Group 1: Company Developments - Bolekan Vision Cloud-B has launched its IPO on the Hong Kong Stock Exchange, with approximately 60.58 million shares available for global sale at a price of HKD 10.10 per share, indicating the company's confidence in its value [1] - Stand Robot has submitted its listing application to the Hong Kong Stock Exchange, focusing on industrial intelligent mobile robot solutions, despite currently being in a loss-making position [2] - Chengtai Technology has filed its prospectus with the Hong Kong Stock Exchange, specializing in millimeter-wave radar products, with projected revenues increasing from 0.58 billion to 3.48 billion from 2022 to 2024 [4] Group 2: Financial Performance - China Wangwang reported revenues of approximately 23.51 billion for the fiscal year ending March 31, 2025, a slight decrease of 0.3% year-on-year, while profit attributable to equity holders increased by 8.6% to 4.34 billion [3]

Financial Performance - The company's revenue decreased slightly by 0.3% from RMB 23,586 million in FY23 to RMB 23,511 million in FY24 [6] - Gross margin increased by 100bps from 46.6% in FY23 to 47.6% in FY24 [6] - Operating profit increased by 4.1% from RMB 5,610 million in FY23 to RMB 5,837 million in FY24 [6] - Profit attributable to equity holders of the company increased by 8.6% from RMB 3,990 million in FY23 to RMB 4,336 million in FY24 [6] - Net finance costs decreased by 52.2% from RMB 205 million in FY23 to RMB 98 million in FY24 [6] Segment Performance - Rice crackers revenue decreased by 1.2% year-over-year [11] - Dairy products and beverages revenue increased by 1.3% year-over-year [13] - Snack foods revenue decreased by 2.6% year-over-year [15] Channel Performance - Emerging channels and overseas markets experienced double-digit growth [9] - Traditional & Modern channels experienced low single-digit decline [9] - Snacks specialty retailers accounted for nearly 10% share of the Group's total revenue [42] Expenses and Capital - Operating expenses decreased low single-digit year-over-year [17] - Distribution costs increased low single-digit year-over-year [20] - CAPEX decreased from RMB 635 million in FY23 to RMB 406 million in FY24 [25] Dividends and Share Repurchases - Total dividend and share repurchases decreased by 43% from USD 431 million (approximately RMB 3,080 million) in FY23 to USD 246 million (approximately RMB 1,775 million) in FY24 [27]

Summary of Key Points Core Viewpoint - China Wangwang (00151.HK) reported a slight decline in revenue for the fiscal year ending March 31, 2025, but showed growth in gross profit and net profit attributable to equity holders, indicating resilience in its operations despite challenging market conditions [1][2]. Financial Performance - Total revenue for the fiscal year 2024 was RMB 23.511 billion, a decrease of 0.3% year-on-year - Gross profit reached RMB 11.189 billion, an increase of 1.8% year-on-year - Operating profit was RMB 5.837 billion, reflecting a growth of 4.1% year-on-year - Net profit attributable to equity holders was RMB 4.336 billion, up 8.6% year-on-year, with basic earnings per share at RMB 0.3671 [1][2]. Product Performance - Revenue decline was primarily due to adverse weather and market conditions affecting the ice cream and rice snacks categories, which saw low double-digit and high single-digit declines respectively - The company implemented internal organizational changes in the second half of fiscal 2024, leading to a low single-digit revenue recovery compared to the previous year - Dairy and beverage categories achieved mid-single-digit growth, while the ice cream category experienced over 20% recovery growth [1]. Strategic Initiatives - The company is focusing on product innovation and expanding its market presence, with new products launched in the past five years contributing to double-digit revenue proportions in fiscal 2024 - Emerging channels such as OEM and overseas markets showed double-digit growth, continuing to be significant growth drivers for the company [1][2]. Cost Management - The gross margin increased by 1.0 percentage points to 47.6%, aided by a decrease in the unit costs of major raw materials and packaging - Effective control of overall operating expenses and a reduction in financing costs contributed to the profit growth, with the profit margin for equity holders rising by 1.5 percentage points to 18.4% [2].

智通财经6月24日电，中国旺旺全年营收235.1亿元人民币，预估237.2亿元人民币；全年净利润43.4亿元 人民币，预估42亿元人民币。 ...

