Financial Performance - The company reported a revenue of HKD 4.5 billion for the fiscal year, representing a year-over-year increase of 10%[5] - The net profit for the year was HKD 1.2 billion, which is a 15% increase compared to the previous year[5] - The company has set a performance guidance of 12% revenue growth for the upcoming fiscal year[5] - In FY2020, revenue increased by 9.5% year-on-year to RMB21,998 million, while net profit attributable to equity holders rose by 13.9% to RMB4,158 million[46] - Operating profit for FY2020 grew by 19.4% year-on-year, reaching RMB5,736 million[46] - The profit for the year in FY2021 was RMB4,147,681, compared to RMB3,636,243 in FY2020[43] Market Expansion and Strategy - User data showed a growth in active customers by 20%, reaching 1.5 million users[5] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[5] - New product launches are expected to contribute an additional HKD 500 million in revenue next year[5] - The company aims to leverage both online and offline channels to launch new products and enhance growth opportunities[47] - The company has diversified its product offerings to include rice crackers, dairy products, beverages, and snack foods[18] - The company has expanded its market reach to include exports to North America, East Asia, Southeast Asia, and Europe[18] Research and Development - The company has invested HKD 300 million in R&D for new technologies aimed at improving product quality and sustainability[5] - The Group has applied for 96 patents, with 75 patents awarded, including 17 related to energy saving, emission reduction, and environmental protection[86] - The Group's R&D emphasizes the development of functional products that cater to diverse consumer health needs[97] Sustainability and Environmental Initiatives - Environmental initiatives are being prioritized, with a commitment to reduce carbon emissions by 30% over the next five years[5] - The cumulative investment in upgrading environmental protection technologies reached RMB 211 million, demonstrating the company's commitment to sustainability[73] - The Group aims to improve energy and water efficiency by 10% and reduce greenhouse gas emissions density by 13% over the next five years, in line with the National 14th Five-Year Plan and Vision 2035[86] - The Group is committed to sustainability in packaging materials, focusing on carbon reduction, lightweight, recycling, and degradation[97] - The Group prioritizes the use of FSC-certified Tetra Pak packaging materials, resulting in the sustainable management of 4,834 hectares (72,508 acres) of forest due to the procurement of 4.15 billion paper packs in 2020[124] Quality and Safety Management - The company emphasizes the importance of product quality and consumer trust as its top competitive advantage[48] - The Group has implemented a WSQM system that integrates GFSI requirements and is based on HACCP principles for food safety management[96] - The Group conducts annual simulation recall exercises at all production bases, ensuring effective monitoring of the production and sales process[153] - The Group's complaint handling system is guided by the "Action Procedures for Customers' complaint," ensuring effective resolution of customer issues[148] Employee Engagement and Management - As of March 31, 2021, the Group had 39,132 employees, with 55% being female and 45% male[79] - The Group emphasizes a people-oriented management philosophy, valuing relationships and talent acquisition[25] - The Group has established various employee welfare programs, including festival benefits, wedding gifts, and commercial insurance, to enhance employee satisfaction and well-being[181] - The Group conducts exit interviews to understand the reasons for employee resignations and gather feedback for improving workplace satisfaction[195] - The Group promotes a fair employment principle, ensuring no discrimination based on age, gender, nationality, or other factors[190] Awards and Recognition - The company was recognized as one of Taiwan's top 25 international brands, ranking third in November 2020[50] - The company won multiple awards at the 12th Golden Mouse Digital Marketing Contest, including a Gold Award for cross-industry joint marketing[58][59] - The "Aiyo Rice Noodles Series" key technology and industrialization research won the third prize of the Technology Innovation Award, while the electrolysis functional water technology received the second prize of the Technology Progress Award[54][55]

[Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides fundamental company details, including legal name, listing information, and professional advisors [Company Overview](index=4&type=section&id=Company%20Overview) This section provides basic company information, including legal name, listing location and code, and company website - The company's legal name is **Want Want China Holdings Limited**[5](index=5&type=chunk) - The company is listed on The Stock Exchange of Hong Kong Limited, stock code **0151**[5](index=5&type=chunk) - The company's website is **www.want-want.com**[7](index=7&type=chunk) [Board of Directors and Committees](index=4&type=section&id=Board%20of%20Directors%20and%20Committees) This section lists board members and their roles, detailing the composition of key committees - Executive Directors include Mr. Tsai Eng-Meng (Chairman and CEO), Mr. Tsai Shao-Chung, Mr. Tsai Wang-Chia (COO), Mr. Huang Yung-Sung (CMO), Mr. Chu Chi-Wen (CFO), Ms. Lai Hong-Yi, and Mr. Tsai Ming-Hui[5](index=5&type=chunk) - The Environmental, Social and Governance Committee was established on **August 18, 2020**, with Mr. Tsai Wang-Chia as Chairman[6](index=6&type=chunk) [Professional Advisors and Registrars](index=5&type=section&id=Professional%20Advisors%20and%20Registrars) This section provides detailed information on the company's auditor, legal counsel, principal bankers, share registrar, and registered office - The company's auditor is **PricewaterhouseCoopers**[6](index=6&type=chunk) - Principal bankers include Bank of China (Hong Kong) Limited, China Merchants Bank Co., Ltd., Citigroup, and CTBC Bank Co., Ltd. Hong Kong Branch[6](index=6&type=chunk) - The Hong Kong share registrar is **Computershare Hong Kong Investor Services Limited**[7](index=7&type=chunk) [Financial Highlights](index=7&type=section&id=Financial%20Highlights) This section summarizes key financial performance indicators, ratios, and operating metrics for the reporting period [Key Income Statement Items](index=7&type=section&id=Key%20Income%20Statement%20Items) For the six months ended September 30, 2020, the company achieved significant year-on-year growth in revenue, gross profit, operating profit, and profit attributable to equity holders Key Income Statement Items (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 10,299,247 | 9,304,071 | +10.7 | | Gross Profit | 4,963,652 | 4,550,046 | +9.1 | | Operating Profit | 2,534,882 | 2,053,767 | +23.4 | | Profit attributable to equity holders of the Company | 1,952,396 | 1,614,913 | +20.9 | [Key Financial Ratios](index=7&type=section&id=Key%20Financial%20Ratios) For the six months ended September 30, 2020, the company's operating profit margin and profit attributable to equity holders margin both improved, despite a slight decrease in gross profit margin Key Financial Ratios (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (%) | As of Sep 30, 2019 (%) | Change (percentage points) | | :--- | :--- | :--- | :--- | | Gross Profit Margin | 48.2 | 48.9 | -0.7 | | Operating Profit Margin | 24.6 | 22.1 | +2.5 | | Profit attributable to equity holders of the Company Margin | 19.0 | 17.4 | +1.6 | [Key Operating Ratios](index=7&type=section&id=Key%20Operating%20Ratios) For the six months ended September 30, 2020, the company's inventory, trade receivables, and trade payables turnover days remained stable compared to the year ended March 31, 2020 Key Operating Ratios | Indicator | As of Sep 30, 2020 (days) | As of Mar 31, 2020 (days) | | :--- | :--- | :--- | | Inventory Turnover Days | 91 | 90 | | Trade Receivables Turnover Days | 16 | 17 | | Trade Payables Turnover Days | 38 | 37 | [Management Discussion and Analysis](index=8&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's financial performance, operational strategies, and future outlook [Overall Performance Overview](index=8&type=section&id=Overall%20Performance%20Overview) For the six months ended September 30, 2020, the Group achieved significant year-on-year growth in total revenue and operating profit, driven by channel diversification and multi-brand strategies - For the six months ended September 30, 2020, the Group's total revenue reached **RMB 10,299 million**, a year-on-year increase of **10.7%**[11](index=11&type=chunk) - Operating profit reached **RMB 2,535 million**, a year-on-year increase of **23.4%**, with an operating profit margin of **24.6%**[11](index=11&type=chunk) - New products contributed a **mid-to-high single-digit percentage** to total revenue[12](index=12&type=chunk) [Channel Diversification](index=10&type=section&id=Channel%20Diversification) The Group achieved robust growth by refining traditional channels, expanding emerging channels, and continuously developing overseas markets - Traditional channel revenue growth accelerated year-on-year since 2016, with a **double-digit increase** in the first half of fiscal year 2020, driven by market order control and optimized distributor policies[18](index=18&type=chunk)[20](index=20&type=chunk) - Emerging channels continued high-speed growth, contributing a **mid-to-high single-digit percentage** to the Group's total revenue in the first half of fiscal year 2020, with over **5,500 vending machines** and approximately **110 themed stores** deployed[21](index=21&type=chunk)[23](index=23&type=chunk) - Despite global pandemic impacts, overseas market sales grew by a **mid-single-digit percentage** year-on-year in the first half of fiscal year 2020, with products sold to over **60 countries and regions**[26](index=26&type=chunk)[28](index=28&type=chunk) [Product Differentiation Strategy](index=14&type=section&id=Product%20Differentiation%20Strategy) The Group employs a multi-brand strategy to meet diverse consumer needs, continuously innovating with nutritious and functional new products, combined with digital marketing and distinctive packaging - The Group launched multiple brands, such as "Bebemama" (infant complementary food), "Bond" (youthful beverages), and "Fix x Body" (health and nutrition), to meet the personalized needs of consumers across different age groups[32](index=32&type=chunk) - Continuous development of low-calorie nutritional meal replacements, nutrient-rich, and functional new products, along with digital marketing activities like "QQ Brother" videos and "Want Want Frozen Chi" influencers, stimulates new demand[33](index=33&type=chunk)[34](index=34&type=chunk) - Product packaging is designed to integrate brand IP images and cater to channel display characteristics, attracting consumer attention[35](index=35&type=chunk) [Creative Digital Marketing](index=16&type=section&id=Creative%20Digital%20Marketing) The Group utilizes