Key Points - As of August 22, 108 stocks reached their 52-week highs, with Yicheng Group (08365), Shanghai Xiaonan Guo (03666), and Cybernaut International Holdings (01020) leading the high rate at 32.77%, 31.11%, and 20.16% respectively [1] - The closing prices for the top three stocks were 1.580, 0.051, and 0.155 respectively, indicating significant upward movement in their stock prices [1] - Other notable stocks that reached new highs include VALA (02051) at 18.87% and CTR Holdings (01416) at 16.52% [1] 52-Week High Rankings - The top three stocks with the highest increase rates were Yicheng Group (08365) at 32.77%, Shanghai Xiaonan Guo (03666) at 31.11%, and Cybernaut International Holdings (01020) at 20.16% [1] - The closing prices for these stocks were significantly higher than their previous values, indicating strong market performance [1] - The overall trend shows a positive sentiment in the market with many stocks achieving new highs [1] Additional Stocks Reaching New Highs - VALA (02051) reached a high of 0.630, marking an 18.87% increase, while CTR Holdings (01416) closed at 0.134, a 16.52% increase [1] - Other stocks such as Huaxing Capital Holdings (01911) and Huahong Semiconductor (01347) also showed positive performance with increases of 9.11% and 8.85% respectively [1]

Group 1 - The core idea of the news is the construction of the Wangwang Special Experience Pavilion, which aims to create an immersive "edible fairy tale world" for children, enhancing the cultural and tourism industry in the region [2][4] - The pavilion covers an area of approximately 10,000 square meters and is located near Wangwang Group's first factory established in mainland China in 1992 [2] - The main structure of the pavilion consists of five cylindrical shapes, symbolizing "gathering together" and focusing on food science education with a foundation in Chinese culture [2] Group 2 - The pavilion features various interactive areas for children, including exhibition halls, physical stores, and online experiences, catering to sightseeing, leisure, shopping, science education, and research needs [2] - The construction of the pavilion's main building has progressed significantly, with the concrete pouring of the roof nearly completed, and outdoor spaces are being enhanced with visible greenery [2] - Wangwang Group, founded in 1962, aims to transform its classic snack IP into immersive entertainment facilities while emphasizing "food safety + cultural education" [4]

New Stock Activities - Companies currently in the IPO process include Jiaxin International Resources, Shuangdeng Co., and Kanglong Chemical [1] - Other companies in the IPO process are Suteng Juchuang, Jinglian Group, Binjiang Services, and Yika [1] Earnings Announcement Dates - Companies scheduled to announce earnings include Tengsheng Bo Pharmaceutical-B, Chunquan Industrial Trust, and Jinchao Yang Group [1] - Additional companies include Zaitong, China Petroleum & Chemical Corporation, Jinyuan Development International Industry, and Runli Maritime [1] - Other firms set to report earnings are New Fire Technology Holdings, Weijun Group Holdings, and Citic Bank [1] Shareholder Meetings - Companies holding shareholder meetings include Wuxi Life, China Wangwang, Cultural Communication, and Jingneng Clean Energy [1] - Additional companies include GC Construction [1] Dividend Distribution - Companies declaring dividends include Huixian Industrial Trust, Cabin, and Baotan Holdings [1] - Other firms include Pacific Shipping, China New Town, and Victory Securities [1] - Additional companies declaring dividends are Jinsang Machine Tool China, Aihua Credit, and Gaoxin Retail [1] - First Service Holdings is also listed for dividend distribution [1] Dividend Payment Dates - Companies with scheduled dividend payment dates include Midea Real Estate, China Galaxy, CITIC Securities, and China Life [2]

Core Viewpoint - The increasing consumer focus on emotional and sleep health presents new opportunities for beverages containing GABA, which is believed to help with emotional regulation and sleep improvement [1][2]. Industry Overview - Several beverage companies, including China Wangwang, Yangyuan Beverage, Mengniu Dairy, and Junyao Health, are entering the GABA market by launching products that highlight the benefits of GABA for sleep and emotional relief [1][2]. - The global GABA market is projected to grow from $100 million in 2024 to $170 million by 2033, with a compound annual growth rate (CAGR) of 6.4% during the forecast period [2]. Market Trends - The beverage industry is experiencing a shift from thirst-quenching products to health-oriented options, with GABA beverages expected to maintain an annual growth rate of over 30% [3]. - The rise in societal stress, poor sleep quality, and emotional anxiety creates significant strategic opportunities for beverage companies to develop sleep-aiding products and establish strong brands [3]. Company Strategies - Yangyuan Beverage is diversifying its product line beyond its core product, "Six Walnuts," by introducing GABA-infused products like "Dream Concentrated Walnut Milk" to cater to the high-pressure lifestyle market [4]. - Companies are leveraging GABA as a means to create new product categories and brands, helping to overcome the challenges posed by traditional brand perceptions [3][4]. Challenges in the GABA Beverage Market - The effectiveness of GABA beverages in alleviating insomnia and anxiety is debated, with some medical professionals noting that oral GABA may not effectively cross the blood-brain barrier [5]. - Marketing claims regarding the benefits of GABA beverages often include disclaimers, which may lead consumers to perceive these products as mere marketing gimmicks, potentially harming brand reputation [5][6]. - Limited consumer awareness of GABA as an ingredient poses a challenge for market growth, as evidenced by the small sales volume of Yangyuan's "Dream" series [6].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 第 1 頁 共 10 頁 v 1.1.1 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國旺旺控股有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00151 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 30,000,000,000 | USD | | 0.02 | USD | | 600,000,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 30,000,000,000 | USD | | 0.02 | USD | | ...

