Financial Performance - For the six months ended June 30, 2023, Nissin Foods reported revenue of HKD 1,929,345, a decrease of 6.1% from HKD 2,055,241 in the same period of 2022[3]. - Gross profit for the same period was HKD 658,318, representing an increase of 1.0% compared to HKD 645,735 in 2022[3]. - The net profit for the period was HKD 172,648, down 2.2% from HKD 177,441 in the previous year[3]. - The total comprehensive income for the period was HKD 115,087, an increase of 57.0% from HKD 73,254 in 2022[4]. - Basic and diluted earnings per share for the period were both HKD 16.45, compared to HKD 15.46 in the same period last year[6]. - The company reported a consolidated profit before tax of HKD 239,108 thousand for the six months ended June 30, 2023, compared to HKD 216,546 thousand for the same period in 2022, indicating an increase of approximately 10.4%[25]. - The net profit for the six months ended June 30, 2023, was HKD 171,687,000, an increase from HKD 161,387,000 for the same period in 2022, representing a growth of approximately 8.06%[31]. - Profit attributable to owners of the company rose by 6.4% to HKD 171.7 million, resulting in a net profit margin of 8.9% compared to 7.9% in 2022[44]. Assets and Liabilities - As of June 30, 2023, total assets were HKD 3,559,878, a decrease from HKD 3,672,836 at the end of 2022[8]. - Current liabilities decreased to HKD 852,673 from HKD 926,969 at the end of 2022[7]. - Cash and cash equivalents as of June 30, 2023, were HKD 1,132,577, down from HKD 1,257,573 at the end of 2022[7]. - The company’s non-current assets totaled HKD 2,141,592, an increase from HKD 2,103,271 at the end of 2022[7]. - Total assets less current liabilities amounted to HKD 3,672,836 thousand, reflecting an increase of HKD 54,959 thousand[15]. - The group's total liabilities were reported at HKD 926,969 thousand, with current liabilities at HKD 926,969 thousand[15]. - As of June 30, 2023, total assets were HKD 4,412.6 million, with total equity of HKD 3,482.0 million, indicating a stable financial position[58]. - The company had no external borrowings as of June 30, 2023, maintaining a capital debt ratio of zero[58]. Investments and Acquisitions - The company acquired 66.01% of the target company for approximately $9.5 million (equivalent to HKD 74.44 million) in cash[11]. - An additional investment of $2 million (equivalent to HKD 15.67 million) will be made post-acquisition to gain an extra 0.99% equity in the target company[11]. - The company plans to integrate the target company's financials as if the acquisition had been completed from the date of first control[12]. - The acquisition is classified as a business combination under common control, following the guidelines of the Hong Kong Institute of Certified Public Accountants[11]. - The company completed the acquisition of Nissin Vietnam for approximately $11.5 million on July 10, 2023, making it a non-wholly owned subsidiary[64]. - The company acquired the remaining 19% stake in Dongfeng Hong Kong for approximately RMB 0.5 million, making both companies wholly owned subsidiaries[64]. Revenue Breakdown - Revenue from external customers in Hong Kong and other Asia was HKD 751,536 thousand, while revenue from mainland China was HKD 1,177,809 thousand, contributing to a total of HKD 1,929,345 thousand[24]. - The total segment revenue for Hong Kong and other Asia was HKD 855,531 thousand, while for mainland China it was HKD 1,288,307 thousand, leading to a combined segment revenue of HKD 2,143,838 thousand[24]. - Revenue from Hong Kong and other Asian operations decreased by 3.9% to HKD 751.5 million, attributed to a lack of demand surge seen during the pandemic[45]. - Revenue from mainland China decreased by 7.5% to HKD 1,177.8 million, accounting for 61.0% of the group's total revenue[53]. - The revenue from the mainland business segment fell by 3.2% to HKD 160.6 million, primarily due to negative impacts from the RMB exchange rate[53]. Operational Performance - The company reported a sales and service cost of HKD 1,394.23 million, leading to a gross margin of approximately 31.4%[13]. - The company's instant noodle business experienced ordinary performance due to consumers preferring dining out and "revenge travel" post-pandemic[47]. - The frozen food segment underperformed expectations, similar to the instant noodle business, due to increased competition and changing consumer habits[49]. - The distribution business saw significant rebound in sales as tourism numbers gradually increased, benefiting from the easing of pandemic restrictions[50]. - The company expanded its KAGOME product line into new Southeast Asian markets, receiving positive consumer feedback[50]. - The company launched new flavors in its instant noodle range, including collaborations with popular media to stimulate consumer spending[47]. Cost and Expenses - The total employee costs, excluding directors' remuneration, amounted to HKD 360,405,000 for the six months ended June 30, 2023, compared to HKD 336,729,000 in the same period of 2022, indicating an increase of approximately 7.02%[28]. - Research and development expenses increased to HKD 17,806,000 for the six months ended June 30, 2023, compared to HKD 15,527,000 in the same period of 2022, reflecting a growth of about 14.68%[28]. - The company declared and paid a final dividend of HKD 158,224,000 for the year ended December 31, 2022, compared to HKD 182,333,000 for the six months ended June 30, 2022, showing a decrease of about 13.23%[29]. Market Outlook and Strategy - The company continues to focus on expanding its product offerings and market presence in Asia and mainland China[9]. - The company plans to diversify its product offerings into health-oriented foods and beverages, such as yogurt and yogurt drinks, to expand its revenue base[62]. - The company maintains a cautiously optimistic outlook for long-term business development across regions, focusing on cost pressure mitigation through high-end and diversified strategies[62]. - In Hong Kong, business activities are returning to normal, with economic activities becoming more vibrant and inbound tourism gradually recovering[62]. - In mainland China, consumer spending continues to grow, with per capita consumption increasing and the income gap between urban and rural residents narrowing[62]. Corporate Governance - The company has established an audit committee in accordance with corporate governance principles to review the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[67]. - There were no purchases, sales, or redemptions of any listed securities by the company or its subsidiaries during the six months ended June 30, 2023[68].
日清食品(01475) - 2023 - 中期业绩