Financial Performance - Total revenue for the fiscal year ending March 31, 2025, was RMB 23,510,737, a decrease of 0.3% compared to RMB 23,586,327 in 2024[3] - Gross profit increased by 1.8% to RMB 11,189,198, up from RMB 10,990,921 in the previous year[3] - Operating profit rose by 4.1% to RMB 5,837,435, compared to RMB 5,609,825 in 2024[3] - Profit attributable to equity holders increased by 8.6% to RMB 4,335,565, up from RMB 3,990,474 in 2024[3] - The gross profit margin improved to 47.6%, an increase of 1.0 percentage points from 46.6% in 2024[3] - The operating profit margin also increased to 24.8%, up by 1.0 percentage point from 23.8% in 2024[3] - Basic earnings per share for equity holders rose to RMB 36.71, compared to RMB 33.65 in the previous year[4] - The company reported a total comprehensive income of RMB 4,166,072 for the year, compared to RMB 3,783,102 in 2024[5] - The total profit before tax was RMB 5,739,662, after accounting for net financing costs of RMB (97,840) and unallocated costs of RMB (745,245)[24] - The annual profit for the group was RMB 4,328,415, after tax expenses of RMB (1,411,247)[24] Revenue Breakdown - Revenue from the rice snacks segment was RMB 5,903,849, down from RMB 5,976,867 in the previous year, indicating a decrease of about 1.22%[22] - The dairy and beverage segment generated revenue of RMB 12,108,564, an increase from RMB 11,955,633, reflecting a growth of approximately 1.28%[22] - Revenue from leisure foods was RMB 5,359,073, down from RMB 5,501,808, showing a decline of around 2.59%[22] Assets and Liabilities - Total assets as of March 31, 2025, were RMB 27,211,758, a slight decrease from RMB 27,457,068 in 2024[6] - Total equity increased to RMB 17,751,141 from RMB 16,405,738 in 2024[7] - The total liabilities as of March 31, 2025, were RMB 9,460,617 thousand, with borrowings amounting to RMB 4,154,749 thousand[26] - The group’s total liabilities increased from RMB 11,051,330 thousand in 2024 to RMB 9,460,617 thousand in 2025[28] - Contract liabilities decreased from RMB 1,316,727 thousand in 2024 to RMB 1,117,121 thousand in 2025, indicating a reduction in deferred revenue[29] Capital Expenditures - Capital expenditures for the year totaled RMB 634,632, with specific allocations of RMB 111,251 for rice snacks, RMB 111,709 for dairy and beverages, RMB 174,243 for leisure foods, and RMB 40,992 for other products[24] - The group’s capital expenditures for the fiscal year ending March 31, 2024, totaled RMB 405,697 thousand, with the dairy and beverage segment accounting for RMB 93,293 thousand[27] Market and Operational Insights - The group operates primarily in China, with over 90% of revenue and non-current assets located in the region[20] - The group has established overseas subsidiaries in Vietnam, Indonesia, Australia, and Germany, reflecting its market expansion efforts[46] - Emerging channels such as OEM and overseas markets saw double-digit revenue growth year-on-year, continuing to be key growth drivers for the group[48] - The group plans to enhance organizational vitality and responsiveness to market changes while actively developing new products to increase consumer engagement[49] Shareholder Returns - The proposed final dividend per ordinary share for the fiscal year ending March 31, 2025, is set at 2.04 US cents, down from 3.30 US cents for the previous fiscal year, totaling RMB 1,738.33 million[7] - The company has a cautious policy of returning most residual capital to shareholders through cash dividends and share buybacks[84] - The board recommends a final dividend of USD 0.0204 per share, totaling approximately USD 241 million (equivalent to about CNY 1.740 billion), a decrease from USD 0.0330 per share in the fiscal year 2023, which totaled approximately USD 390 million (equivalent to about CNY 2.790 billion)[84] Employee and Training Initiatives - The average number of employees for the fiscal year 2024 is approximately 39,574, a decrease of 313 compared to the average number for the fiscal year ending March 31, 2024[81] - Total compensation for the fiscal year 2024 is CNY 4.5579 billion, an increase of CNY 35.54 million, or 0.8%, compared to the fiscal year 2023[81] - The company emphasizes ongoing employee education and training programs, investing significant resources to enhance employees' professional knowledge and skills[82] Future Outlook - The company will dynamically adjust its capital allocation strategy based on changes in the operating environment to ensure long-term competitiveness[84] - The group plans to continue developing low-sugar and dietary fiber products in response to rising health awareness and changing lifestyles[53] - The group is focusing on optimizing supply chain and production line layouts to enhance automation and respond quickly to diverse sales demands[58] - The group is expanding its product matrix and plans to launch health-oriented products to meet market demand and enhance brand competitiveness[56]

Investment Rating - The report assigns a "Buy" rating for the company [9]. Core Insights - The company has a solid industry leadership position, with a focus on product innovation and channel reform to drive growth. The financial performance shows a stable revenue increase and a rebound in profitability, supported by effective cost management and expansion into overseas markets [4][9]. Financial Summary - For FY2023, the company reported revenue of 23,586.33 million CNY, with a year-on-year growth of 2.87%. The net profit attributable to the parent company was 3,990.47 million CNY, reflecting an 18.36% increase from the previous year. The earnings per share (EPS) for FY2023 was 0.34 CNY, with a price-to-earnings (PE) ratio of 12.88 and a price-to-book (PB) ratio of 3.13 [2][4]. Business Performance - The company has shown a compound annual growth rate (CAGR) of 2.55% in revenue and 4.21% in net profit from FY2017 to FY2023. The gross profit margin for FY2023 was 46.60%, and the return on equity (ROE) was 25.73% [4][36]. Market Trends - The report highlights a shift towards health-oriented products, with significant growth in the health snack segment, which is expected to grow at a CAGR of 7.20%. The company is also expanding its presence in e-commerce and overseas markets, which are projected to contribute to future revenue growth [3][4]. Product and Channel Strategy - The company is focusing on product innovation, with a strong emphasis on health and wellness trends. It is also reforming its distribution channels to enhance efficiency and reach, including a significant push into e-commerce and international markets [3][4][9].

