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].

Revenue and Profit Performance - Revenue for 2023 decreased to HKD 3,833,194 thousand from HKD 4,067,732 thousand in 2022, a decline of 5.8%[2] - Net profit for 2023 was HKD 333,149 thousand, a slight decrease from HKD 342,896 thousand in 2022[2] - Total comprehensive income for 2023 was HKD 307,809 thousand, significantly higher than HKD 122,306 thousand in 2022[3] - Earnings per share (basic) for 2023 were 31.64 HK cents, up from 29.96 HK cents in 2022[5] - Revenue decreased by 5.8% to HKD 3,833.2 million (2022 restated: HKD 4,067.7 million) due to reduced consumption and negative foreign exchange impact[47] - Net profit attributable to shareholders increased by 5.6% to HKD 330.2 million (2022 restated: HKD 312.8 million), with a net profit margin of 8.6% (2022 restated: 7.7%)[47] - Adjusted EBITDA slightly increased by 0.4% to HKD 607.8 million (2022 restated: HKD 605.4 million), with an adjusted EBITDA margin of 15.9% (2022 restated: 14.9%)[47] - Pre-tax profit for 2023 was HK$456.965 million, compared to HK$462.885 million in 2022[30] - Total tax expense for 2023 was HK$123.816 million, up from HK$119.989 million in 2022[30] - Basic earnings per share for 2023 were HK$0.316, up from HK$0.300 in 2022[34] Gross Profit and Margin - Gross profit remained stable at HKD 1,303,061 thousand in 2023 compared to HKD 1,302,795 thousand in 2022[2] - Gross profit remained flat at HKD 1,303.1 million (2022 restated: HKD 1,302.8 million), with gross margin increasing by 2.0 percentage points to 34.0% in 2023[47] Assets and Liabilities - Total assets increased to HKD 3,787,548 thousand in 2023 from HKD 3,672,836 thousand in 2022[6] - Non-current assets grew to HKD 2,179,577 thousand in 2023 from HKD 2,103,271 thousand in 2022[6] - Cash and cash equivalents decreased to HKD 1,199,054 thousand in 2023 from HKD 1,257,573 thousand in 2022[6] - Equity attributable to owners of the company increased to HKD 3,631,441 thousand in 2023 from HKD 3,555,753 thousand in 2022[7] - Total assets of the group as of December 31, 2023, were HKD 4,683.7 million, with total equity of HKD 3,674.7 million[63] - Operating capital of the group was HKD 1,608.0 million, with a current ratio of 2.8 as of December 31, 2023[63] - Net cash position of the group was approximately HKD 1,310.4 million, with available bank financing of HKD 820.0 million as of December 31, 2023[63] - Trade receivables decreased to HK$372.854 million in 2023 from HK$430.898 million in 2022[35] Revenue Breakdown by Region - Total revenue for 2023 was HKD 3,833,194 thousand, with HKD 2,319,983 thousand from Mainland China and HKD 1,513,211 thousand from Hong Kong and other Asian regions[16] - Revenue from external customers in Hong Kong and other Asia regions was HKD 1,513,211 thousand, while in Mainland China it was HKD 2,319,983 thousand, totaling HKD 3,833,194 thousand for the year ending December 31, 2023[20] - External revenue from Hong Kong decreased to 1,229,961 thousand HKD in 2023 from 1,309,448 thousand HKD in 2022[25] - External revenue from Mainland China decreased to 2,325,737 thousand HKD in 2023 from 2,457,628 thousand HKD in 2022[25] - Total external revenue from other regions (Vietnam, Canada, Australia, USA, Taiwan, and Macau) decreased to 277,496 thousand HKD in 2023 from 300,656 thousand HKD in 2022[25] - Revenue from Hong Kong and other Asian businesses decreased by 6.5% to HKD 1,513.2 million (2022 restated: HKD 1,617.9 million), accounting for 39.5% of total revenue (2022 restated: 39.8%)[49] - Revenue from mainland China decreased by 5.3% (or 1.1% in local currency) to HKD 2,320.0 million, accounting for 60.5% of the group's total revenue[58] Segment Performance - Segment performance for Hong Kong and other Asia regions was HKD 85,085 thousand, while for Mainland China, it was HKD 350,602 thousand, totaling HKD 435,687 thousand for the year ending December 31, 2023[20] - Segment performance for Hong Kong and other Asian businesses decreased by 24.5% to HKD 85.1 million (2022 restated: HKD 112.7 million)[50] Revenue by Product and Service - Revenue from sales of goods in 2023 was HKD 3,826,566 thousand, a decrease from HKD 4,061,541 thousand in 2022[16] - Revenue from other sources, including sales of broken noodles and research and promotional services, was HKD 6,628 thousand in 2023, up from HKD 6,191 thousand in 2022[16] - Revenue recognized at a point in time was HKD 3,830,438 thousand in 2023, compared to HKD 4,064,708 thousand in 2022[16] - Revenue recognized over time was HKD 2,756 thousand in 2023, down from HKD 3,024 thousand in 2022[16] Accounting and Financial Reporting - The company's financial statements for the year ended December 31, 2023, are prepared in accordance with Hong Kong Financial Reporting Standards (HKFRS) and include disclosures required by the Hong Kong Companies Ordinance and the Listing Rules of the Hong Kong Stock Exchange[9] - The company's auditors have issued an unqualified report on the financial statements, with no emphasis of matter or statements under sections 406(2), 407(2), or (3) of the Companies Ordinance[9] - The company has applied new and revised HKFRS, including HKFRS 17 (Insurance Contracts), HKAS 8 (Amendments to the Definition of Accounting Estimates), and HKAS 12 (Amendments on Deferred Tax related