creative and diversified digital marketing activities, leveraging current trends to strengthen brand image, enhance consumer interaction, increase product exposure, and build a "Wang Zai Club" fan ecosystem - The launch of topical products and marketing campaigns like "Wang Zai Milk Professional Cans," "Wang Zai Masks," and "Want Want Health Boost Packs" conveys a positive brand image[39](index=39&type=chunk)[41](index=41&type=chunk) - A collaboration with NetEase Cloud Music, "Listen to music to earn Yunbei, redeem snacks at offline vending machines," drives online-to-offline traffic and boosts growth for emerging channels[40](index=40&type=chunk)[42](index=42&type=chunk) - Focusing on consumer experience, the Group is dedicated to building a "Wang Zai Club" fan base, fostering a fan ecosystem to enhance user stickiness[38](index=38&type=chunk) [Digitalized Operation and Management](index=18&type=section&id=Digitalized%20Operation%20and%20Management) The Group continues to advance digitalization to enhance consumer understanding, improve channel management, and optimize supply chain efficiency, driving sustainable growth and achieving cost reduction and efficiency gains - Digitalization aims to enhance consumer understanding, improve channel management capabilities, and supply chain efficiency, driving the Group's sustainable growth[44](index=44&type=chunk) - Information systems and multi-dimensional data analysis enable management to more agilely identify market opportunities, review management weaknesses, enhance channel management efficiency, and optimize production layout and supply chain management, continuously reducing costs and increasing efficiency[44](index=44&type=chunk) - Future plans include further strengthening regional collaborative management, improving responsiveness to emergencies, and applying digitalization to product R&D and sales management to enhance operational precision[44](index=44&type=chunk) [Revenue Performance by Product Segment](index=18&type=section&id=Revenue%20Performance%20by%20Product%20Segment) For the six months ended September 30, 2020, all three major product categories (rice crackers, dairy and beverages, snack foods) achieved strong year-on-year growth, with snack foods growing the fastest, demonstrating the Group's focus on balanced product development Revenue by Product Category (First Half of Fiscal Year 2020) | Product Category | As of Sep 30, 2020 (RMB'000) | Year-on-Year Growth (%) | % of Total Revenue | | :--- | :--- | :--- | :--- | | Rice Crackers | 1,992,300 | +9.4 | 19.3 | | Dairy and Beverages | 5,315,000 | +7.4 | 51.6 | | Snack Foods | 2,952,000 | +17.7 | 28.7 | - Rice cracker revenue increased by **9.4%** year-on-year, with main brand rice cracker revenue growing by **6.5%** to a record high, driven by channel penetration, market promotion, and new product development (e.g., "Bebemama" organic rice crackers)[45](index=45&type=chunk)[46](index=46&type=chunk) - Dairy and beverage revenue increased by **7.4%** year-on-year, with "Wang Zai Milk" growing by **7.0%** and other beverages growing by **13.3%**, while "O-Pao" lactic acid bacteria beverage sales exceeded **RMB 100 million** in three months[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Snack food revenue increased by **17.7%** year-on-year, with ice products, candies, beans/jellies, and others growing by **22.5%**, **22.8%**, and **11.9%** respectively, primarily due to strengthened channel inventory management and new product launches[52](index=52&type=chunk)[53](index=53&type=chunk)[55](index=55&type=chunk) [Cost and Profitability Analysis](index=22&type=section&id=Cost%20and%20Profitability%20Analysis) Despite a slight decrease in gross profit margin due to rising raw material costs, the Group achieved significant operating profit growth through effective control of distribution and administrative expenses, reaching an operating profit margin of 24.6% - Cost of sales increased by **12.2%** year-on-year to **RMB 5,335.6 million**, primarily due to higher prices for key raw materials such as milk powder and sugar[56](index=56&type=chunk) - Gross profit margin decreased by **0.7 percentage points** to **48.2%** compared to the same period last year, but gross profit amount increased by **9.1%** to **RMB 4,963.7 million** due to revenue growth[58](index=58&type=chunk) - Distribution costs decreased by **8.8%** to **RMB 1,249.9 million**, with its ratio to revenue decreasing by **2.6 percentage points** to **12.1%**, mainly due to lower advertising and promotion expenses and staff costs[59](index=59&type=chunk)[63](index=63&type=chunk) - Operating profit increased by **23.4%** year-on-year to **RMB 2,534.9 million**, with an operating profit margin of **24.6%**[61](index=61&type=chunk)[65](index=65&type=chunk) - Profit attributable to equity holders of the Company increased by **20.9%** year-on-year to **RMB 1,952.4 million**, with a profit attributable to equity holders margin of **19.0%**[67](index=67&type=chunk) [Liquidity and Capital Resources](index=24&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2020, the Group maintained sufficient bank balances, but total borrowings increased, leading to a decrease in net cash, with a net debt-to-equity ratio of -0.51 times indicating a sound financial position - As of September 30, 2020, bank balances amounted to **RMB 17,339.2 million**, an increase of **RMB 82.2 million** from March 31, 2020[67](index=67&type=chunk) - Total borrowings were **RMB 10,218.3 million**, an increase of **RMB 1,337.7 million** from March 31, 2020, with short-term borrowings significantly increasing by **RMB 6,244.9 million**[67](index=67&type=chunk) - Net cash was **RMB 7,120.8 million**, a decrease of **15.0%** from March 31, 2020[67](index=67&type=chunk) - The net debt-to-equity ratio was **-0.51 times**, indicating the Group has ample cash and bank credit facilities[67](index=67&type=chunk) [Cash Flow and Capital Expenditure](index=25&type=section&id=Cash%20Flow%20and%20Capital%20Expenditure) For the six months ended September 30, 2020, net cash inflow from operating activities significantly increased, while net cash outflow from financing activities was primarily affected by dividend payments and share repurchases, with capital expenditure mainly for additions and upgrades to production plants and equipment - Net cash inflow from operating activities was **RMB 2,364.1 million**, a year-on-year increase of **22.2%**[68](index=68&type=chunk)[71](index=71&type=chunk) - Net cash outflow from financing activities was **RMB 2,031.6 million**, primarily comprising dividend payments of **RMB 2,990.2 million** and share repurchases of **RMB 669.5 million**[68](index=68&type=chunk)[71](index=71&type=chunk) - Total capital expenditure was **RMB 160.1 million**, mainly for additions and upgrades to production plants and equipment across the three major product categories[69](index=69&type=chunk)[72](index=72&type=chunk) [Working Capital Management](index=25&type=section&id=Working%20Capital%20Management) The Group's inventory turnover days and trade payables turnover days remained stable, while trade receivables turnover days slightly decreased, indicating efficient working capital management - As of September 30, 2020, inventory amounted to **RMB 2,636.4 million**, with inventory turnover days of **91 days**[73](index=73&type=chunk)[74](index=74&type=chunk) - Trade receivables turnover days were **16 days**, a slight decrease from **17 days** for the year ended March 31, 2020[78](index=78&type=chunk) - Trade payables turnover days were **38 days**, a slight increase from **37 days** for the year ended March 31, 2020[81](index=81&type=chunk) [Human Resources and Remuneration](index=27&type=section&id=Human%20Resources%20and%20Remuneration) For the six months ended September 30, 2020, the Group's average headcount decreased due to improved sales management efficiency, leading to a reduction in total remuneration expenses, while continuous investment in employee training enhances professional knowledge and skills - The average headcount was approximately **40,757**, a decrease of **1,815** from the year ended March 31, 2020, primarily due to enhanced sales management efficiency[82](index=82&type=chunk) - Total remuneration expenses were **RMB 1,837.8 million**, a year-on-year decrease of **2.0%**[82](index=82&type=chunk) - The Group consistently focuses on and invests resources in ongoing employee education and training programs[83](index=83&type=chunk) [Foreign Exchange Risks](index=27&type=section&id=Foreign%20Exchange%20Risks) The Group's foreign exchange risk primarily arises from overseas procurement, dividend payments, and asset/liability recognition, but the overall exposure is not significant due to most operations being in RMB in mainland China and USD borrowings being offset by USD functional currency subsidiaries, with no foreign currency hedging undertaken during the year - The Group's presentation currency is RMB, but the Company's functional currency remains USD, while mainland China subsidiaries' functional currency is RMB[84](index=84&type=chunk) - Foreign exchange risk primarily arises from overseas raw material and equipment procurement, overseas dividend payments, and certain recognized assets or liabilities[84](index=84&type=chunk) - Assets and liabilities involving foreign exchange risk are minimal, and the net exposure after offsetting is not significant, with no hedging of foreign currency exchange rate risk undertaken during the year[85](index=85&type=chunk) [Dividend Policy](index=28&type=section&id=Dividend%20Policy) The Board declared an interim dividend of 0.65 US cents per share for fiscal year 2020, reflecting the Group's policy of returning most free cash flow to shareholders through share repurchases and dividends, with total returns to shareholders significantly increasing by 77% compared to the same period last year - The Board declared an interim dividend of **0.65 US cents** per share for fiscal year 2020, approximately **US$79 million** (equivalent to approximately **RMB 555 million**)[88](index=88&type=chunk) - Including share repurchases, the total amount returned to shareholders was approximately **US$177 million** (equivalent to approximately **RMB 1,225 million**), a **77% increase** compared to the first half of fiscal year 2019[88](index=88&type=chunk) - The Group adheres to a policy of returning most free cash flow (after deducting necessary operating costs and capital expenditures) to shareholders through share repurchases and dividends[88](index=88&type=chunk) [Report on Review of Condensed Consolidated Interim Financial Information](index=27&type=section&id=Report%20on%20Review%20of%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section presents the independent auditor's review report on the condensed consolidated interim financial information [Introduction and Responsibilities](index=27&type=section&id=Introduction%20and%20Responsibilities) PricewaterhouseCoopers has reviewed Want Want China Holdings Limited's condensed consolidated interim financial information for the six months ended September 30, 2020, prepared by the directors