Tingyi Cayman Islands (322) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 declined 2.7% year-over-year to RMB40.092 billion, with gross margin improving by 1.9ppt to 34.5% due to cost optimization and operational efficiency gains.

• Net profit attributable to owners rose 20.5% year-over-year to RMB2.271 billion, and EBITDA increased 13.0% to RMB5.451 billion.

• Instant noodles and beverages segments both saw revenue declines but improved gross margins, with segment profits up 11.9% and 19.7% year-over-year, respectively.

• Bank balance and cash (including long-term deposits) reached RMB19.491 billion as of June 30, 2025.

• No interim dividend was declared for H1 2025.

Financial highlights

• Gross profit was RMB13.815 billion (up 2.8% year-over-year); gross margin: 34.5% (up 1.9ppt year-over-year).

• Basic EPS rose to 40.30 cents, up 6.84 cents year-over-year.

• Net cash from operating activities reached RMB3.119 billion; CapEx was RMB1,562 million for H1 2025.

• Gearing ratio improved to -35.0% as of June 30, 2025.

• Bank balance and cash (including long-term time deposits): RMB19.491 billion as of June 30, 2025.

Outlook and guidance

• The economic environment is expected to remain complex and volatile in H2 2025, with continued focus on product innovation, channel optimization, and digital transformation.

• Emphasis on sustainable development, brand strengthening among young consumers, and improving profit margins.