Nissin Foods (1475) warned that its net profit last year is estimated to fall as much as 41 percent year-on-year to HK$195 million, blaming the impairment losses on production facilities amid a weak spending appetite in mainland China.

The Japanese instant noodle giant projects its net profit for 2024 to be somewhere between HK$195 million and HK$205 million, versus HK$330.2 million one year ago.

Nissin said the earnings slump was mainly due to impairment loss amounting to HK$85 million relating to eight less profitable production facilities under complementary businesses, such as non-fried noodles and frozen foods, in mainland China and Hong Kong.

Its warehouse use in Hong Kong also posted a revaluation loss of about HK$15 million as a result of a sluggish local property market.