to Assets and Liabilities arising from a Single Transaction), which became effective from January 1, 2023[10] - The application of HKAS 1 and HKFRS Practice Statement 2 (Amendments on Accounting Policy Disclosures) has clarified the definition of significant accounting policy information and introduced a four-step process for assessing materiality in accounting policy disclosures[11] - The company has adopted the Hong Kong Institute of CPAs' guidance on the accounting impact of the cancellation of the MPF offsetting mechanism for long service payments, which will take effect on May 1, 2025[12] - The company adjusted its accounting treatment for long-service payments due to changes in Hong Kong accounting standards, resulting in a cumulative catch-up adjustment in the 2022 financial statements[13] - The company did not early adopt several new and revised Hong Kong Financial Reporting Standards, which are expected to have no significant impact on the financial statements[14] Investments and Acquisitions - The company acquired 66.01% of the target company for approximately $9.5 million (equivalent to HKD 74.435 million) and later invested an additional $2 million (equivalent to HKD 15.671 million) to increase its stake to 67%[15] - The company acquired a 66.01% stake in Nissin Foods Vietnam Co., Ltd. and injected USD 2 million into the subsidiary[46] - The company acquired a 67% stake in Nissin Vietnam for a total consideration of $11.5 million, aiming to leverage its expertise and resources to accelerate growth in Vietnam's instant noodle market[56] - The company acquired Nissin Vietnam for a total consideration of approximately USD 11.5 million, completed on July 10, 2023[71] - The company exercised a call option to acquire the remaining 19% equity interest in Hong Kong Dongfeng for approximately RMB 0.5 million, making it a wholly-owned subsidiary on July 3, 2023[71] Employee and Compensation - Total employee costs decreased slightly to HK$727.360 million in 2023 from HK$729.384 million in 2022[31] - The company granted a total of 301,310 reward shares to selected employees in 2022, with an estimated fair value of HKD 5.63 per share, totaling HKD 1,697,000[40][42] - In 2023, the company granted 266,420 reward shares to selected employees, with an estimated fair value of HKD 5.94 per share, totaling HKD 1,684,000[40][42] - The company recognized total expenses of HKD 1,684,000 for the reward shares granted in 2023, compared to HKD 1,697,000 in 2022[42] - Total number of employees increased to 3,409 as of December 31, 2023, up from 3,274 in the previous year[73] - Employee costs (excluding director remuneration) amounted to approximately HK$705.5 million for the year[73] Dividends and Share Repurchases - The company proposed a final dividend of HK$0.1582 per share for 2023, totaling HK$165.112 million[33] - The company repurchased and canceled 4,099,000 ordinary shares in 2022 at an average price of HK$6.34 per share[38] - The company proposed a final dividend of HK$0.1582 per share for the year ended December 31, 2023, payable on June 27, 2024, subject to shareholder approval[79] - The company will suspend share transfer registration from May 31 to June 5, 2024, for determining eligibility to attend and vote at the Annual General Meeting[80] - Share transfer registration will also be suspended from June 13 to June 17, 2024, for determining eligibility to receive the final dividend[80] Capital Expenditure and Commitments - Capital commitments for the acquisition of property, plant, and equipment were HKD 49,983,000 in 2023, down from HKD 93,033,000 in 2022[43] - Capital expenditure for the year was HKD 329.6 million, primarily due to equity investments in Nissin Vietnam and production facilities in Hong Kong and Mainland China[64] - Capital commitments for the acquisition of property, plant, and equipment as of December 31, 2023, were HKD 50.0 million[65] Market and Business Development - The company operates primarily in Hong Kong and other Asian regions, including mainland China, focusing on the production and sale of noodles, frozen foods, beverages, and snacks[8] - The company introduced new flavors for its flagship brands, including "Cup Noodles" and "Demae Iccho," and launched new products such as "Nissin Yuen Chow Chicken Flavor Instant Noodles" and "Doll Instant Noodles King Hong Kong Style Satay Beef Flavor"[51] - The company expanded its focus on premium frozen food products, introducing new items like "Nissin Frozen Tempura Udon" and "Nissin Black Pepper Flavor Pan-Fried Dumplings"[53] - Distribution business in Hong Kong rebounded due to the easing of the pandemic and economic recovery, with increasing tourist numbers boosting sales[54] - KAGOME business expanded sales channels across different regions, including convenience stores, commercial offices, high-end restaurants, and airline lounges, receiving positive consumer feedback[54] - Nissin cereal successfully replicated its success in Hong Kong and mainland China to new markets in Southeast Asia, with sales and volume growth in Singapore, and introduced a new Royal Milk Tea cereal variant[55] - Fresh-cut vegetable business, launched in December 2020, saw rising demand in 2023, with expanded distribution channels and increased sales and volume[55] - The company launched a low-fat Nissin yogurt