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].
日清食品(01475) - 2021 - 年度财报