in accordance with HKAS 34 - PricewaterhouseCoopers has reviewed the condensed consolidated interim financial information for the six months ended September 30, 2020[91](index=91&type=chunk) - The company's directors are responsible for the preparation and presentation of this financial information in accordance with HKAS 34 "Interim Financial Reporting"[91](index=91&type=chunk) [Scope of Review](index=30&type=section&id=Scope%20of%20Review) The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which is significantly narrower than an audit, thus no audit opinion is expressed - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants[93](index=93&type=chunk)[95](index=95&type=chunk) - The scope of a review is significantly narrower than an audit, and therefore no audit opinion is expressed[93](index=93&type=chunk)[95](index=95&type=chunk) [Conclusion](index=30&type=section&id=Conclusion) Based on the review, the auditor found no matters that lead them to believe the condensed consolidated interim financial information is not prepared, in all material respects, in accordance with HKAS 34 - The auditor found no matters that lead them to believe the condensed consolidated interim financial information is not prepared, in all material respects, in accordance with HKAS 34 "Interim Financial Reporting"[94](index=94&type=chunk)[96](index=96&type=chunk) [Interim Condensed Consolidated Balance Sheet](index=29&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheet) This section presents the Group's financial position, detailing assets, equity, and liabilities as of the reporting date [Assets](index=29&type=section&id=Assets) As of September 30, 2020, the Group's total assets slightly decreased, with reductions in non-current assets and inventories, while cash and cash equivalents remained stable Assets Overview | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, plant and equipment | 6,553,357 | 6,770,980 | | Right-of-use assets | 1,065,754 | 1,062,289 | | **Current Assets** | | | | Inventories | 2,636,409 | 2,746,167 | | Trade receivables | 933,562 | 846,744 | | Cash and cash equivalents | 17,339,163 | 17,256,927 | | **Total Assets** | 29,783,017 | 29,824,990 | [Equity](index=29&type=section&id=Equity) As of September 30, 2020, the Group's total equity decreased, primarily due to reductions in share capital and reserves, related to share repurchases and dividend payments during the period Equity Overview | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | Share capital | 1,847,089 | 1,866,355 | | Reserves | 12,008,039 | 13,406,327 | | Non-controlling interests | 76,551 | 81,532 | | **Total Equity** | 13,931,679 | 15,354,214 | [Liabilities](index=32&type=section&id=Liabilities) As of September 30, 2020, the Group's total liabilities significantly increased, mainly driven by a substantial rise in current borrowings, while non-current borrowings decreased considerably Liabilities Overview | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | **Non-current Liabilities** | | | | Borrowings | 3,386,378 | 8,293,566 | | **Current Liabilities** | | | | Trade payables | 1,146,928 | 1,093,092 | | Borrowings | 6,831,970 | 587,085 | | **Total Liabilities** | 15,851,338 | 14,470,776 | [Interim Condensed Consolidated Statement of Income](index=31&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Income) This section presents the Group's financial performance, including revenue, expenses, and net profit for the reporting period [Revenue and Gross Profit](index=31&type=section&id=Revenue%20and%20Gross%20Profit) For the six months ended September 30, 2020, the Group's revenue increased by 10.7% year-on-year, and gross profit increased by 9.1% year-on-year, demonstrating robust growth in top-line and core profitability Revenue and Gross Profit (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Revenue | 10,299,247 | 9,304,071 | | Cost of sales | (5,335,595) | (4,754,025) | | Gross Profit | 4,963,652 | 4,550,046 | [Operating Expenses and Profit](index=31&type=section&id=Operating%20Expenses%20and%20Profit) Despite a slight increase in administrative expenses, effective control over distribution costs and revenue growth collectively drove a significant 23.4% increase in operating profit Operating Expenses and Profit (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Distribution costs | (1,249,863) | (1,369,929) | | Administrative expenses | (1,304,081) | (1,285,660) | | Operating Profit | 2,534,882 | 2,053,767 | [Net Profit and Earnings Per Share](index=31&type=section&id=Net%20Profit%20and%20Earnings%20Per%20Share) Profit for the period and profit attributable to equity holders of the Company both increased by over 20%, with basic and diluted earnings per share rising accordingly Net Profit and Earnings Per Share (For the six months ended September 30) | Indicator | As of Sep 30, 2020 | As of Sep 30, 2019 | | :--- | :--- | :--- | | Profit for the period (RMB'000) | 1,946,691 | 1,604,849 | | Profit attributable to equity holders of the Company (RMB'000) | 1,952,396 | 1,614,913 | | Basic earnings per share (RMB cents) | 15.75 | 12.99 | | Diluted earnings per share (RMB cents) | 15.75 | 12.99 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=32&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) This section presents the Group's total comprehensive income, including profit for the period and other comprehensive income items [Profit and Other Comprehensive Income](index=32&type=section&id=Profit%20and%20Other%20Comprehensive%20Income) For the six months ended September 30, 2020, the Group's total comprehensive income for the period significantly increased, primarily due to higher profit for the period and a positive shift in currency translation differences Profit and Other Comprehensive Income (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Profit for the period | 1,946,691 | 1,604,849 | | Currency translation differences | 283,868 | (366,957) | | Changes in fair value of financial assets at fair value through other comprehensive income | 6,699 | (959) | | **Total comprehensive income for the period** | 2,237,258 | 1,236,926 | - Total comprehensive income for the period attributable to equity holders of the Company increased from **RMB 1,248,039 thousand** in 2019 to **RMB 2,242,140 thousand** in 2020[108](index=108&type=chunk) [Interim Condensed Consolidated Statement of Changes in Equity](index=33&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) This section details the changes in the Group's equity components, including share capital, reserves, and non-controlling interests [Equity Movements (2020)](index=33&type=section&id=Equity%20Movements%20(2020)) For the six months ended September 30, 2020, the Group's total equity decreased due to dividend payments and share repurchases, partially offset by total comprehensive income for the period Equity Movements (First Half of 2020) | Indicator | As of Apr 1, 2020 (RMB'000) | As of Sep 30, 2020 (RMB'000) | | :--- | :--- | :--- | | Total equity at beginning of period | 15,354,214 | | | Total comprehensive income for the period | 2,237,258 | | | 2019 final dividend paid | (2,990,283) | | | Share repurchases | (669,510) | | | Total equity at end of period | | 13,931,679 | - Share repurchases amounted to **RMB 669,510 thousand**, resulting in a decrease of **RMB 19,266 thousand** in share capital and **RMB 650,244 thousand** in retained earnings[112](index=112&type=chunk)[177](index=177&type=chunk) [Equity Movements (2019)](index=36&type=section&id=Equity%20Movements%20(2019)) For the six months ended September 30, 2019, the Group's total equity decreased due to dividend payments, share repurchases, and business combinations under common control Equity Movements (First Half of 2019) | Indicator | As of Apr 1, 2019 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Total equity at beginning of period | 15,459,827 | | | Total comprehensive income for the period | 1,236,926 | | | 2018 final dividend paid | (2,543,364) | | | Share repurchases | (142,357) | | | Business combination under common control | (51,986) | | | Total equity at end of period | | 13,957,509 | [Interim Condensed Consolidated Statement of Cash Flows](index=35&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section presents the Group's cash flows from operating, investing, and financing activities for the reporting period [Operating Activities](index=35&type=section&id=Operating%20Activities) For the six months ended September 30, 2020, net cash inflow from operating activities increased by 22.2% year-on-year, demonstrating strong operational cash generation capabilities Cash Flows from Operating Activities (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Cash generated from operations | 2,857,486 | 2,585,259 | | Income tax paid | (608,495) | (716,787) | | Interest paid | (91,338) | (148,638) | | Interest received | 206,468 | 214,672 | | **Net cash flows from operating activities** | 2,364,121 | 1,934,506 | [Investing Activities](index=37&type=section&id=Investing%20Activities) For the six months ended September 30, 2020, net cash outflow from investing activities increased, primarily due to higher expenditures on the purchase of property, plant and equipment and financial assets at fair value through other comprehensive income Cash Flows from Investing Activities (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | (159,708) | (134,983) | | Purchase of financial assets at fair value through other comprehensive income | (53,589) | – | | **Net cash flows used in investing activities** | (207,392) | (132,200) | [Financing Activities](index=37&type=section&id=Financing%20Activities) For the six months ended September 30, 2020, net cash outflow from financing activities decreased, as significant dividend payments and share repurchases were partially offset by a substantial increase in proceeds from borrowings Cash Flows from Financing Activities (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Dividends paid to equity holders | (2,990,184) | (2,543,364) | | Share repurchases | (669,510) | (142,357) | | Proceeds from borrowings | 3,931,679 | 3,801,633 | | Repayment of borrowings | (2,269,488) | (3,450,773) | | **Net cash flows used in financing activities** | (2,031,576) | (2,410,939) | [Net Change in Cash and Equivalents](index=38&type=section&id=Net%20Change%20in%20Cash%20and%20Equivalents) For the six months ended September 30, 2020, the Group achieved a net increase in cash and cash equivalents, reversing the net decrease trend of the prior year, despite exchange losses Net Change in Cash and Cash Equivalents (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Net increase/(decrease) in cash and cash equivalents | 125,153 | (608,633) | | Cash and cash equivalents at end of period | 17,339,163 | 16,636,232 | [Notes to the Condensed Consolidated Interim Financial Information](index=37&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed explanations and disclosures supporting the condensed consolidated interim financial statements [General Information](index=39&type=section&id=General%20Information) This section outlines Want Want China Holdings Limited's principal activities, registration