Most of the Company's products are labeled with the trademark "Master Kong", which has long been a household name in China with a brand value of approximately US$412 million. At present, the Company's three major products have all taken a leading position in China's foodstuff market. According to acnielsen's retail market research report of December 2006, the Company's market share of instant noodle sales is as high as 43.3%, which is three times that of the second-ranked company in the industry, with a sales volume of more than 8.1 billion packets, and in recent years, the Company has launched its "Fumando" series of low-cost noodles, which have been expanded to the vast rural market. It is the world's largest producer and seller; Master Kong's tea drinks has also become the No. 1 brand of tea drinks in China, with a market share of 53.6%, and the market share of juice drinks has reached 17.3%, which is one of the top three brands in the market; the company continued to promote to the pure water market in 2006, and the market share of Master Kong's mineral water has reached 12.7%, which is ranked No. 2 in the market, and the expected revenue at the end of 2007 is expected to exceed that of other companies. The company will continue to push into the purified water market in 2006, with a market share of 12.7%, ranking second in the market, and is expected to surpass its peers in terms of revenue by the end of 2007, and become the market leader.
The Company distributes its products through its own nationwide sales network, which as at the end of December 2006*** consisted of 437 sales offices and 80 warehouses serving 5,490 distributors and 73,392 directly-operated retailers. The well-connected and efficient marketing network and after-sales service are the main reasons for the high market leadership of the Company's products, which also facilitates the timely and rapid introduction of new products to the market. In addition to the rapid development of its main business, the company is also focusing on the food distribution business, continuing to strengthen its logistics and sales systems, with a view to integrating resources and building the world's largest Chinese convenience food and beverage group.
As a leader in the mainland food industry, the company not only provides consumers with high-quality, safe and delicious food and contributes investment value to investors, but also focuses on social welfare and fulfills its corporate social responsibility. For more than a decade, the company has invested more than RMB 200 million in public welfare in mainland China, covering various aspects of public welfare, including sports, basic education, medical care, assistance to the disabled, disaster relief, poverty alleviation, cross-strait cultural exchanges, and other public welfare endeavors. In the future, the company will continue to promote cross-strait economic, cultural and public welfare exchanges through the "Ting Hsin (Master Kong) Cultural and Educational Foundation", and initiate the formation of a domestic association of instant noodle companies to strengthen the industry's self-regulation, boost the industrial environment, and ****tu the development of the industry.