Revenue Performance - Revenue for the three months ended March 31, 2025, was HKD 1,071,933, an increase of 11.3% compared to HKD 963,015 for the same period in 2024[3] - The company's revenue for the period reached HKD 1,071.9 million, an increase of 11.3% compared to HKD 963.0 million in the same period of 2024[13] - Revenue from Hong Kong and other regions was HKD 401.4 million, while revenue from mainland China was HKD 670.6 million, contributing to the overall revenue growth[15] - The company experienced a 15.2% increase in revenue from Hong Kong and other regions, driven by strong performance across various sectors[13] - The company aims to expand sales in inland regions of China, contributing to a 9.1% increase in revenue from mainland China[13] Profitability - Gross profit for the same period was HKD 376,054, representing a gross margin of 35.1%, up from HKD 346,586 and a margin of 36.0% in 2024[3] - Gross profit for the period was HKD 376.1 million, up 8.5% from HKD 346.6 million in 2024, with a gross profit margin of 35.1%[17] - Net profit for the three months ended March 31, 2025, was HKD 111,667, a decrease of 6.3% from HKD 119,252 in 2024[3] - The profit attributable to the company's owners was HKD 110.0 million, a decrease of 6.7% from HKD 117.9 million in 2024[18] - Basic and diluted earnings per share for the period were HKD 10.54, down from HKD 11.30 in the previous year[3] - Adjusted EBITDA increased by 9.2% to HKD 201.5 million, with an adjusted EBITDA margin of 18.8%[19] Assets and Equity - Total assets as of March 31, 2025, were HKD 3,923,897, an increase from HKD 3,813,905 as of December 31, 2024[4] - Current assets decreased to HKD 2,409,421 from HKD 2,419,909, with cash and cash equivalents at HKD 1,068,124[4] - Total equity attributable to owners of the company increased to HKD 3,746,848 from HKD 3,620,162[5] - The company reported a decrease in trade payables to HKD 150,610 from HKD 174,117[4] Strategic Focus - The company continues to focus on expanding its product offerings in the frozen food and beverage segments[6] - The company is committed to maintaining its market position and exploring potential acquisitions to enhance growth opportunities[6] - The company has redefined its operating segments to include Hong Kong and other regions, mainland China, and headquarters, enhancing the relevance of segment reporting[13] - The company has independently accounted for relevant costs managed by headquarters to provide more relevant segment presentations[13] - The company does not recommend the payment of any dividends for the current period, consistent with the previous period[12]

Financial Performance - In 2024, the Group's revenue was HK$3,811.9 million, remaining almost flat year-on-year despite challenges, with a notable 8.4% year-on-year sales growth in the fourth quarter driven by instant noodles[17][20]. - Gross profit increased by 0.7% year-on-year to HK$1,312.1 million, with the gross profit margin improving from 34.0% to 34.4%[18][21]. - Net profit attributable to shareholders decreased by 39.1% year-on-year, from HK$330.2 million to HK$201.0 million, resulting in a profit margin of 5.3%[18][21]. - Adjusted EBITDA, excluding one-off non-cash expenses, increased by 0.8% year-on-year to HK$612.5 million, indicating resilient core business performance[18][21]. - Revenue for FY2024 decreased by 0.6% to HK$3,811.9 million compared to HK$3,833.2 million in FY2023[87]. - Basic earnings per share decreased to 19.26 HK cents from 31.64 HK cents in FY2023[88]. - Adjusted EBITDA rose by 0.8% to HK$612.5 million, with an Adjusted EBITDA margin of 16.1%[89]. - The total dividend payout ratio for the year is 82.1%, compared to 50.0% in 2023[92]. Acquisitions and Joint Ventures - In June 2024, the Group acquired Gaemi Food Co. Ltd., a leading snack food manufacturer in Korea, enhancing its market presence[23]. - In September 2024, the Group acquired ABC Pastry Holdings Pty Ltd, a frozen dumpling manufacturer in Australia, to capitalize on the growing demand for Chinese gourmet foods[24]. - A joint venture agreement was established in November 2024 with Nissin Foods Asia Co., Ltd. to promote Nissin brand instant noodles in Australia and New Zealand[25]. - The company acquired 100% equity interest in Gaemi Food for KRW48,000 million (approximately HK$271.7 million), expanding its non-noodle business