and listing information, and the presentation currency of its financial reports - The Group is primarily engaged in the manufacturing and distribution of food and beverages, with major operating activities in mainland China and products sold to North America, East Asia, Southeast Asia, and Europe[122](index=122&type=chunk) - The Company was incorporated in the Cayman Islands on **October 3, 2007**, and has been listed on the Main Board of The Stock Exchange of Hong Kong Limited since **March 26, 2008**[122](index=122&type=chunk) - The condensed consolidated interim financial information is presented in **RMB**[122](index=122&type=chunk) [Basis of Preparation](index=39&type=section&id=Basis%20of%20Preparation) This condensed consolidated interim financial information is prepared in accordance with HKAS 34 "Interim Financial Reporting" and should be read in conjunction with the annual consolidated financial statements for the year ended March 31, 2020 - This condensed consolidated interim financial information has been prepared in accordance with HKAS 34 "Interim Financial Reporting"[122](index=122&type=chunk) - It should be read in conjunction with the annual consolidated financial statements for the year ended March 31, 2020[122](index=122&type=chunk) [Accounting Policies](index=40&type=section&id=Accounting%20Policies) The accounting policies adopted in this period are consistent with the previous year's consolidated financial statements, except for income tax estimates and the adoption of several HKFRS amendments, which had no significant impact on the Group's financial statements - Accounting policies are consistent with the annual consolidated financial statements for the year ended March 31, 2020, except for income tax estimates and the adoption of HKFRS amendments effective for the financial year ending March 31, 2021[124](index=124&type=chunk) - New amendments adopted include HKAS 1 and 8 (Definition of Material), HKFRS 3 (Definition of a Business), Amendments to Conceptual Framework for Financial Reporting, HKFRS 7, 9 and HKAS 39 (Interest Rate Benchmark Reform), and HKFRS 16 (COVID-19-Related Rent Concessions)[124](index=124&type=chunk)[125](index=125&type=chunk)[127](index=127&type=chunk)[131](index=131&type=chunk) - These new amendments and interpretations had no significant impact on the Group's financial statements[124](index=124&type=chunk) [Estimates](index=45&type=section&id=Estimates) The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are the same as those applied to the consolidated financial statements for the year ended March 31, 2020, except for changes in determining income tax provisions - The significant judgments made by management in applying accounting policies and the key sources of estimation uncertainty are the same as those applied to the consolidated financial statements for the year ended March 31, 2020, except for changes in determining income tax provisions[135](index=135&type=chunk) [Financial Risk Management](index=45&type=section&id=Financial%20Risk%20Management) The Group is exposed to market risks (including currency, interest rate, and price risks), credit risk, and liquidity risk, with no significant changes in risk management policies or contractual undiscounted cash outflows of financial liabilities since year-end - The Group's activities expose it to various financial risks: market risk (including foreign currency risk, fair value interest rate risk, cash flow interest rate risk, and price risk), credit risk, and liquidity risk[137](index=137&type=chunk) - There have been no changes in the risk management department or risk management policies since year-end, nor have there been any significant changes in the contractual undiscounted cash outflows of financial liabilities[137](index=137&type=chunk)[138](index=138&type=chunk) - As of September 30, 2020, financial assets at fair value through other comprehensive income (Level 1) amounted to **RMB 90,842 thousand**[140](index=140&type=chunk) [Segment Information](index=47&type=section&id=Segment%20Information) The Group primarily operates four business segments: rice crackers, dairy and beverages, snack foods, and other products, with over 90% of revenue and business activities conducted in China, and all segments were profitable and incurred capital expenditures in the first half of fiscal year 2020 - The Group's operations are primarily managed through four business segments: rice crackers, dairy and beverages, snack foods, and other products[145](index=145&type=chunk) - Over **90%** of the Group's revenue and business activities are conducted in China[145](index=145&type=chunk) Segment Profit (First Half of 2020) | Segment | Revenue (RMB'000) | Segment Profit (RMB'000) | | :--- | :--- | :--- | | Rice Crackers | 1,992,268 | 395,991 | | Dairy and Beverages | 5,315,003 | 1,690,620 | | Snack Foods | 2,951,974 | 695,317 | | Other Products | 40,002 | 24,873 | - Total capital expenditure for the first half of fiscal year 2020 was **RMB 160,091 thousand**, primarily for production plants and equipment across all segments[148](index=148&type=chunk) [Investment in Associates](index=53&type=section&id=Investment%20in%20Associates) As of September 30, 2020, the Group's investment in associates decreased to RMB 14,376 thousand, primarily due to its share of losses from associates Investment in Associates Movements | Indicator | As of Sep 30, 2020 (RMB'000) | | :--- | :--- | | Balance at beginning of period | 15,425 | | Share of loss of associates | (1,049) | | Balance at end of period | 14,376 | [Property, Plant and Equipment, Investment Properties and Intangible Assets](index=54&type=section&id=Property%2C%20Plant%20and%20Equipment%2C%20Investment%20Properties%20and%20Intangible%20Assets) As of September 30, 2020, the Group's net book value of property, plant and equipment decreased, but additions were made to support business development, with slight changes also observed in investment properties and intangible assets Net Book Value of Non-current Assets | Indicator | As of Sep 30, 2020 (RMB'000) | As of Apr 1, 2020 (RMB'000) | | :--- | :--- | :--- | | Property, plant and equipment | 6,553,357 | 6,770,980 | | Investment properties | 37,351 | 37,944 | | Intangible assets | 11,958 | 13,027 | - For the six months ended September 30, 2020, additions to property, plant and equipment amounted to **RMB 204,306 thousand**[161](index=161&type=chunk) [Leases](index=55&type=section&id=Leases) As of September 30, 2020, the Group's total right-of-use assets and lease liabilities both increased, with corresponding depreciation and interest expenses incurred during the period Lease-Related Data | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | Right-of-use assets | 1,065,754 | 1,062,289 | | Total lease liabilities | 139,992 | 118,912 | - For the six months ended September 30, 2020, depreciation of right-of-use assets was **RMB 44,931 thousand**, and total cash payments for leases were **RMB 99,091 thousand**[165](index=165&type=chunk) [Inventories](index=56&type=section&id=Inventories) As of September 30, 2020, the Group's total inventories slightly decreased, with a significant reduction in goods in transit Inventory Composition | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | Raw materials and packing materials | 1,684,516 | 1,621,545 | | Work in progress | 250,675 | 216,331 | | Finished goods | 671,822 | 646,599 | | Goods in transit | 29,396 | 261,692 | | **Total** | 2,636,409 | 2,746,167 | [Trade Receivables](index=56&type=section&id=Trade%20Receivables) As of September 30, 2020, the Group's net trade receivables increased, with most receivables due within 60 days, indicating efficient collection Net Trade Receivables and Ageing Analysis | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | Trade receivables – net | 933,562 | 846,744 | | Within 60 days | 702,990 | 382,742 | | 61-90 days | 126,849 | 187,662 | - The majority of the Group's sales are on a cash-on-delivery basis, with credit terms for modern distribution channels and some emerging channels typically ranging from **60 to 90 days**[170](index=170&type=chunk) [Share Capital](index=57&type=section&id=Share%20Capital) For the six months ended September 30, 2020, the Company's issued share capital decreased due to share repurchases, leading to a corresponding reduction in total share capital Issued Share Capital Movements | Indicator | As of Apr 1, 2020 | As of Sep 30, 2020 | | :--- | :--- | :--- | | Number of ordinary shares issued (shares) | 12,415,184,135 | 12,274,312,135 | | Shares repurchased (shares) | | (140,872,000) | | Share capital (RMB'000) | 1,866,355 | 1,847,089 | - For the six months ended September 30, 2020, the Company repurchased and cancelled **140,872,000 shares**, with a total payment of **RMB 669,510 thousand**[177](index=177&type=chunk) [Reserves](index=59&type=section&id=Reserves) As of September 30, 2020, the Group's total reserves decreased, primarily impacted by share repurchases and dividend payments, partially offset by total comprehensive income for the period, with statutory reserves for specific purposes and share premium available for distribution Reserves Movements (For the six months ended September 30) | Indicator | As of Apr 1, 2020 (RMB'000) | As of Sep 30, 2020 (RMB'000) | | :--- | :--- | :--- | | Reserves at beginning of period | 13,406,327 | | | Total comprehensive income for the period | 2,242,140 | | | Share repurchases | (650,244) | | | 2019 final dividend paid | (2,990,184) | | | Reserves at end of period | | 12,008,039 | - Share premium is available for distribution to shareholders, subject to solvency tests and the provisions of the Company's articles of association[187](index=187&type=chunk) - Statutory reserve funds are used to cover losses, expand production operations, or increase the company's capital[187](index=187&type=chunk) [Trade Payables](index=62&type=section&id=Trade%20Payables) As of September 30, 2020, the Group's total trade payables slightly increased, with the majority due within 60 days Trade Payables Ageing Analysis | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | Total trade payables | 1,146,928 | 1,093,092 | | Within 60 days | 1,087,043 | 985,783 | - Trade payables primarily arise from credit purchases of raw materials, with credit terms granted by suppliers generally ranging from **30 to 60 days**[190](index=190&type=chunk) [Borrowings](index=62&type=section&id=Borrowings) As of September 30, 2020, the Group's total borrowings significantly increased, primarily due to a substantial rise in current borrowings and a decrease in non-current borrowings, while the Group still maintains substantial unutilized floating rate borrowing facilities Borrowings Composition | Indicator | As of Sep 30, 2020 (RMB'000) | As of Mar 31, 2020 (RMB'000) | | :--- | :--- | :--- | | Non-current borrowings | 3,386,378 | 8,293,566 | | Current borrowings | 6,831,970 | 587,085 | | **Total borrowings** | 10,218,348 | 8,880,651 | - For the six months ended September 30, 2020, borrowings increased by **RMB 3,937,537 thousand**, and repayments of borrowings amounted to **RMB 2,269,488 thousand**[194](index=194&type=chunk) - The