Revenue Performance - Revenue for the six months ended September 30, 2024, was RMB 10,876,637, a decrease of 3.5% compared to RMB 11,274,818 for the same period in 2023[19]. - In the first half of FY2024, the Group's total revenue declined by 3.5% year-on-year to RMB 10,876.6 million, primarily due to a decrease in revenue from the popsicles sub-category under the snack foods segment[24]. - For the first half of FY2024, the Group's total revenue declined by 3.5% to RMB10,876.6 million, with dairy products and beverages accounting for approximately 55% and rice crackers and snack foods for about 44% of total revenue[39][43]. - For the six months ended September 30, 2024, the Group's total revenue reached RMB 10,876,637,000, with segment revenues of RMB 2,057,382,000 from rice crackers, RMB 6,009,418,000 from dairy products and beverages, RMB 2,730,970,000 from snack foods, and RMB 78,867,000 from other products[199]. Profitability Metrics - Gross profit increased by 0.8% to RMB 5,141,311, resulting in a gross profit margin of 47.3%, up from 45.2%[19]. - Operating profit rose by 2.6% to RMB 2,540,711, with an operating profit margin of 23.4%, compared to 22.0% in the previous year[19]. - Profit attributable to equity holders of the Company increased by 7.6% to RMB 1,863,371, with a profit margin of 17.1%, up from 15.4%[19]. - Basic and diluted earnings per share improved to 15.78 RMB cents, an increase of 8.2 percentage points from 14.58 RMB cents[19]. - Net profit attributable to equity holders of the Company increased by 7.6% year-on-year to RMB 1,863.4 million for the first half of FY2024[25]. - Profit for the period reached RMB 1,862,321, representing a growth of 7.8% from RMB 1,727,186 in the prior year[135]. Cost and Expense Management - The cost of sales decreased by 7.1% to RMB5,735.3 million in the first half of FY2024, attributed to a year-on-year decrease in the unit cost of key raw materials and packaging materials[58]. - Distribution costs amounted to RMB1,368.8 million, a decrease of 7.2% year-on-year, with distribution costs as a percentage of revenue decreasing by 0.5 percentage points to 12.6%[75]. - The finance costs decreased by 38.2% to RMB92.32 million in the first half of FY2024, due to the replacement of higher interest USD borrowings with lower interest RMB borrowings[78]. - The income tax expense for the first half of FY2024 was RMB643.0 million, with an income tax rate of 25.7%, a decrease of 1.3 percentage points compared to the same period last year[79]. Inventory and Receivables Management - Inventory turnover days improved to 77 days from 81 days, while trade receivables turnover days remained stable at 14 days[18]. - Trade payables turnover days increased to 32 days from 29 days, indicating a change in payment practices[18]. - Trade receivables increased to RMB 879,292,000 from RMB 832,245,000, indicating a growth of approximately 5.66%[120]. Market and Product Development - The Company is focusing on market expansion and new product development to drive future growth[17]. - The Company continues to invest in research and development to enhance product offerings and maintain competitive advantage[17]. - Emerging channels, such as vending machines and OEM, continued to grow, with overseas markets achieving double-digit revenue growth[24]. - New products launched over the past five years contributed a double-digit percentage to the Group's revenue for the first half of FY2024[24]. - The Group plans to launch more low-sugar and reduced sugar beverages in the second half of FY2024, responding to rising health awareness and changing consumer preferences[41]. - The rice crackers segment will introduce various Chinese New Year themed gift packs to capitalize on the upcoming peak sales season[42][45]. Financial Position and Cash Flow - As of September 30, 2024, the Group's net cash amounted to RMB 9,094.1 million, a decrease of RMB 1,561.1 million from RMB 10,655.2 million as of March 31, 2024, primarily due to the payment of a dividend of US$ 390 million (RMB 2,766.9 million)[89]. - The Group's total borrowings as of September 30, 2024, amounted to RMB 6,330.8 million, an increase of RMB 979.7 million from RMB 5,351.1 million as of March 31, 2024, with 98% being RMB denominated borrowings[89]. - The net cash outflow from financing activities for the first half of FY 2024 was RMB 1,891.9 million, mainly due to dividend payments[92]. - Cash and bank balances decreased to RMB 7,854,897,000 from RMB 8,421,346,000, representing a decline of about 6.73%[120]. Organizational and Structural Changes - The Group is undergoing organizational restructuring to enhance market responsiveness and implement its diversification strategy[26]. - The average number of employees decreased by 1,021 to approximately 38,866 for the first half of 2024FY[108]. - The Group invests significantly in continuing education and training programs for its employees[109]. Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[169]. - The liquidity risk management policies have remained unchanged since the last year-end[170]. - The Group's financial risk management information should be read in conjunction with the annual consolidated financial statements as of March 31, 2024[170].