series, including original and strawberry flavors, in both cup and drink formats, to capitalize on consumer health trends[55] - The company expanded its instant noodle business in mainland China, particularly in the northwest region, and introduced new Japanese-style flavors under the Cup Noodles brand, while also collaborating with popular IPs for co-branded products[59] - The company established a subsidiary and sales office in Taiwan to expand its sales channels and revenue base[69] Economic and Market Conditions - Vietnam's GDP grew by 5.05% in 2023, with retail sales of consumer goods and services increasing by 9.6%, and food and food-related retail sales growing by 11.7%[56] - Mainland China's GDP grew by 5.2% in 2023, with Q4 GDP growth of 5.2%, but consumer confidence was impacted by weak household and business confidence, leading to a slowdown in economic recovery[57] Other Financial Metrics - Unallocated income for the year ending December 31, 2023, was HKD 18,858 thousand[20] - Net exchange loss for the year ending December 31, 2023, was HKD 17,572 thousand[20] - Interest income for the year ending December 31, 2023, was HKD 27,896 thousand[20] - Fair value changes of financial assets at fair value through profit or loss for the year ending December 31, 2023, was HKD 4,116 thousand[20] - Impairment losses on property, plant, and equipment for the year ending December 31, 2023, was HKD 8,778 thousand[20] - Loss on disposal of property, plant, and equipment for the year ending December 31, 2023, was HKD 2,970 thousand[20] - Financial costs for the year ending December 31, 2023, was HKD 270 thousand[20] - Total income tax expense decreased to 123,816 thousand HKD in 2023 from 119,989 thousand HKD in 2022[28] - The tax rate for Mainland China subsidiaries remained at 25% for both years[29] - R&D expenses increased to HK$36.202 million in 2023 from HK$33.162 million in 2022[31] - Customer A1 contributed 705,301 thousand HKD in 2023, down from 821,380 thousand HKD in 2022[26] - Customer B2 contributed 695,571 thousand HKD in 2023, up from 664,586 thousand HKD in 2022[26] - Government subsidies related to confirmed expenses decreased to 11,372 thousand HKD in 2023 from 29,383 thousand HKD in 2022[26] - Non-current assets in Mainland China increased to 925,682 thousand HKD in 2023 from 776,107 thousand HKD in 2022[25] - Non-current assets in Hong Kong and other Asia decreased to 1,065,964 thousand HKD in 2023 from 1,155,325 thousand HKD in 2022[25] Future Outlook and Strategy - The company is optimistic about long-term business development in various regions, focusing on cost control and operational efficiency improvement[68] - In Vietnam, the company sees growth opportunities in the premium instant noodle market due to increasing consumer awareness of health and wellness[69] Corporate Governance and Reporting - The company's 2023 annual report will be available on the company's website and sent to shareholders in April 2024[81]

Financial Performance - For the nine months ended September 30, 2023, the company reported revenue of HKD 2,955,978, a decrease of 5% from HKD 3,112,110 in the same period of 2022[4] - Gross profit for the same period was HKD 1,005,835, representing an increase of 2.9% compared to HKD 978,077 in the previous year[4] - The company's profit before tax was HKD 367,692, up 5.7% from HKD 347,755 in the prior year[4] - Net profit for the period was HKD 272,272, an increase of 5.5% from HKD 258,087 in the same period last year[4] - Basic and diluted earnings per share increased to HKD 25.90, compared to HKD 22.31 in the previous year, reflecting a growth of 11.6%[4] - The company reported segment revenue from Hong Kong and other Asian markets of HKD 1,290.4 million and from mainland China of HKD 1,984.9 million for the nine months ended September 30, 2023[13] - The company’s operating performance in the nine months ended September 30, 2023, showed a segment profit of HKD 339.3 million, compared to HKD 313.8 million in the same period of 2022[13][14] Assets and Liabilities - Non-current assets as of September 30, 2023, totaled HKD 2,132,652, a slight increase from HKD 2,103,271 at the end of 2022[5] - Current assets decreased to HKD 2,485,166 from HKD 2,496,534 at the end of 2022, primarily due to a reduction in inventory[5] - Total liabilities increased slightly to HKD 947,187 from HKD 926,969 at the end of 2022, indicating a stable financial position[6] - The company’s total equity attributable to owners was HKD 3,542,039, a decrease from HKD 3,555,753 at the end of 2022[6] Revenue Breakdown - Revenue from Hong Kong and other Asian markets decreased by 3.8%, while revenue from mainland China decreased by 5.8% (a decrease of 0.2% in local currency) due to the depreciation of the RMB against the HKD[12] - The company reported a revenue of ¥32,936 million for its China segment, a decrease of 2.4% year-over-year[20] Future Outlook - The company plans to continue focusing on market expansion and product development to drive future growth[2] - The financial performance is subject to significant risks and uncertainties that may impact future results, as indicated in the forward-looking statements[20] - The company advises shareholders and potential investors to exercise caution and not overly rely on the quarterly disclosures provided[20] Dividend Policy - The company did not recommend the payment of any dividend for the current period, consistent with the previous period where no dividend was paid[11] Accounting and Review - The company’s financial statements for the nine months ended September 30, 2023, were reviewed by the audit committee[11] - The company’s accounting policies and methods for the nine months ended September 30, 2023, remained consistent with those reported for the year ended December 31, 2022[8] Sales Performance - For the three months ended September 30, 2023, net sales to third parties were ¥18,076 million, a slight increase from ¥18,028 million in the same period of 2022[19] - Total revenue for the six months ended September 30, 2023, was ¥34,545 million, down 1.1% from ¥34,922 million in the same period of 2022[19] - Operating income for the three months ended September 30, 2023, was ¥2,420 million, compared to ¥1,977 million in the same period of 2022, reflecting a year-over-year increase of 22.4%[19] - The core operating profit for the six months ended September 30, 2023, was ¥3,527 million, representing a 6.1% increase compared to the same period in 2022[20] - The company noted a recovery in instant noodle sales from July to September 2023, although overall sales for the first half of the year were weak[20] Reporting Structure - The company has adjusted its reporting structure, incorporating Nissin Foods Vietnam Co., Ltd. into its China segment, affecting comparative figures from the previous fiscal year[19]

Membership Program and Consumer Engagement - Nissin Foods has launched its first-ever membership program "Nissin Foodium" in Hong Kong and Mainland China, which includes exclusive benefits and an e-commerce platform[5]. - The membership program allows direct communication with consumers to better understand their preferences and changing consumption trends[5]. - The company maintains a focus on enhancing customer experience through interactive platforms and rewards[5]. Innovation and Product Development - The company emphasizes continuous investment in research and product development to enhance food quality and safety, ensuring sustainable growth[4]. - Nissin Foods is committed to innovation and learning, continuously adapting to market demands[6]. - The company aims to contribute to society by providing high-quality food and enhancing the pleasure of eating[4]. Financial Performance - Revenue decreased by 6.1% to HK$1,929.3 million for the first half of 2023, down from HK$2,055.2 million in the previous year[18]. - Gross profit increased by 1.9% to HK$658.3 million, resulting in a gross profit margin of 34.1%, up from 31.4% in 2022[18]. - Profit attributable to owners of the Company rose by 6.4% to HK$171.7 million, with a net profit margin of 8.9% compared to 7.9% in the previous year[19]. - Basic earnings per share increased to 16.45 HK cents, up from 15.46 HK cents in 2022[19]. - Adjusted EBITDA decreased by 3.3% to HK$295.9 million, with an Adjusted EBITDA margin of 15.3% for the period[21]. Market Conditions and Consumer Trends - The Hong Kong economy showed a year-on-year GDP growth of 2.9% in Q1 and 1.5% in Q2 of 2023, with total retail sales increasing by 20.7%[23]. - Supermarket retail sales value dropped by 7.8% over six consecutive months, impacted by consumer preferences for dining out and "revenge travel" post-pandemic[24]. - The performance of both cup-type and bag-type instant noodles was mediocre as consumers favored eating out and "revenge travel" during the review period[27]. Strategic Acquisitions and Expansion - The Company acquired 66.01% of Nissin Foods Vietnam Co., Ltd. and made a capital contribution of USD 2 million following the acquisition[17]. - The acquisition of Nissin Vietnam allows for greater flexibility in responding to increasing market demand in the region[32]. - The Group can leverage resources and expertise from Hong Kong and Mainland China to accelerate Nissin Vietnam's business growth[32]. Operational Efficiency and Cost Management - The increase in gross profit margin was mainly due to price adjustments in Hong Kong and Mainland China to offset rising manufacturing costs[18]. - The Company is committed to continuous product upgrades and cost optimization to enhance consumer experience amid challenging market conditions[18]. - The company is implementing automated and smart technology at its production plants to enhance operational efficiency and product quality[45]. Staff and Management Changes - Nissin Foods has appointed new senior management members as of July 1, 2023, to strengthen its leadership team[9]. - The Group's total staff increased to 3,608 as of June 30, 2023, with staff costs amounting to approximately HK$360.4 million for the period[50]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended June 30, 2023, except for the separation of the roles of Chairman and CEO[54]. - The Company has established an Audit Committee to oversee financial reporting, risk management, and internal controls[58]. Future Outlook and Guidance - The company plans to focus on market expansion and new product development in the upcoming quarters[86]. - Future guidance indicates a cautious outlook due to market volatility and economic conditions[86]. - The company is exploring potential mergers and acquisitions to enhance its market position[86].