portfolio[137]. - The Company acquired 100% issued share capital in ABC Pastry for AU$33.7 million (approximately HK$178.6 million), with the acquisition completed on December 2, 2024[179]. Market Strategies and Product Development - The Group conducted a trial-tasting promotion campaign for Cup Noodles in major cities in Mainland China, featuring over 30,000 trial tastings[26]. - The Group developed the WeChat Mini program "Nissin Foodium" in Hong Kong to enhance customer loyalty and brand recognition through digital marketing initiatives[27]. - The company aims to strengthen partnerships with distributors in Mainland China to increase sales of Cup Noodles and high-end bag-type noodles, capitalizing on the rising demand for authentic flavors[35]. - The distribution business has begun launching new products and brands, with a focus on expanding sales channels[36]. - In Hong Kong, the company is focusing on expanding sales of high-end bag-type noodles and premium frozen foods, including dim sum and pasta[37]. - The company plans to enhance sales of frozen dumplings in Australia to meet consumer demand and increase market share[41]. - The Company launched various new products in its non-noodle portfolio, including seasonal items and new flavors in the low-fat yogurt series[131]. Economic and Market Conditions - The company believes that steady economic growth will eventually return to both Mainland China and Hong Kong despite current market challenges[34]. - Consumer sentiment in Mainland China is expected to remain weak, with industry competition anticipated to remain intense, slowing the growth of complementary businesses[96]. - The Hong Kong economy recorded a moderate year-on-year growth of 2.5% in 2024, with visitor arrivals reaching 42.6 million, representing a year-on-year growth of 8.3%[118][122]. - Total retail sales value in Hong Kong declined by 7.3% year-on-year, primarily due to local consumers spending in the Greater Bay Area and a strengthening Hong Kong dollar[119][122]. - The retail industry in Vietnam is experiencing remarkable growth, driven by favorable economic conditions and changing consumer behavior, with a focus on healthy, high-quality products[171]. Impairment and Financial Adjustments - Total impairment losses amounted to HK$135.9 million, including HK$77.1 million on property, plant, and equipment related to complementary businesses in Mainland China and Hong Kong[93]. - The Group recognized an impairment loss of HK$6.8 million on property, plant, and equipment, and HK$7.9 million on right-of-use assets due to carrying amounts exceeding recoverable amounts[107]. - The Company confirmed goodwill impairment losses of approximately HK$22.7 million and customer relationship intangible asset impairment losses of approximately HK$12.5 million, totaling HK$35.2 million[121]. - The management revised downwards the sales forecasts for Shanghai Eastpeak for the five business years ending December 31, 2029, based on prudence and conservatism principles[116]. Operational Highlights - The Group's total assets amounted to HK$4,756.6 million, an increase from HK$4,683.7 million in 2023, while total equity was HK$3,670.0 million, slightly down from HK$3,674.7 million[157]. - The Group's working capital decreased to HK$1,477.2 million from HK$1,608.0 million in 2023, with a current ratio of 2.6 compared to 2.8 in the previous year[157]. - Capital expenditure for the year was approximately HK$570.4 million, significantly higher than HK$329.6 million in 2023, primarily due to acquisitions and investments in production plants[159]. - The Group had no external borrowing, maintaining a gearing ratio of nil as of December 31, 2024[158]. - As of December 31, 2024, the total number of staff increased to 3,737 from 3,409 in 2023, with staff costs amounting to approximately HK$733.6 million[186][188].

各位投资人早上好欢迎大家参加我们这一次会议我们这次会议是日清时景的业绩交流会我是果证国际的分析师曹莹那么我们今天非常荣幸的请到了公司的投资者关系高级经理Sammi总来为大家介绍一下公司最近的一个业绩的情况以及未来的展望 那我先会简单的介绍一下我们去年的一个经营状况还有今年就是二五年头两个月的一个经营表现然后我们再进入这个问答环节 首先我们看一下这个表就是总结一下我们24年的一个业绩情况收入方面我们可以说是持平就是稍微微微跌了0.5%左右然后 这个主要的原因就是其实我们练习这一块呢其实这个练习是比较稳定的 香港跟国内的话面临的业绩也是属于比较稳定但是因为我们国内的收入这个汇率的原因所以导致最后的结果是稍微微微有一点下跌但是毛利的情况还是比较健康就是毛利跟毛利率都是有一个提升的 在另外一方面就是我们的金利润收入是一个大幅的下跌这个原因最主要是一些会计准则的一些情况就是我们做了大概135亿的资产减值所以就导致我们的金利润是有一个下降但是如果是看 伊底达的话呢其实我们的经营情况还是比较稳定就是撇除这些减值跟一些就是固定支出的话那其实我们业绩情况还是属于一个比较稳健的状况 如果看我们的资产负债表的话,其实还是比较健康的 ...