Financial Performance - Revenue for the six months ended September 30, 2024, was RMB 10,876,637 thousand, a decrease of 3.5% compared to RMB 11,274,818 thousand for the same period in 2023[2] - Gross profit increased by 0.8% to RMB 5,141,311 thousand, resulting in a gross margin of 47.3%, up from 45.2%[2] - Operating profit rose by 2.6% to RMB 2,540,711 thousand, with an operating margin of 23.4%, compared to 22.0% in the previous year[2] - Profit attributable to equity holders increased by 7.6% to RMB 1,863,371 thousand, with a profit margin of 17.1%, up from 15.4%[2] - Basic and diluted earnings per share were RMB 15.78, an increase of 8.2% from RMB 14.58[2] - The company reported a total comprehensive income of RMB 1,791,025 thousand for the period, compared to RMB 1,554,838 thousand in the previous year[5] - The profit before tax for the group was RMB 2,505,340 thousand, with a net profit of RMB 1,862,321 thousand after tax expenses of RMB 643,019 thousand[32] Assets and Liabilities - Total assets as of September 30, 2024, were RMB 26,807,669 thousand, down from RMB 27,457,068 thousand as of March 31, 2024[7] - Total liabilities increased to RMB 11,401,949 thousand from RMB 11,051,330 thousand[18] - Cash and bank deposits amounted to RMB 7,854,897 thousand, a decrease from RMB 8,421,346 thousand[7] - The group's total assets as of September 30, 2024, amounted to RMB 26,807,669 thousand, with cash and bank deposits totaling RMB 7,854,897 thousand[34] - The group reported a total liability of RMB 11,401,949 thousand, with borrowings included in the total liabilities amounting to RMB 6,330,802 thousand[34] - As of September 30, 2024, the total borrowings of the company amounted to RMB 6.3308 billion, an increase of RMB 0.9797 billion from RMB 5.3511 billion as of March 31, 2024, primarily consisting of RMB borrowings (98% of total borrowings)[81] - The net equity debt ratio as of September 30, 2024, was -0.59 times, compared to -0.65 times as of March 31, 2024, indicating a healthy cash flow and sufficient cash reserves to meet repayment needs[81] Revenue Breakdown - For the six months ended September 30, 2024, total revenue reached RMB 10,876,637 thousand, with the largest contribution from dairy and beverage products at RMB 6,009,418 thousand, accounting for approximately 55.3% of total revenue[32] - Revenue from the snack segment for the six months ended September 30, 2024, was RMB 2,730,970 thousand, showing a slight decrease from RMB 3,031,829 thousand in the same period of the previous year[32][36] - Revenue from the rice snacks category was 2.0574 billion RMB, remaining flat with low single-digit growth in sales, driven by diversified channel development and double-digit growth in emerging channels[60] - Revenue from dairy and beverage categories was 6.0094 billion RMB, a year-on-year decline of 1.4%, with milk sales remaining flat but showing low single-digit growth in canned milk revenue due to increased sales points[63] - Revenue from the leisure food category was 2.7310 billion RMB, a decline of 9.9% year-on-year, primarily due to poor performance in ice products[65] Market and Strategic Focus - The company continues to focus on expanding its market presence in North America, East Asia, Southeast Asia, and Europe[21] - Emerging channels, including vending machines and e-commerce, showed double-digit revenue growth in the first half of fiscal year 2024[54] - The overseas market achieved double-digit revenue growth, driven by new customers and products, with significant growth in regions such as Asia and the Americas[55] - The company plans to launch more low-sugar and health-oriented products in the second half of fiscal year 2024 to meet changing consumer preferences[58] - The group plans to continue expanding product categories and specifications, focusing on automation and channel diversification to enhance profitability[69] Operational Efficiency - The inventory turnover days decreased from 81 days to 77 days, reflecting improved supply chain and working capital efficiency[87] - The trade receivables turnover days increased from 13 days to 14 days as of September 30, 2024[88] - The trade payables turnover days increased from 29 days to 32 days as of September 30, 2024[91] Employee and Compensation - The average number of employees for the first half of the 2024 fiscal year was approximately 38,866, a decrease of 1,021 from the previous fiscal year[92] - The total compensation for employees in the first half of the 2024 fiscal year was RMB 2.2163 billion, a slight decrease of RMB 1.07 million compared to the same period last year[92] Capital Expenditure - The group's capital expenditure for the six months ended September 30, 2024, was RMB 358,951 thousand, with the highest expenditure in the snack segment at RMB 52,203 thousand[32] - The capital expenditure for the first half of the 2024 fiscal year was RMB 0.3590 billion, down from RMB 0.4057 billion for the previous fiscal year, primarily for upgrading production facilities[83] - The company purchased a business jet for USD 19.4 million, which was recorded as capital expenditure in the first half of the 2024 fiscal year[100] Financing and Costs - Financing costs decreased by 5.701 million RMB, down 38.2% to 