Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibilities for the contents of this announcement , make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement . 康師傅 控股 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 ) INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 SUMMARY RMB'000 Revenue Gross margin Gross profit of the Group EBITDA For the six months ended 30 June 2026 2025 Change 40,544,565 35.8 % 14,507,101 40,092,163 34.5 % 13,815,035 1.1 % † 1.3 ppt . 5,644,900 5,450,637 15 % 13.6 % Profit for the period 2,889,756 2,688,304 17.5 % Profit attributable to owners of the Company 2,433,042 2,271,116 7.1 % Adjusted profit attributable to owners of the Company * 2,433,042 2,111,604 † 15.2 % Earnings per share ( RMB cents ) Basic Diluted 43.16 43.15 40.30 40.28 2.86 cents 2.87 cents As at 30 June 2026 , cash at bank and on hand ( including long - term time deposits ) was RMB23,669.818 million , representing an increase of RMB4 , 183.762 million when compared to 31 December 2025. Gearing ratio was -48.6 % . * Adjusted profit attributable to owners of the Company include all profit attributable to owners of the Company with the exception of the one - off gain on disposal of specific subsidiaries , properties , plant and equipment and right - of - use assets ( " Asset Activation Programme " ) . 2026 INTERIM RESULTS The Board ( the " Board ” ) of Directors ( the " Directors ” ) of Tingyi ( Cayman Islands ) Holding Corp. ( the “ Company ” ) is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries ( the " Group " ) for the six months ended 30 June 2026 together with the comparative figures for the corresponding period in 2025. These unaudited condensed consolidated interim financial statements have been reviewed by the audit committee of the Company ( the “ Audit Committee ” ) . 1
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2 CONDENSED CONSOLIDATED INCOME STATEMENT For the Six Months Ended 30 June 2026 January to June 2026 January to June 2025 (Unaudited) (Unaudited) Note RMB’000 RMB’000 Revenue 2 40,544,565 40,092,163 Cost of sales (26,037,464) (26,277,128) Gross profit 14,507,101 13,815,035 Other revenue 151,981 150,702 Other net income 200,189 408,420 Distribution costs (9,259,994) (9,137,884) Administrative expenses (1,527,793) (1,432,206) Other operating expenses (75,093) (86,547) Finance costs 4 (157,283) (161,270) Share of results of an associate and joint ventures 129,283 118,576 Profit before taxation 4 3,968,391 3,674,826 Taxation 5 (1,078,635) (986,522) Profit for the period 2,889,756 2,688,304 Profit attributable to: Owners of the Company 2,433,042 2,271,116 Non-controlling interests 456,714 417,188 Profit for the period 2,889,756 2,688,304 Earnings per share 6 RMB RMB Basic 43.16 cents 40.30 cents Diluted 43.15 cents 40.28 cents
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3 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the Six Months Ended 30 June 2026 January to June 2026 January to June 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Profit for the period 2,889,756 2,688,304 Other comprehensive (loss) income Item that will not be reclassified to profit or loss: Fair value changes in equity instruments designated as at fair value through other comprehensive income (498) (791) Items that are or may be reclassified subsequently to profit or loss: Exchange differences on consolidation (10,626) 6,663 Cash flow hedges — (6,058) Other comprehensive loss for the period (11,124) (186) Total comprehensive income for the period 2,878,632 2,688,118 Total comprehensive income attributable to: Owners of the Company 2,423,290 2,271,907 Non-controlling interests 455,342 416,211 2,878,632 2,688,118
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4 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 At 30 June At 31 December 2026 2025 (Unaudited) (Audited) Note RMB’000 RMB’000 ASSETS Non-current assets Investment properties 1,680,600 1,699,500 Property, plant and equipment 20,711,575 21,028,894 Right-of-use assets 3,270,632 3,328,451 Intangible assets 138,541 141,961 Goodwill 97,910 97,910 Interest in an associate 103,202 100,254 Interest in joint ventures 403,016 352,484 Financial assets at fair value through profit or loss 508,952 492,943 Equity instruments designated as at fair value through other comprehensive income 145,348 145,846 Deferred tax assets 403,246 328,998 Long-term time deposits 3,770,500 5,974,100 31,233,522 33,691,341 Current assets Inventories 3,704,724 3,650,354 Trade receivables 8 2,050,235 1,410,122 Tax recoverable 33,274 28,311 Prepayments and other receivables 3,044,991 2,528,398 Financial assets at fair value through profit or loss — 119,289 Current portion of long-term time deposits 4,677,600 2,700,000 Pledged bank deposits 9,878 15,054 Bank balances and cash 15,211,840 10,796,902 28,732,542 21,248,430 Total assets 59,966,064 54,939,771
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5 CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 At 30 June At 31 December 2026 2025 (Unaudited) (Audited) Note RMB’000 RMB’000 EQUITY AND LIABILITIES Capital and reserves Issued capital 196,789 196,760 Share premium 819,730 811,642 Reserves 11,892,107 13,971,655 Total capital and reserves attributable to owners of the Company 12,908,626 14,980,057 Non-controlling interests 3,323,510 3,519,151 Total equity 16,232,136 18,499,208 Non-current liabilities Long-term interest-bearing borrowings 5,798,414 5,796,647 Lease liabilities 82,004 88,840 Employee benefit obligations 60,729 61,631 Deferred tax liabilities 1,098,668 1,135,865 7,039,815 7,082,983 Current liabilities Trade payables 9 8,589,101 7,866,217 Other payables and deposits received 14,681,531 9,474,390 Current portion of interest-bearing borrowings 11,595,000 9,226,000 Lease liabilities 114,563 123,450 Advance payments from customers 952,650 2,159,844 Taxation 761,268 507,679 36,694,113 29,357,580 Total liabilities 43,733,928 36,440,563 Total equity and liabilities 59,966,064 54,939,771 Net current liabilities (7,961,571) (8,109,150)
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6 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. Basis of preparation and accounting policies The Directors are responsible for the preparation of the Group ’s unaudited condensed consolidated interim financial statements. These condensed consolidated interim financial statements have been prepared in accordance with Hong Kong Accounting Standard ( “HKAS”) 34 “Interim Financial Reporting ”, issued by the Hong Kong Institute of Certified Public Accountants ( “HKICPA”). These condensed consolidated interim financial statements should be read in conjunction with the 2025 annual financial statements (the “2025 Annual Report”). The accounting policies adopted in preparing the condensed consolidated interim financial statements for the six months ended 30 June 2026 are consistent with those in the preparation of the Group ’s 2025 Annual Report, except for the adoption of the revised HKFRS Accounting Standards which is relevant to the Group ’s operation and is effective for the Group ’s financial year beginning on 1 January 2026 as described below. Adoption of revised HKFRS Accounting Standards Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Annual Improvements to HKFRS Accounting Standards Volume 11 Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity The adoption of revised HKFRS Accounting Standards did not result in substantial changes to the Group ’s accounting policies and amounts related for the current period and prior years. 2. Segment information Segment results For the Six Months ended 30 June 2026 Instant noodles Beverages Others Inter-segment elimination Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue Revenue from contract with customers 13,646,578 26,518,486 338,389 — 40,503,453 Timing of revenue recognition: Recognised at a point in time 13,646,578 26,518,486 338,389 — 40,503,453 Revenue from other sources: Rental income from investment properties — — 41,112 — 41,112 Inter-segment revenue 86,172 22,384 471,801 (580,357) — Segment revenue 13,732,750 26,540,870 851,302 (580,357) 40,544,565 Segment results after finance costs 1,333,914 2,540,661 (42,856) 7,389 3,839,108 Share of results of an associate and joint ventures — 129,283 — — 129,283 Profit (loss) before taxation 1,333,914 2,669,944 (42,856) 7,389 3,968,391 Taxation (330,771) (735,286) (12,578) — (1,078,635) Profit (loss) for the period 1,003,143 1,934,658 (55,434) 7,389 2,889,756
