In FY2025, while the economies of Hong Kong and the Chinese Mainland were supported by external demand, the recovery in domestic demand remained gradual and consumer purchasing behaviour became increasingly selective. Against this backdrop, the Group advanced initiatives to enhance operational efficiency and reinforce cost discipline, thereby improving our earnings structure.

At the same time, we continued to execute our medium- to long term growth priorities of “enhancing product competitiveness” and “advancing supply chain management (SCM)”. As a result, we made steady progress in reinforcing our business foundations, and the benefits of these efforts are reflected in our consolidated results for FY2025.

For the year, revenue increased by 5.0% year on year to HK$4,001.1 million, driven primarily by higher instant noodle sales volumes and contributions from newly acquired businesses. Gross profit also rose by 5.6% year on year to HK$1,385.1 million, with the gross profit margin at 34.6%, an improvement of 0.2 percentage points year on year.

Operating profit increased by 8.1% year on year to HK$451.0 million. Its operating margin inched up by 0.4 percentage points to 11.3%. Profit attributable to owners of the Company rose by 64.9% year on year to HK$331.4 million, reflecting solid operating performance and the absence of impairment losses recorded in the previous year. This translated into an improvement in the net profit margin to 8.3%, up 3.0 percentage points year on year. As a result, earnings per share (“EPS”) amounted to HK cents 31.76, up 64.9% year on year. In addition to revenue growth, the absence of one-off factors recorded in the prior year led to an improvement in margins at gross, operating and bottom-line levels, thereby enhancing overall profitability.

The Group regards stable, sustainable shareholder returns as a key element of its dividend policy. The dividend for the year is expected to be HK cents 15.88 per share (FY2024: HK cents 15.82), representing an intended payout ratio of 50.0%. Going forward, the Group maintains a disciplined balance between growth investment and shareholder returns, supported by its stable cash generation.

In parallel with performance improvement and shareholder returns, the Group continues to pursue capital investments aimed at strengthening its medium- to long-term growth foundation. In FY2025, as a strategic investment to reinforce future production capacity, the Group acquired industrial land in Jinwan District, Zhuhai City, China, for a total consideration of RMB30.68 million.

On this site, the Group plans to construct a new factory, with completion targeted for 2029, and is currently examining a phased capital investment plan covering equipment configuration and production planning. By leveraging the expertise accumulated through the construction and operation of factories, the new facility will support higher-speed production lines, automation, and labour-saving initiatives. In addition, the Group aims to reduce operating costs and improve production efficiency by leveraging advanced IT capabilities in China and Japanese quality management practices. Furthermore, by strengthening collaboration with Zhuhai Nissin Packaging Company Limited, which is located nearby, the Group aims to enhance efficiency across the entire supply chain.

The Group places food safety, quality and supply security at the centre of its management. Food safety and quality management are the Group’s highest priorities, regardless of changes in the business environment. All food production sites have obtained international certifications for food safety management systems, including ISO 22000, FSSC 22000 and HACCP. The Group also conducts regular quality and supplier audits in collaboration with the Food Safety Evaluation & Research Institute Co., Ltd. (“Food Safety Institute”), a company of Nissin Foods HD. For key raw materials, it has established a multi-supplier procurement structure. Together with appropriate inventory management and long-term contracts, these measures help mitigate supply chain risks.

In addition, to prepare for business continuity risks such as natural disasters and outbreaks of infectious diseases, we leverage our multisite, geographically dispersed production system to maintain stable supply capabilities.

To ensure that food safety and quality management are effectively implemented in daily operations, the Group places strong emphasis on human resource development, in addition to establishing systems and frameworks. Food safety ultimately depends on the judgment and actions of employees at the workplace, and the Group seeks to embed these principles across the organisation through IT-enabled human resource development.

In addition to online learning programmes covering the Group’s philosophy and code of conduct, the Group provides systematic food safety training aligned with international standards, including ISO 22000, FSSC 22000 and HACCP.

Based on annual plans, the Group also conducts ongoing training for site hygiene supervisors, managers and employees, including hygiene management programs, internal auditor training, and internal audit training conducted by external institutions. These initiatives are designed to enhance on-site responsiveness and decision-making capabilities.

In FY2026, while closely monitoring the prevailing external uncertainties, the Group remains positive in its long-term growth outlook. We are focused on strengthening cost management and driving further improvements in operational efficiency. In doing so, we will seek to deliver sustainable growth across our markets by advancing our strategic priorities in FY2026 to “enhance product competitiveness” and “advance SCM”.

In the Chinese Mainland, we will position high-value-added products from our core brands, including “Cup Noodles (合味道)”, celebrating its 55th year, and “Demae Iccho (出前一丁)”, as key growth drivers. In addition, we will expand our product portfolio through the launch of new products, such as “Nissin Donbei (日清咚兵衛)”, a newly introduced large-cup-type udon noodle product. Through these initiatives, we aim to strengthen sales in existing markets while also pursuing sales expansion and the development of new distribution channels.

In Hong Kong, alongside “Demae Iccho (出前一丁 )” , we will continue to expand sales of premium products such as “Hokkaido Iccho (北海道一丁)” and the Japanese version of “Cup Noodles”. We will also seek to grow revenue through exports of both cup-type and bag-type noodles, while advancing the recovery of our frozen foods business.

In other overseas markets, we will continue to expand sales of our core products, including instant noodles, and strengthen our market foundations, taking into account the specific characteristics of each market.

As a food manufacturer headquartered in Hong Kong, with operations in Hong Kong, the Chinese Mainland and other regions’ markets, the Group bears the responsibility of supporting local communities and their daily lives. As Chairman and CEO, I focus on strengthening our product competitiveness — one of our key priorities — and building an efficiency-focused supply chain platform, without being swayed by short-term fluctuations. By striving to provide this essential food supply in a stable manner, I will continue to deliver long-term value to all stakeholders, including shareholders and investors.

Grounded in our founder, Mr. Momofuku Ando’s philosophy, “Creating food to serve society” (食創為世), we remain committed to enriching people’s lives by providing tasty, safe, and accessible food that consumers can trust and enjoy.