Financial Performance - The Group's profit attributable to owners grew by approximately 0.6% to HK$303.8 million, while revenue increased by approximately 10.0% year-on-year, driven by strong performance in the PRC operations[11]. - Revenue for FY2021 reached HK$3,866.3 million, a 9.9% increase from FY2020's HK$3,518.8 million[87]. - Gross profit for FY2021 was HK$1,227.3 million, reflecting a 5.9% increase from HK$1,158.7 million in FY2020[87]. - Adjusted EBITDA for FY2021 was HK$604.1 million, up 6.0% from HK$570.0 million in FY2020[87]. - Total assets increased to HK$5,259.6 million, a 1.5% rise from HK$5,183.9 million in the previous year[87]. - The total dividend per share increased by 24.3% to 17.47 HK cents, including a special dividend of 2.91 HK cents[87]. - The Company plans to absorb high costs related to raw materials and logistics through price adjustments while implementing cost reduction measures for sustainable profit growth[98]. - The Company observed a surge in raw material costs, particularly in palm oil, which impacted profitability despite ongoing brand investments[106]. - Segment results for Hong Kong operations decreased by 25.4% to HK$123.5 million, primarily due to rising raw material prices and brand investment expenses[113]. - Segment results in PRC operations increased by 21.0% to HK$299.1 million, driven by higher sales volume of cup-type instant noodles[120]. Product Development and Innovation - Sales volume of the flagship product, Cup Noodles, increased by approximately 10.0% compared to the previous year following a successful revamp to celebrate its 50th anniversary[12]. - The company has successfully completed the renewal of its Cup Noodles brand, which is expected to deepen market penetration in China over the next decade[20]. - The Company launched new products under the Cup Noodles brand, including the "Fresh Shrimp Pork Bone Soup Flavour" and Sichuan Style Spicy Chicken Flavour Soup Noodle[115]. - The company is investing in new product development, with plans to launch three innovative instant noodle flavors by Q3 2022[165]. - The Group emphasizes innovation in product development, with a dedicated R&D function overseen by Mr. Toshimitsu Fujinawa[170]. Market Expansion and Strategy - The company aims to expand its market share for premium instant noodles in the PRC, focusing on increasing sales of both Cup Noodles and bag-typed noodles like Demae Iccho[14]. - The company is focused on enhancing brand awareness and expanding geographical sales coverage across the PRC[14]. - The Company focused on expanding its sales geographical territories in the PRC to reach new consumers and enhance brand loyalty[103]. - The company is focusing on expanding sales in Northern and Western China, anticipating growth in per capita spending[148]. - Nissin Foods is focusing on market expansion, particularly in Southeast Asia, aiming to increase market share by 20% in the region over the next two years[165]. Sustainability Initiatives - The Group has implemented various sustainability initiatives, including reducing CO2 emissions equivalent to approximately 7,400 cedar trees annually through improved product design[12]. - Solar photovoltaics were installed on rooftops of manufacturing sites in Zhejiang and Fujian to enhance renewable energy usage[13]. - The company has installed photovoltaic solar panels at its production bases in Zhejiang and Fujian to increase renewable energy utilization[16]. - Nissin Foods is committed to sustainability, with a goal to reduce packaging waste by 30% by 2025[165]. - The Company aims to improve product quality to safeguard consumer wellbeing and progress in the right direction as a socially responsible corporation[104]. Corporate Governance - The Company is committed to maintaining good corporate governance practices and has complied with the Code on Corporate Governance Practices, except for the deviation regarding the roles of chairman and CEO being held by the same individual[186]. - The Board believes that the current structure allows for swift and effective business decision-making, promoting the Group's development in line with its strategies[186]. - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring all Directors have complied with the required standards during the year[188]. - The Board has met the requirement of having at least three independent non-executive directors, with one possessing appropriate professional qualifications[194]. - The Company will continue to review and enhance its corporate governance practices to ensure compliance with the New Corporate Governance Code effective from January 1, 2022[187]. Operational Efficiency and Cost Management - The company is committed to improving production efficiency and reducing expenses as part of its cost-saving initiatives to achieve sustainable profit growth[15]. - The Company has implemented a mid-single-digit percentage increase in ex-factory prices for cup-type and bag-type instant noodles in China, effective from March 1, 2022, marking the first price adjustment in 11 years[148]. - In Hong Kong, the company will increase ex-factory prices of certain instant noodles by a mid-to-high single-digit percentage effective April 1, 2022, due to soaring procurement costs[149]. - The management team is responsible for daily operations, with major corporate matters delegated by the Board, including risk management and compliance with regulations[200]. Leadership and Management - The management team has undergone changes, with the appointment of Mr. Gu Chunlei as a new executive director to strengthen leadership[165]. - The Group's strategic planning and overall business management are led by Mr. Kiyotaka Ando, who has been with the Group since 2009[170]. - The leadership team comprises individuals with diverse backgrounds in finance, production, and marketing, enhancing the Group's strategic capabilities[170][171][172][173][174].