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7 2. Segment information (Continued) Segment results (Continued) For the Six Months ended 30 June 2025 Instant noodles Beverages Others Inter-segment elimination Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Revenue Revenue from contract with customers 13,401,940 26,353,819 301,720 — 40,057,479 Timing of revenue recognition: Recognised at a point in time 13,401,940 26,353,819 301,720 — 40,057,479 Revenue from other sources: Rental income from investment properties — — 34,684 — 34,684 Inter-segment revenue 63,425 4,726 390,058 (458,209) — Segment revenue 13,465,365 26,358,545 726,462 (458,209) 40,092,163 Segment results after finance costs 1,243,350 2,311,046 (4,156) 5,954 3,556,194 Share of results of an associate and joint ventures (138) 118,714 — — 118,576 Unallocated income, net — — 56 — 56 Profit (loss) before taxation 1,243,212 2,429,760 (4,100) 5,954 3,674,826 Taxation (292,150) (678,040) (16,332) — (986,522) Profit (loss) for the period 951,062 1,751,720 (20,432) 5,954 2,688,304 Segment information is prepared based on the regular internal financial information reported to the Company’s executive directors for their decisions about resources allocation to the Group ’s business components and review of these components ’ performance. The Company ’s executive directors assess the performance of reportable segments and resources allocation based on the profit (loss) for the period and the profit (loss) before taxation, share of results of an associate and joint ventures and unallocated income, net.
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8 2. Segment information (Continued) Segment assets and liabilities At 30 June 2026 Instant noodles Beverages Others Inter-segment elimination Total (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment assets 18,255,601 36,747,499 7,708,310 (3,767,314) 58,944,096 Interest in an associate — 103,202 — — 103,202 Interest in joint ventures — 403,016 — — 403,016 Unallocated assets 515,750 Total assets 59,966,064 Segment liabilities 7,921,797 23,222,573 16,227,462 (3,698,633) 43,673,199 Unallocated liabilities 60,729 Total liabilities 43,733,928 At 31 December 2025 Instant noodles Beverages Others Inter-segment elimination Total (Audited) (Audited) (Audited) (Audited) (Audited) RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 Segment assets 18,136,910 34,925,018 4,604,568 (3,679,041) 53,987,455 Interest in an associate — 100,254 — — 100,254 Interest in joint ventures — 352,484 — — 352,484 Unallocated assets 499,578 Total assets 54,939,771 Segment liabilities 8,148,722 20,350,239 11,449,993 (3,570,022) 36,378,932 Unallocated liabilities 61,631 Total liabilities 36,440,563 Segment assets include all assets with the exception of interest in an associate and joint ventures and unallocated assets which include certain financial assets at fair value through profit or loss ( “FVPL”) and equity instruments designated as at fair value through other comprehensive income ( “Designated FVOCI ”). Segment liabilities include all liabilities with the exception of employee benefit obligations. 3. Seasonality of operations Due to the seasonal nature of the beverages segment, higher revenue is usually expected in the second and third quarters. Higher sales during the period from June to August are mainly attributed to the increased demand for packed beverages during the hot season.
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9 4. Profit before taxation This is stated after charging: January to January to June 2026 June 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 Finance costs Interest on bank and other borrowings wholly repayable within five years 154,428 155,720 Finance costs on lease liabilities 2,855 5,550 157,283 161,270 Other items Depreciation 1,667,787 1,761,823 Amortisation 3,420 3,420 5. Taxation January to January to June 2026 June 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 PRC enterprise income tax Current period 1,034,117 905,075 Hong Kong profits tax Current period 4,544 1,354 Singapore corporate income tax Current period 244 263 Deferred taxation Origination and reversal of temporary differences, net (117,474) (70,567) Effect of withholding tax on the distributable earnings of the Group’s PRC subsidiaries 157,204 150,397 Total tax charge for the period 1,078,635 986,522 The Cayman Islands levies no tax on the income of the Company and the Group. For the six months ended 30 June 2026 and 2025, Hong Kong profits tax is calculated in accordance with the two-tiered profits tax regime. Under the two-tiered profits tax regime, the first HK$2 million (equivalent to RMB1,750,000) (2025: HK$2 million (equivalent to RMB1,857,000)) of profits of qualifying corporations will be taxed at 8.25% (2025: 8.25%) , and profits above HK$2 million (equivalent to RMB1,750,000) (2025: HK$2 million (equivalent to RMB1,857,000)) will be taxed at 16.5% (2025: 16.5%). For the six months ended 30 June 2026 and 2025, Singapore corporate income tax is charged at 17% (2025: 17%). The subsidiaries of the Group qualify for the Partial Tax Exemption Scheme (the “Scheme”) in which the Scheme allows for 75% (2025: 75%) tax exemption on the first SGD10,000 (equivalent to RMB54,000) (2025: SGD10,000 (equivalent to RMB55,000)) of normal chargeable income and a further 50% (2025: 50%) tax exemption on the next SGD190,000 (equivalent to RMB1,018,000) (2025: SGD190,000 (equivalent to RMB1,044,000)) of normal chargeable income. The statutory PRC enterprise income tax rate for the Group ’s PRC subsidiaries is 25% (2025: 25%) . According to the Announcement on Continuing the Enterprise Income Tax Policy for Western Development jointly issued by the Ministry of Finance ( “MOF”), the State Taxation Administration ( “STA”), and the National Development and Reform Commission ( “NDRC”) (Announcement No. 23 [2020] of MOF, STA, and NDRC), enterprises located in the Western Region of the PRC (the “Western Region”) with over 60% (2025: 60%) of principal revenue generated from the encouraged business activities are continuously entitled to a preferential income tax rate of 15% from 1 January 2021 to 31 December 2030. Accordingly, certain subsidiaries of the Group located in the Western Region are entitled to an income tax rate of 15% (2025: 15%).