92.32 million RMB, due to the replacement of higher-interest dollar loans with lower-interest RMB loans[76] - The net cash position as of September 30, 2024, was 9.0941 billion RMB, a decrease of 1.5611 billion RMB from March 31, 2024, primarily due to dividend payments[79] Depreciation and Asset Management - The group's non-current assets included property, plant, and equipment depreciation of RMB 367,490 thousand for the six months ended September 30, 2024[32] - The new replacement cost of the aircraft (excluding interior) is set at $43.9 million, which includes a transaction cost assumed to be 3.3% of the aircraft price[104] - The new replacement cost of the aircraft interior is $2.3 million, equivalent to its original purchase cost[104] - The condition-based depreciation rates for the aircraft (excluding interior) and aircraft interior are set at 45% and 10%, respectively, based on their remaining useful life and condition during inspection[104]

Company Listing and Stock Information - Want Want China Holdings Limited is listed on the Hong Kong Stock Exchange with the stock code 0151[1] - The company's Taiwan Depositary Receipts were listed on the Taiwan Stock Exchange Corporation on April 28, 2009, and voluntarily withdrawn from listing on October 15, 2013[12] - The company was listed on the Hong Kong Stock Exchange on March 26, 2008[12] - The company's subsidiary, Want Want Holdings Ltd., was listed on the Singapore Exchange Securities Trading Limited in May 1996 and delisted in September 2007[12] Financial Performance and Highlights - Gross margin for FY2023 was 43.9%, showing a slight decrease from 46.6% in FY2022 and 44.8% in FY2021[33] - Revenue for the fiscal year 2024 reached RMB 23,586,327 thousand, with a profit before income tax of RMB 5,405,467 thousand and an income tax expense of RMB 1,422,288 thousand[36] - Profit for the year 2024 was RMB 3,983,179 thousand, with RMB 3,990,474 thousand attributable to equity holders of the company and RMB 7,295 thousand to non-controlling interests[36] - Total assets for 2024 were RMB 27,457,068 thousand, with non-current assets at RMB 14,571,187 thousand and current assets at RMB 12,885,881 thousand[37] - Total equity for 2024 was RMB 16,405,738 thousand, while total liabilities were RMB 11,051,330 thousand[37] - Total revenue for 2023FY grew by 2.9% year-on-year to RMB23,586.3 million, with dairy products and beverage segment revenue increasing by 7.4% year-on-year[47] - Gross profit margin increased by 2.7 percentage points year-on-year to 46.6%, driven by lower costs of key raw materials and optimized production labor strategies[48] - Profit attributable to equity holders of the Company increased by 18.4% year-on-year to RMB3,990.5 million, with the margin of profit attributable to equity holders rising by 2.2 percentage points to 16.9%[48] - Inventory turnover days decreased by 9 days compared to the previous year, leading to a shorter cash conversion cycle by 11 days (average 65 days in 2023FY)[49] - Cash generated from operations increased by RMB1,167.7 million year-on-year to RMB6,752.9 million in 2023FY, driven by improvements in working capital efficiency and profit before tax[49] - Total revenue for FY2023 increased by 2.9% year-on-year to RMB 23.5863 billion, with dairy and beverage revenue growing by 7.4% and candy sub-category revenue reaching a historical high[50] - Gross profit margin for FY2023 rose by 2.7 percentage points to 46.6%, driven by lower prices of some bulk raw materials and packaging materials, and optimized labor strategies[50] - Net profit attributable to equity holders increased by 18.4% year-on-year to RMB 3.9905 billion, with the profit margin rising by 2.2 percentage points to 16.9%[50] - Inventory turnover days decreased by 9 days, leading to a 11-day improvement in cash conversion cycle, with average cash conversion cycle at 65 days in FY2023 compared to 76 days in FY2022[50] - Operating cash flow increased by RMB 1.1677 billion year-on-year to RMB 6.7529 billion in FY2023[50] - Traditional channels resumed growth with high single-digit growth in milk sub-category and double-digit growth in beverages sub-category[52] - Modern channels grew by low-to-mid single-digit in revenue, with significant growth in dairy products and beverages segment[53] - Emerging channels maintained high single-digit growth, with vending machine channel achieving double-digit growth driven by new smart models[54] - OEM channel revenue achieved rapid year-on-year growth in 2023FY, benefiting from the Group's production capability and capacity advantage across multiple product categories such as dairy products, beverages, maternal products, rice crackers, and candies[57] - Overseas revenue achieved mid-to-high teen growth rate in 2023FY, with significant progress in developing overseas markets for candy products[57] - Total revenue for 2023FY grew by 2.9% year-on-year to RMB23,586.3 million, with dairy products and beverages segment growing by 7.4% to RMB11,955.6 million[65] - Revenue from the rice crackers segment grew by 2.3% year-on-year to RMB5,976.9 million, driven by continuous growth in overseas markets and emerging channels[65] - Revenue from the snack foods segment decreased by 5.5% year-on-year