Financial Performance - For the six months ended June 30, 2023, Nissin Foods reported revenue of HKD 1,929,345, a decrease of 6.1% from HKD 2,055,241 in the same period of 2022[3]. - Gross profit for the same period was HKD 658,318, representing an increase of 1.0% compared to HKD 645,735 in 2022[3]. - The net profit for the period was HKD 172,648, down 2.2% from HKD 177,441 in the previous year[3]. - The total comprehensive income for the period was HKD 115,087, an increase of 57.0% from HKD 73,254 in 2022[4]. - Basic and diluted earnings per share for the period were both HKD 16.45, compared to HKD 15.46 in the same period last year[6]. - The company reported a consolidated profit before tax of HKD 239,108 thousand for the six months ended June 30, 2023, compared to HKD 216,546 thousand for the same period in 2022, indicating an increase of approximately 10.4%[25]. - The net profit for the six months ended June 30, 2023, was HKD 171,687,000, an increase from HKD 161,387,000 for the same period in 2022, representing a growth of approximately 8.06%[31]. - Profit attributable to owners of the company rose by 6.4% to HKD 171.7 million, resulting in a net profit margin of 8.9% compared to 7.9% in 2022[44]. Assets and Liabilities - As of June 30, 2023, total assets were HKD 3,559,878, a decrease from HKD 3,672,836 at the end of 2022[8]. - Current liabilities decreased to HKD 852,673 from HKD 926,969 at the end of 2022[7]. - Cash and cash equivalents as of June 30, 2023, were HKD 1,132,577, down from HKD 1,257,573 at the end of 2022[7]. - The company’s non-current assets totaled HKD 2,141,592, an increase from HKD 2,103,271 at the end of 2022[7]. - Total assets less current liabilities amounted to HKD 3,672,836 thousand, reflecting an increase of HKD 54,959 thousand[15]. - The group's total liabilities were reported at HKD 926,969 thousand, with current liabilities at HKD 926,969 thousand[15]. - As of June 30, 2023, total assets were HKD 4,412.6 million, with total equity of HKD 3,482.0 million, indicating a stable financial position[58]. - The company had no external borrowings as of June 30, 2023, maintaining a capital debt ratio of zero[58]. Investments and Acquisitions - The company acquired 66.01% of the target company for approximately $9.5 million (equivalent to HKD 74.44 million) in cash[11]. - An additional investment of $2 million (equivalent to HKD 15.67 million) will be made post-acquisition to gain an extra 0.99% equity in the target company[11]. - The company plans to integrate the target company's financials as if the acquisition had been completed from the date of first control[12]. - The acquisition is classified as a business combination under common control, following the guidelines of the Hong Kong Institute of Certified Public Accountants[11]. - The company completed the acquisition of Nissin Vietnam for approximately $11.5 million on July 10, 2023, making it a non-wholly owned subsidiary[64]. - The company acquired the remaining 19% stake in Dongfeng Hong Kong for approximately RMB 0.5 million, making both companies wholly owned subsidiaries[64]. Revenue Breakdown - Revenue from external customers in Hong Kong and other Asia was HKD 751,536 thousand, while revenue from mainland China was HKD 1,177,809 thousand, contributing to a total of HKD 1,929,345 thousand[24]. - The total segment revenue for Hong Kong and other Asia was HKD 855,531 thousand, while for mainland China it was HKD 1,288,307 thousand, leading to a combined segment revenue of HKD 2,143,838 thousand[24]. - Revenue from Hong Kong and other Asian operations decreased by 3.9% to HKD 751.5 million, attributed to a lack of demand surge seen during the pandemic[45]. - Revenue from mainland China decreased by 7.5% to HKD 1,177.8 million, accounting for 61.0% of the group's total revenue[53]. - The revenue from the mainland business segment fell by 3.2% to HKD 160.6 million, primarily due to negative impacts from the RMB exchange rate[53]. Operational Performance - The company reported a sales and service cost of HKD 1,394.23 million, leading to a gross margin of approximately 31.4%[13]. - The company's instant noodle business experienced ordinary performance due to consumers preferring dining out and "revenge travel" post-pandemic[47]. - The frozen food segment underperformed expectations, similar to the instant noodle business, due to increased competition and changing consumer habits[49]. - The distribution business saw significant rebound in sales as tourism numbers gradually increased, benefiting from the easing of pandemic restrictions[50]. - The company expanded its KAGOME product line into new Southeast Asian markets, receiving positive consumer feedback[50]. - The company launched new flavors in its instant noodle range, including collaborations with popular media to stimulate consumer spending[47]. Cost and Expenses - The total employee costs, excluding directors' remuneration, amounted to HKD 360,405,000 for the six months ended June 30, 2023, compared to HKD 336,729,000 in the same period of 2022, indicating an increase of approximately 7.02%[28]. - Research and development expenses increased to HKD 17,806,000 for the six months ended June 30, 2023, compared