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10 5. Taxation (Continued) Pillar Two model rules The Group is subject to the Global Anti-Base Erosion Model Rules ( “Pillar Two model rules ”) published by the Organisation for Economic Co-operation and Development. The Group has applied the exception to recognising and disclosing information about deferred tax assets and liabilities related to the income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two model rules, including tax law that implements qualified domestic minimum top-up taxes described in those rules (“Pillar Two income taxes”). The Company and some of its subsidiaries operate in tax jurisdictions which have enacted Pillar Two legislation. Based on the Group ’s assessment using the latest operation information of the Company and the affected subsidiaries, the effective tax rates for the purpose of Pillar Two model rules in each of those jurisdictions exceed 15% or the relevant safe harbour provisions are applicable. Thus, the Group does not expect any significant impact of Pillar Two income taxes. 6. Earnings per share a) Basic earnings per share January to January to June 2026 June 2025 (Unaudited) (Unaudited) Profit attributable to ordinary equity shareholders (RMB’000) 2,433,042 2,271,116 Weighted average number of ordinary shares (’000) 5,636,775 5,635,350 Basic earnings per share (RMB cents) 43.16 40.30 b) Diluted earnings per share January to January to June 2026 June 2025 (Unaudited) (Unaudited) Profit attributable to ordinary equity shareholders (RMB’000) 2,433,042 2,271,116 Weighted average number of ordinary shares (diluted) (’000) Weighted average number of ordinary shares 5,636,775 5,635,350 Effect of the Company’s share option scheme 1,739 2,549 Weighted average number of ordinary shares for the purpose of calculated diluted earnings per share 5,638,514 5,637,899 Diluted earnings per share (RMB cents) 43.15 40.28
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11 7. Dividend The Board of Directors does not recommend the payment of an interim dividend for the six months ended 30 June 2026 (2025: nil). 8. Trade receivables The majority of the Group ’s sales is cash-before-delivery and the corresponding cash receipt is recognised as advance payments from customers. The remaining balances of sales are mainly at credit terms ranging from 30 to 90 days (2025: 30 to 90 days) . The ageing analysis of the trade receivables (net of loss allowance) based on invoice date, at the end of the reporting period is as follows: At 30 June At 31 December 2026 2025 (Unaudited) (Audited) RMB’000 RMB’000 0 - 90 days 1,937,256 1,326,403 Over 90 days 112,979 83,719 2,050,235 1,410,122 9. Trade payables The ageing analysis of trade payables based on invoice date at the end of the reporting period is as follows: At 30 June At 31 December 2026 2025 (Unaudited) (Audited) RMB’000 RMB’000 0 - 90 days 7,917,691 6,985,425 Over 90 days 671,410 880,792 8,589,101 7,866,217 10. Approval of interim financial statements The interim financial statements of 2026 were approved by the Board of Directors on 11 August 2026.
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12 MANAGEMENT DISCUSSION AND ANALYSIS Macro and Industry Environment In the first half of 2026 (H1 2026), the domestic food and beverage industry entered a high-quality development stage of optimizing within the existing market and improving structural quality, where enterprises continued strengthening cost control to cope with fluctuations in raw material costs. On the consumers side, there was a greater emphasis on quality-price ratio and cost- effectiveness, and the demand for health-oriented products continued to be unleashed. On the channels side, business formats of instant retailing, preference-based e-commerce, and bulk snacks, etc. were rapidly expanding, coupled with the incremental growth in lower-tier markets, thus making sophisticated omnichannel operations the core competitiveness for winning the market. Results Review Faced with a complex and ever-changing market environment, the Group adhered to a consumer-centric approach and advanced the high-quality development of its two core businesses of Instant Noodles and Beverages in a coordinated manner. The pioneering spirit of “Back to Day 1 ”, established by the management team, promoted the organizational rejuvenation with younger talents and agility in decision-making, thus injecting new momentum into growth. On the strategic front, the Instant Noodles business focused on “consolidating flagship products, dominating popular flavor segments, and cultivating innovative products,” while the Beverages business implemented the strategy of “consolidating core products and developing innovative products”. On the operational front, efforts were carried out to prioritize customers and leverage data-driven and AI-powered approaches to improve operational efficiency; “Incentive Mechanism Reform ” was adopted to activate organizational vitality, thus building a system with efficiency, agility, and sustainable growth. For the first half of 2026 (H1 2026), the Group ’s revenue grew 1.1% year-on-year to RMB 40.545 billion. The revenue from Instant Noodles grew 2% year-on-year, while the revenue from Beverages grew 0.7% year-on-year. The gross profit margin grew 1.3 percentage points year-on-year to 35.8% during the period. The ratio of distribution costs to revenue remained flat compared with that of last year. EBITDA grew 3.6% year-on-year to RMB 5.645 billion; the profit attributable to shareholders of the Group grew 7.1% year-on-year to RMB 2.433 billion, driven by the year-on-year improvement in gross profit margin; basic earnings per share grew RMB 2.86 cents to RMB 43.16 cents. The table below shows the breakdown of revenues and proportion to the total revenue of the Group by product category during the reporting period: 6 Months Ended June 30 2026 2025 Change Revenue Prop. Revenue Prop. Amount Percentage (RMB in Million) (%) (RMB in Million) (%) (RMB in Million) (%) Instant Noodles Business 13,732.75 33.9 13,465.37 33.6 267.38 2.0 Beverages Business 26,540.87 65.5 26,358.55 65.7 182.32 0.7 Others 270.95 0.6 268.24 0.7 2.71 1.0 Total 40,544.57 100.0 40,092.16 100.0 452.41 1.1 Gross profit margin improved year-on-year during the period. The table below shows the breakdown of the gross profit and gross profit margin by product category during the reporting period: 6 Months Ended June 30 2026 2025 Change Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin Gross Profit Gross Profit Margin (RMB in Million) (%) (RMB in Million) (%) (%) (percentage points) Instant Noodles Business 4,166.20 30.3 3,745.34 27.8 11.2 2.5 Beverages Business 10,183.78 38.4 9,931.42 37.7 2.5 0.7 Others 157.12 58.0 138.28 51.5 13.6 6.5 Total 14,507.10 35.8 13,815.04 34.5 5.0 1.3