Market Overview - The Hong Kong stock market indices continued to decline in the afternoon, with the Hang Seng Tech Index dropping over 3.1% at one point, ultimately closing down 2.72%, marking five consecutive days of decline [1] - The Hang Seng Index and the State-Owned Enterprises Index saw slight increases of 1.36% and 1.18%, respectively [1] Sector Performance - Major technology stocks experienced widespread declines, with Alibaba and JD.com falling nearly 3%, and Baidu down 2% [2] - The automotive sector faced significant pressure, with July retail sales of narrow passenger vehicles reportedly down over 11% month-on-month, leading to increased selling in automotive stocks [2] - Semiconductor stocks underperformed throughout the day, with leading company SMIC dropping nearly 6% [2] - Biopharmaceutical stocks, which had been rising, saw a correction [2] - Oil prices rebounded to around $70 due to geopolitical tensions, benefiting oil stocks, with China Petroleum rising nearly 4% [2] - The "three-child" concept stocks gained momentum, while coal, electricity, and steel sectors showed relative activity as part of the "anti-involution" theme [2] Notable Stock Movements - Li Auto saw a significant drop of over 12%, while other major players like BYD, Xpeng, and NIO fell over 5% [4][9] - Semiconductor stocks led the declines, with SMIC down over 6% and other semiconductor companies also experiencing losses [5][6] - Apple-related stocks declined, with GoerTek falling over 5% and other related companies like Sunny Optical and BYD Electronics also down [7][8] - Oil stocks rose, with China Petroleum and Sinopec both increasing by over 3% [10][11] - The "three-child" concept stocks performed well, with H&H International Holdings rising over 11% [12][13] Capital Flows - Southbound funds recorded a net inflow of HKD 11.714 billion, with the Shanghai-Hong Kong Stock Connect contributing HKD 6.427 billion and the Shenzhen-Hong Kong Stock Connect contributing HKD 5.287 billion [20] Market Outlook - Analysts suggest that the Hong Kong market may continue to experience a gradual recovery driven by fundamental factors, with a focus on the Hang Seng Tech Index, biopharmaceuticals, and AI concepts [22]

昨日呈现高开低走的三胎概念股再起升势，其中，H&H国际控股涨4.28%，锦欣生殖涨近4%，贝康医 疗涨2.4%，中国飞鹤涨1.7%，蒙牛乳业跟涨。 | 代码 | 名称 | 最新价 | 涨跌幅 ▽ | | --- | --- | --- | --- | | 01112 | H&H国际控股 | 11.700 | 4.28% | | 01951 | 锦欣生殖 | 3.340 | 3.73% | | 02170 | 贝康医疗-B | 2.980 | 2.41% | | 06186 | 中国飞鹤 | 4.790 | 1.70% | | 00151 | 中国旺旺 | 5.780 | 1.05% | | 02319 | 蒙牛乳业 | 17.020 | 0.71% | 消息面上，7月28日，中办、国办印发《育儿补贴制度实施方案》，明确对3周岁以下婴幼儿按每孩每年 3600元标准发放补贴。浙商证券发布研究报告称，国家育儿补贴制度实施方案于2025年7月28日公布， 面向育儿家庭全国范围全面直接发放现金补贴，有助于缓解家庭养育压力。随着生育补贴政策实施落 地，有望改善市场预期，母婴消费产业链或更多获益，汽车、餐饮等领域也可能迎来 ...

[Corporate Information](index=4&type=section&id=Corporate%20Information) The company's legal name is Want Want China Holdings Limited, listed on the Hong Kong Stock Exchange with stock code 0151, governed by a board comprising executive, non-executive, and independent non-executive directors - The company's legal name is Want Want China Holdings Limited, listed on the Hong Kong Stock Exchange with stock code **0151**[6](index=6&type=chunk)[8](index=8&type=chunk) - The Board of Directors comprises **7 executive directors, 2 non-executive directors, and 5 independent non-executive directors**, with Mr. Tsai Eng-Meng serving as Chairman and CEO[6](index=6&type=chunk)[7](index=7&type=chunk) - The company has established an Audit and Risk Management Committee, Remuneration Committee, Nomination Committee, Strategy Committee, and Environmental, Social and Governance (ESG) Committee to support corporate governance[7](index=7&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) [Corporate Profile](index=7&type=section&id=Corporate%20Profile) The company, originating from Yilan Foods in 1962, evolved into a diversified food and beverage group, expanding into mainland China in 1992 and listing in Hong Kong in 2008, with recent global expansion including a Vietnam factory [History and Development](index=7&type=section&id=History%20and%20Development) The company, founded in 1962, established the "Want Want" brand in 1983, entered mainland China in 1992, and listed on the Hong Kong Stock Exchange in 2008, further expanding globally with a Vietnam factory in 2022 - The company was founded in **1962**, established the 'Want Want' brand in **1983**, entered the mainland China market in **1992**, and listed on the Hong Kong Stock Exchange in **2008**[19](index=19&type=chunk)[20](index=20&type=chunk)[22](index=22&type=chunk) - To strengthen its overseas market presence, the company commenced construction of its Vietnam production base in **2020**, which officially began operations in **2022**, marking a significant step towards globalization[21](index=21&type=chunk)[22](index=22&type=chunk) [Principal Activities and Key Markets](index=8&type=section&id=Principal%20Activities%20and%20Key%20Markets) The Group's core business involves manufacturing, distributing, and selling rice crackers, dairy products and beverages, snack foods, and other products, primarily in mainland China with a vast sales network, also exporting to North America, East Asia, Southeast Asia, and Europe - Principal activities cover **four major categories**: rice crackers, dairy products and beverages, snack foods, and other products[23](index=23&type=chunk)[25](index=25&type=chunk) - As of March 31, 2025, the Group operates **419 sales offices, 35 production bases, and 89 factories** in mainland China, collaborating with **over 10,000 distributors**[24](index=24&type=chunk)[26](index=26&type=chunk) [Corporate Culture](index=9&type=section&id=Corporate%20Culture) The company fosters employee cohesion and belonging through cultural events and embodies its management philosophy of "affinity, confidence, and great unity" to achieve high-profit, high-achievement, and forward-looking goals [Corporate Activities](index=10&type=section&id=Corporate%20Activities) The company organizes large-scale cultural events like the "Overcoming Challenges, Moving Forward" speech contest and "Want Want Family Day" to unite employees, enhance belonging, and convey its "attentive and dedicated" cultural spirit - In **2024**, the company hosted the large-scale corporate cultural event 'Overcoming Challenges, Moving Forward' speech contest, attracting nearly **600 teams** from across the Group to showcase