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 3,811,864, a slight decrease of 0.6% compared to HKD 3,833,194 in 2023[3] - Gross profit increased to HKD 1,312,114, up 0.7% from HKD 1,303,061 in the previous year[3] - Net profit for the year was HKD 207,461, representing a decline of 37.6% from HKD 333,149 in 2023[3] - Basic earnings per share decreased to HKD 19.26, down from HKD 31.64 in the prior year, reflecting a 39% drop[4] - Total comprehensive income for the year was HKD 160,971, down 47.8% from HKD 307,809 in 2023[4] - Total revenue for the year ending December 31, 2024, is reported at HKD 3,811.864 million, a slight decrease from HKD 3,833.194 million in 2023, representing a decline of approximately 0.6%[16] - Revenue from sales of goods amounted to HKD 3,804.858 million for 2024, compared to HKD 3,826.566 million in 2023, indicating a decrease of about 0.6%[16] - Revenue recognized at a point in time was HKD 3,809.278 million for 2024, down from HKD 3,830.438 million in 2023, reflecting a decline of approximately 0.6%[16] - Total external revenue for 2024 was HKD 3,811,864, a slight decrease of 0.6% from HKD 3,833,194 in 2023[30] - Revenue from Hong Kong decreased to HKD 977,391 in 2024, down 20.5% from HKD 1,229,961 in 2023[30] - Revenue from mainland China was HKD 2,271,959, a decrease of 2.3% compared to HKD 2,325,737 in 2023[30] Assets and Liabilities - Non-current assets decreased to HKD 2,336,687 from HKD 2,179,577, indicating a growth of 7.2%[5] - Current assets decreased to HKD 2,419,909 from HKD 2,504,156, a decline of 3.4%[5] - Total equity attributable to owners decreased to HKD 3,620,162 from HKD 3,631,441, a slight decline of 0.3%[6] - As of December 31, 2024, the group's total assets amounted to HKD 4,756.6 million, an increase from HKD 4,683.7 million in 2023, while total equity decreased slightly to HKD 3,670.0 million from HKD 3,674.7 million[86] - The group's cash balance as of December 31, 2024, was HKD 1,402.5 million, up from HKD 1,365.6 million in 2023, with no external borrowings reported[87] Expenses and Costs - The company reported a significant increase in administrative expenses to HKD 313,065, up from HKD 298,049, reflecting a rise of 5%[3] - Total employee costs for 2024 amounted to HKD 754,197,000, an increase of 3.7% from HKD 727,360,000 in 2023[39] - Research and development expenses for 2024 were HKD 35,845,000, slightly down from HKD 36,202,000 in 2023[37] - The total depreciation expense for 2024 was HKD 186,297,000, compared to HKD 166,038,000 in 2023, reflecting an increase of 12.2%[37] Impairment and Losses - The company reported a net loss from property, plant, and equipment impairment of HKD 83,896 in 2024, compared to HKD 8,778 in 2023[32] - Total impairment losses amounted to HKD 135.9 million, including HKD 77.1 million related to property, plant, and equipment in complementary businesses in mainland China and Hong Kong[57] - The company recognized a significant impairment loss of HKD 77.1 million due to the recoverable amount of manufacturing assets related to eight production lines being substantially reduced[59] - The management identified impairment indicators for certain right-of-use assets and property, plant, and equipment with carrying amounts of HKD 38.7 million and HKD 18.1 million, respectively[62] Dividends - The company confirmed a dividend distribution of HKD 165,112,000 for the year, with a proposed final dividend of HKD 9.63 per share and a special dividend of HKD 6.19 per share[38] - The board proposed a final dividend of HKD 0.0963 per share and a special dividend of HKD 0.0619 per share, totaling HKD 0.1582 per share for the year ended December 31, 2024[106] Acquisitions and Expansion - The company completed acquisitions in South Korea and Australia during the year, aiming to leverage growth opportunities in these markets[51] - The company established a wholly-owned subsidiary in Taiwan at the end of 2023 to enhance local distribution and support sales growth[77] - The acquisition of 100% of Gaemi Food for 48,000 million KRW (approximately 271.7 million HKD) was completed on September 2, 2024, expanding the company's non-noodle business portfolio[78] - The company plans to acquire ABC Pastry for a total price of 33.7 million AUD (approximately 178.6 million HKD), expected to be completed by December 2, 2024[79] Market and Product Development - The company is focused on expanding its product offerings and enhancing its market presence in Hong Kong and mainland China[7] - The company continues to focus on high-end instant noodle products, with sales of cup noodles showing recovery due to expanded distribution channels in western and northern regions[83] - The distribution business in Hong Kong recorded growth, benefiting from the recovery of inbound tourism and various promotional activities[74] - The company expanded its non-noodle product offerings, including seasonal products and new flavors in its low-fat yogurt line, to enhance market penetration[75] Regulatory and Governance - The company has applied new Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the financial position or performance for the current and prior years[11] - The company has not early adopted any new standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[12] - The company's auditors have issued a report without reservations, confirming the integrity of the financial statements[9] - The audit committee, composed of three independent non-executive directors, is responsible for reviewing the group's financial reporting procedures, risk management, and internal controls[102] - The company has adhered to the corporate governance code, with the chairman also serving as the CEO, which the board believes allows for effective decision-making[100] Future Outlook - The company maintains a cautiously optimistic outlook for long-term business development across various regions, focusing on cost control and operational efficiency[93] - The company plans to continue expanding its product line and diversifying its offerings to enhance revenue streams, particularly in response to rising consumer health awareness[93] - The company aims to leverage its strong market position in Hong Kong and mainland China to expand into Taiwan, South Korea, and Australia, thereby broadening its revenue base[95]

