Economic Overview - For the first half of 2024, Nissin Foods reported an improvement in the global economic landscape, despite persistent challenges such as high interest rates and geopolitical risks [10]. - Economic growth in Mainland China picked up, driven by a significant increase in exports of high-tech manufacturing products, including electric vehicles and drones, from early 2024 [10]. - The Hong Kong economy recorded moderate growth during the reporting period, although local retail leakage continued to impact certain businesses [10]. - The overall socio-economic situation in Vietnam was positive, with a year-on-year GDP growth of 6.42% in the first half of 2024 [25]. Company Performance - Revenue decreased by 5.5% to HK$1,822.5 million in 2024 from HK$1,929.3 million in 2023, primarily due to weakened consumption sentiment and negative foreign currency translation effects [11]. - Gross profit declined by 3.2% to HK$637.5 million, while gross profit margin increased by 0.9 percentage points to 35.0% in 2024 from 34.1% in 2023 [11]. - Profit attributable to owners of the Company slightly decreased by 1.3% to HK$169.5 million, resulting in a net profit margin of 9.3% for the period [11]. - Adjusted EBITDA increased by 1.5% to HK$300.3 million, with an EBITDA margin of 16.5% for the period compared to 15.3% in 2023 [13]. - Total comprehensive income for the period was HK$156,966, an increase of 36.5% compared to HK$115,087 in the same period last year [86]. Product and Market Strategy - Nissin Foods remains committed to continuous product upgrades and cost optimization, supporting its premiumization and differentiation strategies [10]. - The company is focused on enhancing product quality and innovation capabilities to deliver greater taste experiences to consumers [10]. - Revenue from the non-noodle business is being diversified to enhance overall competitiveness and create synergies with the instant noodle segment [17]. - The instant noodle business in Hong Kong saw a slight revenue increase due to the recovery in sales volume of premium bag-type instant noodles [16]. - The instant noodle business in Mainland China maintained stability with improved sales of cup-type instant noodles, particularly CUP NOODLES BIG [32]. Geographic Expansion - Nissin Foods' strategies are supported by a solid foundation and footholds in Hong Kong and Mainland China [10]. - The company expanded its geographical presence in Mainland China by entering new cities and adding sales points in the western and northern regions [32]. - The company plans to expand its business into new markets such as Taiwan and Korea, leveraging its strong presence in Hong Kong and Mainland China [44]. - A wholly-owned subsidiary was established in Taiwan to enhance sales direction and promotional support, expected to drive sales growth [26]. Financial Position - As of June 30, 2024, the total assets of the Group amounted to HK$4,569.3 million, a decrease from HK$4,683.7 million as of December 31, 2023 [33]. - The Group's total equity was HK$3,666.1 million as of June 30, 2024, compared to HK$3,674.7 million as of December 31, 2023 [33]. - The Group's working capital increased to HK$1,619.5 million as of June 30, 2024, from HK$1,608.0 million as of December 31, 2023 [33]. - The current ratio improved to 3.0 as of June 30, 2024, up from 2.8 as of December 31, 2023 [33]. Shareholder Information - The company has decided not to declare any interim dividend for the six months ended June 30, 2024 [51]. - During the interim period, the trustee of the share award scheme purchased 380,000 shares at prices ranging from HK$4.92 to HK$4.98 per share, totaling approximately HK$1,882,500 [57]. - The share award scheme aims to recognize the contributions of selected employees and provide incentives for retention [71]. - The total number of awarded shares granted during the period was 391,700, with no shares cancelled or lapsed [73]. Risk Management and Compliance - The company established an audit committee to oversee financial reporting, risk management, and internal control systems, with the interim results for the six months ending June 30, 2024, reviewed by the committee and external auditors [59]. - The audit committee reviewed the interim report, ensuring compliance with applicable standards and the effectiveness of the audit process [59]. - The condensed consolidated financial statements for the six months ended June 30, 2024, were reviewed and found to be in compliance with HKAS 34 [84]. Environmental and Social Responsibility - Nissin Foods has implemented measures to reduce its environmental impact, such as installing solar panels in production facilities [10]. - The company aims to provide a stable food supply to protect consumers' well-being [10]. - The company emphasizes food safety by conducting regular product testing and pursuing relevant research and development [10].
日清食品(01475) - 2024 - 中期财报