the spirit and potential of Want Want employees[30](index=30&type=chunk)[32](index=32&type=chunk) - Regular 'Want Want Family Day' events enhance employee cohesion and belonging, conveying the cultural spirit of being 'attentive and dedicated' in every endeavor[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) [Management Philosophy](index=12&type=section&id=Management%20Philosophy) The company's management philosophy, embodied by the "Wang Zai" image, centers on core values of "affinity" (cherishing talent), "confidence" (sincerity), and "great unity" (mutual assistance), aiming to become a "Global Dragon" by pursuing high profit, high achievement, and foresight - The management philosophy emphasizes 'affinity, confidence, and great unity,' with core values of cherishing talent, sincerity, and mutual assistance[39](index=39&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) - The operational goal is to be a 'Global Dragon,' aiming to gather global talents for shared development and pursue high profit, high achievement, and forward-looking business results[43](index=43&type=chunk)[47](index=47&type=chunk) [Financial Highlights and Summary](index=14&type=section&id=Financial%20Highlights%20and%20Summary) The company's FY2024 financial performance shows stable revenue at RMB 23.51 billion, increased profit to RMB 4.33 billion, improved gross margin to 47.6%, and enhanced return on equity to 28.7% [Financial Highlights](index=14&type=section&id=Financial%20Highlights) For FY2024 (ended March 31, 2025), the company's revenue was RMB 23.51 billion, largely stable year-on-year, with profit increasing to RMB 4.33 billion, gross margin improving to 47.6%, earnings per share rising to 36.71 RMB cents, and return on equity reaching 28.7% Key Financial Indicators for FY2022-2024 | Indicator | FY2022 | FY2023 | FY2024 | | :--- | :--- | :--- | :--- | | **Revenue (RMB thousand)** | 22,928,219 | 23,586,327 | 23,510,737 | | **Profit for the Year (RMB thousand)** | 3,362,711 | 3,983,179 | 4,328,415 | | **Gross Margin** | 43.9% | 46.6% | 47.6% | | **Earnings Per Share (RMB cents)** | 28.35 | 33.65 | 36.71 | | **Return on Equity** | 25.4% | 25.7% | 28.7% | [Financial Summary](index=15&type=section&id=Financial%20Summary) The company's five-year financial data shows FY2024 (ended March 31, 2025) revenue at RMB 23.51 billion, a slight decrease year-on-year, but profit reached RMB 4.33 billion, an 8.6% increase, with total assets at RMB 27.21 billion and total equity increasing to RMB 17.75 billion Summary of Consolidated Income Statement (For the year ended March 31) | Indicator (RMB thousand) | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | **Revenue** | 22,928,219 | 23,586,327 | 23,510,737 | | **Profit Before Income Tax** | 4,779,950 | 5,405,467 | 5,739,662 | | **Profit for the Year** | 3,362,711 | 3,983,179 | 4,328,415 | | **Profit Attributable to Owners of the Company** | 3,371,584 | 3,990,474 | 4,335,565 | | **Basic Earnings Per Share (RMB cents)** | 28.35 | 33.65 | 36.71 | Summary of Consolidated Balance Sheet (As at March 31) | Indicator (RMB thousand) | 2023 | 2024 | 2025 | | :--- | :--- | :--- | :--- | | **Total Assets** | 25,974,077 | 27,457,068 | 27,211,758 | | **Total Equity** | 14,704,070 | 16,405,738 | 17,751,141 | | **Total Liabilities** | 11,270,007 | 11,051,330 | 9,460,617 | [Major Awards and Recognition](index=16&type=section&id=Major%20Awards%20and%20Recognition) The Group has received significant recognition for its sustainable development, product innovation, and international brand presence, including "zero-carbon factory" certification and multiple industry awards - The Group demonstrates excellence in sustainable development, with its Jiaxing Meiwang factory receiving the first 'Zero-Carbon Factory' certificate, and **10 Group factories** achieving national-level Green Factory certification[57](index=57&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) - Product innovation capabilities are highly recognized, earning the title of 'Excellent Innovative Manufacturer of Snack Foods,' with several products like Q Rice Noodles and Aiyou Mochi Thick Soup receiving industry innovation awards[61](index=61&type=chunk)[63](index=63&type=chunk) - The Group has consistently received accolades in international and regional evaluations, including the Monde Selection International Food Quality Gold Award, multiple iSEE Global Awards, and has been recognized as one of 'Taiwan's Top 25 International Brands' for several consecutive years[67](index=67&type=chunk)[70](index=70&type=chunk)[72](index=72&type=chunk) [Chairman's Statement](index=19&type=section&id=Chairman%27s%20Statement) In the second half of FY2024, the Group restructured into product-category business units, focused on market penetration, deepened cooperation with mass snack retailers, and diversified its e-commerce presence, while expanding factory innovation and overseas markets - In the second half of FY2024, the Group established business units by product category, launched the slogan 'Conquer Cities, Prosper the World,' deepened cooperation with mass snack retail systems, and diversified its e-commerce retail market presence[78](index=78&type=chunk)[81](index=81&type=chunk) - The Group made significant progress in factory innovation and overseas market expansion, with **ten factories** earning national-level Green Factory titles and establishing overseas subsidiaries in Vietnam, Indonesia, Australia, and Germany[79](index=79&type=chunk)[81](index=81&type=chunk) - The Chairman urged management to 'lead with action and forge ahead' in **2025**, emphasizing that the marketing system must strive for full sprint, the production system must ensure quality, and the internal support system must provide full support and collaboration[80](index=80&type=chunk)[82](index=82&type=chunk) [Management Discussion and Analysis](index=21&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's financial and operational performance, highlighting revenue trends, cost management, profitability drivers, liquidity, capital resources, and human resource management for the fiscal year [Overall Performance Summary](index=21&type=section&id=Overall%20Performance%20Summary) In FY2024, the Group's total revenue was RMB 23.51 billion, a slight 0.3% year-on-year decrease, with gross margin increasing by 1.0 percentage point to 47.6% due to lower raw material costs, and profit attributable