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].
日清食品(01475) - 2020 - 年度财报