to RMB5,501.8 million, while the candies sub-category achieved a record high in revenue for the year[65] - The Group's products maintained a balanced development trend, with rice crackers and snack foods segments accounting for 49% of total revenue, and dairy products and beverages segment accounting for 51% in 2023FY[65] - Revenue from the rice crackers segment grew by 2.3% year-on-year to RMB5,976.9 million in 2023FY, with overseas markets and emerging channels contributing 20% and 10% respectively, both maintaining double-digit growth[66] - The new product "Little Rice Crunch" achieved revenue exceeding RMB40 million in 2023FY, driven by its unique taste and healthy concept, particularly popular among white-collar professionals and Generation Z consumers[67] - Revenue of the dairy products and beverages segment grew by 7.4% year-on-year to RMB11,955.6 million in 2023FY, with "O-Bubble Fruit Milk" achieving double-digit revenue growth[68] - Total revenue for the Group in 2023FY increased by 2.9% year-on-year to RMB23,586.3 million, with dairy products and beverages contributing 51% and rice crackers and snack foods contributing 49%[69] - The "56 Ethnic Group Can" series of Hot-Kid Milk returned to the market, driving a double-digit year-on-year growth in sales volume of canned milk in 2023FY[72] - Revenue of the snack foods segment declined by 5.5% year-on-year to RMB5,501.8 million in 2023FY, mainly due to a decline in the popsicles sub-category, though the candies sub-category reached a record high[72] - The cost of sales for the Group in 2023FY decreased by 2.0% year-on-year to RMB12,595.4 million, driven by a double-digit decline in the unit cost of palm oil, paper, and tinplate, offsetting increases in sugar and gelatin costs[73] - Gross profit margin increased by 2.7 percentage points to 46.6% in 2023FY, driven by lower unit costs of key raw materials and improved product pricing management[75][78] - Gross profit rose by 9.1% year-on-year to RMB10,990.9 million due to increased revenue and higher gross profit margin[75][78] - Rice crackers segment gross profit margin increased by 3.4 percentage points to 46.0% in 2023FY, mainly due to a double-digit decrease in palm oil unit cost[76] - Dairy products and beverages segment gross profit margin rose by 3.7 percentage points to 48.5% in 2023FY, driven by lower unit costs of packaging materials and milk powder[76] - Snack foods segment gross profit margin increased by 0.6 percentage points to 44.0% in 2023FY, supported by higher sales of high-margin products and lower unit costs of certain materials[80] - Distribution costs increased slightly by 0.1% to RMB3,021.2 million in 2023FY, while distribution costs as a percentage of revenue decreased by 0.4 percentage points to 12.8%[80] - Administrative expenses rose by 6.8% to RMB3,043.1 million in 2023FY, with the administrative expenses to revenue ratio increasing by 0.5 percentage points to 12.9%[80] - Operating profit increased by 15.7% year-on-year to RMB5,609.8 million in 2023FY, with the operating profit margin rising by 2.7 percentage points to 23.8%[80] - Finance costs increased by RMB59.86 million to RMB281.8 million in 2023FY, mainly due to higher interest rates on USD-denominated borrowings in the first half of the year[81] - Income tax expense amounted to RMB1,422.3 million in 2023FY, with the income tax rate decreasing by 3.3 percentage points to 26.3% compared to 2022FY[82] - Financing costs increased by RMB 59.86 million to RMB 281.8 million in FY2023 due to rising USD interest rates, but decreased significantly in H2 after replacing high-interest USD loans with lower-interest RMB loans[83] - The company's net cash increased by RMB 2.3379 billion to RMB 10.6552 billion as of March 31, 2024, compared to RMB 8.3173 billion as of March 31, 2023[85] - Bank deposits (including long-term deposits) increased by RMB 2.3467 billion to RMB 16.0063 billion as of March 31, 2024, with RMB accounting for approximately 90% (RMB 14.3614 billion)[85] - Total borrowings increased slightly by RMB 8.8 million to RMB 5.3511 billion as of March 31, 2024, with short-term borrowings decreasing by RMB 392.7 million and long-term borrowings increasing by RMB 401.5 million[86] - The company's net gearing ratio improved to -0.65 times as of March 31, 2024, compared to -0.57 times as of March 31, 2023[87] - Operating activities generated a net cash inflow of RMB 5.1514 billion in FY2023, while financing activities resulted in a net cash outflow of RMB 2.4361 billion, mainly due to dividend payments of RMB 1.7911 billion[88] - Capital expenditure decreased to RMB 405.7 million in FY2023 from RMB 531.3 million in FY2022, with investments focused on expanding production plants and equipment in Vietnam and upgrading domestic facilities[89] - The company invested RMB 139.2 million, RMB 93.29 million, and RMB 86.79 million respectively in expanding production facilities for rice crackers, dairy products and beverages, and snack foods[89] - Inventory turnover days decreased by 9 days to 81 days in 2024FY compared to 2022FY, driven by improved supply chain and working capital efficiencies[96] - Inventory as of 31 March 2024 amounted to RMB2,415.1 million, a decrease of RMB727.0 million from