Summary of Conference Call Company Overview - The company discussed is Nissin Foods, headquartered in Japan, with a history dating back several decades. It entered the Hong Kong market in 1984 and began expanding into China in the 1990s. The company was listed in Hong Kong in 2017 [2][3]. Industry Insights - The global demand for instant noodles is high, with Vietnam having the highest per capita consumption, followed by South Korea. China ranks tenth, indicating potential growth opportunities in the market [1]. - The company has a presence in several Asian markets, including Vietnam, South Korea, Taiwan, and China, with plans to enter Australia and New Zealand [2][3]. Key Acquisitions and Market Expansion - In September, the company acquired a frozen dumpling factory in Australia and announced plans to enter the Australian market in collaboration with its parent company [3][4]. - The acquisition of Gamey Food, a leading snack producer in South Korea, aims to leverage existing distribution channels to penetrate the local instant noodle market [4]. Sales and Revenue Trends - The company reported that its sales in Hong Kong and other Asian regions are recovering, with a slight growth observed in the third quarter of 2023. The revenue distribution is approximately 40% from Hong Kong and 60% from mainland China [8][9]. - The company has maintained a gross margin of around 35% over the past five years, despite fluctuations due to rising costs of raw materials [9][10]. Product Strategy - Nissin Foods focuses on high-end products, with a significant portion of its sales coming from premium instant noodles. The company aims to introduce new products, including spicy noodles and non-fried options, to cater to evolving consumer preferences [19][21]. - The company has noted a trend of consumers seeking value, leading to increased sales of larger packaging options [14]. Challenges and Market Conditions - The company faces challenges in the Hong Kong market due to population outflow and competition from cross-border shopping in Shenzhen. However, it has mitigated some impacts by increasing exports to markets like Canada and the UK [13][14]. - In mainland China, there is a noted trend of consumer downgrade, with a shift towards more affordable products [14]. Financial Performance and Future Outlook - The company aims for a stable dividend policy, targeting a payout ratio of around 50%. Management is optimistic about maintaining or increasing dividends in the future [10][29]. - The management expects to achieve a low single-digit growth in sales for the remainder of the year, with a more optimistic outlook for 2024, driven by new acquisitions and market expansion [17][28]. Sustainability Initiatives - The company has shifted to using paper cups instead of plastic and emphasizes food safety in its operations [11]. Conclusion - Nissin Foods is strategically positioned for growth in both domestic and international markets, with a focus on high-quality products and expansion into new regions. The management remains cautious yet optimistic about future performance amid current market challenges [30].

Financial Performance - For the nine months ended September 30, 2024, the company reported revenue of HKD 2,862,173, a decrease of 3.1% compared to HKD 2,955,978 for the same period in 2023[2] - Gross profit for the same period was HKD 997,437, down from HKD 1,005,835, reflecting a slight decline in profitability[2] - The company's net profit for the nine months was HKD 255,492, a decrease of 6.2% from HKD 272,272 in the previous year[2] - Basic and diluted earnings per share were HKD 24.07, down from HKD 25.90, indicating a decline of 7.1%[2] - The company did not recommend any dividend payment for the current period, maintaining a zero dividend for the nine months ended September 30, 2023[10] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 3,890,887, an increase from HKD 3,787,548 as of December 31, 2023[4] - Non-current assets increased to HKD 2,333,756 from HKD 2,179,577, showing growth in long-term investments[3] - Current liabilities rose to HKD 918,425 from HKD 896,185, indicating a slight increase in short-term obligations[4] - The company’s cash and cash equivalents decreased to HKD 982,450 from HKD 1,199,054, reflecting a reduction in liquidity[3] - The company’s total equity increased to HKD 3,783,844 from HKD 3,674,703, indicating a strengthening of the financial position[4] Shareholder Information - The company’s controlling shareholder, Nissin Foods Holdings Co., Ltd., holds approximately 72.05% of the issued shares, reflecting strong ownership stability[1] Revenue Breakdown - Revenue from external customers in Hong Kong and other Asia was HKD 1,097.7 million, while revenue from mainland China was HKD 1,764.5 million for the nine months ended September 30, 2024[11] - The company's operating performance in Hong Kong and other Asia showed a revenue decrease of 3.9%, attributed to consumer spending shifts to the Greater Bay Area[11] - The mainland China business revenue decreased by 2.7% (a 1.5% decrease in local currency), due to weaker consumer sentiment and the depreciation of the RMB against the HKD[11] Acquisitions and Market Presence - The company acquired 100% of Gaemi Food Co., Ltd. on September 3, 2024, for KRW 48,000 million (approximately HKD 286.94 million)[15] - The integration of GAEMI FOOD as a subsidiary since September 2024 is expected to enhance the company's market presence[21] Auditor Review and Compliance - The company’s auditor has reviewed the unaudited consolidated financial information without any reservations[9] - The financial results were prepared in accordance with International Financial Reporting Standards, and comparisons with the group's financial performance should be made