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13 Instant Noodles Business Revenue from the Instant Noodles business in H1 2026 was RMB 13.733 billion, with a year-on-year growth of 2%, accounting for 33.9% of the Group ’s total revenue. During the period, the gross profit margin of Instant Noodles segment grew 2.5 percentage points year-on-year to 30.3%, due to product structure adjustments. As a result of the year-on-year improvement in gross profit margin, the profit attributable to shareholders of the Group in the Instant Noodles segment grew 5.5% year-on-year to RMB 1.003 billion in H1 2026. High-Priced Noodles: Anchoring brand mindshare, Expanding across all channels to strengthen competitive barriers “Roasted Beef Noodles ” partnered with Qunar.com to deeply integrate with travel settings, capture the traffic of traveling customers with precision, and effectively drive performance growth; made continuous efforts to deepen aerospace-themed marketing and leverage aerospace patented technology to consolidate the high-quality product image of “Space-tech Chosen Noodles”. “Pickled Vegetables Beef Noodles ” collaborated with the classic cartoon characters in “Havoc in Heaven ” to evoke passions among consumers and solidify the identification of this classic national brand. The “Tomato Egg Beef Noodles ” collaborated with “BearisBug” to tie up with travel-themed healing experiences for consumption occasions, leveraging the back- to-school season for marketing and dedicating strongly into the campus customer base; simultaneously, smaller-sized products were offered to access the snack channel, driving a double-digit growth in this category. “Old Hen Soup Noodles” won the 2026 ITI International Superior Taste Award with its patented freshness-locking technology, and realized communications across communities in association with brand ambassador Zhou Shen; also dedicated to the company ’s iconic brand campaign “1m2 Heart Warming Noodle Shops ”, and established strategic partnerships with online and offline platforms such as Meituan and China Resources Mixc Lifestyle, as well as large commercial districts, to accurately reach urban white-collar and night owl groups, achieving the dual improvement in brand value and sell-through at terminals. “Super Soup Noodles ” targeted precisely the value-for-money, large-serve segment, and had successfully built consumer mindshare around the proposition of “Choose Super Soup Noodles for hearty, large-portion soup noodles ”. “PREMIUM Select” strengthened terminal penetration through diversified and dynamic materials, and granularized the operation of the membership system, continuously enhancing channel stickiness and repeat purchase contribution. “Dry Noodles ” accurately tapped into the night economy sector, secured its presence in the late-night snack consumption occasions with its “Midnight Noodle Shops” brand events, with successful conversions to performance growth. “Dried Noodles Collection ” leveraged authentic stir- fry techniques and rich mixed flavors for dried noodles to create a regional specialty noodle brand and continued expanding the overall market size of the dry noodle category. “Spicy Chicken Flavor Noodles ” adopted seven-chilli recipe to deliver an intensely satisfying differentiated experience, collaborated with classic cartoon characters from “The King’s Avatar” to deepen engagement with young demographics, accelerating gains in penetration and community influence for the turkey noodle category. Premium/Super-Premium Noodles: Driving health-orientation and product upgrades through technological innovation, Pioneering a new growth curve “Special of the Special”, as the pioneer of the fresh instant noodles category, applied a single-basket cooking process to reproduce the taste of freshly cooked noodles, steadily expanded its offline channels, and accurately reached the middle-class consumer group. With its premium flavor and craftsmanship in noodle making, it stroke a chord with consumers by offering an exceptional quality experience. “Fresh Q Noodles ”, backed by patented processing technology, boasted fresh-cooked grade springy, chewy texture, and by partnering with cartoon characters from “Non-Human” for community-focused marketing, efforts were made to keep reinforcing consumer mindshare for the “non-fried” healthy positioning and speed up the capture of incremental demand within the healthy convenience food segment. “He Noodles” leveraged advanced freshness-locking technology to deliver proper dining quality, anchored itself in the on-demand retail dining consumption occasion, built brand perception around the positioning of “Premium Noodles for Proper Meals ”, leading a product upgrading trend for the sector. “Yu-Pin Banquet” selected premium authentic ingredients to tap into the “solo-dining” market segment, starting from preference-based e-commerce and gradually penetrating into diverse offline consumption occasions, thus redefining the industry standard for high-end accessible luxury convenience food. Mid-Priced Noodles: Catering to value-for-money demand among mass consumers, Seizing the younger demographic trend to expand growth potential “Master Kong 50% Plus ” adhered to its classic core flavors and continued consolidating its foundation for market growth. “Flavored and Crunchy ” continued interacting with the cartoon characters in “My Little Pony ” to dive in with young demographics and accurately reach the core consumer group of crunchy noodles; launched a brand new flavor of caramel popcorn and offered customized products in multiple sizes to further enrich its product portfolio, and consolidated the presence in the snack channel, driving steady performance growth in this category.
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14 Beverages Business Revenue from the Beverages business in H1 2026 was RMB 26.541 billion, with a year-on-year growth of 0.7%, accounting for 65.5% of the Group ’s total revenue. During the period, through product structure adjustments, the gross profit margin of Beverages grew 0.7 percentage points year-on-year to 38.4%. Due to the year-on-year improvement in gross profit margin, the profit attributable to the shareholders of the Group grew 10.7% year-on-year to RMB 1.478 billion in H1 2026. RTD Tea: Consolidating core flagship products, Seizing the sugar-free tea segment, and Expanding innovative products The Group ’s RTD Tea business adopted a three-tiered strategy of “anchoring core flagship products + seizing the sugar- free tea segment + innovation for breakthroughs ”, covering four major consumer groups of classic tea, tea for trendy young demographics, sugar-free health drinks, and premium beverages. The core flagship “Master Kong Iced Tea” continued to solidify its mindshare of the brand equity around the theme of “Refreshing Blast,Like no other”, and maintained the momentum of stable growth in the first half of the year. The upgraded “High in Dietary Fiber” series expanded its sales area, offered seasonal/channel-limited flavors, and enhanced cooperation with customers. “KSF Energy Iced Tea ” anchored at the cross-category expansion into “functional + RTD tea ”, and pioneered a new category of natural energy products. The product used a formula of “black tea with natural caffeine + plant extracts ” to cater to the needs of young consumers for energy boosting. Positioned as a new choice for energy replenishment featuring “higher energy, better taste, and more natural ”, it accommodated the demand of low sugar and light drinking experience. The “Mint Iced Tea ” series derived flavors like “Double Mint ” and “Fivefold cool Mint ” to create an “instantly refreshing ” and invigorating experience, complementing the classic iced black tea amidst a variety of occasions. “Green Tea ” was rewarding consumers with a “instant-win another one ” campaign, boosting sell-through at retail outlets and repeat purchases mindshare among consumers. The fruit tea series, including “Green Plum Green Tea” and “Green Grape Green Tea” restaged with dual upgrades in packaging and flavors, enhancing the visual appeal of the products with Eastern aesthetics, while optimizing the formula with a 25% reduction in sugar, thus meeting consumers’ demand for light and healthy beverages. The “Jasmine” series kept anchoring the consumption mindshare of Generation Z through rejuvenated communication targeted at young demographics, integrating popular cultural trends to create an innovative combination of “grapefruit tea + honey tea ”, and rolled out content marketing through youth-centric platforms such as Bilibili and Xiaohongshu (Red Note in China) to enhance brand influence and consumers connection. The new sugar-free flavor “Jasmine White Tea ” was made from carefully selected Hengzhou jasmine buds and Fuding white peony, and was processed through six scenting processes to create a natural floral aroma and the fresh flavor of white tea; it adhered to a formula of 0 sugar, 0 sugar substitutes, 0 calories, 0 flavorings and 0 preservatives to meet consumers’ demand for healthy and