Group issued **US$500 million** guaranteed bonds in 2017, which will be fully repaid on **April 27, 2022**, with an annual interest rate of **2.875%**[194](index=194&type=chunk) - The Group has unutilized floating rate borrowing facilities of **RMB 6,962,337 thousand** maturing within one year[198](index=198&type=chunk) [Other (Losses)/Gains – Net](index=64&type=section&id=Other%20(Losses)%2FGains%20%E2%80%93%20Net) For the six months ended September 30, 2020, the Group recorded other net losses, primarily due to net exchange losses and net losses on disposal of property, plant and equipment Other (Losses)/Gains – Net (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Net exchange (losses)/gains | (14,073) | 8,270 | | Donation expenses | (18,111) | (5,538) | | Net loss on disposal of property, plant and equipment | (7,853) | (4,285) | | **Total** | (36,094) | 1,787 | [Expenses by Nature](index=65&type=section&id=Expenses%20by%20Nature) For the six months ended September 30, 2020, the Group's cost of raw materials used and changes in inventories increased, employee benefit expenses slightly decreased, and advertising and promotion expenses significantly reduced Expenses by Nature (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Raw materials used and changes in inventories | 4,078,957 | 3,479,354 | | Employee benefit expenses | 1,837,767 | 1,876,004 | | Advertising and promotion expenses | 240,837 | 309,387 | | **Total cost of sales, distribution costs and administrative expenses** | 7,889,539 | 7,409,614 | [Income Tax Expense](index=66&type=section&id=Income%20Tax%20Expense) For the six months ended September 30, 2020, the Group's total income tax expense increased, primarily due to higher current income tax in mainland China Income Tax Expense (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Current income tax – mainland China | 689,786 | 509,156 | | Deferred income tax | 53,271 | 68,444 | | **Total** | 757,127 | 584,518 | - Income tax expense is recognized based on management's estimate of the weighted average annual income tax rate expected for the full financial year[203](index=203&type=chunk) [Earnings Per Share](index=66&type=section&id=Earnings%20Per%20Share) For the six months ended September 30, 2020, the Group's basic and diluted earnings per share both increased, reflecting higher profit attributable to equity holders of the Company, with basic and diluted earnings per share being identical due to no dilutive shares Earnings Per Share (For the six months ended September 30) | Indicator | As of Sep 30, 2020 | As of Sep 30, 2019 | | :--- | :--- | :--- | | Basic earnings per share (RMB cents) | 15.75 | 12.99 | | Diluted earnings per share (RMB cents) | 15.75 | 12.99 | - As the Company has no dilutive shares, diluted earnings per share are the same as basic earnings per share[206](index=206&type=chunk) [Dividends](index=67&type=section&id=Dividends) The final and special dividends for the year ended March 31, 2020, were paid in September 2020, and the Board declared an interim dividend of 0.65 US cents per share for the six months ended September 30, 2020, payable on December 23, 2020 - The final and special dividends of **RMB 2,990,184 thousand** for the year ended March 31, 2020, were paid in **September 2020**[207](index=207&type=chunk) - The Board declared an interim dividend of **0.65 US cents** per share for the six months ended September 30, 2020, on **November 19, 2020**, to be paid on **December 23, 2020**[207](index=207&type=chunk) - This interim dividend (**RMB 555,346 thousand**) has not been recognized as a liability in this condensed consolidated interim financial information but will be recognized in equity for the financial year ending March 31, 2021[207](index=207&type=chunk) [Related Party Transactions](index=68&type=section&id=Related%20Party%20Transactions) This section discloses the Group's transactions and balances with related parties, primarily involving sales, purchases, and leasing activities with companies controlled by the Chairman and his family, as well as minority shareholders of subsidiaries, with all receivables and payables being unsecured, interest-free, and without fixed repayment terms - The ultimate controlling party of the Group is Mr. Tsai Eng-Meng, the Chairman and CEO of the Group, and his family[210](index=210&type=chunk) - For the six months ended September 30, 2020, sales of goods to minority shareholders of subsidiaries amounted to **RMB 12,951 thousand**, and purchases of goods and services from companies controlled by the Chairman amounted to **RMB 19,961 thousand**[211](index=211&type=chunk) - As of September 30, 2020, trade receivables (due from minority shareholders of subsidiaries) amounted to **RMB 18,622 thousand**[214](index=214&type=chunk) - Receivables and payables are unsecured, interest-free, and without fixed repayment terms[214](index=214&type=chunk) [Key Management Compensation](index=70&type=section&id=Key%20Management%20Compensation) For the six months ended September 30, 2020, total compensation for key management personnel, including directors and senior management, amounted to RMB 7,807 thousand Key Management Compensation (For the six months ended September 30) | Indicator | As of Sep 30, 2020 (RMB'000) | As of Sep 30, 2019 (RMB'000) | | :--- | :--- | :--- | | Fees | 2,930 | 2,596 | | Salaries | 2,854 | 2,901 | | Other benefits | 1,858 | 1,727 | | Employer's contribution to pension schemes | 165 | 216 | | **Total** | 7,807 | 7,440 | [Events After Balance Sheet Date](index=70&type=section&id=Events%20After%20Balance%20Sheet%20Date) In October 2020, the Company repurchased and cancelled its own ordinary shares on The Stock Exchange of Hong Kong Limited - In **October 2020**, the Company repurchased and cancelled **46,723,000 ordinary shares**, with a total payment of **HK$246,103,010**[219](index=219&type=chunk)[220](index=220&type=chunk)[234](index=234&type=chunk) [Other Information](index=69&type=section&id=Other%20Information) This section provides additional disclosures not covered in the financial statements, including dividend details, directors' interests, and corporate governance practices [Interim Dividend and Closure of Register of Members](index=71&type=section&id=Interim%20Dividend%20and%20Closure%20of%20Register%20of%20Members) The Board declared an interim dividend of 0.65 US cents per share for the six months ended September 30, 2020, payable on December 23, 2020, and the company will close its register of members from December 7 to 9, 2020, to determine dividend entitlements - The Board declared an interim dividend of **0.65 US cents** per ordinary share for the six months ended September 30, 2020, on **November 19, 2020**[222](index=222&type=chunk) - The interim dividend will be paid on or about **December 23, 2020**, to shareholders whose names appear on the company's register of members on **December 9, 2020**[222](index=222&type=chunk) - The company will suspend registration of share transfers from **December 7, 2020, to December 9, 2020** (both days inclusive)[223](index=223&type=chunk) [Directors' and Chief Executive's Interests](index=71&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests) As of September 30, 2020, the company's directors and chief executive held long positions in the company's shares, with Mr. Tsai Eng-Meng holding the largest stake through beneficial and controlled corporate interests - As of September 30, 2020, Mr. Tsai Eng-Meng (Chairman and CEO) held **6,320,843,100 ordinary shares** in the Company (representing approximately **51.4965%** of the issued share capital), including beneficial interests and controlled corporate interests[228](index=228&type=chunk) - Other directors also held shares in the Company, for example, Mr. Cheng Wen-Hsien held **463,162,640 shares** (representing approximately **3.7734%**)[228](index=228&type=chunk) - As of September 30, 2020, no director or chief executive held any short positions in the shares, underlying shares, or debentures of the Company or its associated corporations[226](index=226&type=chunk) [Other Person's Interests](index=74&type=section&id=Other%20Person's%20Interests) As of September 30, 2020, other persons, apart from directors and the chief executive, held long positions in the company's shares, primarily entities beneficially owned by Mr. Tsai Eng-Meng - Want Power Holdings Limited (WPHL) held **5,080,063,100 shares**, representing approximately **41.3878%** of the Company's issued share capital[230](index=230&type=chunk) - Norwares Overseas Inc. (NOI) held **1,063,780,000 shares**, representing approximately **8.6667%** of the Company's issued share capital[230](index=230&type=chunk) - Shares held by WPHL and NOI are both beneficially owned by Mr. Tsai Eng-Meng[230](index=230&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=75&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) The Company continued to repurchase and cancel its listed shares on the Hong Kong Stock Exchange during the six months ended September 30, 2020, and after the balance sheet date, as the Board believes this is in the best interest of the company and shareholders and enhances earnings per share - For the six months ended September 30, 2020, the Company repurchased a total of **140,872,000 shares** on the Hong Kong Stock Exchange for a total of **HK$757,033,141**, which have been cancelled[231](index=231&type=chunk)[233](index=233&type=chunk) - After the balance sheet date of September 30, 2020, the Company repurchased and cancelled an additional **46,723,000 shares** in **October 2020**, for a total of **HK$246,103,010**[233](index=233&type=chunk)[234](index=234&type=chunk) - The Directors believe that the share repurchases are in the best interests of the Company and its shareholders and will enhance the Company's earnings per share[235](index=235&type=chunk) [Model Code for Directors' Securities Transactions](index=76&type=section&id=Model%20Code%20for%20Directors'%20Securities%20Transactions) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the six months ended September 30, 2020 - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules[235](index=235&type=chunk) - All Directors confirmed compliance with the standards set out in the Model Code during the six months ended September 30, 2020[235](index=235&type=chunk) [Corporate Governance Practices](index=76&type=section&id=Corporate%20Governance%20Practices) For the six months ended September 30, 2020, the Company complied with the Corporate Governance Code, with deviations regarding the combined roles of Chairman and CEO and non-executive director tenure, but the Board believes sufficient measures are in place to safeguard shareholder interests - The Company has complied with the Corporate Governance Code, except for deviations from Code Provision A.2.1 (combined roles of Chairman and CEO) and A.4.1 (non-executive directors without specific terms of appointment)[236](index=236&type=chunk) - The Board believes that Mr. Tsai Eng-Meng serving concurrently as Chairman and CEO provides strong and consistent leadership to the Company[236](index=236&type=chunk) - Non-executive directors are