Ting Hsin Food

Master Kong Beverage Investment Co., Ltd. has been engaged in the production and sales of beverages since 1996, and has gradually become a household name among Chinese consumers. In 2020, Master Kong's ready-to-drink tea sales market share reached 43.6%, continuing to hold the top position in the market. Master Kong's juice products had a market share of 17.3%, and packaged water sales market share was 5.7%. There are 29 provincial-level sales companies and 72 production sites nationwide. As of the end of 2020, the company had approximately 22,000 employees. Master Kong Beverage, guided by the business philosophy of integrity, pragmatism, and innovation, advocates that employees possess a work attitude of quick response, scientific cooperation, hard work, and proactive responsibility, and takes law-abiding, mutual respect, integrity, and diligence as employees' professional ethics, encouraging employees to achieve professionalism and specialization, pursue excellence, and make good use of collaboration on their individual career development paths. In the future, Master Kong will continue to deepen strategic alliances with international partners such as Starbucks and Disney, as well as cooperation with distributors. With the development of channel diversification and in response to consumption upgrading, through deep channel cultivation and product innovation, the company will continue to advance product structure adjustment, focusing on core categories and products to meet mass consumer demand. At the same time, Master Kong will make more proactive improvements in corporate governance and continue Master Kong's contributions to society, fulfilling the social responsibilities and obligations that an enterprise should fulfill. In cooperation with universities, it has carried out research on the "Crop Active Protection System", benefiting 40 million farmers; it built the "Kangbanuoer Friendly Vegetable Base", guiding suppliers and controlling food safety at the source. To date, Master Kong has for several consecutive years responded to the association's joint organization of water education activities, entering primary schools in many cities such as Shanghai, Beijing, Hangzhou, Tianjin, and Zhengzhou. In 2018, Master Kong was awarded the Guinness World Record title of "Retail Sales of Ready-to-Drink Tea" with retail sales of 3,530,100,000 liters (more than 3.53 billion liters) in 2018. On October 16, 2019, at the "2019 Interface New Consumption Forum" hosted by Jiemian News under Shanghai United Media Group and jointly supported by Fudan University School of Management, Nielsen, iResearch, and Oliver Wyman, Master Kong Beverage received dual recognition from academia and industry and was named "China Assurance Award Annual Consumer Goods Enterprise". Master Kong Beverage won the "2019 Annual Public Welfare Communication Award" at the 9th China Public Welfare Festival, among which the Water Education Project was awarded the "2019 Annual Public Welfare Project Award". Factories under the beverage system "Kangbai Alliance", formed by Master Kong and PepsiCo, have won multiple water-saving and energy-saving awards for several consecutive years. Wuhan Ting Hsin Food Co., Ltd. is a subsidiary of Master Kong Beverage Holdings Co., Ltd. It was founded on March 28, 1996, and is located in Wuhan Economic and Technological Development Zone, a thoroughfare to nine provinces, covering an area of 120,000 square meters, with a building area of approximately 48,000 square meters. The company has registered capital of USD 73.5 million and total investment of USD 153 million. The company mainly produces "Master Kong" series beverages; it is responsible for production and sales in the three provinces of Central China, and currently has nearly 3,000 employees in total. We hope that consumers, partners, employees, and shareholders can continue to support Master Kong, create a sustainable corporate operating environment, and join hands toward a longer-term and broader future.