to HKD 15,527,000 in the same period of 2022, reflecting a growth of about 14.68%[28]. - The company declared and paid a final dividend of HKD 158,224,000 for the year ended December 31, 2022, compared to HKD 182,333,000 for the six months ended June 30, 2022, showing a decrease of about 13.23%[29]. Market Outlook and Strategy - The company continues to focus on expanding its product offerings and market presence in Asia and mainland China[9]. - The company plans to diversify its product offerings into health-oriented foods and beverages, such as yogurt and yogurt drinks, to expand its revenue base[62]. - The company maintains a cautiously optimistic outlook for long-term business development across regions, focusing on cost pressure mitigation through high-end and diversified strategies[62]. - In Hong Kong, business activities are returning to normal, with economic activities becoming more vibrant and inbound tourism gradually recovering[62]. - In mainland China, consumer spending continues to grow, with per capita consumption increasing and the income gap between urban and rural residents narrowing[62]. Corporate Governance - The company has established an audit committee in accordance with corporate governance principles to review the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[67]. - There were no purchases, sales, or redemptions of any listed securities by the company or its subsidiaries during the six months ended June 30, 2023[68].

Financial Performance - For the three months ended March 31, 2023, the company reported revenue of HKD 1,024,396 thousand, a decrease of 3.5% from HKD 1,061,805 thousand in the same period of 2022[4] - Gross profit for the same period was HKD 362,100 thousand, representing an increase of 8.7% compared to HKD 332,840 thousand in the previous year[4] - The company achieved a profit before tax of HKD 149,815 thousand, up 11.9% from HKD 133,810 thousand in the prior year[4] - Net profit for the period was HKD 111,467 thousand, an increase of 9.8% from HKD 102,229 thousand in the same period last year[4] - Basic and diluted earnings per share were HKD 10.59, compared to HKD 8.7 in the previous year, reflecting a growth of 21.6%[4] - Profit attributable to the company's owners for the period was HKD 110.5 million, compared to HKD 90.3 million in the same period of 2022[15] Assets and Liabilities - Total assets as of March 31, 2023, were HKD 3,783,269 thousand, an increase from HKD 3,617,877 thousand as of December 31, 2022[6] - The company's cash and cash equivalents amounted to HKD 1,351,460 thousand, up from HKD 1,249,460 thousand at the end of 2022[5] - Current liabilities decreased to HKD 864,376 thousand from HKD 917,233 thousand in the previous period[6] - The company's equity attributable to owners increased to HKD 3,678,080 thousand from HKD 3,518,930 thousand year-over-year[6] Revenue Sources - Revenue from Hong Kong operations decreased by 2.7%, while revenue from mainland China decreased by 4.0% (an increase of 3.3% in local currency) due to the depreciation of the Renminbi against the Hong Kong dollar[11] - The company's operating performance in Hong Kong generated segment revenue of HKD 348.4 million, while mainland China generated HKD 676.0 million[12] Cost Management - The company implemented price adjustments and benefited from a decrease in raw material costs, contributing to the improved gross margin[14] - The company reported a segment profit of HKD 31.6 million from Hong Kong and HKD 111.5 million from mainland China, totaling HKD 143.1 million[12] Future Outlook - The company plans to continue focusing on market expansion and product development to drive future growth[3] - The company is actively expanding its sales regions and strengthening its brand presence in the high-value noodle market in China[18] - Forward-looking financial forecasts and management objectives are included in the annual disclosure, subject to significant risks and uncertainties[18] - Shareholders and potential investors are advised to exercise caution and not overly rely on the forward-looking statements provided in the annual disclosure[18] Fiscal Year Performance - For the fiscal year ending March 31, 2023, total sales amounted to ¥68,905 million, a 20.3% increase from ¥57,255 million in the previous year[17] - Sales to third parties reached ¥66,128 million, reflecting a 19.2% year-over-year growth from ¥55,478 million[18] - Operating profit increased to ¥8,421 million, up 39.4% from ¥6,039 million in the prior fiscal year[17] - Core operating profit for the China segment was ¥7,836 million, representing a 27.5% increase compared to the previous year[18] - The appreciation of the local currency against the yen positively impacted sales and profits[18] - Excluding currency effects, revenue in the China segment was ¥57,402 million, a 3.5% increase year-over-year[18]