required to retire by rotation at least once every three years, and the Board believes sufficient measures have been taken to safeguard shareholders' interests[236](index=236&type=chunk) [Changes of Director's Information](index=77&type=section&id=Changes%20of%20Director's%20Information) This section discloses changes in director information, including the appointment of independent non-executive directors Mr. Lee Kwok Ming and Mr. Chu Chia-Fu to other listed companies, the establishment of the Environmental, Social and Governance Committee, and the renewal of Mr. Tsai Eng-Meng's service contract - Independent Non-executive Director Mr. Lee Kwok Ming was appointed as an independent non-executive director of Bossini International Holdings Limited effective **July 24, 2020**[238](index=238&type=chunk) - The Environmental, Social and Governance Committee was established on **August 18, 2020**, to promote and assist the Board in managing the Group's environmental, social, and governance matters[238](index=238&type=chunk) - The Board resolved to renew Mr. Tsai Eng-Meng's service contract for a term of **3 years** commencing **August 26, 2020**, with no changes to the main terms and conditions[238](index=238&type=chunk) - Independent Non-executive Director Mr. Chu Chia-Fu was appointed as an independent non-executive director of Ocean Sky International Limited effective **October 1, 2020**[238](index=238&type=chunk) [Audit and Risk Management Committee](index=78&type=section&id=Audit%20and%20Risk%20Management%20Committee) The Audit and Risk Management Committee, comprising five independent non-executive directors, has reviewed the unaudited interim results for the six months ended September 30, 2020, with the external auditor PricewaterhouseCoopers - The Audit and Risk Management Committee comprises **5 independent non-executive directors**, with Mr. Chu Chia-Fu as Chairman[241](index=241&type=chunk) - The Committee, together with the external auditor PricewaterhouseCoopers, has reviewed the unaudited interim results for the six months ended September 30, 2020[241](index=241&type=chunk)

Financial Performance - Want Want China Holdings Limited reported a revenue of HKD 6.5 billion for the fiscal year 2019/2020, representing a 5% increase compared to the previous year[14]. - The company achieved a net profit of HKD 1.2 billion, which is a 10% increase year-over-year[14]. - The revenue for the fiscal year ended March 31, 2020, was RMB 20,094,531, a slight decrease from RMB 20,712,027 in the previous fiscal year[38]. - Profit for the year was RMB 3,636,243, compared to RMB 3,462,571 in the previous fiscal year, reflecting an increase of 5.0%[38]. - The gross profit margin for the year was 48.4%, showing a stable performance compared to previous years[36]. - The EBITDA margin for the year was 27.8%, indicating a solid operational efficiency[36]. - The company declared dividends of RMB 3,649,215, an increase from RMB 2,877,682 in the previous fiscal year[38]. - Basic earnings per share for the year was RMB 29.38, up from RMB 27.93 in the previous fiscal year[38]. - Revenue for FY2019 decreased by 3.0% to RMB20,094.5 million compared to FY2018, impacted by the COVID-19 pandemic[43]. - Gross profit margin increased from 45.4% in FY2018 to 48.0% in FY2019 due to product-mix optimization and decreased raw material costs[43]. - Operating profit rose by 4.8% to RMB4,805.9 million in FY2019 compared to FY2018[43]. - Net profit attributable to equity holders increased by 5.0% to RMB3,649.2 million in FY2019 compared to FY2018[43]. Strategic Initiatives - The company plans to expand its product line with the introduction of three new snack products in the next fiscal year[14]. - Future outlook includes a projected revenue growth of 8% for the upcoming fiscal year, driven by market expansion strategies[14]. - Market expansion efforts will target Southeast Asia, with a goal to increase market share by 10% in the region[14]. - The company has initiated discussions for potential acquisitions to diversify its product offerings and enhance market presence[14]. - Want Want China Holdings Limited has set a performance guidance of HKD 7 billion in revenue for the next fiscal year[14]. - The company aims to create new business ventures annually, emphasizing the importance of teamwork and dedication among employees[32]. - The management highlighted the need for a long-term vision to ensure sustainable profitability and growth[32]. - The company is focused on integrating talent, technology, and market strategies to achieve its goal of becoming a "World Elite Dragon"[32]. Operational Efficiency - Want Want China Holdings Limited is focusing on enhancing its supply chain efficiency, aiming for a 20% reduction in logistics costs[14]. - The company is investing HKD 300 million in new technology for production automation to improve operational efficiency[14]. - The Group achieved a 100% complaint resolution rate and a 100% pass rate of quality inspection of finished goods[67]. - The Group's quality control initiatives included 223 national QC teams and 1,823 in-service circle members, resulting in tangible benefits amounting to RMB 8.2353 million from 14,178 accepted proposals[114]. - The Group's recall management process is standardized, ensuring timely identification and resolution of food safety risks[172]. - The average traceability time for product recalls is 3.18 hours, with a conformity rate of 99.10% during the reporting period[172]. - The Group has implemented an online quality assessment system to enhance food safety and operational efficiency, contributing to its digital transformation[164]. Market Presence - The company has a significant presence in the People's Republic of China, which is one of the fastest-growing economies globally, and has an extensive nationwide sales and distribution network[18]. - The company exports products to various markets, including North America, East Asia, Southeast Asia, and Europe[20]. - More than 90% of the Group's revenue and businesses were generated in the Chinese mainland during the reporting period from April 1, 2019, to March 31, 2020[61]. - The sales entity in Vietnam commenced operations in 2019, with plans for additional Southeast Asian sales entities in 2020[44]. - The company aims for overseas markets to become a significant growth engine in the future[44]. Corporate Culture and Employee Engagement - The company emphasizes a corporate culture that fosters communication and unity among employees and their families through various activities[24]. - The management philosophy focuses on being people-oriented, self-confident, and united, aiming to achieve sustainable profits and prosperity for both the group and individuals[30]. - The company aims to become the "Elite Dragons of the World" through periodic new ventures and collective efforts from all employees[30]. - The Group's commitment to employee rights includes providing a safe and healthy working environment and establishing career development platforms[187]. - The Group emphasizes a remuneration system that is systematic and fair, adjusting salaries based on efficiency and sustainable development principles[200]. Environmental and Social Responsibility - Cumulative investment in upgrading environmental protection technologies was RMB198 million[73]. - The Group used 3.5 billion cartons certified by the Forest Stewardship Council (FSC) and the Sustainable Forestry Initiative (SFI), equivalent to planting 63,000 trees[75]. - Solar photovoltaic power generated amounted to 2,550,000 kWh, reducing carbon dioxide emissions by about 2,036 tonnes[77]. - Energy efficiency increased by 17.97% compared to 2015, equivalent to saving 30,900 tonnes of standard coal[69][71]. - Utilization efficiency of water resources increased by 20.48%, equivalent to saving 1,920,000 tonnes of water[71]. - The Group has donated Water God disinfectant generation equipment to over 100 schools across China as part of its community support efforts during the pandemic[104]. - The Group's environmental, social, and governance (ESG) strategies involve active communication with stakeholders, including shareholders, consumers, and regulatory authorities[107]. Product Development and Innovation - The company aims to develop functional products focusing on sugar reduction, organic nutrition, and green packaging, enhancing health benefits while reducing unhealthy ingredients[121]. - The Group's R&D strategy emphasizes independent innovation, targeting consumer demand for safety and health in product development[115]. - A new branding business team "Shi Ji Yan" was established in 2019 to target younger consumer groups[44]. - New product series launched include "Prime of Love" for middle-aged consumers, "Fix Body" for fitness enthusiasts, and "Baby Mum-Mum" for new parents[44]. - The company integrates Chinese food culture into its products, enhancing their appeal through natural and healthy ingredients[121]. Supplier Management - The supplier management system includes strict qualification examinations and adherence to quality and environmental standards, ensuring integrity and mutual benefit[125]. - The group emphasizes risk assessment of suppliers through third-party platforms and on-site visits, rejecting those that do not meet standards[130]. - A quantifiable assessment standard for suppliers is established based on quality, delivery, cost, and service, with monthly evaluations conducted[134]. - The Group's supplier management includes annual reviews and daily assessments, with non-compliant suppliers blacklisted[145]. - In FY 2019, the Group had 1,403 centralized procurement suppliers, primarily local suppliers, managed according to the Group's supplier management measures[138]. Safety and Compliance - The Group's safety project in the second quarter of 2019 focused on "Full Inspection of Risks and Hidden Dangers," aligning with national safety production month themes[193]. - The Group's safety production policy prioritizes "safety first, prevention driven," ensuring comprehensive governance in production safety[189]. - The Group's factories achieved a production safety standardization level of Class C, with factories in Beijing and Shijiazhuang reaching Class B standard[189]. - There were no employee fatal accidents reported during the reporting period[195]. - The Group conducted 2,030 "One-Day Auditor" activities across 32 production bases to enhance product quality[150]. Intellectual Property Management - The Group owns 2,457 trademarks, 32 patents, and 112 copyrights registered in mainland China, ensuring robust intellectual property management[174]. - The intellectual property rights department conducts regular training for staff on legal knowledge related to intellectual property and advertising compliance[179]. - The Group's intellectual property rights department actively engages in protecting trademarks and fighting against counterfeiting, providing legal support for major cases[177]. - All product packaging, promotional materials, and advertisements are subject to review by the intellectual property rights department to ensure compliance with relevant laws and regulations[185].

