WANT WANT CHINA(00151)2024-06-25 04:04Revenue Growth and Performance - Revenue increased by 2.9% to RMB 23,586,327 thousand in FY2024 compared to RMB 22,928,219 thousand in FY2023[2] - Revenue from rice cracker products increased to RMB 5,976,867 thousand in 2024, up from RMB 5,843,348 thousand in 2023[15] - Revenue from dairy and beverage products rose to RMB 11,955,633 thousand in 2024, compared to RMB 11,130,495 thousand in 2023[15] - Revenue from snack products decreased to RMB 5,501,808 thousand in 2024, down from RMB 5,820,262 thousand in 2023[15] - Revenue from other products increased to RMB 152,019 thousand in 2024, up from RMB 134,114 thousand in 2023[15] - Total revenue for the company reached RMB 23,586,327 thousand in 2024, compared to RMB 22,928,219 thousand in 2023[15] - Revenue for the year ended March 31, 2024, reached RMB 23,586,327 thousand, with the Dairy and Beverage segment contributing the highest at RMB 11,955,633 thousand[16] - 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 confectionery revenue reaching a historical high[37] - Total revenue for FY2023 increased by 2.9% YoY to RMB 23.5863 billion, with dairy and beverage revenue growing by 7.4% to RMB 11.9556 billion[45] - Rice and snack category revenue grew by 2.3% YoY to RMB 5.9769 billion, driven by overseas markets and emerging channels, which grew by double digits[46] - Snack category revenue declined by 5.5% YoY to RMB 5.5018 billion, mainly due to a decline in ice cream sales, although candy subcategory revenue reached a historical high[48] Profitability and Margins - Gross profit rose by 9.1% to RMB 10,990,921 thousand in FY2024 from RMB 10,071,028 thousand in FY2023[2] - Operating profit grew by 15.7% to RMB 5,609,825 thousand in FY2024 compared to RMB 4,846,711 thousand in FY2023[2] - Profit attributable to equity holders of the company increased by 18.4% to RMB 3,990,474 thousand in FY2024 from RMB 3,371,584 thousand in FY2023[2] - Gross profit margin improved by 2.7 percentage points to 46.6% in FY2024 from 43.9% in FY2023[2] - Operating profit margin increased by 2.7 percentage points to 23.8% in FY2024 from 21.1% in FY2023[2] - Profit margin attributable to equity holders of the company rose by 2.2 percentage points to 16.9% in FY2024 from 14.7% in FY2023[2] - The company's net profit for the year ended March 31, 2024, was RMB 3,983,179 thousand, up from RMB 3,362,711 thousand in the previous year[16][19] - Gross profit margin for FY2023 rose by 2.7 percentage points to 46.6%, driven by lower raw material and packaging costs, and optimized labor strategies[37] - Net profit attributable to equity holders increased by 18.4% year-on-year to RMB 3.9905 billion, with a profit margin of 16.9%, up 2.2 percentage points[37] - Dairy and beverage category gross margin increased by 3.7 percentage points YoY to 48.5%, benefiting from lower packaging material costs and improved milk powder procurement strategies[52] - Gross profit margin for FY2023 increased by 2.7 percentage points YoY to 46.6%, driven by lower raw material costs and optimized product pricing[50] - Operating profit grew by 15.7% to RMB 5.6098 billion in FY2023, with the operating profit margin increasing by 2.7 percentage points to 23.8%[56] - Net profit attributable to equity holders rose by 18.4% to RMB 3.9905 billion in FY2023, with the profit margin increasing by 2.2 percentage points to 16.9%[58] Assets and Liabilities - Total assets increased to RMB 27,457,068 thousand in FY2024 from RMB 25,974,077 thousand in FY2023[6] - Total equity grew to RMB 16,405,738 thousand in FY2024 from RMB 14,704,070 thousand in FY2023[7] - Total liabilities decreased to RMB 11,051,330 thousand in FY2024 from RMB 11,270,007 thousand in FY2023[7] - Total assets as of March 31, 2024, increased to RMB 27,457,068 thousand, compared to RMB 25,974,077 thousand in the previous year[18][20] - Total liabilities as of March 31, 2024, were RMB 11,051,330 thousand, slightly lower than RMB 11,270,007 thousand in the previous year[18][20] - Net cash position improved to RMB 10.6552 billion as of March 31, 2024, up from RMB 8.3173 billion a year earlier[59] Cash Flow and Capital Expenditures - Capital expenditures for the year ended March 31, 2024, totaled RMB 405,697 thousand, down from RMB 531,292 thousand in the previous year[16][19] - Cash flow from operating activities was RMB 5.1514 billion in FY2023, while cash flow from financing activities was a net outflow of RMB 2.4361 billion[60] - Capital expenditures decreased to RMB 405.7 million in FY2023, with investments in production facilities and equipment for key product categories[61] - Inventory turnover days decreased by 9 days to 81 days in FY2024, reflecting improved supply chain efficiency[62] - Trade receivables turnover days decreased to 13 days in FY2024 from 15 days in FY2023[64] Segment Performance - The Dairy and Beverage segment recorded the highest segment profit at RMB 3,878,837 thousand for the year ended March 31, 2024[16] - The Snack Food segment's revenue for the year ended March 31, 2024, was RMB 5,501,808 thousand, a decrease from RMB 5,820,262 thousand in the previous year[16][19] - Overseas revenue grew by mid-to-high double digits, with significant progress in confectionery products and operations in Vietnam, Thailand, Indonesia, Germany, and