Financial Performance - The Group's profit attributable to owners grew by approximately 20.3% year-on-year, marking the second consecutive year of high profit growth[13]. - Revenue increased by 14.0% year-on-year, driven by heightened demand due to social distancing measures and a new normal lifestyle[13]. - Revenue for FY2020 increased by 14.0% to HK$3,518.8 million compared to HK$3,087.8 million in FY2019[37]. - Gross profit rose by 14.3% to HK$1,158.7 million, with a gross profit margin of 32.9% for FY2020[37]. - Profit attributable to owners of the Company increased by 20.3% to HK$301.9 million, with earnings per share at HK$28.11[37]. - EBITDA grew by 25.2% to HK$570.0 million, representing an EBITDA margin of 16.2%[37]. - Total assets increased by 11.9% to HK$5,183.9 million, while net assets attributable to owners rose by 8.5% to HK$3,895.7 million[37]. - Total dividend per share increased by 20.1% to 14.05 HK cents, maintaining a dividend payout ratio of 50.0%[37]. - The instant noodle business achieved a revenue increase of 17.5% to HK$2,100.4 million in 2020, marking the third consecutive year of double-digit growth[82]. - Revenue from Hong Kong operations rose by 9.1% to HK$1,418.4 million (2019: HK$1,299.8 million), accounting for 40.3% of the Group's total revenue[65]. Business Expansion and Investments - The Group invested in ValleyFarm Holdings Limited to produce indoor hydroponic vegetables and set up a production line for pre-packaged ready-to-eat fresh-cut vegetables in Hong Kong[17]. - A joint venture was formed in Shanghai for the distribution of Japanese brand snacks and beverages, contributing to overall revenue and profit for 2020[18]. - The Group aims to expand its business territory across the PRC and increase sales of both Cup Noodles and bag-typed noodles like Demae Iccho[21]. - The Group has invested in new business areas, including a joint venture for snack foods and beverages in Shanghai, which contributed to profits in 2020[30]. - The Company launched new products including Hokkaido Wheat Flour Sesame Oil Flavour Demae Iccho and expanded its flavor offerings for Cup Noodles, enhancing its product portfolio[71]. - The Company launched four new flavors of RAOH bowl type noodles in November 2020 to enhance its premium noodle collection[88]. Sustainability and Community Initiatives - The Group is committed to sustainability, including reducing carbon footprint and enhancing renewable energy usage at manufacturing sites[20]. - The Group has implemented various risk management systems to ensure a safe and stable food supply during the COVID-19 pandemic[20]. - The charity fund established by the Group focuses on community development and educational initiatives[20]. - The establishment of the "Nissin Foods (Hong Kong) Charity Fund" aims to support community initiatives and educational programs related to food science and nutrition[32]. - The Group made a donation of HK$40 million to a charitable fund during the year, compared to nil in 2019[96]. Risk Management and Operational Adjustments - The Group has implemented risk management systems to ensure a stable food supply chain amid the challenges posed by COVID-19[31]. - A thorough risk management plan was implemented to ensure operational continuity and employee safety during the COVID-19 crisis[51]. - The company adjusted its production lines to meet increased demand for instant noodles and frozen foods amid the pandemic[50]. - The company anticipates that the pandemic will continue to impact the global economy in 2021, with raw material cost fluctuations expected to become more severe[118]. - In Hong Kong, the fourth wave of the pandemic is affecting the local economy, prompting the company to adjust production capacity for instant noodles and frozen foods accordingly[119]. Corporate Governance and Management - The company is committed to maintaining good corporate governance practices, complying with the CG Code, except for the deviation where the roles of chairman and CEO are held by Mr. Kiyotaka Ando since 2009[174]. - The Board believes that the current structure allows for swift and effective business decision-making, promoting the Group's development in line with its strategies[174]. - The Audit Committee consists exclusively of independent non-executive directors, ensuring independent oversight and access to external auditors when necessary[174]. - The management team collectively brings decades of experience in their respective fields, ensuring robust operational and financial oversight[139][140]. - The Company has adopted a Board Diversity Policy to enhance the effectiveness of the Board by ensuring a balance of skills, experience, and diversity of perspectives[195]. Future Outlook - The Group anticipates continued strong demand for premium instant noodles in the PRC despite ongoing impacts from COVID-19[21]. - The company is cautiously optimistic about future developments in key operating regions in China, focusing on continuous research and development for production know-how and product innovations[120]. - The company plans to expand its business territory in China to achieve sustainable growth in the long run while closely monitoring and controlling operating costs[120]. - The non-noodles business is expected to deliver positive outcomes in the coming years as customers become more health-conscious[119].