high-quality tea drinks. “Descendants Of the Tea ” was positioned as a premium tea brand, continuously strengthening its differentiated competitiveness in the sugar-free tea segment. Three new premium teas were launched for the 2026 Spring Tea Season: Biluochun,Xinyang Maojian and Huangshan Maofeng, and the traction was scaled up by introducing Jinjunmei as an e-commerce exclusive in June. Leveraging the triple advantages of high-quality raw materials from premium origins, artisanal tea-making techniques, and the premium tea positioning, efforts were targeted at precision tap into both high-end gifts and personal consumption occasions. Carbonated Soft Drinks: Deepening operation of mindshare, Consolidating the execution foundation “Pepsi-Cola ” strengthened its two established long-term brand initiatives of “Bring Happiness Home ” and “Pepsi Music Academy” and rolled out occasion-based marketing with music-themed limited-edition packaging to enhance stickiness with young consumers; created the exclusive “Pepsi Selection ” meal-pairing campaign to strengthen its brand mindshare for meal- pairing; “Pepsi No Sugar ” collaborated with Disney ’s 10th anniversary IP to attract new customers and increase market penetration; “Pepsi Sheng”, based on its differentiated product positioning, leveraged its rich, bubbly taste with soccer-themed marketing campaigns to enrich its drinking occasions. “Mirinda” completed a full lineup of brand restaging, reaching young consumers through co-branded contents with the film IP of Minions; the premium “Mirinda Rich ” launched a new lemon- flavored product, perfecting its product portfolio. “7 UP” reinforced its core refreshing qualities with the annual theme of “One Week 7UP , Super Duper Refresher ”; the launch of the thermochromic medium-sized PET bottles enhanced the icy feeling and fun, and intensified the consumer interaction experience; it continued to deepen the consumption mindshare of “Happiness Calls For 7UP” by infusing it with wedding banquets, festivals and other occasions. “Sting” was positioned as Energy Soda, accurately reaching its core consumer groups, and it employed integrated online and offline marketing around daily energy boosting occasions, focused on penetrating extensively into key consumer touchpoints such as commercial districts, universities campuses, factories and corporate premises.
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15 Juices: Multi-dimensional product upgrades and iterations “The Traditional Drink ” series kept solidifying the value positioning of Chinese-style fruit juices, and focused on three dimensions of “process upgrades + sugar-reduced formulas + ingredient additions ” to enhance product differentiation. “Rock Candy Pear” focused on upgrading the slow-simmered process, infused with a sugar-reduced formula and the snow fungus to enhance the mindshare in refreshing and moistening taste; “Sweet-Sour Plum Juice” had a refreshed packaging design to enhance appetite-driven purchase conversion; “Honey Pomelo ” was upgraded with reduced sugar and the addition of honeysuckle to enhance the refreshing taste and product differentiation value, meeting consumers ’ demand for natural and light Chinese Beverages. “Master Kong Daily C series ” had upgraded “Kumquat Lemon” to “Passion Fruit Lemonlime Juice Drink ”, which used a triple fruit combination flavor of passion fruit, kumquat and lemon to tap into the high-growth mixed-flavors segment, featuring rich fruit flavor layers and a refreshing taste with reduced sugar, thus injecting a more vibrant experience for pairing with meals and daily replenishment. “Tropicana” was fully restaged, targeting the “Mixed Juices” mindshare and penetrating into all consumer groups with a differentiated product portfolio; launched the novelty product “Suan Ye” to appeal to young people; leveraged the “Tropicana Essentials 1+1” in the functional health line to cater to health trends; and it covered high-end consumer groups by the traction of Tropicana 100%. Bottled Water: Deepening penetration across consumption occasions, Expanding into various segments “Master Kong Purified Water ” continued to strengthen its penetration in community channels, and explored segmented consumption occasions, creating differentiated growth paths. “Drink Boiled Water ” came with a new specification of 200ml for children and focused on children ’s high-frequency drinking occasions, thus meeting the needs of children with its portable design for hydration at school, during sports, and in daily life; With the advantages of “boiling at over 100℃ + double filtration” technology, it strengthened its brand positioning of safe, purified, and convenient RTD water, and expanded into the children ’s drinking water market segment. “Aquafina” deepened its brand proposition of “Purity from Heart ”, drew on cultural tourism to create a differentiated brand mindshare, and integrated online and offline channels to strengthen presence in core occasions across cultural tourism, high-end hotels, catering and sports. “Aquafina Sparkling Soda Water ” completed its product upgrade around the theme of “Live light, live well”. With the healthy positioning of 0 sugar 0 fat 0 kcal, it fused with the pleasant experience of bubbles, and strengthened presence in urban boutique channels and diverse consumption occasions such as pairing with meals and mixing special drinks, consolidating its position in the light beverage market. The “pH9.0 Electrolyzed Alkaline Water ” staged a new lemon flavor, featuring a simple formula of “water + lemon extracts ”, combined with low-temperature azeotropic extraction technology to present a natural and refreshing lemon flavor; the product adhered to the concept of 0 sugar, 0 fat, and 0 sodium bicarbonate, and expanded its consumption around high-traffic dining occasions such as catering with hot pots, seafood, and group dining and gatherings, thus creating a differentiated alkaline water drinking experience. Coffee Drinks & Other Categories “Starbucks RTD Beverages” expanded its consumer base with a new product portfolio and continued strengthening its omnichannel penetration. “Starbucks Coconut Latte ” was promoted through both modern and traditional channels, penetrated into market shelves with its coconut flavor and expanded its exposure through elevator media advertising to reach a wider consumer base. “Starbucks Iced Coffee” precisely targeted its consumer groups with precision, appealing to the trends of consumption by young groups with its refreshing taste and low-calorie attributes. “Matcha Latte” successfully entered instant retail platforms such as Xiaoxiang Supermarket as a non-coffee beverage, contributing to sales growth through category expansion. “Calpis” drove occasion expansion through a specification-based portfolio construction and activated incremental potentials through flavor innovation. In H1 2026, three new products were launched based on three major directions: “expanding specifications, enriching flavors, and extending consumption occasions ”: medium-sized original flavor, medium-sized lychee flavor, and large-sized original flavor, from the Water series, catering to both solo-portion enjoyment and family sharing needs. Lychee flavor, with its highly popular tropical fruit flavor, reached non-traditional probiotics consumers, effectively driving new- to-category acquisition. The “Shennong Herbal Formula” series of plant-based beverages catered to the trend of health-conscious consumption, focused on the demand for light wellness among young consumers, built out a portfolio of Chinese-style wellness water comprising three variants: “Cool Refresh Drink ”, “Light Flow Drink ” and “Vitality Drink” Efforts were made to select premium food-medicine homologous ingredients, integrate traditional wellness philosophies with modern processing technologies, and tap into high- frequency light wellness occasions aligned with contemporary lifestyles.
