Massive product code glitches at instant noodle company Master Kong have generated over 100,000 subscribers to China’s leading internet-television company LeEco to pay as low as 0.8 yuan ($0.11) for one account on the black market, instead of the standard 15 yuan a month. The glitches happened after Master Kong and LeEco, formerly LeTV, launched a joint promotion to allow buyers of Master Kong products, including tea drinks, to get a 13-digit number for lottery draws…Full Article: Jan 2017

Key Point

  • According to an unnamed source, 100,000 LeEco memberships were sold in the black market for very low prices. In addition, more than 500,000 codes for Master Kong’s noodle products were also impacted by the reported glitch.

ChinaAg Comments

  • In January 2017, Master Kong instant noodles announced they would exit (dissolution of subsidiary) the Taiwanese market.
  • From 2010 to 2015, according to Mintel Group, Chinese retail sales of instant noodles increased by 2.2% to CNY 65.3 billion [~US$10.4 billion]. However, in 2020, sales are forecasted to decline to CNY 62.1 billion. The four companies of Tingyi Holdings (Master Kong), Uni-President, Baixiang and Jinmailang account for 80% of China’s instant noodle sales.
  • In 2014, Tingyi Holdings (Master Kong) had a 42.2% share of China’s instant noodle market. Tingyi Holdings was followed by Uni-President 13.3%, Jinmailang Food at 11.5%, Baixiang Food at 10.5%, Si Mei Te Food at 4.3%, Nissin Foods Holdings at 3.2%, Henan Nanjiecun Group at 1.5%, and Nongshim at 1.2%.
  • In October 2014, Ting Hsin International Group (parent company of Tingyi) was implicated in the Taiwan’s cooking oil scandal [mixing cooking oil and animal feed oil for retail sale]. The subsequent fallout irrevocably damaged sales of its instant noodles on the island.
  • Founded in 1992 and headquartered in Tianijn, Tingyi (Cayman Islands), subsidiary of Ting Hsin International Group (HKG:0322) is a beverage and instant noodle producer/distributor.

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