to owners of the company growing by 8.6% to RMB 4.34 billion, improving the profit margin to 18.4% FY2024 Performance Overview | Indicator | Amount (RMB) | Year-on-Year Change | | :--- | :--- | :--- | | **Total Revenue** | 23.5107 billion | -0.3% | | **Gross Margin** | 47.6% | +1.0 percentage point | | **Profit Attributable to Owners of the Company** | 4.3356 billion | +8.6% | | **Profit Margin Attributable to Owners of the Company** | 18.4% | +1.5 percentage points | - Emerging channels (such as OEM) and overseas markets continued to be growth drivers, with both achieving **double-digit year-on-year revenue growth** in FY2024[85](index=85&type=chunk)[88](index=88&type=chunk) - New products launched within the past **5 years** continued to gain traction, accounting for a **double-digit percentage** of the Group's total revenue in FY2024, indicating sustained improvement in the Group's innovation capabilities[85](index=85&type=chunk)[88](index=88&type=chunk) [Operational Review](index=23&type=section&id=Operational%20Review) In FY2024, the Group advanced its diversified development strategy by deepening cooperation with snack retail systems, expanding e-commerce and OEM channels, growing overseas markets, and launching differentiated brands and innovative products for various consumer segments [Channel Development](index=23&type=section&id=Channel%20Development) The Group deepened cooperation with leading snack retail clients, with this channel now accounting for approximately 10% of revenue, while emerging channels (e-commerce, OEM) and overseas markets achieved double-digit growth, becoming key engines, and overseas supply chain布局 is showing initial success with the Vietnam factory handling international demand - Traditional wholesale and modern channels accounted for approximately **80%** of the Group's total revenue, with the mass snack retail channel contributing about **10%**[93](index=93&type=chunk)[94](index=94&type=chunk) - Emerging channels (including content e-commerce and OEM) saw **double-digit year-on-year revenue growth**, accounting for nearly a **double-digit percentage** of the Group's total revenue[96](index=96&type=chunk)[98](index=98&type=chunk) - Overseas market revenue achieved **double-digit growth**, representing a **high single-digit percentage** of the Group's total revenue, with rapid growth in Japan, North America, and certain Southeast Asian markets[97](index=97&type=chunk)[99](index=99&type=chunk) [Brand Positioning and New Products](index=27&type=section&id=Brand%20Positioning%20and%20New%20Products) The Group launched personalized brands for different age groups, such as "Bebemama" for infants and "Aizhizun" for seniors, while leveraging innovative R&D to introduce new products like "QQ Juice Gummy" and "Want Power Yijun Roll," with plans for more low-sugar/sugar-free beverages and edible toys - The company implemented a diversified brand positioning strategy, launching exclusive brands for various consumer segments, including **infants, seniors, young professionals, and fitness enthusiasts**[103](index=103&type=chunk)[108](index=108&type=chunk) - Leveraging innovative R&D capabilities, the company developed personalized products such as 'QQ Juice Gummy' using peel-off black technology and 'Want Power Yijun Roll' with added active probiotics[104](index=104&type=chunk)[108](index=108&type=chunk) [Financial Performance Review](index=27&type=section&id=Financial%20Performance%20Review) In FY2024, the Group's total revenue slightly decreased by 0.3%, with balanced development across its three major categories; gross margin improved to 47.6% due to lower raw material costs, and effective control of operating expenses, reduced finance costs, and a lower income tax rate collectively drove a 4.1% year-on-year increase in operating profit to RMB 5.84 billion [Revenue Analysis](index=27&type=section&id=Revenue%20Analysis) Total revenue for FY2024 was RMB 23.51 billion, a slight 0.3% year-on-year decrease, with dairy products and beverages growing 1.3% to RMB 12.11 billion, while rice crackers declined 1.2% to RMB 5.90 billion due to weak gift package sales, and snack foods decreased 2.6% to RMB 5.36 billion due to poor first-half performance in ice products Revenue by Business Segment (FY2024) | Business Segment | Revenue (RMB) | Year-on-Year Change | | :--- | :--- | :--- | | **Rice Crackers** | 5.9038 billion | -1.2% | | **Dairy Products and Beverages** | 12.1086 billion | +1.3% | | **Snack Foods** | 5.3591 billion | -2.6% | | **Total** | **23.5107 billion** | **-0.3%** | - Within dairy products and beverages, 'Wang Zai Milk' achieved **low single-digit growth**, while beverages and other sub-categories saw **double-digit growth**[113](index=113&type=chunk)[118](index=118&type=chunk) - In snack foods, despite a first-half decline in ice products, the sub-category achieved **high growth** in the second half through adjustments, with billion-RMB single products like Lonely God, Black & White, and Puffs reaching **record-high revenues**[116](index=116&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) [Cost of Sales and Gross Profit](index=31&type=section&id=Cost%20of%20Sales%20and%20Gross%20Profit) In FY2024, cost of sales decreased by 2.2% to RMB 12.32 billion, primarily due to lower unit costs of imported whole milk powder, raw paper, and white sugar, leading to a 1.0 percentage point increase in gross margin to 47.6% and a 1.8% rise in gross profit to RMB 11.19 billion - Cost of sales decreased by **2.2%**, primarily due to a year-on-year decrease in unit consumption costs of certain bulk raw materials and packaging materials, such as imported whole milk powder, raw paper, tinplate, white sugar, and gelatin[122](index=122&type=chunk)[126](index=126&type=chunk) - Gross margin increased by **1.0 percentage point** year-on-year to **47.6%**, with a contribution of approximately **1.4 percentage points** from lower raw material costs, partially offset by a **-0.4 percentage point** impact from product mix changes and lower average selling prices due to channel diversification[124](index=124&type=chunk)[127](index=127&type=chunk) Gross Margin by Business Segment (FY2024) | Business Segment | Gross Margin | Year-on-Year Change | | :--- | :--- | :--- | | **Rice Crackers** | 44.1% | -1.9 percentage points | | **Dairy Products and Beverages** | 49.7% | +1.2 percentage points | | **Snack Foods** | 44.5% | +0.5 