North America[42] - Traditional channels saw recovery, with milk products growing by high single digits and beverages by double digits, supported by innovative marketing campaigns[38] - Modern channels grew by low-to-mid single digits, with differentiated product strategies enhancing consumer engagement and service capabilities[39] Product and Market Strategy - New products launched in the past five years accounted for a double-digit percentage of FY2023 revenue, with continued focus on health, taste, and quality[43] - Automated vending machine and OEM channels achieved double-digit revenue growth, becoming key drivers of revenue[37][41] - The company established overseas subsidiaries in five countries and plans to deepen market penetration in Southeast Asia, leveraging the newly operational Vietnam factory[42] - The company plans to launch a limited-edition sports-themed version of its popular "Wangzai Milk" for the 2024 Paris Summer Olympics[47] - The new product "Xiao Xiao Mi Crisp" achieved revenue of over RMB 40 million in FY2023, driven by its unique taste and appeal to younger consumers[46] - The company continues to optimize production efficiency and supply chain layout to improve cost efficiency and profitability[49] Financial Reporting and Governance - The company adopted new and revised Hong Kong Financial Reporting Standards (HKFRS) in 2024, including HKFRS 17 and amendments to HKAS 1, HKAS 8, and HKAS 12[10][11] - The company is evaluating the impact of newly issued but not yet effective HKFRS amendments, which are expected to take effect from 2024 and 2025[13] - The company's Audit and Risk Management Committee reviewed the financial performance for the fiscal year ending March 31, 2024, and discussed internal controls and financial reporting matters with management and external auditors[69] - The company's external auditor, Ernst & Young, confirmed that the figures in the preliminary results announcement for the fiscal year ending March 31, 2024, were consistent with the consolidated financial statements[70] - The company deviated from the Corporate Governance Code by having the Chairman and CEO roles combined, held by Mr. Tsai Eng-Meng, due to his extensive experience and leadership in the food and beverage industry[72] - The company complied with the Standard Code for Securities Transactions by Directors during the fiscal year ending March 31, 2024, as confirmed by all directors[73] - The company will review and enhance its corporate governance practices regularly, considering the latest developments in corporate governance[72] Dividends and Shareholder Returns - The company proposed a final dividend of 3.30 US cents per share for the year ended March 31, 2024, totaling RMB 2,787,496 thousand, up from 2.10 US cents per share in the previous year[27] - The company proposed a final dividend of 3.30 US cents per share for FY2023, totaling approximately USD 390 million[68] - The company plans to pay a final dividend of 3.30 US cents per share for the fiscal year ending March 31, 2024, subject to approval at the Annual General Meeting[78] - The company repurchased a total of 70,138,000 shares for a total amount of HKD 320,720,120 (excluding fees) during the fiscal year ending March 31, 2024[74][75] Operational Efficiency and Costs - Cost of goods sold decreased by 2.0% YoY to RMB 12.5954 billion, primarily due to lower costs of palm oil, paper, and iron materials, which decreased by double digits[49] - Distribution costs increased slightly by RMB 3.09 million YoY to RMB 3.0212 billion, but the distribution cost-to-revenue ratio decreased by 0.4 percentage points to 12.8%[54] - Administrative expenses increased by 6.8% to RMB 3.0431 billion in FY2023, accounting for 12.9% of revenue, up 0.5 percentage points from FY2022[55] - The company's total depreciation for property, plant, and equipment for the year ended March 31, 2024, was RMB 760,280 thousand, slightly up from RMB 759,026 thousand in the previous year[16][19] - Current income tax for the year amounted to RMB 1,260,181 thousand, an increase from RMB 1,056,751 thousand in the previous year[24] - Total income tax expense for the year was RMB 1,422,288 thousand, slightly up from RMB 1,417,239 thousand in the previous year[24] Trade and Credit Management - Trade receivables net of impairment provisions stood at RMB 832,245 thousand, a slight decrease from RMB 853,937 thousand in the previous year[29] - The majority of sales are conducted on a cash-on-delivery basis, with credit terms of 60 to 90 days for modern distribution channels[29] - Total borrowings amounted to RMB 5,351,124 thousand, with a weighted average annual interest rate of 3.16% for RMB-denominated borrowings[33][34] - Short-term borrowings decreased to RMB 2,889,328 thousand from RMB 3,282,014 thousand in the previous year[34] - Trade payables increased to RMB 997,945 thousand from RMB 970,395 thousand in the previous year, with the majority due within 60 days[32] - The company's credit risk exposure is limited to the carrying amount of trade receivables, with no collateral held[30] Shareholder Meetings and Corporate Actions - The company's Annual General Meeting is scheduled to be held on August 27, 2024, with the notice to be published on the company's website and sent to shareholders[77]