RMB3,142.1 million in 2023[96] - Trade receivables turnover days decreased to 13 days in 2024FY from 15 days in 2023FY[96] - Trade payables turnover days remained stable at 29 days for both 2024FY and 2023FY[99] - Average number of employees decreased by 1,342 to 39,887 in 2023FY, with total remuneration expenses decreasing by RMB41.65 million (0.9%) to RMB4,522.4 million[101] - The company recommended a final dividend of US3.30 cents per share for 2023FY, totaling approximately US$390 million, representing 70% of the profit attributable to equity holders[103] Corporate Governance and Board Structure - The company's executive directors include Mr. Tsai Eng-Meng (Chairman and CEO), Mr. Tsai Shao-Chung, and Mr. Tsai Wang-Chia (COO)[4] - The company's independent non-executive directors include Dr. Pei Kerwei, Mr. Hsieh Tien-Jen, and Mr. Lee Kwok Ming[4] - The company's audit and risk management committee is chaired by Mr. Lee Kwok Ming, with members including Dr. Pei Kerwei and Mr. Hsieh Tien-Jen[4] - The company's remuneration committee is chaired by Mr. Hsieh Tien-Jen, with members including Dr. Pei Kerwei and Mr. Tsai Shao-Chung[4] - The company's nomination committee is chaired by Dr. Pei Kerwei, with members including Mr. Tsai Shao-Chung and Mr. Hsieh Tien-Jen[5] - The company's ESG committee is chaired by Mr. Tsai Wang-Chia, with members including Mr. Chu Chi-Wen and Dr. Pei Kerwei[9] - The company's auditor is Ernst & Young, and its legal advisor is Sullivan & Cromwell (Hong Kong) LLP[9] - The company's principal banks include Bank of China (Hong Kong) Limited, China Merchants Bank Co., Limited, and Citigroup Inc.[9] - The company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance with the Listing Rules regarding directors' securities transactions[109] - Directors confirmed compliance with the Model Code for securities transactions during the fiscal year ending March 31, 2024[109] - The company adheres to high standards of corporate governance, aligning with the principles of the Corporate Governance Code, with a minor deviation explained in the corporate governance report[110] - The Board is responsible for establishing the Group's purpose, values, and strategic directions, overseeing financial performance, and approving major financial arrangements and investment projects[111] - The Board ensures effective risk management and internal control systems, and oversees ESG matters and risks[111] - The management team, led by executive Directors, is responsible for the day-to-day management and implementation of Board-approved strategies[112] - The Board has delegated specific responsibilities to various committees, including the Audit and Risk Management Committee, Remuneration Committee, Nomination Committee, and Strategy Committee[112] - The Board consists of 14 Directors as of 31 March 2024, including 7 executive Directors, 2 non-executive Directors, and 5 independent non-executive Directors[114] - The ESG Committee was established in August 2020 to assist the Board in promoting and managing ESG-related matters, including strategies, policies, initiatives, performance, and reporting[114] - The Board is responsible for corporate governance duties, including developing and reviewing corporate governance policies, monitoring compliance with legal and regulatory requirements, and reviewing the code of conduct for employees and Directors[114] - The Company has a Director Nomination Policy in place, which outlines the process and criteria for evaluating, selecting, and recommending candidates for Board nomination and appointment[118] - All Directors are subject to retirement by rotation at least once every three years, with one-third of Directors retiring and being eligible for re-election at each annual general meeting[118] - The Company has entered into formal letters of appointment with all Directors, setting out their duties and major terms and conditions of their appointments[118] - The company has 5 independent non-executive directors who provide valuable business experience, knowledge, and professionalism to the Board for its efficient and effective functioning[123] - Independent non-executive directors have demonstrated their ability to provide independent views and valuable contributions to the company during their terms[119] - Directors appointed to fill casual vacancies or as additions to the Board hold office only until the next general meeting following their appointment[119] - The company complies with Listing Rules 3.10 and 3.10A regarding the appointment of independent non-executive directors with appropriate qualifications[119] - Independent non-executive directors serving more than 9 years are subject to an independence and suitability assessment by the Nomination Committee before re-election[120] - The Board has established a mechanism to ensure independent views and advice are available for effective corporate governance[123] - Independent non-executive directors are explicitly identified as such in all corporate communications disclosing director names[121] - The company has received written confirmations from independent non-executive directors confirming their independence in accordance with Listing Rule 3.13[119] - The Board considers the