percentage points | [Operating Expenses and Profit](index=35&type=section&id=Operating%20Expenses%20and%20Profit) In FY2024, the Group effectively controlled operating expenses, with distribution costs slightly increasing by 0.2% to RMB 3.03 billion (12.9% of revenue) and administrative expenses decreasing by 1.2% to RMB 3.01 billion (12.8% of revenue), leading to a 4.1% year-on-year increase in operating profit to RMB 5.84 billion, driven by improved gross margin - Distribution costs slightly increased by **0.2%** year-on-year to **RMB 3.027 billion**, representing **12.9%** of revenue[137](index=137&type=chunk)[142](index=142&type=chunk) - Administrative expenses decreased by **1.2%** year-on-year to **RMB 3.008 billion**, representing **12.8%** of revenue[138](index=138&type=chunk)[143](index=143&type=chunk) - Operating profit increased by **4.1%** year-on-year to **RMB 5.837 billion**, with the operating profit margin rising by **1.0 percentage point** to **24.8%**[139](index=139&type=chunk)[144](index=144&type=chunk) [Finance Costs and Income Tax](index=35&type=section&id=Finance%20Costs%20and%20Income%20Tax) In FY2024, the Group's finance costs significantly decreased to RMB 176 million, primarily due to replacing high-interest USD borrowings with lower-interest RMB borrowings, and income tax expense was RMB 1.411 billion, with the effective tax rate decreasing by 1.7 percentage points to 24.6% - Finance costs decreased by **RMB 105.6 million** year-on-year to **RMB 176.2 million**, primarily due to debt structure optimization[140](index=140&type=chunk)[145](index=145&type=chunk) - The income tax rate decreased by **1.7 percentage points** year-on-year to **24.6%**, mainly due to reduced finance costs and improved profitability of overseas operations[141](index=141&type=chunk)[146](index=146&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the Group maintained a robust financial position with net cash increasing to RMB 11.28 billion, total borrowings reduced to RMB 4.15 billion (predominantly RMB-denominated), a net debt-to-equity ratio of -0.64x, and capital expenditure of RMB 630 million in FY2024 (up 56.4%) primarily for plant and equipment upgrades, while inventory turnover days improved from 81 to 74 days [Cash, Borrowings, and Capital Resources](index=36&type=section&id=Cash%2C%20Borrowings%2C%20and%20Capital%20Resources) As of March 31, 2025, the Group's net cash was RMB 11.28 billion, a year-on-year increase of RMB 630 million, with total borrowings reduced to RMB 4.15 billion, over 96% of which were RMB-denominated, and a net debt-to-equity ratio of -0.64x, indicating a healthy capital structure Cash and Borrowings Status (As of March 31, 2025) | Indicator | Amount (RMB) | Remarks | | :--- | :--- | :--- | | **Cash and Bank Balances** | 15.4375 billion | Including 7.091 billion long-term deposits | | **Total Borrowings** | 4.1547 billion | Year-on-year decrease of 1.1964 billion | | **Net Cash** | 11.2828 billion | Year-on-year increase of 627.6 million | | **Net Debt-to-Equity Ratio** | -0.64x | Last year was -0.65x | - In FY2024, net cash inflow from operating activities was **RMB 4.16 billion**, net cash outflow from financing activities was **RMB 4.16 billion** (primarily for dividend payments and loan repayments), and net cash outflow from investing activities was **RMB 48 million**[155](index=155&type=chunk)[158](index=158&type=chunk) [Capital Expenditure and Inventory Analysis](index=37&type=section&id=Capital%20Expenditure%20and%20Inventory) Capital expenditure in FY2024 increased by 56.4% to RMB 635 million, primarily for upgrading aging domestic plants and production facilities, while inventory management efficiency improved, reducing inventory turnover days from 81 to 74 days - Capital expenditure in FY2024 increased by **56.4%** year-on-year to **RMB 634.6 million**, primarily for upgrading production plants and equipment across the three major product categories[156](index=156&type=chunk)[159](index=159&type=chunk) - Inventory turnover days decreased from **81 days** in the prior year to **74 days**, benefiting from improved supply chain and working capital efficiency[161](index=161&type=chunk) [Human Resources and Dividend](index=39&type=section&id=Human%20Resources%20and%20Dividend) In FY2024, the Group's average headcount was approximately 39,574 employees, with total remuneration of RMB 4.56 billion, a 0.8% year-on-year increase, and the Board recommended a final dividend of 2.04 US cents per share for FY2024, a reduction from the previous year, aimed at retaining funds for debt reduction, increased capital expenditure, and seizing investment opportunities - The average number of employees in FY2024 was approximately **39,574**, with total remuneration increasing by **0.8%** year-on-year to **RMB 4.558 billion**[168](index=168&type=chunk)[173](index=173&type=chunk) - The Board recommended a final dividend of **2.04 US cents per share** for FY2024, totaling approximately **USD 241 million**, a reduction from the previous year, primarily to address financial market uncertainties and retain funds for debt reduction and future investments[172](index=172&type=chunk)[175](index=175&type=chunk) [Corporate Governance Report](index=40&type=section&id=Corporate%20Governance%20Report) This report details the Group's corporate governance framework, including the Board's structure and responsibilities, the roles of the Chairman and CEO, the functions of various Board committees, and the risk management and internal control systems in place [The Board of Directors](index=41&type=section&id=The%20Board%20of%20Directors) The Board of Directors, comprising 14 members (7 executive, 2 non-executive, 5 independent non-executive), is responsible for leading and overseeing the Group, regularly reviewing strategy, financial performance, and significant matters, with appropriate liability insurance for directors and mechanisms for obtaining independent advice - The Board is responsible for setting the Group's purpose, values, and strategic direction, monitoring operational and financial performance, and ensuring effective risk management and internal control systems[184](index=184&type=chunk)[186](index=186&type=chunk) - As of March 31, 2025, the Board comprises **14 directors**, including **7 executive, 2 non-executive, and 5 independent non-executive directors**, in compliance with Listing Rules