cautiously due to differing fiscal year ends[18] Performance in China Segment - Revenue from the China segment for the six months ending September 30, 2024, was ¥35,457 million, reflecting a 7.7% increase compared to the previous year[21] - Core operating profit for the China segment was ¥3,691 million, a 4.6% increase year-over-year[21] Sales Performance - For the three months ending September 30, 2024, net sales to third parties reached ¥18,999 million, a 5.1% increase from ¥18,076 million in the same period of 2023[20] - Total sales for the six months ending September 30, 2024, amounted to ¥37,128 million, up 7.4% from ¥34,545 million in the same period of 2023[20] - Operating income for the three months ending September 30, 2024, was ¥2,437 million, slightly up from ¥2,420 million in the same period of 2023[20] - The company reported a stable sales performance for its bagged noodles despite a decline in frozen food sales in Hong Kong due to changing consumer behavior[21] Risks and Future Outlook - The company emphasized the importance of considering significant risks and uncertainties that may impact future performance forecasts[22]

Economic Overview - For the first half of 2024, Nissin Foods reported an improvement in the global economic landscape, despite persistent challenges such as high interest rates and geopolitical risks [10]. - Economic growth in Mainland China picked up, driven by a significant increase in exports of high-tech manufacturing products, including electric vehicles and drones, from early 2024 [10]. - The Hong Kong economy recorded moderate growth during the reporting period, although local retail leakage continued to impact certain businesses [10]. - The overall socio-economic situation in Vietnam was positive, with a year-on-year GDP growth of 6.42% in the first half of 2024 [25]. Company Performance - Revenue decreased by 5.5% to HK$1,822.5 million in 2024 from HK$1,929.3 million in 2023, primarily due to weakened consumption sentiment and negative foreign currency translation effects [11]. - Gross profit declined by 3.2% to HK$637.5 million, while gross profit margin increased by 0.9 percentage points to 35.0% in 2024 from 34.1% in 2023 [11]. - Profit attributable to owners of the Company slightly decreased by 1.3% to HK$169.5 million, resulting in a net profit margin of 9.3% for the period [11]. - Adjusted EBITDA increased by 1.5% to HK$300.3 million, with an EBITDA margin of 16.5% for the period compared to 15.3% in 2023 [13]. - Total comprehensive income for the period was HK$156,966, an increase of 36.5% compared to HK$115,087 in the same period last year [86]. Product and Market Strategy - Nissin Foods remains committed to continuous product upgrades and cost optimization, supporting its premiumization and differentiation strategies [10]. - The company is focused on enhancing product quality and innovation capabilities to deliver greater taste experiences to consumers [10]. - Revenue from the non-noodle business is being diversified to enhance overall competitiveness and create synergies with the instant noodle segment [17]. - The instant noodle business in Hong Kong saw a slight revenue increase due to the recovery in sales volume of premium bag-type instant noodles [16]. - The instant noodle business in Mainland China maintained stability with improved sales of cup-type instant noodles, particularly CUP NOODLES BIG [32]. Geographic Expansion - Nissin Foods' strategies are supported by a solid foundation and footholds in Hong Kong and Mainland China [10]. - The company expanded its geographical presence in Mainland China by entering new cities and adding sales points in the western and northern regions [32]. - The company plans to expand its business into new markets such as Taiwan and Korea, leveraging its strong presence in Hong Kong and Mainland China [44]. - A wholly-owned subsidiary was established in Taiwan to enhance sales direction and promotional support, expected to drive sales growth [26]. Financial Position - As of June 30, 2024, the total assets of the Group amounted to HK$4,569.3 million, a decrease from HK$4,683.7 million as of December 31, 2023 [33]. - The Group's total equity was HK$3,666.1 million as of June 30, 2024, compared to HK$3,674.7 million as of December 31, 2023 [33]. - The Group's working capital increased to HK$1,619.5 million as of June 30, 2024, from HK$1,608.0 million as of December 31, 2023 [33]. - The current ratio improved to 3.0 as of June 30, 2024, up from 2.8 as of December 31, 2023 [33]. Shareholder Information - The company has decided not to declare any interim dividend for the six months ended June 30, 2024 [51]. - During the interim period, the trustee of the share award scheme purchased 380,000 shares at prices ranging from HK$4.92 to HK$4.98 per share, totaling approximately HK$1,882,500 [57]. - The share award scheme aims to recognize the contributions of selected employees and provide incentives for retention [71]. - The total number of awarded shares granted during the period was 391,700, with no shares cancelled or lapsed [73]. Risk Management and Compliance - The company established an audit committee to oversee financial reporting, risk management, and internal control systems, with the interim results for the six months ending June 30, 2024, reviewed by the committee and external auditors [59]. - The audit committee reviewed the interim report, ensuring compliance with applicable standards and the effectiveness of the audit process [59]. - The condensed consolidated financial statements for the six months ended June 30, 2024, were reviewed and found to be in compliance with HKAS 34 [84]. Environmental and Social Responsibility - Nissin Foods has implemented measures to reduce its environmental impact, such as installing solar panels in production facilities [10]. - The company aims to provide a stable food supply to protect consumers' well-being [10]. - The company emphasizes food safety by conducting regular product testing and pursuing relevant research and development [10].