Financial Performance - The profit attributable to the owners of the Company increased by approximately 4.2% year-on-year to HK$316.5 million[12]. - The Group's revenue increased by approximately 4.1% year-on-year to HK$4,025.0 million[15]. - The Group achieved a profit attributable to shareholders of HKD 316.51 million, an increase of 4.2% compared to the previous year[31]. - The Group's revenue increased by approximately 4.1% year-on-year, reaching HKD 4.025 billion[31]. - Revenue for FY2022 reached HK$4,025.0 million, a 4.1% increase from HK$3,866.3 million in FY2021[39]. - Gross profit for FY2022 was HK$1,294.6 million, representing a gross margin of 32.2%, up from 31.7% in FY2021[39]. - Adjusted EBITDA for FY2022 was HK$606.9 million, slightly up by 0.4% from HK$604.1 million in FY2021[39]. - Basic earnings per share increased to 30.32 HK cents for the year, compared to 28.74 HK cents in 2021[47]. - The final dividend per share increased to 15.16 HK cents, a 4.1% rise from 14.56 HK cents in FY2021[39]. Market Expansion and Product Development - The operations in Mainland China maintained a positive growth trend in annual sales volume despite weaker consumption sentiment in the second half of 2022[15]. - The Hong Kong operations ranked first in market share of the frozen dim sum category, contributing to increased annual revenue[15]. - The Group plans to significantly increase the sales volume of Cup Noodles and other instant noodle products by expanding distribution networks in Western and Northern regions of Mainland China[28]. - The Group aims to focus on the sale of premium frozen foods to capture demand from the overseas market[29]. - The Group launched a premium version of Demae Iccho using 100% Hokkaido wheat flour in both Hong Kong and China, enhancing product quality and variety[32]. - The company introduced a new membership program "Nissin Foodium" in July 2022, offering exclusive benefits and rewards to enhance customer engagement[57]. - The company launched new products including plant-based soy and oat milks and organic juices, responding to rising health awareness among consumers[66]. - The company continued to diversify its product portfolio into non-noodles business, leveraging management expertise and distribution networks[59]. Cost Management and Economic Outlook - The Group faced rising raw material prices and increased logistics costs but managed to offset these through price adjustments[15]. - The Group expects to benefit from the stabilization of raw material prices, particularly palm oil, and the return of logistics costs to normal levels[27]. - The company adjusted ex-factory product prices in two phases, implementing mid-to-high single-digit increases to mitigate rising production costs[51]. - The company expects to benefit from stabilized raw material prices and improved logistics costs in 2023[37]. - The Chinese government is anticipated to boost consumption to stimulate the economy, while the Hong Kong SAR government has introduced stimulus measures to attract tourists[27]. Sustainability and Corporate Responsibility - The Group will continue to utilize renewable energy in its operations, including the installation of new solar power generation systems at various plants[24]. - The new lid design for Cup Noodles reduces the amount of PET used compared to previous versions, aligning with environmental management goals[35]. - The Group has established scholarship programs to support future food scientists and physical education teachers in Hong Kong, awarding scholarships to multiple students in 2022[25]. - The Group is committed to continuous product upgrades and cost optimization, pursuing a premiumization strategy to enhance consumer experiences[44]. - The company is focused on maximizing business outcomes while contributing to sustainable community growth[31]. Governance and Management - The Company is committed to maintaining good corporate governance practices, complying with the Code on Corporate Governance Practices, with the exception of the separation of roles between the chairman and CEO[131]. - The Board believes that the current structure allows for swift and effective business decision-making, promoting the Group's development[134]. - The Audit Committee consists exclusively of independent non-executive directors, ensuring accountability and independent decision-making[131]. - The Board oversees the Group's businesses, strategic decisions, and risk management[143]. - The Company has adopted mechanisms to ensure Board independence, which are reviewed annually[142]. Employee Development and Training - The Group conducted ten training sessions annually for newly recruited employees to enhance their awareness and operational expertise in the industry[24]. - The Group's training programs for new employees are conducted ten times a year to enhance knowledge and skills in various operational areas[36]. - As of December 31, 2022, the total number of staff was 3,511, with staff costs amounting to approximately HK$707.7 million for the year[97]. Risk Management - The Group has adopted a risk management policy that includes five core stages: risk identification, risk assessment and prioritization, risk response, risk monitoring, and risk reporting[190]. - The Audit Committee monitored the effectiveness of the Group's risk management and internal control systems, deeming them sufficient and effective[185]. - The Board is responsible for monitoring the effectiveness of risk management and internal control systems, ensuring they align with business objectives[191].

