Core Viewpoint - The company is expected to continue expanding its profitability in FY24, driven by internal organizational reforms and strong momentum in emerging channels and overseas markets [1] Financial Performance - For FY24, the company's revenue decreased by 0.32% year-on-year, primarily due to the underperformance of ice cream and rice snacks [2] - Gross margin increased by 0.99 percentage points year-on-year, mainly due to lower costs of raw materials and packaging [2] - The net profit margin improved by 1.52 percentage points to 18.41%, with net profit increasing by 8.67% year-on-year [2] - The dividend payout ratio for FY24 was 39.8%, significantly lower than the average level from FY21 to FY23 [2] Product Performance - Dairy beverages saw a revenue increase of 1.3% year-on-year, with a gross margin improvement of 1.2 percentage points, showing a clear recovery in the second half of the fiscal year [2] - Rice snacks experienced a revenue decline of 1.2% year-on-year, with a gross margin decrease of 1.9 percentage points, mainly due to the impact of gift packages and changes in product structure [2] - Snack food revenue decreased by 2.6% year-on-year, but gross margin increased by 0.5 percentage points, with ice cream showing a decline in the first half but achieving rapid growth in the second half [2] Organizational Changes and Market Strategy - In the second half of FY24, the company initiated internal organizational reforms, establishing product-specific divisions to enhance channel collaboration and manage domestic and international operations [3] - The company deepened cooperation with leading snack retailers, with revenue from snack retailers accounting for about 10% [3] - Emerging channels experienced double-digit growth year-on-year, with revenue contribution approaching 10% [3] - Overseas revenue grew by double digits year-on-year, with significant growth in markets such as Japan, North America, and parts of Southeast Asia [3]

Investment Rating - The report maintains a "Buy" rating for China Wangwang (0151) [2][6] Core Views - The company's FY24 profitability continues to expand, with internal organizational reforms initiated in the second half of the fiscal year to enhance channel development, particularly in emerging and overseas markets [2][6] - The revenue for FY24 is projected to decrease by 1.7% year-on-year, primarily due to declines in ice cream and rice snacks, while gross profit margin is expected to increase by 0.99 percentage points due to lower costs of raw materials and packaging [6][5] - The net profit for FY24 is forecasted to grow by 8.6% year-on-year, with a net profit margin increase of 1.52 percentage points to 18.41% [6][5] Financial Summary - Revenue (in million RMB): FY2022: 23,327.17, FY2023: 23,924.37, FY2024: 23,510.74 [5] - Gross Profit (in million RMB): FY2022: 10,071.03, FY2023: 10,990.92, FY2024: 11,189.20 [5] - Net Profit (in million RMB): FY2022: 3,371.58, FY2023: 3,990.47, FY2024: 4,335.57 [5] - The company’s PE ratio is projected to be 13.35 for FY2024 and decrease to 12.08 by FY2027 [5][6] - The target price is set at HKD 7.02 per share, equivalent to RMB 7.71 per share based on the exchange rate of 0.91 [6] Product Performance - Dairy beverage revenue is expected to grow by 1.3% year-on-year, with a gross margin increase of 1.2 percentage points [6] - Rice snacks revenue is projected to decline by 1.2% year-on-year, with a gross margin decrease of 1.9 percentage points [6] - Ice cream revenue showed a decline in the first half of FY24 but is expected to achieve rapid growth in the second half [6] Organizational Changes - The company has initiated internal organizational reforms in FY24, establishing product-based divisions to enhance channel collaboration and manage domestic and international operations [6] - Emerging channels are expected to grow at a double-digit rate, contributing significantly to revenue [6]

Core Insights - The 15th China (Nanjing) International Sugar and Wine Food Fair successfully concluded, serving as a high-quality platform for the food and beverage industry to exchange and showcase products and trends [2][21] - The event featured thousands of premium wine and food products, highlighting the value of the fair as a trade platform for the industry [3][16] - Key representatives from major liquor-producing regions, including Jiangsu, Anhui, and Guizhou, showcased their products, emphasizing the high-quality development of the liquor industry [5][10][12] Industry Highlights - Jiangsu province, a major producer of both white and yellow wines, had significant representation at the fair, with local brands like Yanghe and Jinshiyuan showcasing their offerings [5][7] - The fair included a variety of activities, such as the "Su-Wan Family" Huang-Huai River liquor industry exchange meeting, aimed at fostering collaboration between Jiangsu and Anhui liquor enterprises [27] - The event also featured a forum on high-quality development in the liquor industry, where industry leaders discussed current challenges and future trends [24][26] Market Opportunities - The fair provided a critical opportunity for distributors to select products ahead of the peak sales seasons for the Mid-Autumn Festival and National Day, with over ten thousand products on display [13] - Various regional product exhibitions and international delegations added diversity to the fair, showcasing unique local flavors and innovations in the food sector [14][16] Future Prospects - The successful hosting of the fair is expected to boost confidence in the liquor and food industry, facilitating efficient connections within the industry chain [21][22] - The fair is positioned as a vital platform for promoting brand image, innovative ideas, and market expansion, especially in the context of industry adjustments [18][19]

Core Points - The 15th China (Nanjing) International Sugar and Wine Food Fair (CNWFF2025) will be held from June 20 to 22 at the Nanjing International Exhibition Center, showcasing the importance of the event in the food and beverage industry [1][3] - The fair will feature prominent brands such as Yanghe, Gujing, Jinshiyuan, Guotai, Wangwang, and Coca-Cola, providing a platform for industry professionals to network, exchange ideas, and observe industry trends [3][4] - Jiangsu Province is a key market for liquor brands, with beverage alcohol sales exceeding 100 billion yuan in 2024, accounting for approximately 10% of the national total, highlighting the significance of the Nanjing Sugar and Wine Fair for brand exposure [4][5] Industry Highlights - Major liquor-producing regions such as Jiangsu, Anhui, and Guizhou will have representative enterprises participating in the fair, showcasing their products and competitive strengths [5][8] - The fair will also feature a variety of food and beverage products, with over 10,000 items available for selection, catering to the upcoming sales peaks during the Mid-Autumn Festival and National Day [9] - Various activities, including industry seminars, new product launches, and regional brand promotions, will take place, enhancing the fair's role as a high-quality communication platform for the industry [10][12]

Group 1 - The 2025 China (Hangzhou) Food E-commerce Expo attracted over 60,000 attendees and featured more than 2,000 quality food exhibitors across an exhibition space of over 50,000 square meters [1][2] - The expo showcased various food categories including snacks, health foods, fresh fruits, beverages, dairy products, and local specialties, serving as a platform for exhibitors to expand market channels [1] - Zhejiang Maishang Food Co., a snack food company, reported nearly 30 potential clients from the expo, highlighting the event's effectiveness in understanding customer needs and market dynamics [1] Group 2 - The expo had a strong international presence, with products from 18 countries and regions including Germany, France, Italy, Russia, India, and Pakistan [2] - The African products showcased at the expo, such as tea and coffee beans, attracted significant interest, with many buyers engaging in discussions with exhibitors [2] - The event also included a high-quality development conference for food e-commerce and six sub-forums, featuring representatives from major platforms like Douyin, Taobao, and JD.com, focusing on industry trends and consumer behavior [2]