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On behalf of the board of directors (the “Board”) of Nissin Foods Company Limited (the “Company”), I am pleased to present the Annual Report of the Company and its subsidiaries (the “Group”) for the year ended 31 December 2023.


The year 2023 marked the resumption of normal economic activities in both Mainland China and Hong Kong following the uplift of restrictions against pandemics. Although there were strong hopes for economic recovery at the beginning of the year, economic activities gradually weakened, the economic outlook became increasingly uncertain, and consumer sentiment tended to decline. Against this backdrop, the Group has contributed to people’s health and society by providing the pleasure of eating and taste of food to people, in line with our founder, Mr. Momofuku Ando’s corporate philosophy that “food-related job is a sacred profession (食為聖職)”.

The Group’s revenue decreased by 5.8% year-on-year due to a decline in consumption sentiment in instant noodles, the absence of extra demand for bag-type noodles caused by the pandemic in Hong Kong, and the effect of the depreciation of the Renminbi in currency translation. On the other hand, operating profit increased by 2.2% year-on-year, and the operating profit margin improved by 0.9% points year-on-year to 11.4% due to lower raw material prices and lower selling, general and administration (SG&A) expenses such as distribution costs and sales promotion costs. Net profit attributable to owners of the Company increased by 5.6% mainly due to the acquisition of minority interests in Zhuhai Golden Coast Winner Food Products Limited and the consolidation of Nissin Food Vietnam Co., Ltd (“Nissin Vietnam”). Net profit margin improved by 0.9% points year-on-year to 8.6%. The Group has grown profitably for the seventh consecutive year since listing. (Note: Due to the acquisition of Nissin Vietnam, the financial figures for FY2022 have been restated, according to Hong Kong Accounting Guideline, for year-on-year comparisons).


Nissin Foodium (日清食品體驗館), a membership program launched in Hong Kong and Mainland China in July and August 2022, respectively, to increase brand loyalty, has expanded its target products from Cup Noodles (合味道 ) to various Nissin Brand’s instant noodles since its launch, with registered members growing every month. Members can scan WeChat QR codes to accumulate points via WeChat and redeem their accumulated points for reward prizes on the WeChat. Through this program, the Company can collect a variety of information while creating new rewards and prizes to increase customer loyalty and retention and to develop new products. We have also resumed tasting activities across Mainland China, with approximately 30,000 tasting activities and 5 million people tasting our products this year, raising awareness of the Nissin brand and the taste of our products. These marketing activities have led consumers to purchase Nissin brand instant noodles.


In Mainland China, per capita income has increased over the past decade, consumption quality has become more pervasive in people’s lives. In addition, consumers in Hong Kong and Mainland China have higher requirements on price, health, nutrition, food safety and security. Our R&D team has developed products, introduced new technologies and optimised costs amid such conditions. In 2023, the Company launched Nissin Chicken Ramen and Japanese formula Cup Noodles in Hong Kong and Mainland China, bringing consumers new food discovery and enjoyment. Nissin Chicken Ramen, the world’s first instant noodle, and Cup Noodles, the world’s first cuptype noodles in Japanese formula, have been successfully recreated by our production lines in Mainland China and have been well-received by consumers. Moreover, applying food technology to develop plantbased meat alternatives drives innovation. Using some animalderived materials in raw materials is in breach of regulations in some consuming countries. It may lead to loss of business opportunities as the products may not be allowed to be imported or sold. In addition, plant-based meat alternatives are environmentally friendly and the demand is expected to be increasing as consumers become more health-conscious. The fact that a professional R&D team leads these R&D activities is one of our obvious competitive advantages.


According to the announcement of the Company dated 11 May 2021, several instant noodle production lines in a plant have been successfully relocated to another plant in the same industrial park in Tai Po Industrial Estate Hong Kong. Smart Factory has been implemented by introducing automated equipment and various IT equipment to save manpower, improve work safety and homogenise product quality. In addition, production lines have been consolidated to improve efficiency, increase production capacity and reduce costs.


In June 2023, the Company acquired an approximately 66% stake in Nissin Vietnam, making it a consolidated subsidiary of the Company and extending the scope of the Company’s business from Greater China to Vietnam. We expect to expand our market share in the Vietnamese market and boost the shipment volume of instant noodles to Mainland China and other regions by deploying the talented and know-how in sales account, management and manufacturing that we have developed in Hong Kong and Mainland China to Vietnam. In addition, we established a wholly-owned subsidiary in Taiwan engaging in trading activities in December 2023 to boost the sales of our products. In the past, we have expanded our business via local wholesalers in Taiwan. Still, due to the growing interest in Nissin brand instant noodles and non-noodle products, we have decided to establish a subsidiary to employ local personnel to engage in trading business and expand our business territory.


In line with our founder, Mr. Momofuku Ando’s corporate philosophy that “Create food to serve society (食創為世)”, we are committed to be sustainable management as a responsible corporate citizen and contribute to environmental issues such as emissions and the sustainable development of local communities. Furthermore, we consider the treatment, motivation and engagement, and diversity of our employees, will lead to long-term corporate value creation. In 2023, to strengthen human capital, the Company made the Philosophy Game mobile app to use gamified content to allow users to interactively understand the corporate philosophy and the founder’s entrepreneurship through digital learning. The Company aimed to create a sense of company-wide unification by sharing the corporate philosophy and our work’s significance. Various initiatives conducted for sustainable management resulted in an ESG rating of A from MSCI.


Despite the uncertainty surrounding our business environment due to the impact of geopolitical tensions on international trade and capital account balance, we believe there are positive signs for the future due to steady economic growth in Hong Kong and Mainland China.

In our Mainland China business, we will expand sales of Cup Noodles (合味道 ) and the premium bag-type noodles like Demae Iccho (出前一丁), Nissin Raoh, and Nissin Chicken Ramen. Furthermore, we will continue to expand our geographical sales network and find wholesalers to significantly increase the sales volume of instant noodles while continuing tasting activities. In the non-noodle business, we will strive to expand the distribution and beverage businesses.

The Hong Kong business will focus on expanding sales of Demae Iccho (出前一丁), made from 100% Hokkaido flour, Nissin Raoh, Nissin Chicken Ramen, Vietnamese Pho, which are rice noodles, and various other premium bag-type noodles. With regard to frozen foods, we will aim to expand sales of premium frozen ramen and frozen dim sum products. Furthermore, sales to the catering industry will be strengthened due to the recovery of inbound tourists to Hong Kong.

The Vietnam business, consolidated in FY2023, aims to expand its sales channels to increase sales in the local market. The sales office in Taiwan works with the wholesalers and major retailers to increase transactions and boost sales. The Company will further strengthen marketing and sales activities to expand Nissin brand products.


I am determined to maximise business outcomes while efficiently developing the Group’s business operation and organisation and aiming to create long-term value for all stakeholders, including shareholders and investors of the Company. The Group is also committed to contributing to local communities to bring them sustainable growth.

With such goals in mind, again, I believe in enriching the lives of consumers through tasty, secure, and affordable food, and I share with you the corporate philosophy of our founder, Mr. Momofuku Ando, that “Create food to serve society (食創為世)”.

Kiyotaka Ando