requirements[188](index=188&type=chunk)[190](index=190&type=chunk) - The company provides continuous professional development training for all directors, covering topics such as directors' duties, regulatory updates, anti-corruption, and artificial intelligence applications[240](index=240&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk) [Chairman and Chief Executive Officer](index=52&type=section&id=Chairman%20and%20Chief%20Executive%20Officer) The company deviates from the Corporate Governance Code's requirement for separation of Chairman and CEO roles, with founder Mr. Tsai Eng-Meng holding both positions, which the Board believes provides strong and consistent leadership crucial for business strategy implementation at the Group's current development stage - The company deviates from Corporate Governance Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Tsai Eng-Meng[250](index=250&type=chunk)[254](index=254&type=chunk) [Board Committees](index=52&type=section&id=Board%20Committees) The Board has four committees—Remuneration, Audit and Risk Management, Nomination, and Strategy—to oversee specific company matters, each with written terms of reference and regular reporting to the Board - The Remuneration Committee reviews and recommends remuneration packages for directors and senior management, with executive compensation comprising a fixed component and variable bonuses linked to Group and individual performance[252](index=252&type=chunk)[258](index=258&type=chunk)[263](index=263&type=chunk) - The Audit and Risk Management Committee oversees financial reporting, risk management, and internal control systems, and reviews internal and external audit work[268](index=268&type=chunk)[271](index=271&type=chunk) - The Nomination Committee reviews the Board's structure, size, and composition, and makes recommendations on director nominations and appointments, with the company having adopted a Board Diversity Policy and a Director Nomination Policy[277](index=277&type=chunk)[279](index=279&type=chunk)[287](index=287&type=chunk) [Risk Management and Internal Control](index=63&type=section&id=Risk%20Management%20and%20Internal%20Control) The Board holds ultimate responsibility for establishing and maintaining effective risk management and internal control systems, with a framework comprising the Board, Audit and Risk Management Committee, internal audit team, and management, designed to provide reasonable assurance of business compliance, asset safeguarding, and reliable financial records, which the Board reviews quarterly and deems effective and adequate - The Group's risk management and internal control systems aim to manage rather than eliminate risks, ensuring key risks are properly identified and managed, and maintaining reliable financial accounting records[307](index=307&type=chunk)[309](index=309&type=chunk) - The Group has an internal audit team responsible for reviewing the adequacy and effectiveness of the risk management framework and reporting regularly to management and the Audit and Risk Management Committee[310](index=310&type=chunk)[312](index=312&type=chunk) - The Board assessed the risk management and internal control systems for the year ended March 31, 2025, deeming them effective and adequate in terms of financial, operational, compliance controls, and resource allocation[324](index=324&type=chunk)[326](index=326&type=chunk) [Report of the Directors](index=81&type=section&id=Report%20of%20the%20Directors) This report provides a comprehensive review of the Group's business operations, its commitment to environmental protection and sustainable development, and its relationships with key stakeholders, alongside details on dividend policy, share capital movements, directors' interests, and connected transactions [Business Review and Stakeholder Relationships](index=81&type=section&id=Business%20Review%20and%20Stakeholder%20Relationships) The report reviews the Group's core business of manufacturing, distributing, and selling food and beverages, emphasizing its commitment to environmental protection and sustainable development, and highlights the importance of relationships with key stakeholders including employees, customers, suppliers, and shareholders for mutual growth and value creation - The Group is committed to environmental protection, with its environmental sustainability policy focusing on **green factories, green energy, sustainable water management, and 100% recyclable packaging materials**[411](index=411&type=chunk)[413](index=413&type=chunk)[416](index=416&type=chunk) - The Group values its relationships with **employees, customers (distributors, retailers), consumers, and suppliers**, striving for win-win outcomes by providing a good working environment, supporting customer development, strictly controlling product quality, and establishing a stable supply chain[420](index=420&type=chunk)[424](index=424&type=chunk)[425](index=425&type=chunk)[433](index=433&type=chunk) [Dividend and Share Capital](index=86&type=section&id=Dividend%20and%20Share%20Capital) The company has adopted a dividend policy balancing shareholder returns with long-term development needs, with the Board recommending a final dividend of 2.04 US cents per share for FY2024, and during the year, the company repurchased and cancelled 8,874,000 shares - The Board recommended a final dividend of **2.04 US cents per share** for the year ended March 31, 2025[454](index=454&type=chunk)[458](index=458&type=chunk) - As of March 31, 2025, the company's distributable reserves amounted to **RMB 13.76 billion**[460](index=460&type=chunk)[465](index=465&type=chunk) - During the year, the company repurchased and cancelled a total of **8,874,000 shares** on the Hong Kong Stock Exchange, totaling approximately **HKD 39.55 million**[547](index=547&type=chunk)[548](index=548&type=chunk) [Directors' Interests and Connected Transactions](index=91&type=section&id=Directors%27%20Interests%20and%20Connected%20Transactions) The report discloses directors' and major shareholders' interests in company shares, with Chairman Mr. Tsai Eng-Meng and his family as the ultimate controlling parties, and details several non-exempt continuing connected transactions and connected transactions during the year, such as purchasing "Water God" products from Want Want Group and an Airbus A318 business jet from a connected party, all in compliance with Listing Rules - Chairman Mr. Tsai