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 - Nissin Foods reported interim results for the six months ended June 30, 2021, amid ongoing challenges from the COVID-19 pandemic[13]. - Revenue increased by 6.8% to HK$1,853.8 million, driven by continuous growth in PRC operations, while Hong Kong operations faced a decline due to decreased consumption[19]. - Gross profit rose by 0.7% to HK$592.3 million, with a gross profit margin of 31.9%, down from 33.9% the previous year, primarily due to rising raw material costs[19]. - Adjusted EBITDA decreased by 9.5% to HK$281.3 million, resulting in an Adjusted EBITDA margin of 15.2%, down from 17.9%[20]. - Profit attributable to owners decreased by 4.2% to HK$170.9 million, with a net profit margin of 9.2%, down from 10.3%[20]. - Total revenue for the six months ended June 30, 2021, was HK$3,712,318, a decrease from HK$3,731,090 in the same period of 2020[79]. - The consolidated profit before taxation for the six months ended June 30, 2021, was HK$216,474,000, compared to HK$250,650,000 for the same period in 2020[100][104]. - Profit for the period attributable to the owners of the Company was HK$170,862,000, a decrease of 4.3% compared to HK$178,405,000 for the same period in 2020[118]. Market Conditions - The domestic market in Hong Kong and the PRC has shown signs of recovery, indicating a potential bottoming out of the economic downturn[15]. - Vaccination programs in various countries have contributed to early signs of economic recovery, allowing for a gradual return to normalcy[15]. - The pandemic has caused significant disruptions in the global supply chain, affecting the supply and demand of raw materials[14]. - Nissin Foods continues to monitor the impact of pandemic variants on the global economy and its operations[14]. - The company acknowledged the ongoing uncertainty in the operating environment but remains committed to navigating through both good and bad times[15]. Product Development and Innovation - Nissin Foods has focused on major product upgrades to adapt to the changing operating environment brought on by the pandemic[16]. - The Company launched a revamped Cup Noodles brand, celebrating its 50th anniversary with improved noodle quality and soup[26]. - New product offerings were introduced under the ROAH and FUKU brands, expanding the instant noodles and frozen foods portfolio[26]. - The vegetable business showed promising growth, with products already on supermarket shelves, expected to complement the product range in the long run[27]. - The company launched a major product reform in the PRC, upgrading Cup Noodles to celebrate its 50th anniversary, featuring smoother noodles and thicker soup[33]. Financial Position and Assets - As of June 30, 2021, total assets amounted to HK$5,106.0 million, a decrease from HK$5,183.9 million as of December 31, 2020, while total equity was HK$4,017.7 million, down from HK$4,043.1 million[35]. - The Group's working capital decreased to HK$1,921.1 million from HK$2,231.3 million, with a current ratio of 2.9 compared to 3.1 as of December 31, 2020[35]. - Non-current assets increased to HK$2,168,457,000 as of June 30, 2021, compared to HK$1,887,282,000 at the end of 2020[75]. - Current assets decreased to HK$2,937,497,000 from HK$3,296,593,000 at the end of 2020[75]. - The Group's net cash position was approximately HK$1,801.7 million as of June 30, 2021, down from HK$2,115.0 million as of December 31, 2020, with no external borrowing and a gearing ratio of nil[35]. Corporate Governance and Compliance - The company maintains good corporate governance practices and has complied with all applicable code provisions in the Corporate Governance Code, except for the separation of the roles of chairman and CEO[47]. - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2021[51]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors during the six months ended June 30, 2021[50]. Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2021, consistent with the previous year[46]. - The company repurchased a total of 10,628,000 shares at an aggregate consideration of approximately HK$65.2 million during the six months ended June 30, 2021, with prices ranging from HK$5.8987 to HK$6.3292[52]. - As of June 30, 2021, Nissin Japan holds a substantial interest of 752,024,000 ordinary shares, representing 70.70% of the total shares[61]. Employee and Operational Insights - As of June 30, 2021, the total number of staff was approximately 3,450, with staff costs amounting to approximately HK$309.1 million for the period[43]. - Total staff costs amounted to HK$317,845,000, an increase from HK$304,084,000 in the previous year, with other staff costs excluding directors' emoluments at HK$309,083,000[112]. - Research and development expenditure increased to HK$15,985,000 from HK$13,033,000, reflecting a growth of 22.5% year-on-year[111]. Strategic Investments and Acquisitions - On April 14, 2021, the Group acquired 100% interest in Ming Fong Packaging & Chemicals Limited for HK$48.9 million, which holds various plants and machinery in Hong Kong[39]. - The Company plans to invest approximately HK$194 million in consolidating production facilities and installing new smart production lines by 2023 to enhance productivity and efficiency[42]. - The Group recognized additional right-of-use assets of HK$1,265,000 during the period, reflecting new lease agreements for office and apartment use[119]. Related Party Transactions - The Group's transactions with related parties include various fees and charges, indicating ongoing operational relationships with its subsidiaries[170]. - Amounts due to the ultimate holding company as of June 30, 2021, totaled HK$28,062,000, with HK$17,709,000 due within 30 days[167].