expertise, experience, and diversity contributed by independent non-executive directors when recommending their re-election[120] - Directors retiring at the 2024 AGM on 27 August 2024 are eligible for re-election[119] - The Board held 6 meetings during the year ended 31 March 2024, primarily to review and discuss the Group's strategies, monitor financial performance, and approve investment projects[124] - The Board reviewed and approved the financial results for the year ended 31 March 2023 and the six months ended 30 September 2023[125] - The Board recommended a final dividend for shareholders' approval at the 2023 AGM[125] - The Board approved the renewal of the service contract with Mr. Tsai Eng-Meng for a term of three years starting from 26 August 2023[125] - The Board granted clearance for Mr. Tsai Eng-Meng to deal in the Company's securities and appointed designated Directors for related notifications[125] - Independent non-executive Directors actively attended Board meetings and provided independent views on the Company's matters[124] - The Board reviewed ESG-related matters, including core ESG strategies and related targets, during the year[125] - The Board approved the adoption of the revised terms of reference of the Remuneration Committee[125] - The Board ensured the effectiveness of the risk management and internal control systems[124] - The Board received reports from the Board Committees and the ESG Committee during the year[124] - The 2023 AGM was held on 22 August 2023[129] - Mr. Liao Ching-Tsun retired as a non-executive Director and ceased to be the vice chairman of the Board and a member of the Strategy Committee upon the conclusion of the 2023 AGM[129] - The Chairman held a meeting with the independent non-executive Directors without the presence of other Directors in March 2024[129] - Regular Board meetings are scheduled in advance with notices served at least 14 days before the meetings[131] - The Chairman ensures that all key and appropriate issues are discussed by the Board in a timely manner[132] - The Chairman promotes a culture of openness and debate, facilitating effective contributions from Directors[133] - Minutes of Board and Board Committee meetings are recorded in sufficient detail, including any concerns or dissenting views raised by Directors[134] - Draft minutes of each Board meeting are sent to Directors for comments before approval at the following meeting[134] - The Chairman ensures that all Directors receive adequate, complete, and reliable information in a timely manner[132] - The Chairman is responsible for ensuring constructive relations between executive and non-executive Directors[133] - The company organized a trip to Vietnam in June 2023 for

Investment Rating - The report maintains an "Outperform" rating for China Want Want (0151 HK) [3] Core Views - Revenue growth is steady with significant improvement in gross margin driving strong net profit performance [3] - Dairy beverages emerging channels and overseas markets show good performance with notable profitability improvement [3] - Traditional channels are recovering while emerging channels and overseas markets are important growth drivers [5] - The company is expected to maintain a positive trend in FY2024 with further improvement in dairy and beverage gross margins [5] Financial Performance - FY2023 revenue reached 23 586 billion yuan (YoY +2 9%) with net profit attributable to shareholders of 3 990 billion yuan (YoY +18 4%) [1] - Gross margin increased by 2 67pct to 46 60% in FY2023 [3] - Net profit margin rose by 2 21pct with net profit attributable to shareholders growing 18 36% YoY [3] - The company plans to distribute cash dividends of 2 776 billion yuan with a payout ratio of 69 57% [1] Business Segments - Dairy and beverage category revenue grew 7 4% YoY with gross margin improving by 3 7pct to 48 5% [2] - Rice cracker category revenue increased 2 3% YoY with gross margin up 3 4pct to 46 0% [3] - Snack food category revenue declined 5 5% YoY but gross margin improved by 0 6pct to 44 0% [3] Channel Performance - Traditional channels showed recovery with milk category growing high single-digit and beverage category growing double-digit [5] - Modern channels grew low-to-mid single-digit with significant growth in dairy and beverage categories [5] - Emerging channels maintained high single-digit growth becoming an important growth driver [5] - Overseas revenue achieved mid-to-high double-digit growth with significant progress in candy products [5] Future Outlook - FY2024-2026 revenue is projected to be 249 92/259 26/268 37 billion yuan [5] - Net profit attributable to shareholders is expected to be 4 554/4 878/5 210 billion yuan for FY2024-2026 [5] - EPS is forecasted to be 0 39/0 41/0 44 yuan per share for FY2024-2026 [5] - The company is given a PE valuation range of 16-20x (2024E) corresponding to a reasonable value range of 6 93-8 67 HKD per share [5] Financial Ratios - ROE improved from 23 01% in FY2022 to 24 38% in FY2023 and is expected to reach 26 02% by FY2026 [4] - Asset-liability ratio decreased from 40 25% in FY2023 and is projected to further decline to 35 62% by FY2026 [8] - Current ratio improved from 1 56 in FY2023 and is expected to reach 2 06 by FY2026 [8]