Eng-Meng, through his personal holdings, family, and controlled entities, collectively holds approximately **53.9979%** of the company's share interests[491](index=491&type=chunk) - Continuing Connected Transactions: The Group entered into a framework agreement with Want Want Group for the procurement of 'Water God' brand products, with procurement amounting to **RMB 28.514 million** for the year ended March 31, 2025, not exceeding the annual cap[507](index=507&type=chunk)[526](index=526&type=chunk) - Connected Transaction: On August 31, 2024, a subsidiary of the company purchased an Airbus A318 business jet from connected party Planet Media Limited for **USD 19.4 million**[533](index=533&type=chunk)[536](index=536&type=chunk)[539](index=539&type=chunk) [Independent Auditor's Report](index=102&type=section&id=Independent%20Auditor%27s%20Report) This report presents the independent auditor's opinion on the Group's consolidated financial statements, highlighting key audit matters such as revenue recognition and volume rebates, and confirming the fair presentation of the financial position and performance [Auditor's Opinion and Key Audit Matters](index=102&type=section&id=Auditor%27s%20Opinion%20and%20Key%20Audit%20Matters) Ernst & Young issued an unmodified opinion on the Group's consolidated financial statements for the year ended March 31, 2025, affirming their true and fair presentation of the Group's financial position and performance, with "revenue recognition and volume rebates" identified as a key audit matter due to the volume of transactions and significant estimates involved - The auditor's opinion is **unmodified**, stating that the consolidated financial statements present a true and fair view of the Group's financial position and performance in accordance with Hong Kong Financial Reporting Standards[562](index=562&type=chunk)[565](index=565&type=chunk) - The key audit matter identified is 'Revenue recognition and volume rebates,' for which the auditor reviewed internal control design, timing of revenue recognition, sample comparison of transactions, and rebate assessment[567](index=567&type=chunk)[570](index=570&type=chunk) [Consolidated Financial Statements](index=107&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's complete consolidated financial statements, including the balance sheet, income statement, statement of comprehensive income, statement of changes in equity, cash flow statement, and detailed notes, providing a comprehensive overview of its financial position, performance, and cash flows [Consolidated Balance Sheet](index=107&type=section&id=Consolidated%20Balance%20Sheet) As of March 31, 2025, the Group's total assets were RMB 27.21 billion, a slight decrease from the prior year, with total liabilities reduced to RMB 9.46 billion and total equity increasing to RMB 17.75 billion, and cash and bank balances (including long-term deposits) totaling RMB 15.44 billion against total borrowings of RMB 4.15 billion, indicating a robust financial position Consolidated Balance Sheet (As at March 31) | Indicator (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Non-current Assets** | 14,139,965 | 14,571,187 | | **Total Current Assets** | 13,071,793 | 12,885,881 | | **Total Assets** | **27,211,758** | **27,457,068** | | **Total Equity** | **17,751,141** | **16,405,738** | | **Total Non-current Liabilities** | 925,064 | 2,808,174 | | **Total Current Liabilities** | 8,535,553 | 8,243,156 | | **Total Liabilities** | **9,460,617** | **11,051,330** | [Consolidated Income Statement](index=109&type=section&id=Consolidated%20Income%20Statement) For the year ended March 31, 2025, the Group's revenue was RMB 23.51 billion, a slight 0.3% year-on-year decrease, while cost of sales decreased, leading to a 1.8% increase in gross profit to RMB 11.19 billion, operating profit grew 4.1% to RMB 5.84 billion, and profit for the year was RMB 4.33 billion, an 8.6% year-on-year increase Consolidated Income Statement (For the year ended March 31) | Indicator (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | **Revenue** | 23,510,737 | 23,586,327 | | **Cost of Sales** | (12,321,539) | (12,595,406) | | **Gross Profit** | 11,189,198 | 10,990,921 | | **Operating Profit** | 5,837,435 | 5,609,825 | | **Profit Before Income Tax** | 5,739,662 | 5,405,467 | | **Profit for the Year** | 4,328,415 | 3,983,179 | [Consolidated Statement of Comprehensive Income](index=110&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For the year ended March 31, 2025, the Group's profit for the year was RMB 4.33 billion, and after accounting for other comprehensive loss (primarily currency exchange differences) of RMB 160 million, the total comprehensive income for the year was RMB 4.17 billion Consolidated Statement of Comprehensive Income (For the year ended March 31) | Indicator (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | **Profit for the Year** | 4,328,415 | 3,983,179 | | **Other Comprehensive Loss** | (162,343) | (200,077) | | **Total Comprehensive Income for the Year** | 4,166,072 | 3,783,102 | [Consolidated Statement of Changes in Equity](index=111&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of March 31, 2025, the Group's total equity increased from RMB 16.41 billion at the beginning of the period to RMB 17.75 billion, primarily driven by RMB 4.33 billion in profit for the year, partially offset by RMB 2.77 billion in declared dividends and RMB 37 million in share repurchases - As of March 31, 2025, total equity attributable to owners of the company was **RMB 17.747 billion**, an increase of **RMB 1.382 billion** from **RMB 16.365 billion** at the beginning of the year[600](index=600&type=chunk) - Changes in equity were primarily influenced by: an increase of **RMB 4.336 billion** from profit for the year, a decrease of **RMB 2.767 billion** from declared dividends, and a decrease of **RMB 37 million** from share repurchases[600](index=600&type=chunk) [Consolidated Cash Flow Statement](index=113&type=section&id=Consolidated%20Cash%20Flow%20Statement) For the year ended March 31, 2025, the Group generated net cash inflow of RMB 4.16 billion from operating activities, with net cash outflow of RMB 48 million from investing activities and RMB 4.16 billion from financing activities, primarily for dividend payments and loan repayments, resulting in cash and cash equivalents of RMB 4.88 billion at year-end Consolidated Cash Flow