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16 “Gatorade” committed to extensive presence across occassions of core sports such as basketball and soccer, and created the “G-Challenge ” event to penetrate into mass consumers broadly; In 2026, it refined the Gatorade Daily Hydration series to differentiate itself from the sports series and further improved its hydration product portfolio. “Propel” was an innovation created as a new category of sparkling electrolyte water featuring “Triple Supplement 3-in-1, Refreshing & Revitalizing ”, seizing the new occasions of daily hydration among young people. Financial Operation The Group has actively promoted the digital transformation of finance, consolidated the internal control system, established a risk prevention and control mechanism adapted to the digital environment by building a shared financial service center, and gradually moved towards the integration of business and finance, which has strongly supported the strategic implementation and sustainable development of the Group; at the same time, with pursuit of a prudent cash strategy, it has been characterized with proficient control of capital expenditures and effective promotion of asset activation, and is expected to generate stable net cash inflows. During the period, the Group generated a net cash inflow of RMB3.337 billion from operating activities and a net cash outflow of RMB1.675 billion from investing activities. The net cash inflow from financing activities was RMB1.632 billion. As a result, the net growth in bank balance and cash (including long-term time deposits) was RMB4.184 billion. The Group continued to maintain a robust financial structure through effective control on the trade receivables, trade payables and inventories, with sufficient cash holdings. As of June 30, 2026, the Group’s bank deposits and cash (including long-term time deposits) amounted to RMB 23.670 billion, with a growth of RMB 4.184 billion versus December 31, 2025. As of June 30, 2026, the Group’s interest-bearing borrowings amounted to RMB 17.393 billion, with a growth of RMB2.371 billion versus December 31, 2025. The net cash totaled RMB 6.276 billion, with a growth of RMB 1.813 billion versus December 31,2025. At the end of the period, the ratio of borrowings denominated in foreign currency to RMB was 0%:100%, versus 0%:100% at the end of the previous year. The ratio of long-term to short-term borrowings was 33%:67%, versus 39%:61% at the end of the previous year. As of June 30, 2026, the Group ’s total assets and total liabilities registered RMB 59.966 billion and RMB 43.734 billion, respectively with a growth of RMB 5.026 billion and RMB 7.293 billion versus December 31, 2025; The debt ratio was 72.9%, up by 6.6 percentage points versus December 31, 2025; The gearing ratio improved from -29.8% as of December 31, 2025 to -48.6% in the current period. Financial Ratios Jun. 30th Dec. 31st 2026 2025 Turnover of Finished Goods 14.6 Days 16.3 Days Turnover of Trade Receivables 7.7 Days 6.9 Days Current Ratio 0.8 times 0.7 times Debt ratio (Total liabilities to Total assets) 72.9% 66.3% Gearing ratio (Net borrowings to shareholders’ equity)1 -48.6% -29.8% Human Resources The Group had 59,096 employees, as of June 30, 2026. Faced with a complex economic landscape and market competition, the Group follows the tenet of “Striving for Prominence from Excellence ”, upholds a long-term mindset, elevates the modern talent development system to a top-level strategy, and builds a youthful organization and digital-intelligent infrastructure tailored to its full spectrum of businesses. With human capital appreciation at the core, the Group comprehensively aligns management succession planning with high-potential talent pipeline development, thus unlocking organizational vitality via talent echelon construction and cross-functional rotation opportunities; the Group improves workforce productivity, consolidates internal talent development foundations, facilitates talent channels open for both internal promotions and external recruitments, embeds diversity principles to empower innovation, and strengthens organizational resilience to navigate shifting landscapes in operation. The talent strategy focuses on three major directions of diversification, youthfulness, and internationalization. In 2026, the Leadership Empowerment Center has adopted a business-oriented tailored development approach to strengthen managers ’ competencies in business operation, strategy and team leadership; efforts have been made to upgrade the talent training system via curriculum iteration, improved internal trainers mechanism and online learning platform operations to foster versatile professionals. On the basis of strengthening the closed-loop management of “competency-performance-growth”, the “integration of training and practice” and The Coach-Facilitator-Mentor Mechanism have been introduced to drive growth through real-world practice to achieve win-win outcomes for employees and the enterprise. 1 Long-term time deposits were also taken into account for the calculation of the Group ’s gearing ratio, as management believed that this basis of calculation reflected the Group’s capital structure more accurately.