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].

Economic Impact of COVID-19 - The company announced interim results for the six months ended June 30, 2020, amid a deteriorating economic environment due to COVID-19[10]. - The pandemic has significantly disrupted global economic activities, leading to a substantial decline in retail activities and cross-border tourism[11]. - Precautionary measures implemented by governments, such as social distancing and lockdowns, have triggered a chain reaction of economic recession, affecting consumer spending behavior[12]. - The overall economic atmosphere has been overshadowed by pessimism, leading to cost-cutting measures and layoffs across various sectors[12]. - The impact of COVID-19 has reshaped daily behaviors and spending habits globally, affecting the company's operations and strategies[12]. - The Company anticipates ongoing impacts from COVID-19 on the economy in Hong Kong and the PRC, affecting consumer behavior and operations[50]. - The outbreak of COVID-19 led to temporary suspension of operations in all production facilities in the PRC, with gradual resumption starting in February 2020[95]. - The financial positions and performance of the Group were affected by various factors related to COVID-19, including increased demand for instant noodles and government financial support measures[95]. Government Support and Community Assistance - The Hong Kong government launched an Anti-epidemic Fund and Employment Support Scheme to assist local corporations and maintain livelihoods[12]. - The company donated 1,000 cases of noodle products and 500 cases of vegetable juices to hospitals in Hong Kong to support the local community during the pandemic[15]. Financial Performance - Revenue increased by 15.9% to HK$1,735.4 million for the period, up from HK$1,497.9 million in 2019, driven by higher demand for instant noodles and frozen food products[17]. - Gross profit rose by 21.8% to HK$588.0 million, with a gross profit margin of 33.9%, compared to 32.2% in the previous year[17]. - Adjusted EBITDA grew by 34.9% to HK$310.7 million, representing an Adjusted EBITDA margin of 17.9% for the period, up from 15.4% in 2019[18]. - Profit attributable to owners increased by 34.3% to HK$178.4 million, resulting in a net profit margin of 10.3%, compared to 8.9% in 2019[18]. - Cash and cash equivalents stood at HK$1,492.3 million as of June 30, 2020, with a gearing ratio of zero, indicating strong financial stability[16]. - Total comprehensive income for the period was HK$158,115,000, compared to HK$137,662,000 in the same period last year, reflecting a growth of 14.8%[82]. - The company reported a profit for the period of HK$195,497, compared to a loss of HK$37,382 in the previous period[86]. Operational Adjustments and Strategic Focus - The company is focused on adapting to the new market conditions and consumer preferences shaped by the pandemic[12]. - The company is monitoring the ongoing situation and adjusting its business strategies accordingly to navigate the challenges posed by the pandemic[12]. - The Company aims to rejuvenate its business in the PRC through new product launches and geographical expansion as the economy normalizes[51]. - The company launched new products, including the Demae Iccho New Japan Ramen Shop Style Cup Series, to cater to evolving consumer preferences[26]. Segment Performance - Revenue from Hong Kong operations increased by 13.1% to HK$708.6 million, primarily due to increased demand for instant noodles and frozen food as consumers stayed home[22]. - Segment results for Hong Kong operations surged by 66.8% to HK$97.9 million, attributed to higher revenue and reduced advertising expenses[22]. - PRC operations revenue rose by 17.8% to HK$1,026.8 million, maintaining double-digit growth for the third consecutive year despite COVID-19 impacts[31]. - Revenue from PRC operations accounted for 59.2% of the Group's total revenue, up from 58.2% in the previous year[31]. - Segment profit from PRC operations increased by 43.7% to HK$142.8 million, mainly due to organic revenue growth and lower advertising costs[32]. Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended June 30, 2020, except for the separation of the roles of chairman and CEO[53]. - The Audit Committee, consisting of three Independent Non-executive Directors, reviewed the unaudited interim results for the six months ended June 30, 2020[58]. - The company’s auditor confirmed compliance with continuing connected transactions as per the Listing Rules[72]. Shareholder Information - Kiyotaka Ando holds 18,109,480 shares, representing 1.69% of the Company[61]. - As of June 30, 2020, Nissin Japan holds a beneficial ownership of 752,024,000 shares, representing 70.00% of the total shares[68]. - The Company has not been notified of any other relevant interests or short positions in its shares representing 5% or more as of June 30, 2020[67]. Capital Expenditure and Investments - Capital expenditure during the review period was HK$104.7 million, primarily for investments in new offices and equipment in Hong Kong and the PRC[38]. - An initial investment of approximately HK$7.1 million was made to establish a production line for pre-packaged ready-to-eat fresh-cut vegetables, expected to commence in December 2020[28]. - The joint venture distribution business in Shanghai is expected to strengthen the Group's business foundation and facilitate future growth[36]. Employee and Staff Information - As of June 30, 2020, the total number of staff was approximately 3,450, with staff costs amounting to HK$295.8 million for the period[51]. - The remuneration package for employees is determined based on individual performance, qualifications, and industry practices[51]. Future Outlook - The Company plans to monitor future developments closely in the premium instant noodles market, expecting healthy growth in the short to medium term[51]. - The Group's financial performance indicates a need for strategic adjustments to enhance revenue growth in the upcoming periods[109].

Financial Performance - Nissin Foods achieved a 22.2% increase in net profit attributable to shareholders for the fiscal year ending December 31, 2019, despite challenges from social unrest in Hong Kong and US-China trade disputes [8]. - Revenue for the fiscal year 2019 increased by 3.0% to HKD 3,087.8 million, compared to HKD 2,998.8 million in 2018 [24]. - Gross profit rose by 8.6% to HKD 1,013.4 million, with a gross margin of 32.8%, up from 31.1% in the previous year [24]. - Profit attributable to the company's owners increased by 22.2% to HKD 251.0 million, resulting in a net profit margin of 8.1% [24]. - Adjusted EBITDA grew by 11.7% to HKD 455.4 million, with an EBITDA margin of 14.7% [24]. - The company reported a net profit of HKD 205,448 thousand for the year, compared to HKD 230,582 thousand in the previous year, a decrease of 10.9% [163]. - Total revenue for 2019 was HKD 3,087,781, an increase of 2.9% from HKD 2,998,828 in 2018 [158]. - Gross profit for 2019 reached HKD 1,013,430, up 8.6% from HKD 933,399 in 2018 [158]. - Profit before tax increased to HKD 352,638, representing a growth of 17.5% compared to HKD 300,008 in the previous year [158]. - Basic earnings per share for 2019 were HKD 23.36, compared to HKD 19.13 in 2018, reflecting a growth of 22.9% [158]. Market Expansion and Product Development - The company's revenue from its China operations recorded double-digit growth for the second consecutive year, indicating strong consumer demand and purchasing power [8]. - Nissin Foods plans to continue investing in talent and business localization to enhance competitiveness and achieve sustainable profit growth [11]. - The company aims to expand its distribution channels and product offerings, including innovative and diverse products like Cup Noodles and Demae Iccho, to provide more value to stakeholders [11]. - The company will focus on developing new instant noodle products and improving quality while promoting internal production to reduce sales costs [10]. - The company recognizes the importance of adapting to changing consumer tastes and preferences to maintain steady business growth [9]. - The company plans to launch a strategic partnership to expand its product offerings and explore new revenue sources in the Chinese market [32]. - The company is focused on expanding its operations in China, with dedicated management overseeing sales and marketing functions in the region [50][52]. - The company is actively pursuing market expansion strategies, particularly in Southern China, to enhance its sales performance [52]. - The company launched four new flavors of instant noodles under the Nissin Raoh brand, enhancing the product experience for customers in Hong Kong [26]. - The company introduced eight new products in the ramen and udon categories, leveraging an upgraded production line announced in March 2019 [28]. Financial Position and Assets - The company maintained a strong financial position with total assets of HKD 4,633.9 million and a current ratio of 3.5 as of December 31, 2019 [33]. - The company has no external borrowings and a capital debt ratio of zero as of December 31, 2019 [33]. - The company's available reserves as of December 31, 2019, were approximately HKD 546.2 million, up from HKD 508.6 million in 2018 [112]. - The company reported a foreign exchange loss of HKD 42,564, an improvement from a loss of HKD 91,618 in 2018 [158]. - Non-current assets increased to HKD 1,638,712 thousand in 2019 from HKD 1,521,626 thousand in 2018, representing a growth of 7.7% [160]. - Current assets rose to HKD 2,995,218 thousand in 2019, compared to HKD 2,922,746 thousand in 2018, marking an increase of 2.5% [160]. - Total equity increased to HKD 3,712,318 thousand in 2019 from HKD 3,595,173 thousand in 2018, reflecting a growth of 3.3% [161]. - The company's cash and bank balances reached HKD 1,505,261 thousand in 2019, up from HKD 1,384,707 thousand in 2018, an increase of 8.7% [160]. Corporate Governance - The company has maintained compliance with the corporate governance code, with the exception of the separation of the roles of Chairman and CEO, which are currently held by the same individual, Akira Ando [56]. - The board consists of a mix of executive and independent non-executive directors, ensuring a balance of power and accountability [59]. - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives among board members [62]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities [68]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, ensuring adherence to governance standards [67]. - The company emphasizes the importance of product planning and marketing strategies to drive growth in the competitive food industry [52]. - The board has confirmed that all directors have adhered to the securities trading standards set forth in the listing rules during the year [57]. - The company encourages continuous professional development for directors, including training on legal and regulatory updates [66]. - The board has a structured process for handling potential conflicts of interest, ensuring independent non-executive directors are present to address such matters [61]. - The company is committed to regular reviews of its corporate governance practices to ensure effective decision-making and strategic direction [56]. Risk Management - The company has established a risk management policy to identify, assess, and manage key risks, including five core processes: risk identification, risk assessment and prioritization, risk response, risk monitoring, and risk reporting [77]. - The company emphasizes that the risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance but not absolute assurance against significant losses [78]. - The internal audit department assists the board and audit committee in evaluating the risk management processes and internal controls, providing recommendations for improvements [78]. - The company has adopted the COSO risk management framework, ensuring oversight by the board, audit committee, and dedicated risk management team [77]. - The risk management team is required to identify risks that could adversely affect the company's objectives at least once a year and develop mitigation plans for significant risks [78]. Environmental and Social Responsibility - The company is committed to reducing its environmental impact at every business stage [135]. - The company has implemented policies to monitor pollutant emissions and promote recycling in its operations [135]. - The company reported a charitable donation of HKD 100,000 during the year [135]. - The company is dedicated to fulfilling its social responsibility by ensuring food supply even in challenging circumstances, reflecting the founder's philosophy [8]. Shareholder Communication - The company has a shareholder communication policy to ensure that shareholders and investors receive balanced and comprehensible information [84]. - The company is committed to maintaining open communication with investors through various engagement activities, including roadshows and one-on-one meetings [88]. - The company held over 320 meetings with more than 550 institutional investors and research analysts in 2019, compared to 220 meetings with 370 investors in 2018 [88]. - The company encourages shareholders to review corporate communications available on its website for deeper insights [90].