Financial Performance - For the six months ended June 30, 2024, the company's revenue was HKD 1,822,499, a decrease of 5.5% compared to HKD 1,929,345 for the same period in 2023[3]. - Gross profit for the same period was HKD 637,453, down 3.2% from HKD 658,318 in 2023[3]. - The company's net profit for the six months was HKD 171,840, slightly down from HKD 172,648 in the previous year, representing a decrease of 0.5%[3]. - The total comprehensive income for the period was HKD 156,966, an increase of 36.5% compared to HKD 115,087 in 2023[5]. - Basic and diluted earnings per share for the period were both HKD 16.24, compared to HKD 16.45 in the same period last year[5]. - The group's consolidated profit before tax for the six months ended June 30, 2024, was HKD 223,505, compared to HKD 229,892 for the same period in 2023, indicating a decrease of about 2%[16][18]. - The company's profit before tax for the six months ended June 30, 2024, was HKD 169,489,000, slightly down from HKD 171,687,000 in 2023, a decrease of 1.3%[24]. - The total tax expense for the six months ended June 30, 2024, was HKD 51,665,000, compared to HKD 57,244,000 in 2023, a reduction of 9.3%[21]. Assets and Equity - As of June 30, 2024, total assets were HKD 3,766,331, a decrease from HKD 3,787,548 as of December 31, 2023[7]. - The company's total equity attributable to owners was HKD 3,620,511, down from HKD 3,631,441 at the end of 2023[7]. - The company's cash and cash equivalents amounted to HKD 1,168,371, a decrease from HKD 1,199,054 at the end of 2023[6]. - Trade receivables as of June 30, 2024, amounted to HKD 384,370,000, compared to HKD 378,228,000 as of December 31, 2023, an increase of 1.0%[25]. - Trade payables as of June 30, 2024, were HKD 141,138,000, a slight decrease from HKD 150,320,000 as of December 31, 2023, a decline of 6.1%[27]. Revenue Breakdown - Revenue from sales of goods in Hong Kong and other Asia was HKD 705,856, while revenue from Mainland China was HKD 1,116,643 for the six months ended June 30, 2024[13]. - Total segment revenue from external customers for Hong Kong and other Asia was HKD 790,468, while for Mainland China it was HKD 1,216,421 for the six months ended June 30, 2024[17]. - Revenue from the mainland China business decreased by 5.2% to HKD 1,116.6 million, accounting for 61.3% of the group's total revenue[42]. - Revenue from the mainland instant noodle business increased by 8.0% to HKD 173.5 million, attributed to lower raw material costs and cost-effective marketing activities[43]. - Revenue from Hong Kong and other Asian operations decreased by 6.1% to HKD 705.9 million, primarily due to local consumer spending shifting to Shenzhen[35]. Expenses and Costs - The group recognized a net foreign exchange loss of HKD 5,519 for the six months ended June 30, 2024, compared to a loss of HKD 12,722 for the same period in 2023[19]. - The group incurred a loss of HKD 3,147 from the sale of properties, plants, and equipment for the six months ended June 30, 2024[19]. - Research and development expenses remained stable at HKD 17,839,000 in 2024, compared to HKD 17,806,000 in 2023, showing a marginal increase of 0.2%[22]. - The company reported a decrease in miscellaneous income to HKD 6,060,000 in 2024 from HKD 12,517,000 in 2023, a decline of 51.6%[20]. - Total other income decreased to HKD 20,748,000 in 2024 from HKD 24,699,000 in 2023, a decline of 16.0%[20]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.1582 per share for the year ending December 31, 2023, up from HKD 0.1516 per share in 2022, an increase of 4.4%[23]. - The board has resolved not to declare any interim dividend for the six months ended June 30, 2024[57]. Strategic Initiatives - The company plans to continue expanding its product offerings and market presence in Asia and mainland China[8]. - The company continues to focus on product upgrades and cost optimization amidst ongoing economic challenges in Hong Kong and mainland China[32]. - The company aims to enhance product quality and safety, regularly conducting product testing and related R&D[32]. - The company has signed a share purchase agreement to acquire 100% of Gaemi Food Co., Ltd. for 48,000 million Korean Won (approximately 271.7 million HKD), expected to complete around September 2024[55]. Market Conditions and Outlook - The number of inbound tourists to Hong Kong reached 21.1 million in the first half of 2024, representing a year-on-year increase of 64.2%[35]. - Despite weak consumer sentiment in mainland China, overall consumer spending is gradually increasing, with per capita consumption continuing to rise[52]. - The company maintains a cautiously optimistic outlook for long-term business development across regions, focusing on cost control and operational efficiency improvements[52]. Employee and Governance - As of June 30, 2024, the total number of employees is 3,416, with employee costs (excluding director remuneration) amounting to approximately 352.5 million HKD[56]. - The company has established an audit committee in accordance with corporate governance principles, which has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[58].