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17 Efforts have been continuously made to strengthen the talent echelon by enhancing organizational effectiveness. New strategic cooperation agreements have been executed with a number of universities so far this year, building an end-to-end talent development ecosystem spanning “partnership, training, internship and employment ”. Nearly 1,500 university students were provided with internship and full-time positions in H1 2026. The “Fertile Soil Program ” has been promoted to elevate the academic credentials of frontline talent pipelines and ensure a steady supply of high-quality talent to the business. In terms of industry-university-research collaboration, the diversified cooperation has been enhanced with top-tier universities, including Peking University, Tsinghua University, Shanghai Jiao Tong University, Stanford Graduate School of Business, Harvard Business School, Waseda University, and New York University, etc. Through long-term investments such as scholarships, student grants, and endowed professorships, the synergistic value for integrated industry sustained, academia and research development has been produced. The digital-intelligent development of human resources has been advanced with two core priorities in parallel: employees ’ experience and management effectiveness. On the employees’ experience front, a unified HR portal covering 8 core modules and 15 applications has been launched to deliver one-stop HR services; the development of an HR knowledge base has been initiated to continuously accumulate data assets including policies, workflows and regulations, etc. On the management efficiency front, Lark has been deployed to build cross-dimensional data dashboards, covering talent pool, bonus calculation and others. The dashboards have provided real-time visual insights to support corporate decision-making, boosting management efficiency and accuracy. Corporate Social Responsibility The Group firmly believes that “sustainable development is good development ”, remains committed to the sustainable development concept of “Keep Our Nature Green ”, leads the construction of an ecosystem of sustainable development with the spirit of “Back to Day 1 ”, upholds the cornerstone of nutrition, health and quality safety, promotes the green transformation of the entire industry chain, cultivates new quality productive forces through technological innovation, and demonstrates its commitment to shoulder the responsibility and contributes to people ’s livelihoods through public welfare. All various initiatives and practices have won widespread recognition. Food Safety as the Cornerstone of Health In alignment with the “Healthy China ” Initiative and with a zero-tolerance approach to food safety remains firmly in place, we continuous optimize food safety management across the entire industry chain. Proprietary space-grade temperature control technologies have been integrated into production processes, alongside ongoing product reformulation to reduce sugar, fat, and sodium, while increasing nutritional components. New health-oriented products, including the “Reduced-Calorie High-Fiber Roasted Beef Noodles ” and “KSF Energy ICED TEA ”, were introduced to accommodate consumers ’ growing demand for premium and diversified healthy dietary options. Caring for People’s Wellbeing from a Strong Sense of Responsibility Close attention was paid to evolving social needs, with proactive fulfillment of corporate social responsibilities. Emergency relief efforts were mobilized in response to earthquakes and extreme weathers across Guangxi, Guangdong, Hubei, Liaoning, and Zhejiang, with “emergency rescue vehicles ” deployed to deliver relief supplies at the earliest opportunity. The “Education on Water” public welfare initiative was completed for the 12th consecutive year, food safety and aerospace science knowledge popularization activities were also conducted. “1 m2 Warm Hearted Noodle Restaurants ” were set up in core urban areas to provide hot noodle soup and beverages to outdoor workers. Support was also extended to campus sports programs and sporting events across multiple regions, promoting a healthy lifestyle of “balanced eating and moving”. Green Collaboration for a Sustainable Future The “economic-ESG ” philosophy was put into practice through the coordinated advancement of green, low-carbon, and ecological synergies. Internally, photovoltaic capacity and green power procurement were expanded, while equipment upgrades and process optimization continued to drive energy savings and emission reductions throughout the industry chain. Packaging material reduction initiatives, including optimizations in PET bottles, were advanced to minimize waste generation. Externally, the inaugural Sustainable Development Ecosystem Conference was co-hosted with over 50 partners to foster a “pragmatic, collaborative, and long-term ” industrial ecosystem. Joint water replenishment projects for watersheds and basins were also carried out with industry peers to improve regional water ecology. We took a stage at Shanghai International Carbon Neutrality Expo 2026 during the Energy Conservation Publicity Week and showcased achievements in low-carbon technologies and circular economy. These sustainability practices were widely recognized: the Group was named to the S&P Global Sustainability Yearbook (China) for the second consecutive year, with the CSA score ranking in the top 10% of the global food industry; the Group was listed on the 2026 Most Admired Chinese Companies Industry Stars List by Fortune; the inaugural Sustainable Development Ecosystem Conference received carbon neutral event certificate, and the Master Kong Pavilion was honored the title of “ Practice Base for the High-Quality Development of Innovative Ecosystem Brands”.
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18 Prospects Looking ahead to the second half of the year, macroeconomic uncertainties still persist, while the trends of industrial upgrading and digital transformation continue to deepen, presenting development opportunities amid ongoing pressures. The Group remains committed to the long-term principle of prudent operations, leveraging organizational efficiencies driven by youth-oriented and digital intelligence enabled management to stay focused on core businesses and drive high-quality development. The Group will make consistently advance sustainable development, firmly uphold the bottom line of food safety, and extensively collaborate with partners across the industry chain to build a healthy ecosystem that reinforces the strengths of a leading national brand. The Group aspires to achieve robust and improved annual results and consistently deliver sustainable values to consumers, shareholders, and society. CORPORATE GOVERNANCE We have, during the six months ended 30 June 2026, complied with the code provisions of the Corporate Governance Code (the “CG Code”) as set out in Appendix C1 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), except for the deviation from code provision B.2.2. According to code provision B.2.2, each director (including those with a specific appointment period) shall be subject to retirement by rotation at least once every three years. According to the Company ’s Memorandum and Articles of Association, the chairman of the Board is not subject to retirement by rotation. He is not included in the number of directors who are required to retire each year. The Board believes that the continuity of the leadership of the chairman of the Board is critical to the stability of the Group ’s development and the planning, formulation and implementation of long-term strategies and business plans. Accordingly, the Board considers that although the provisions of the above rules deviate from Code Provision B.2.2, it is in the best interests of the Company. We will periodically review and improve our corporate governance practices with reference to the latest corporate governance developments. Directors’ Responsibility for the Financial Statements The Directors acknowledge their responsibility for preparing the financial statements of the Group. With the assistance of the Finance and Accounting Department which is under the supervision of the Chief Financial Officer of the Company, the Directors ensure that the preparation of the financial statements of the Group is in accordance with statutory requirements and applicable accounting standards. The Directors also ensure that the publication of the financial statements of the Group is in a timely manner. Audit Committee The Audit Committee currently has three Independent Non-executive Directors, Mr. Hsu Shin-Chun, Mr. Masaya Tochio and Mr. Man Mo Leung. Mr. Hsu Shin-Chun acts as Chairman of the Audit Committee. The latest meeting of the Committee was held to review the results of the Group for the period under review. Risk Management and Internal Control The principal spirit of the internal control and risk management procedures established by the Group is in compliance with five elements in the COSO structure, i.e. control environment, risk assessment, control activities, information and communication, and monitoring. The goal of risk management is to keep the overall risk of the Group within acceptable levels and to lay a good foundation for the Group’s long-term development. Meanwhile, it can achieve the goal of defining the management structure and authorization so as to enhance the operational performance and efficiency as well as asset safety protection, which ensures the reliability of financial reports while complies with the requirements of national regulations. Under the supervision of the Board, the Group has established an organization structure, responsibility and authority in the construction of three lines of defense for risk management. The Audit Committee will assist the Board to review the design and operation effectiveness of the risk management and internal control system of the Group. As of 30 June 2026, the Group has been carrying out self-assessment of internal control where a prudent and effective self-inspection system has been established to achieve full coverage of external and internal inspection on each aspect thought the management circle. Meanwhile, more efforts have been put in supervision over subsidiaries where management regulations have been formulated with a priority to processes of higher risk. In addition, the Group has been promoting the monitoring work in respect of laws and regulations, anti-fraud and the construction of internal control culture. According to the internal audit, we have not identified any material deficiency in risk management and internal control. Therefore, the Board and the Audit Committee believe that the Group ’s risk management and internal control system are effective.
