33.43		31.93		1.50ppt

9	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

EBIT Margin

Business Review

EBIT Margin %

EBIT Margin %

15

10

5

0

17H1	17H2	18H1	18H2		19H1	19H2	20H1
			Total		Instant Noodles			Beverages
%			1H2020		1H2019		YOY
Instant Noodles			14.20		9.51		4.69ppt
Beverages			8.11		7.40		0.71ppt
Others			6.37		9.28		-2.91ppt
Total			10.85		8.24		2.61ppt

10	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

ROA and ROE Up due to Profit Growth

Business Review

Financial Index

RMB in Million

ROA

(Annualized)

ROE

(Annualized)

Current Ratio

Gearing Ratio

A/R Turnover/Days

Finished Goods Turnover/Days

1H2020	1H2019	YOY
11.74%	9.25%	2.49ppt
25.02%	15.67%	9.35ppt
0.86	0.86	0.00
-45.62%	-33.08%	-12.54ppt
9.48	11.30	-1.82days
17.90	14.23	3.67days

11	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Material Price Index

1H/17=100
140
130
120
110				108
100				96		93
90						92
					84
80				77
					80
70				74
60
17H1	17H2	18H1	18H2	19H1	19H2	20H1
		PET Resin	Palm Oil	Flour	Sugar

12	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.

Nation-Wide Distribution Network

	As at 30/6/2020	As at 31/12/2019
* Sales Office	367	371
Warehouse	203	182
Wholesaler	41,648	36,186
Direct Retailer	188,446	185,789

* Sales Office: The statistics are based on middle-sized sales units located in prefecture-level cities

Production Lines

Instant Noodles	163	165
Beverages	408	425
Others	13	14

13	©2020 Tingyi(Cayman islands)Holding Corp., All right reserved.