Financial Performance - Revenue for the six months ended September 30, 2019, was RMB 9,304,071, representing a 0.6% increase from RMB 9,248,125 in 2018[16]. - Gross profit increased by 10.5% to RMB 4,550,046, with a gross profit margin of 48.9%, up from 44.5%[16]. - Operating profit rose by 15.9% to RMB 2,053,767, resulting in an operating profit margin of 22.1%, compared to 19.2% in the previous year[16]. - Profit attributable to equity holders of the Company increased by 18.4% to RMB 1,614,913, with a margin of 17.4%, up from 14.8%[16]. - The Company reported a significant improvement in key financial ratios, with gross profit margin increasing by 4.4 percentage points and operating profit margin increasing by 2.9 percentage points[16]. - Total revenue for the first half of FY2019 reached RMB 9,304.1 million, a 0.6% increase compared to the same period in FY2018[20]. - Core products contributed approximately 85% of total revenue, achieving a mid-single-digit revenue growth rate[20]. - Operating profit rose by 21.2% to RMB 1,894.5 million compared to the same period last year[20]. - Profit attributable to equity holders increased by 18.4% to RMB 1,614.9 million, with a profit margin of 17.4%, up 2.6 percentage points[21]. - The Group achieved mid-to-high single-digit revenue growth in overseas markets, driven by strong brand recognition and diverse product offerings[26]. Market Strategy and Outlook - The Company is focused on expanding its market presence and enhancing product offerings through new product development and technology advancements[16]. - Future outlook includes strategic initiatives aimed at increasing operational efficiency and market share in the competitive landscape[16]. - The Company is exploring potential mergers and acquisitions to bolster growth and diversify its product portfolio[16]. - Continued investment in research and development is planned to drive innovation and meet evolving consumer demands[16]. - The management remains optimistic about achieving sustainable growth and improving profitability in the upcoming periods[16]. - The Group's digital marketing initiatives enhanced interaction with young consumers, creating a fan ecosystem beneficial for customer base expansion[31]. - New product launches, including brown-sugar coated crackers and innovative packaging, have become significant revenue sources for the Group[28]. - The Group plans to launch specialized festival gift packs for rice cracker products in the second half of FY2019 to capitalize on the Chinese New Year sales peak[39][40]. - Emerging channels such as vending machines and official online malls have shown rapid growth, contributing to the overall revenue increase in core-brand rice crackers[36][38]. - The Group aims to leverage e-commerce platforms for marketing during the "Double 11" event and promote festive products for the upcoming Spring Festival[59]. Cost and Expenses - The Group's operating expenses as a percentage of revenue increased by 4.0% year-on-year to 28.5%, totaling RMB 2,655.6 million[20]. - Distribution costs for the first half of FY2019 were RMB 1,369.9 million, a decrease of RMB 69.2 million or 4.8% compared to the first half of FY2018, with distribution costs as a percentage of revenue decreasing to 14.7%[66][69]. - Administrative expenses for the first half of FY2019 amounted to RMB 1,285.7 million, an increase of RMB 170.6 million or 15.3% compared to the first half of FY2018, with administrative expenses as a percentage of revenue rising to 13.8%[67][70]. - The cost of sales decreased by 7.4% to RMB 4.754 billion in the first half of FY2019, mainly due to lower prices of key raw materials[50]. Inventory and Receivables - The Group's inventory turnover days increased to 94 days, while trade receivables and payables turnover days remained at 19 and 43 days respectively[18]. - As of September 30, 2019, the inventory balance was RMB 2,576.6 million, up from RMB 2,387.7 million as of March 31, 2019[85]. - Trade receivables turnover days remained stable at 19 days for both the six months ended September 30, 2019, and the year ended March 31, 2019[89]. - Trade payables relate mainly to raw material purchases with credit terms generally between 30 to 60 days[90]. Cash Flow and Financing - Cash generated from operations for the six months ended 30 September 2019 was RMB 2,585,259,000, resulting in net cash from operating activities of RMB 1,934,506,000[123]. - Dividends paid to equity holders for the six months ended 30 September 2019 amounted to RMB 2,543,364,000, compared to RMB 1,842,996,000 in the same period of 2018[123]. - Cash flows from financing activities included borrowings of RMB 3,801,633,000, with repayments of RMB 3,450,773,000 during the same period[123]. - The Group's cash and deposits as of September 30, 2019, amounted to RMB 16,636.2 million, a decrease of RMB 524.2 million compared to March 31, 2019, primarily due to dividend payments[74][77]. Assets and Liabilities - Total assets as of September 30, 2019, were RMB 29,353,781, a decrease from RMB 29,874,405 as of March 31, 2019[110]. - Total liabilities increased to RMB 15,396,272 from RMB 14,414,578, indicating a rise of about 6.8%[110]. - Total equity attributable to equity holders of the Company was RMB 13,957,509, down from RMB 15,459,827[110]. - The total borrowings were RMB 10,366,803,000, with RMB 1,637,941,000 due within one year[173]. Employee and Training - The average number of employees for the first half of FY2019 was approximately 42,140, a decrease of 3,960 employees compared to the average for the year ended March 31, 2019[92]. - Total remuneration expenses for the first half of FY2019 amounted to RMB 1,876.0 million, representing a decrease of 1.6% compared to the first half of FY2018[92]. - The Group has invested significant resources in continuing education and training programs for employees to improve their professional knowledge and skills[93]. Accounting and Compliance - The Group's financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[103]. - The review of the condensed consolidated interim financial information did not reveal any significant matters that would affect the financial statements[103]. - The Group's financial information is presented in Renminbi (RMB) unless otherwise stated[126]. - The Group adopted HK (IFRIC) 23 to address uncertainty over income tax treatments, requiring separate consideration of each uncertain tax treatment[155].

Financial Performance - Revenue for the fiscal year 2018/2019 reached $5.6 billion, representing a 6.8% year-over-year growth[1] - Net profit increased by 12.3% to $1.2 billion, driven by cost optimization and higher sales volume[1] - Revenue for the year ended 31 March 2019 was RMB 20,712,027 thousand, an increase from RMB 20,149,781 thousand in the previous year[34] - Profit before income tax for the year ended 31 March 2019 was RMB 4,806,321 thousand, up from RMB 4,293,467 thousand in the previous year[34] - Net profit attributable to equity holders of the company for the year ended 31 March 2019 was RMB 3,476,599 thousand, compared to RMB 3,115,834 thousand in the previous year[35] - Basic earnings per share for the year ended 31 March 2019 were RMB 27.93 cents, up from RMB 24.93 cents in the previous year[36] - Total assets as of 31 March 2019 were RMB 29,836,438 thousand, an increase from RMB 26,683,103 thousand in the previous year[39] - Total equity as of 31 March 2019 was RMB 15,428,236 thousand, up from RMB 14,610,900 thousand in the previous year[39] - Dividends for the year ended 31 March 2019 were RMB 2,877,682 thousand, an increase from RMB 2,473,233 thousand in the previous year[37] - Revenue for FY2018 increased by 2.8% to RMB20,712.0 million compared to FY2017[42] - Gross profit grew by 9.2% to RMB9,400.2 million due to an increase in gross profit margin[42] - Profit attributable to equity holders of the company increased by 11.6% to RMB3,476.6 million[42] - Total revenue for the year ended 31 March 2019 increased by 2.8% to RMB20,712.0 million compared to the previous year[165] - Gross profit margin increased by 2.7 percentage points year-on-year to 45.4%[165] - Operating profit (excluding other income and other gains – net) increased by 16.8% to RMB4,077.4 million[165] - Profit attributable to equity holders of the Company increased by 11.6% year-on-year to RMB3,476.6 million[166] - The margin of profit attributable to equity holders increased by 1.3 percentage points to 16.8%[166] - Operating expense as a percentage of revenue was 25.7%, amounting to RMB5,322.8 million[165] - EBITDA increased by 9.4% to RMB4,586.5 million[163] - Total revenue for FY2018 increased by 2.8% to RMB 20.712 billion, with emerging channels becoming a key driver of growth[167] - Gross profit margin rose by 2.7 percentage points to 45.4% in FY2018, driven by optimized product mix and improved channel profitability[167] - Operating profit (excluding other income and gains) increased by 16.8% to RMB 4.077 billion in FY2018[167] - Net profit attributable to equity holders grew by 11.6% to RMB 3.477 billion, with a profit margin increase of 1.3 percentage points to 16.8%[167] - Total revenue for 2018FY increased by 2.8% to RMB20,712.0 million compared to 2017FY[191] - Revenue from rice crackers segment grew by 3.9% to RMB5,813.5 million in 2018FY[191][192] - Revenue from snack foods segment increased by 3.5% to RMB5,101.1 million in 2018FY[191] - Dairy products and beverages segment revenue rose by 1.6% to RMB9,729.6 million in 2018FY[191] Market Expansion and Growth - The company expanded its market share in China by 2.5%, reaching a total market penetration of 18.7%[1] - The company expects revenue growth of 5-7% for the next fiscal year, with a focus on expanding in Southeast Asia[1] - The company's first subsidiary in China was established in Hunan province in 1992, marking its entry into the Chinese market[9] - The company expanded from a rice cracker company to a diversified food and beverages company in the following years after entering China[9] - The company's subsidiary, Want Want Holdings Ltd., was listed on the Singapore Exchange Securities Trading Limited in May 1996[9] - The company was listed on the Hong Kong Stock Exchange on 26 March 2008 and was selected as a constituent of the Hang Seng Mainland Composite Index and the Morgan Stanley Capital International China Index in the same year[9] - The company's Taiwan Depositary Receipts were listed on the Taiwan Stock Exchange Corporation on 28 April 2009[9] - The company was selected as a constituent stock of the Hang Seng Index in Hong Kong on 5 December 2011[9] - The company's Taiwan Depositary Receipts were voluntarily withdrawn from listing on the Taiwan Stock Exchange on 15 October 2013[9] - The company's operations are primarily located in China, with additional operations in Taiwan, Japan, Hong Kong, and Singapore[10] - The company has an extensive nationwide sales and distribution network throughout China and exports products to markets including the United States, Canada, Southeast Asia, and Europe[10] - The company plans to introduce more unique new products to cater to different consumer scenarios and groups[42] - Over 90% of the Group's revenue and businesses were generated in Mainland China during the reporting period (1 April 2018 to 31 March 2019)[56][58] - The company plans to launch rice crackers with local characteristics in overseas markets as part of its expansion strategy[196] - In 2019FY, the Group will focus on product differentiation strategies, increasing the proportion of customized products and introducing new products like functional drinks and "Mr. Bond milk tea"[198] - Emerging channels became a new driving force for snack foods revenue growth in 2018FY[199] - The Group will concentrate resources on market-potential products like "Lactic Acid Bacteria" and "O-Bubble Fruit milk" in 2019FY[198] - Export sales of rice crackers achieved mid single-digit growth in 2018FY, with further expansion planned for overseas markets[196] Product Development and Innovation - New product launches contributed $450 million in revenue, accounting for 8% of total sales[1] - R&D investment increased by 15% to $120 million, focusing on innovative food and beverage technologies[1] - The company completed two strategic acquisitions, totaling $300 million, to enhance its product portfolio[1] - The company plans to invest $200 million in new production facilities to support future growth[1] - The company