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19 Model Code for Directors’ Securities Transactions The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules. All Directors have confirmed, following specific enquiry by the Company, that they fully complied with the required standards as set out in the Model Code throughout the reporting period. PURCHASE, SALE OR REDEMPTION OF SHARES There were no purchases, sales or redemptions of the Company ’s shares by the Company or any of its subsidiaries during the period under review. SHARE OPTION SCHEME At the extraordinary general meeting (the “EGM”) of the Company held on 20 March 2008, the shareholders approved the adoption of the share option scheme (the “2008 Share Option Scheme”), with a term of ten years from the date of adoption. In view of the expiry of the 2008 Share Option Scheme, the shareholders of the Company adopted the new share option scheme (the “2018 Share Option Scheme”) at the EGM held on 26 April 2018, with a term of ten years from the date of adoption. (a) 2008 Share Option Scheme During the six months ended 30 June 2026, no share options were granted by the Company in accordance with the terms of the 2008 Share Option Scheme. The terms of the 2008 Share Option Scheme are in accordance with the provisions of Chapter 17 of the Listing Rules. Detailed arrangement for the 2008 Share Option Scheme is shown as below: (Table A) Date of grant Number of share options granted Exercisable period Exercise price (HK$) 20 March 2008 11,760,000 21 March 2013 to 20 March 2018 (1) $9.28 22 April 2009 26,688,000 23 April 2014 to 22 April 2019 (2) $9.38 1 April 2010 15,044,000 1 April 2015 to 31 March 2020 (3) $18.57 12 April 2011 17,702,000 12 April 2016 to 11 April 2021 (4) $19.96 26 April 2012 9,700,000 26 April 2017 to 25 April 2022 (5) $20.54 27 May 2013 11,492,000 27 May 2018 to 26 May 2023 (6) $20.16 17 April 2014 12,718,500 17 April 2019 to 16 April 2024 (7) $22.38 5 June 2015 17,054,000 5 June 2020 to 4 June 2025 (8) $16.22 4 July 2016 10,148,000 4 July 2021 to 3 July 2026 (9) $7.54 21 April 2017 11,420,000 21 April 2022 to 20 April 2027 (10) $10.20 The share options will be vested either after five years from the date of grant or immediate upon attainment of the retirement age as specified in the 2008 Share Option Scheme.
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20 The summary below sets out the details of movement of the share options during the six months ended 30 June 2026 pursuant to the 2008 Share Option Scheme: (Table B) Number of share option Name Date of grant Vesting period Exercise price Closing price of the shares on the date of grant Balance as at 1 January 2026 Granted during the year Exercised during the year Cancelled during the period Lapsed during the period Balance as at 30 June 2026 Weighted average closing price immediately before exercise Notefrom to HK$ HK$ HK$ Executive Director Wei Hong-Ming 21 April 2017 21 April 2017 20 April 2022 10.20 10.20 1,000,000 — — — — 1,000,000 — Table A (10) Wei Hong-Chen (note) 21 April 2017 21 April 2017 20 April 2022 10.20 10.20 1,000,000 — — — — 1,000,000 — Table A (10) Other employees in aggregate 4 July 2016 4 July 2016 3 July 2021 7.54 7.54 770,000 — 700,000 — — 70,000 11.94 Table A (9) 21 April 2017 21 April 2017 20 April 2022 10.20 10.20 3,800,000 — 170,000 — — 3,630,000 12.70 Table A (10) Total 6,570,000 — 870,000 — — 5,700,000 Note: Mr. Wei Hong-Chen, an executive Director of the Company, was appointed as the CEO of the Company, with effect from 1 January 2026. During the six months ended 30 June 2026, 870,000 options had been exercised under the 2008 share option scheme. Weighted average exercise price was HK$8.06 and the weighted average market closing price before the date of exercise was HK$12.09. During the six months ended 30 June 2026, no share options were cancelled or lapsed under the terms of the 2008 Share Option Scheme. In view of the expiry of the 2008 Share Option Scheme, the number of options available for grant under the scheme mandate as at 1 January 2026 and 30 June 2026 was both zero. (b) 2018 Share Option Scheme The terms of the 2018 Share Option Scheme are in accordance with the provisions of Chapter 17 of the Listing Rules. Detailed arrangement for the 2018 Share Option Scheme is shown as below: (Table C) Date of grant Number of share options granted Exercisable period Exercise price (HK$) 27 April 2018 2,478,000 30 April 2021 to 26 April 2028 (1a) $16.18 27 April 2018 5,626,000 30 April 2021 to 26 April 2024 (1b) $16.18 The share options will be vested after three years from the date of grant.
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21 The summary below sets out the details of movement of the share options during the six months ended 30 June 2026 pursuant to the 2018 Share Option Scheme: (Table D) Number of share option Name Date of grant Vesting period Exercise price Closing price of the shares on the date of grant Balance as at 1 January 2026 Granted during the year Exercised during the year Cancelled during the period Lapsed during the period Balance as at 30 June 2026 Weighted average closing price immediately before exercise Notefrom to HK$ HK$ HK$ Executive Director Wei Hong-Ming 27 April 2018 27 April 2018 29 April 2021 16.18 15.02 385,000 — — — — 385,000 — Table C (1a) Wei Hong-Chen (note) 27 April 2018 27 April 2018 29 April 2021 16.18 15.02 385,000 — — — — 385,000 — Table C (1a) Other employees in aggregate 27 April 2018 27 April 2018 29 April 2021 16.18 15.02 1,708,000 — — — — 1,708,000 — Table C (1a) Total 2,478,000 — — — — 2,478,000 — Note: Mr. Wei Hong-Chen, an executive Director of the Company, was appointed as the CEO of the Company, with effect from 1 January 2026. During the six months ended 30 June 2026, no share options were exercised, cancelled or lapsed under the terms of the 2018 Share Option Scheme. The number of options available for grant under the 2018 Share Option scheme mandate as at 1 January 2026 and 30 June 2026 was both 409,878,736. BOARD OF DIRECTORS As at the date of this report, Mr. Wei Hong-Ming, Mr. Junichiro Ida, Mr. Wei Hong-Chen, Mr. Koji Shinohara, Mr. Yuko Takahashi and Ms. Tseng Chien are Executive Directors. Mr. Hsu Shin-Chun, Mr. Masaya Tochio and Mr. Man Mo Leung are Independent Non-executive Directors. By Order of the Board Wei Hong-Ming Chairman Hong Kong, 11 August 2026 Website: http://www.masterkong.com.cn http://www.irasia.com/listco/hk/tingyi * For identification purpose only