Ge Long Hui·2025-06-24 04:31Summary 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].