won the Food Safety Innovation Technology Award in July 2018[45][46] - The company won two bronze awards in the 9th Golden Mouse Digital Marketing Contest[47] - The company won the China Food Health Seven Star Award for the fourth consecutive year[49] - The company won the China Dairy Industry Quality and Safety Management Outstanding Enterprise Award and Outstanding New Product Award in August 2018[50][51] - The company was listed in the "Taiwan's Top 20 International Brands" for the 10th consecutive year with a brand value of US$897 million[52][53] - The Group is committed to developing leading and prospective products, focusing on safety, health, and taste, with an R&D strategy of "leading in technology and innovating the entire industrial chain"[69][71] - The Group continues to develop functional products, focusing on sugar reduction, organic nutrition, functional health, and green packaging, while integrating Chinese food culture into its products[74] - The company has achieved 100% localization of certain raw materials previously imported from overseas, such as aluminum[79] - The company focuses on reducing sugar, fat, and sodium content in products while increasing healthy carbohydrates from whole grains, fruits, and vegetables[75] - The company integrates traditional Chinese dietary culture, such as tea and soup culture, into its product development[75] - New products like "Tian She Mi Shao," "Dongchi," and "QQ juicy gummy" were launched, offering unique consumer experiences[179] - The Group introduced three "Palace" series snack foods inspired by IP elements from the Palace Museum[185][188] Operational Efficiency and Cost Management - Gross margin improved by 1.2 percentage points to 45.6%, driven by better cost management[1] - The company had 10,000 wholesalers, 427 sales offices, 35 production bases, and 85 factories in China as of 31 March 2019[30] - Non-current assets as of 31 March 2019 were RMB 8,641,902 thousand, compared to RMB 9,330,069 thousand in the previous year[39] - Current liabilities as of 31 March 2019 were RMB 6,295,159 thousand, down from RMB 8,728,952 thousand in the previous year[41] - The company has established a comprehensive supplier management system, including selection, evaluation, grading, and improvement processes[76][77] - The company prioritizes suppliers with outstanding performance in energy conservation, emission reduction, and social contribution[83] - The company has implemented a strict imported raw material filing system to strengthen traceability[82] - The company has developed an online quality assessment system to identify root causes of quality issues and provide early warning signs of risks[84] - The company has won the title of "Digital Promotion of China's Food Industry Transformation Model Enterprise" at the 3rd China Food Industry Internet Conference in 2018[84] - The company has established a full-process management system for raw material suppliers, ensuring compliance, quality, and safety[76] - The company strictly adheres to the "Food Recall Management Measures" and has established a standardized simulation traceability system and recall process[86][89] - The company conducted 502 two-way simulation traceability tests during the reporting period, with a conformity rate of 99% and an average tracing time of less than 4 hours[91] - The company implemented the Want Want Standard Safety Management System (WSSM System) and conducted quarterly EHS theme activities during the reporting period[100] - The company's product packaging, promotional materials, and advertisements are reviewed by the intellectual property and related departments to ensure compliance with laws and regulations[94][96] - The company provides employees with suitable protective equipment and conducts regular occupational health checkups for those exposed to occupational hazards[99] - The company's remuneration system is systematically designed and adjusted based on actual conditions, following principles of fairness and sustainable development[101] - The company conducted 284 specialized occupational health training sessions in 2018 to inform employees exposed to occupational hazards[103] - The company implemented a dual-track promotion system, offering separate channels for management and non-management roles (sales/technicians)[114] - Employees receive 2-5 additional days of annual leave based on their rank, in addition to statutory leave[105] - The company provides various employee benefits including festival welfare, wedding gifts, funeral consolation money, and commercial insurance[106] - The company strictly prohibits employment discrimination based on age, gender, nationality, race, and religion, and enforces a no-child-labor policy[111] - The company follows the WSSM (Want Want Standard Safety Management) system and conducts quarterly safety-themed activities to enhance workplace safety[103] - The company has established a comprehensive attendance management system, ensuring legal compliance with overtime payments and compensatory time off[107] - The company emphasizes lifelong learning and provides annual training programs for all employees to support their career development[113] - The company has set up a performance assessment system to assist employees in achieving promotion goals through relevant training[116] - The company adheres to the Labor Law of the People's Republic of China, ensuring fair and legal termination of employment contracts[112] - The company has 644 internal trainers as of 31 March 2019, with an average of 34 training hours per employee[118] - The company established a whistle-blowing mechanism with a hotline and mailbox to report corruption and fraud, offering rewards for real-name whistle-blowing[120] - The company conducted special audits in high-risk areas for corruption and fraud, promoting anti-corruption through videos, articles, and case studies[119] - The company implemented a "zero tolerance" policy towards violations of work and business ethics[119] Environmental Sustainability - Energy efficiency increased by 13.9% compared to 2015, equivalent to saving 23,000 tonnes of standard coal[61] - Water resource utilization efficiency increased by 12.1% compared to 2015, equivalent to saving 1,135,600 tonnes of water[62] - Cumulative investment in upgrading environmental protection technologies reached RMB193 million, with RMB28.0 million invested during the reporting period[61][63] - Solar photovoltaic power generation amounted to 1,450,000 kWh during the reporting period[64] - Cumulative investment in upgrading environmental protection technologies reached RMB193 million since 2016[125] - Waste water discharge reduced by 164,000 tonnes due to production water process optimization[127] - Utilisation efficiency of water resources increased by 12.1% compared to 2015[127] - RMB28.00 million was devoted to upgrading environmental protection technologies[123] - The company formulated internal monitoring standards for sewage treatment to ensure compliance with national or local standards[127] - Wastewater discharge reduced by 164,000 tons through production process optimization[129] - Total chemical oxygen demand (COD) emissions were 325 tonnes during the reporting period[129] - Nitrogen oxide (NOX) emissions reduced by 19,943 kg through modifications to gas-burning boilers[131] - Volatile organic compounds (VOCs) emissions reduced by 5,150 tonnes through equipment upgrades[131] - Total carbon dioxide emissions were 570,937 tonnes, with an emission intensity of 28.9 tCO2e per million RMB of output value[133] - Solar photovoltaic power generation project in Shanghai factory generated 1,450,000 kWh, reducing carbon dioxide emissions by approximately 1,160 tonnes[134][135] - Total non-hazardous waste amounted to 33,900 tonnes, with effective recycling and disposal measures in place[136] - Total energy consumption was 1,833,691 MWh, with electricity accounting for 357,413 MWh, natural gas for 1,121,059 MWh, and steam for 355,219 MWh[144] - Energy intensity was 92.97 MWh per million RMB of output value[144] - Saved electricity 42,000 kWh and 1,800,000 kWh through energy-saving measures in packaging materials factories and air compressors/water chillers respectively[145] - Saved 29,000 tonnes of steam annually through energy-saving renovations in confectionery and rice cracker plants[145] - Saved 700,000 m³ of natural gas annually through energy-saving renovations of rice cracker machines[145] - Reduced water consumption by 340,000 tonnes during the reporting period[149] - Total production output was 1,590,000 tonnes with packaging material usage of 222,000 tonnes, a 4% year-on-year decrease in packaging material usage per unit produced[150] - The Group prioritizes FSC-certified Tetra Pak packaging materials from renewable forests[150] - Water intensity decreased to 475.6 tonnes per million RMB of output value[148] - The Group promotes green procurement by collaborating with suppliers equipped with solvent recyclers and optimizing VOCs treatment[151] Corporate Social Responsibility and Employee Welfare - The Group has 45,100 serving employees, with 55% female and 45% male, and an average of 34 training hours per employee[65] - The Group obtained a total of 115 certificates for quality and food safety management systems, including ISO22000, ISO9001, HACCP, and BRC[67][70] - The company carried out 284 special occupational health training sessions for employees exposed to occupational hazards in 2018[99] - The company provides employees with suitable protective equipment and conducts regular occupational health checkups for those exposed to occupational hazards[99] - The company's remuneration system is systematically designed and adjusted based on actual conditions, following principles of fairness and sustainable development[101] - The company conducted 284 specialized occupational health training sessions in 2018 to inform employees exposed to occupational hazards[103] - The company implemented a dual-track promotion system, offering separate channels for management and non-management roles (sales/technicians)[114] - Employees receive 2-5 additional days of annual leave based on their rank, in addition to statutory leave[105] - The company provides various employee benefits including festival welfare, wedding gifts, funeral consolation money, and commercial insurance[106] - The company strictly prohibits employment discrimination based on age, gender, nationality, race, and religion, and enforces a no-child-labor policy[111] - The company follows the WSSM (Want Want Standard Safety Management) system and conducts quarterly safety-themed activities to enhance workplace safety[103] - The company has established a comprehensive attendance management system, ensuring legal compliance with overtime payments and compensatory time off[107] - The company emphasizes lifelong learning and provides annual training programs for all employees to support their career development[113] - The company has set up a performance assessment system to assist employees in achieving promotion goals through relevant training[116] - The company adheres to the Labor Law of the People's Republic of China, ensuring fair and legal termination of employment contracts[112] - The company has 644 internal trainers as of 31 March 2019, with an average of 34 training hours per employee[118] - The company established a whistle-blowing mechanism with a hotline and mailbox to report corruption and fraud, offering rewards for real-name whistle-blowing[120] - The company conducted special audits in high-risk areas for corruption and fraud, promoting anti-corruption through videos, articles, and case studies[119] - The company implemented a "zero tolerance" policy towards violations of work and business ethics[119] - The Want Foundation, established in 1997, conducts nationwide charitable activities with 18 branches across China[157] Marketing and Branding - E-commerce sales grew by 25% year-over-year, contributing $1.1 billion to total revenue[1] - The company won two bronze awards in the 9th Golden Mouse Digital Marketing Contest[47] - The company was listed in the "Taiwan's Top 20 International Brands" for the 10th consecutive year with a brand value of US$897 million[52][53] - The "Hot-Kid seasoning" announcement received over 200 million impressions[183][187] - The "A Bite to be Cute" event on TikTok attracted over 150,000 impressions and total online promotion impressions exceeded 5 million[184][188