Financial Performance - Total revenue for the year ended December 31, 2022, was HKD 4,024,980, an increase of 4.1% from HKD 3,866,335 in 2021[3] - Gross profit for 2022 was HKD 1,294,607, representing a gross margin of 32.2%, compared to HKD 1,227,319 in 2021[3] - Net profit for the year was HKD 348,916, a slight increase from HKD 339,235 in 2021, resulting in basic earnings per share of HKD 30.32[4] - Total comprehensive income for the year was HKD 127,915, down from HKD 406,260 in 2021, primarily due to foreign exchange losses[4] - The company reported a significant increase in other income to HKD 63,266 in 2022 from HKD 33,711 in 2021[3] - The group's consolidated profit before tax for the year ended December 31, 2022, was HKD 468,905, compared to HKD 441,576 for the previous year[22][24] - The company's net profit attributable to shareholders for 2022 was HKD 316,519,000, up from HKD 303,821,000 in 2021, representing a growth of approximately 4.3%[38] - Basic earnings per share rose to HKD 0.3032, with a proposed final dividend of HKD 0.1516 per share, representing a payout ratio of 50.0%[50] Assets and Liabilities - Non-current assets decreased to HKD 2,067,541 in 2022 from HKD 2,150,670 in 2021, with property, plant, and equipment at HKD 1,580,304[5] - Current assets decreased to HKD 2,467,569 in 2022 from HKD 3,108,899 in 2021, with cash and cash equivalents dropping to HKD 1,249,460[5] - Total equity attributable to owners of the company decreased to HKD 3,518,930 in 2022 from HKD 3,950,639 in 2021[6] - The group's total assets as of December 31, 2022, were HKD 1,895,702, a decrease from HKD 1,962,461 in 2021[28] - The group's cash balance as of December 31, 2022, was approximately HKD 1,267.2 million, a decrease from HKD 1,808.6 million in 2021, with no external borrowings reported[64] Revenue Breakdown - Total revenue for the year reached HKD 4,024,980,000, with HKD 1,575,163,000 from Hong Kong and HKD 2,449,817,000 from mainland China[17] - Sales of goods accounted for HKD 4,018,789,000, representing an increase from HKD 3,859,139,000 in the previous year[17] - Revenue recognized at a point in time was HKD 4,021,956,000, compared to HKD 3,862,794,000 in the prior year, indicating growth[17] - Revenue from Hong Kong operations increased by 7.4% to HKD 1,575.2 million, attributed to price adjustments and increased sales of high-end packaged instant noodles[52] - Revenue from the mainland China business increased by 2.1% to HKD 2,449.8 million, benefiting from regional expansion and increased cup noodle sales[60] Expenses and Costs - The total employee costs for 2022 were HKD 729,386,000, compared to HKD 715,974,000 in 2021[35] - The company incurred research and development expenses of HKD 33,997,000 in 2022, slightly down from HKD 35,167,000 in 2021[35] - The average price of key raw materials, such as wheat flour and palm oil, significantly increased throughout 2022, impacting production costs[50] - The company implemented price adjustments in two phases to mitigate the impact of rising production and raw material costs[52] Strategic Initiatives - The company plans to continue expanding its product offerings and market presence, focusing on innovation in food products[7] - The company has maintained its commitment to research and development, aiming to enhance product quality and customer satisfaction[7] - The company aims to enhance its market presence through strategic acquisitions and product development initiatives[47] - The company continues to invest in production processes and product quality improvements to ensure consumer satisfaction and food safety[49] - The company is actively implementing automation, robotics, and smart technologies in factories to enhance operational efficiency, productivity, product quality, and customer experience[71] Market and Economic Outlook - The company maintains a cautiously optimistic outlook for long-term business development in various regions, particularly anticipating economic recovery in Greater China in 2023, largely dependent on consumer behavior[71] - In Hong Kong, the government-led "Hello, Hong Kong!" tourism campaign is expected to stimulate the local economy by providing 500,000 tickets and cash vouchers to global tourists, enhancing consumer sentiment[71] - The company confirmed a total expense of HKD 1,697,000 thousand for share-based payment transactions for the year ended December 31, 2022[46] Shareholder Information - The board proposed a final dividend of HKD 0.1516 per share for the year ended December 31, 2022, subject to approval at the annual general meeting on June 9, 2023[79] - The company will suspend share transfer registration from June 6 to June 9, 2023, to determine eligibility for attending the annual general meeting and voting[80] - The annual report for 2022 will be available on the Hong Kong Stock Exchange website and the company's website, and will be mailed to shareholders in April 2023[81]