Financial Performance - For the three months ended March 31, 2024, the company reported revenue of HKD 963,015,000, a decrease of 7.1% compared to HKD 1,036,597,000 for the same period in 2023[4] - Gross profit for the same period was HKD 346,586,000, down from HKD 365,241,000, reflecting a gross margin of approximately 36.0%[4] - The company achieved a profit before tax of HKD 156,128,000, representing an increase of 4.4% from HKD 149,030,000 in the previous year[4] - Net profit for the period was HKD 119,252,000, compared to HKD 110,682,000 in the prior year, marking an increase of 7.7%[4] - Basic and diluted earnings per share increased to HKD 11.30 from HKD 10.49, reflecting a growth of 7.7%[4] - The profit attributable to the company's owners was HKD 117.9 million, representing a 7.3% increase from HKD 109.9 million in the previous year[16] Assets and Liabilities - Total assets as of March 31, 2024, amounted to HKD 3,912,190,000, an increase from HKD 3,787,548,000 at the end of 2023[6] - Current liabilities decreased to HKD 812,949,000 from HKD 896,185,000, indicating improved liquidity management[6] - The company’s cash and cash equivalents stood at HKD 1,171,080,000, down from HKD 1,199,054,000, reflecting a decrease of 2.3%[5] - Non-current assets totaled HKD 2,167,687,000, slightly down from HKD 2,179,577,000, indicating stability in long-term investments[5] - The company’s equity attributable to owners increased to HKD 3,747,862,000 from HKD 3,631,441,000, showing a growth of 3.2%[6] Revenue Breakdown - Revenue from Hong Kong and other Asian operations decreased by 3.4%, while revenue from mainland China decreased by 9.1% (a 5.7% decrease in local currency) due to slower consumption growth in China[12] - The company reported segment revenue from other Asian markets of HKD 348.4 million and from mainland China of HKD 614.6 million for the current period[13] Market and Operational Insights - The company's operating performance in mainland China was impacted by negative currency translation effects and slower consumption growth[12] - The company noted a recovery in sales volume in the fourth quarter, driven by increased demand in the Hong Kong food service sector and higher sales of premium instant noodles[19] - The company has expanded its sales regions in China and strengthened its "Kumamoto" brand, focusing on high-end packaged instant noodles[19] - The company reported that the sales volume in the fiscal year was slightly down due to changes in consumer spending patterns, particularly among Hong Kong residents[19] Future Outlook and Risks - The company anticipates that future performance may be significantly impacted by major risks and uncertainties, which could lead to differences from the forward-looking statements made[19] Dividends and Shareholder Information - The company did not recommend the payment of any dividend for the current period, consistent with the previous period[11] - The company's major shareholder, Nissin Foods Holdings Co., Ltd., holds approximately 72.05% of the issued shares[16] Fiscal Year Performance - For the fiscal year ending March 31, 2024, total sales amounted to ¥69,474 million, a slight decrease of 0.5% compared to ¥69,804 million in the previous year[18] - The operating profit for the same period was reported at ¥8,129 million, down 2.8% from ¥8,360 million year-over-year[18] - In China, the revenue was ¥66,452 million, reflecting a decrease of 0.8% compared to the previous fiscal year[19] - Core operating profit in China increased by 3.6% to ¥8,053 million, despite overall sales volume showing a slight decline[19] Government Subsidies - The company has not received any one-time government subsidies in the previous fiscal year, contributing to lower profit margins compared to the prior year[19] Reporting Structure Changes - The company has adjusted its reporting structure to include "Nissin Foods (Vietnam)" under the "China" segment, affecting year-over-year comparisons[19]

Financial Performance - The Group's revenue decreased by 5.8% year-on-year due to declining consumer sentiment and the absence of extra demand for bag-type noodles caused by the pandemic[15]. - Operating profit increased by 2.2% year-on-year, with an operating profit margin improvement of 0.9 percentage points to 11.4% due to lower raw material prices and reduced SG&A expenses[15]. - Net profit attributable to owners of the Company increased by 5.6%, with a net profit margin improvement of 0.9 percentage points to 8.6%[15]. - The company's revenue decreased by 5.8% year-on-year due to a decline in consumer sentiment towards instant noodles and the impact of the weaker Renminbi[33]. - Operating profit increased by 2.2% year-on-year, with an operating profit margin of 11.4%, improving by 0.9 percentage points compared to the previous year[33]. - Net profit attributable to shareholders increased by 5.6% year-on-year, with a profit margin of 8.7%, also improving by 0.9 percentage points[33]. - The company has achieved seven consecutive years of profit growth since its listing[33]. - Revenue decreased by 5.8% to HK$3,833.2 million in FY2023, down from HK$4,067.7 million in FY2022[60]. - Gross profit remained flat at HK$1,303.1 million, with a gross profit margin increase to 34.0% from 32.0%[60]. - Profit attributable to owners of the Company increased by 5.6% to HK$330.2 million, resulting in a net profit margin of 8.6%[62]. - Basic earnings per share rose to 31.64 HK cents, compared to 29.96 HK cents in the previous year[62]. - The final dividend per share