Revenue and Profitability - Revenue increased by 1.1% to HKD 1,497.9 million, compared to HKD 1,481.6 million in 2018, driven by healthy growth in instant noodle sales in various regions of China[8] - Adjusted EBITDA grew by 16.1% to HKD 230.3 million, with an adjusted EBITDA margin of 15.4%, up from 13.4% in 2018[8] - Profit attributable to owners increased by 41.1% to HKD 132.9 million, compared to HKD 94.2 million in 2018, reflecting strict control over operating expenses[8] - Gross profit margin improved by 2.1% to 32.2%, up from 30.1% in 2018, benefiting from stable raw material costs and effective fixed cost control[8] - Total revenue for the six months ended June 30, 2019, was HKD 1,497,883, an increase from HKD 1,481,591 in the same period of 2018, representing a growth of 1.7%[33] - Net profit for the period was HKD 145,999, up from HKD 105,750 in 2018, indicating a significant increase of 38.1%[33] - Basic earnings per share for the period was HKD 12.37, compared to HKD 8.77 in the previous year, marking an increase of 41.5%[33] Operational Performance - Revenue from Hong Kong operations decreased by 32.1 million HKD or 4.9% to 626.4 million HKD compared to 658.5 million HKD in 2018[10] - Revenue from China operations increased by 5.9% to 871.5 million HKD, benefiting from channel expansion and regional coverage[10] - The operating profit from MCMS operations increased, contributing positively to revenue growth despite economic instability in Hong Kong[10] - The company launched several new product categories, particularly in non-noodle segments, to meet customer needs and enhance product offerings[7] - The company launched two new flavors for its "Nissin" product line, enhancing its product offerings in the market[10] Financial Position - As of June 30, 2019, the total assets of the group were 4,432.1 million HKD, with total equity of 3,613.2 million HKD[11] - The company’s current ratio as of June 30, 2019, was 3.7, indicating a stable financial position[11] - The company’s equity attributable to owners was HKD 2,099,281, compared to HKD 2,126,650 at the end of 2018, reflecting a decrease of 1.3%[35] - The total comprehensive income for the period was HKD 125,918,000, down from HKD 78,222,000 in the previous year, indicating a decrease of 1.5%[38] - The company's retained earnings as of June 30, 2019, were HKD 782,968,000, compared to HKD 642,512,000 as of June 30, 2018, showing an increase of 21.9%[38] Capital Expenditure and Investments - The group’s capital expenditure during the review period was 128.2 million HKD, primarily due to investments in production facilities in Hong Kong and China[12] - The company plans to invest approximately 180 million RMB to build a new packaging materials factory in Zhuhai, expected to be completed by 2021[11] - The company incurred total capital expenditures of approximately HKD 128,197,000 for the acquisition of property, plant, and equipment during the first half of 2019, compared to HKD 94,057,000 in the same period of 2018, representing a rise of approximately 36.2%[73] Market and Economic Conditions - Hong Kong's retail sales declined by 2.6% in the first half of 2019, impacting the company's performance in the region[9] - The economic growth in Hong Kong was sluggish, with GDP growth at only 0.5% in the first half of 2019, affecting the overall business environment[7] - The company expects the ongoing US-China trade disputes to continue impacting the Hong Kong economy in the short term, leading to a price increase for certain instant noodle products[16] Corporate Governance and Transparency - The company began disclosing quarterly financial information starting May 2019 to enhance transparency for shareholders and potential investors[7] - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2019[19] - The company has adopted the corporate governance code and complied with all applicable provisions, except for the separation of the roles of Chairman and CEO[19] Employee and Operational Metrics - The total number of employees as of June 30, 2019, was approximately 3,400, with employee costs (excluding director remuneration) amounting to HKD 288.0 million[17] - Total employee costs for the first half of 2019 were HKD 296,219,000, slightly up from HKD 291,937,000 in the same period of 2018, indicating a year-on-year increase of about 1%[70] Cash Flow and Financial Management - Net cash generated from operating activities for the six months ended June 30, 2019, was HKD 180,100, an increase of 55.5% compared to HKD 115,924 for the same period in 2018[40] - The company reported a cash balance of HKD 1,503,568 as of June 30, 2019, compared to HKD 1,384,707 at the end of 2018, showing an increase of 8.6%[35] - The company paid dividends to shareholders amounting to HKD 102,060, with no dividends paid in the same period last year[40] Lease Liabilities and Accounting Standards - The company has adopted HKFRS 16, which has led to changes in accounting policies regarding leases, affecting the financial statements[45] - The company recognized lease liabilities of HKD 1,064 million as of January 1, 2019, following the application of HKFRS 16[52] - The current portion of lease liabilities amounts to HKD 664 million, while the non-current portion is HKD 400 million[52] Related Party Transactions - Management fees received from the ultimate holding company were HKD 152,000 for the six months ended June 30, 2019, compared to HKD 130,000 for the same period in 2018, representing an increase of approximately 17%[90] - The company reported a significant increase in the purchase of raw materials from related parties, totaling HKD 18,008,000 for the six months ended June 30, 2019, compared to HKD 16,941,000 in the previous year, an increase of about 6%[90]