Statement (For the year ended March 31) | Indicator (RMB thousand) | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash Flows from Operating Activities** | 4,161,620 | 5,151,440 | | **Net Cash Flows Used in Investing Activities** | (47,985) | (2,643,843) | | **Net Cash Flows Used in Financing Activities** | (4,160,974) | (2,436,093) | | **Net Decrease in Cash and Cash Equivalents** | (47,339) | 71,504 | | **Cash and Cash Equivalents at Beginning of Year** | 5,050,000 | 5,047,949 | | **Cash and Cash Equivalents at End of Year** | 4,877,126 | 5,050,000 | [Notes to the Consolidated Financial Statements](index=115&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the financial statements' basis of preparation, significant accounting policies, estimates, and judgments, along with comprehensive breakdowns and clarifications for various items such as revenue, segment information, assets, liabilities, equity, and related party transactions - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and are based on the historical cost convention[609](index=609&type=chunk)[613](index=613&type=chunk) - The notes provide detailed disclosure of financial risk management strategies, covering market risks (foreign exchange, price, interest rate), credit risk, and liquidity risk[821](index=821&type=chunk) - Note **33** details transactions with related parties, including sales and purchases of goods, advertising expenses, property leases, and aircraft acquisition[1061](index=1061&type=chunk)[1065](index=1065&type=chunk)

Core Viewpoint - China Wangwang has reported a decline in revenue for the 2024 fiscal year, primarily due to adverse weather conditions affecting its snack food categories, while its dairy and beverage segment shows only slight growth amidst increasing market competition [3][4][7]. Revenue Performance - For the 2024 fiscal year, China Wangwang achieved a revenue of approximately 23.511 billion yuan, reflecting a slight decrease of 0.3% year-on-year, while the profit attributable to equity holders increased by 8.6% to 4.336 billion yuan [7][8]. - The decline in revenue is attributed to the ice cream and rice snacks categories, which experienced low double-digit and high single-digit declines, respectively, due to extreme weather and market conditions [8][15]. Business Segments - The dairy and beverage segment, which constitutes a significant portion of the company's revenue, saw a minor increase of 1.28% to 12.109 billion yuan, while other product categories like rice snacks and leisure foods experienced declines of 1.22%, 2.60%, and 8.55% respectively [15][19]. - The company has initiated internal restructuring and product-focused divisions to enhance channel collaboration and overall operational efficiency, resulting in a low single-digit revenue growth in the second half of the fiscal year [8][9]. Profitability - The gross profit margin for the 2024 fiscal year reached 47.6%, an increase of 1 percentage point year-on-year, driven by a decrease in the unit cost of raw materials and packaging [9][10]. - The net profit margin attributable to equity holders rose to 18.4%, reflecting a 1.5 percentage point increase year-on-year, aided by effective cost control and reduced financing costs [10]. Brand Challenges - The iconic Wangzai milk product faces challenges in connecting with younger consumers, as the brand has not significantly evolved to meet the preferences of the Z generation [16][21]. - The market share of Wangzai milk has been eroded due to increased competition from fresh and low-temperature dairy products, with the flavored milk market size declining from 102.6 billion yuan in 2014 to 60.4 billion yuan in 2020 [21][22]. Brand Revitalization Efforts - The company is focusing on brand rejuvenation through IP modernization and product innovation to engage younger consumers and combat brand aging [26][35]. - Initiatives include enhancing the Wangzai character's image and expanding into creative industries, such as merchandise and themed stores, to resonate with the younger demographic [31][34].

Core Viewpoint - The company is facing significant challenges, with revenue stagnation and a lack of new growth drivers, indicating a potential "mid-life crisis" for the brand [3][11]. Financial Performance - For the fiscal year 2024, the company reported revenue of 23.511 billion yuan, a slight decrease of 0.3% year-on-year; net profit was 4.336 billion yuan, an increase of 8.6% [3][8]. - The decline in revenue is attributed to adverse weather conditions affecting ice cream and rice snacks, with revenues dropping in the "low double digits" and "high single digits," respectively [8][10]. - The company’s market share in the snack industry is low, with the top five companies only holding 5.9% of the market, and the company ranked fifth with retail sales of 1.348 billion yuan [8]. Historical Context - The company experienced rapid growth from 2004 to 2013, with revenue growth rates around 20%, peaking with a market capitalization exceeding 170 billion HKD [8][9]. - Since then, the company has struggled to maintain growth, with its market capitalization shrinking to 62.5 billion HKD, less than 40% of its peak value [9]. Business Composition - The beverage segment is crucial, contributing 52% of total revenue, with the flagship product, Wangzai Milk, showing only "low single-digit" growth [10]. - The rice snacks and leisure food segments also faced declines, with rice snacks revenue down 1.2% and leisure foods down 2.6% due to poor sales during the Spring Festival [10]. Industry Dynamics - The snack industry in China is characterized by a large market size but low concentration, with many private label products competing against established brands [8][12]. - The rise of e-commerce and new retail formats has disrupted traditional sales channels, with the company lagging in adapting to these changes [13][14]. - The shift in consumer preferences towards health, value, and emotional connection with products has created additional challenges for the company [14]. Distribution Challenges - The company relies heavily on traditional wholesale markets, with about 80% of its revenue coming from these channels, while new channels like e-commerce are only beginning to gain traction [13]. - Distributors are facing increasing pressure from manufacturers to meet high sales targets, leading to issues with high inventory and low profit margins [15].