proposed is 15.82 HK cents, up from 15.16 HK cents in FY2022, with a dividend payout ratio of 50.0%[62]. - Adjusted EBITDA increased by 0.4% to HK$607.8 million, with an Adjusted EBITDA margin of 15.9% for the year[63]. Market Expansion and Product Development - The membership program "Nissin Foodium" has expanded its target products and registered members are growing monthly, enhancing customer loyalty[16]. - In 2023, Nissin launched Nissin Chicken Ramen and Japanese formula Cup Noodles in Hong Kong and Mainland China, enhancing product offerings[19]. - The R&D team is focusing on developing plant-based meat alternatives, which are environmentally friendly and increasingly demanded by health-conscious consumers[20]. - The company aims to increase instant noodle shipment volumes to Mainland China and other regions by leveraging sales and management expertise developed in Hong Kong and Mainland China[22][25]. - The company plans to expand sales of premium bag-type noodles and Cup Noodles in Mainland China while increasing its geographical sales network[28]. - In the Hong Kong market, the focus will be on expanding sales of Demae Iccho, Nissin Raoh, and Nissin Chicken Ramen, along with premium frozen ramen and dim sum products[28]. - The company aims to diversify its product portfolio to include non-noodle products, responding to rising health awareness among consumers[91]. - The Company launched rice noodles and plant-meat products to cater to growing consumer demand for healthy options[69]. - Focus on premium frozen food products was intensified, with new product launches including Nissin Frozen Tempura Udon and Nissin Black Pepper Flavour Fried Dumpling[70]. - New product launches in 2023 include Nissin Chicken Ramen and Japanese Formula Cup Noodles, which have been well received by consumers[35]. Acquisitions and Investments - The company acquired approximately 66% stake in Nissin Vietnam in June 2023, making it a consolidated subsidiary and expanding its business scope from Greater China to Vietnam[22][25]. - A wholly-owned subsidiary was established in Taiwan in December 2023 to enhance product sales, transitioning from local wholesalers to direct trading activities[22][25]. - The acquisition of 66.01% of Nissin Vietnam contributed positively to profitability and was part of a capital transfer agreement[59]. - The Company completed the acquisition of Nissin Vietnam for approximately USD 11.5 million, gaining a 67% stake[75]. - The company acquired the remaining 19% shareholding interest in Hong Kong Eastpeak Limited, making it a wholly-owned subsidiary as of July 3, 2023[82]. Sustainability and Corporate Responsibility - The company received an ESG rating of A from MSCI in 2023, reflecting its commitment to sustainable management and corporate social responsibility[26][27]. - The company is committed to sustainability, with plans to reduce carbon emissions by 25% by 2025[125]. - The management highlighted the importance of food safety and environmental measures, including the installation of solar panels in production facilities[58]. - The company is committed to maximizing business outcomes and creating long-term value for stakeholders while contributing to local community sustainable growth[30][31]. Operational Efficiency and Technology - Investment in production facilities includes the relocation of instant noodle production lines and the implementation of Smart Factory technologies to improve efficiency and reduce costs[21]. - The company has implemented automation and information technology in its production lines to enhance efficiency, safety, and product quality[24]. - The Group remains committed to continuous product upgrades and cost optimization amid challenging market conditions[58]. - The company has established partnerships with local suppliers to improve sourcing efficiency and reduce costs by 8%[125]. Management and Governance - The Group has a strong management team with over 32 years of experience in finance and accounting, led by Chief Financial Officer Mr. Shinji Tatsutani[133]. - The Board of Directors includes professionals with diverse backgrounds in finance, academia, and industry, enhancing strategic decision-making[134][135]. - The company has maintained good corporate governance practices, complying with the CG Code except for the separation of the roles of chairman and CEO, which are currently held by Mr. Kiyotaka Ando since 2009[151]. - The Board has established three committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to delegate various responsibilities and ensure effective governance[189]. - The Board has maintained a balance of skills and experience, contributing to effective direction and safeguarding shareholder interests[163]. - The Company has mechanisms in place to ensure Board independence, including annual assessments and external professional advice availability[159]. Employee and Gender Diversity - As of December 31, 2023, the total number of employees was 3,409, with staff costs amounting to approximately HK$ 705.5 million for the year[100]. - The Group's total workforce gender diversity ratio is approximately 0.9:1.0 male to female[173]. - The gender diversity ratio for senior management is at 4.5:1.0 male to female[173]. - The Company aims to maintain a diverse Board composition by considering factors such as professional experience, skills, knowledge, gender, age, and cultural background[168]. - The Company has taken steps to promote gender diversity at all levels, including the Board and senior management[172].