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].
日清食品(01475) - 2021 - 中期财报