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]

Revenue 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]

Financial Performance - Revenue for the six months ended September 30, 2023, increased by 4.1% to RMB 11,274,818,000 compared to RMB 10,832,945,000 in the same period of 2022[6] - Gross profit rose by 10.0% to RMB 5,100,690,000, resulting in a gross profit margin of 45.2%, up from 42.8%[6] - Operating profit increased by 19.5% to RMB 2,475,563,000, with an operating profit margin of 22.0%, compared to 19.1% in the previous year[6] - Profit attributable to equity holders of the Company was RMB 1,732,245,000, reflecting an 8.5% increase from RMB 1,596,054,000[6] - Basic and diluted earnings per share rose by 8.7% to 14.58 RMB cents, up from 13.41 RMB cents[6] - Total revenue for the first half of 2023FY grew by 4.1% year-on-year to RMB 11,274.8 million, with the dairy products and beverages segment accounting for 54% of total revenue[22] - Profit attributable to equity holders increased by 8.5% year-on-year to RMB 1,732.2 million, with a profit margin of 15.4%[9] - Total comprehensive income for the period was RMB 1,554,838, compared to RMB 1,183,496 in 2022, showing an increase of about 31.4%[57] Operational Efficiency - Inventory turnover days improved to 86 days from 90 days year-on-year[7] - Trade receivables turnover days decreased to 14 days from 15 days[7] - Trade payables turnover days increased slightly to 30 days from 29 days[7] - Distribution costs for the first half of FY2023 were RMB 1,474.8 million, a 0.7% increase year-on-year, while the distribution costs as a percentage of revenue decreased to 13.1%[33] - The Group's cash and bank deposits totaled RMB 15.7435 billion, an increase of RMB 2.0839 billion from RMB 13.6596 billion as of March 31, 2023, primarily due to operating cash inflow of RMB 1.9463 billion[40] Market Expansion and Product Development - The Company is focused on expanding its market presence and enhancing product offerings through new strategies and technologies[5] - Future outlook remains positive with continued investment in product development and market expansion initiatives[5] - Revenue from modern channels grew year-on-year in the first half of FY2023, with significant growth in new products and convenience store channels[10] - New products launched over the past five years contributed nearly double-digit percentage of the Group's revenue in the first half of FY2023[9] - The Group's marketing strategies have improved resource allocation efficiency, enhancing the profitability of e-commerce channels[13] Segment Performance - Revenue from the dairy products and beverages segment increased by 7.1% year-on-year, while the rice crackers segment grew by 4.5% year-on-year[22] - The snack foods segment experienced a decline of 1.5% year-on-year, primarily due to weaker performance in popsicles[22] - Revenue from dairy products and beverages segment grew by 7.1% year-on-year to RMB6,096.7 million, driven by a 20% increase in "Canned Milk" sales[27] - The rice crackers segment's revenue reached RMB 2,060.0 million, with overseas business accounting for around 20% of this segment's revenue and achieving double-digit growth[23] Sustainability and Corporate Responsibility - The Quanzhou plant received the highest level certification of "Zero Waste to Landfill Management System" from TÜV Rheinland, highlighting the Group's commitment to sustainability[16] - The Group's sustainable water management practices were recognized as a "Typical Case of Green, Low Carbon and Sustainability of China Dairy Industry 2023"[17] Financial Position and Liabilities - As of September 30, 2023, the Group's net cash amounted to RMB8,113.3 million, a decrease of RMB204.0 million from March 31, 2023[36] - Total borrowings increased to RMB7,630.2 million, up RMB2,287.9 million from March 31, 2023, with RMB denominated borrowings accounting for nearly 85%[37] - Total liabilities as of September 30, 2023, were RMB 12,902,369, up from RMB 11,270,007, indicating an increase of around 14.5%[53] - The Group's net gearing ratio was -0.56 times as of September 30, 2023, compared to -0.57 times as of March 31, 2023, indicating sufficient cash and banking facilities for working capital and potential investments[40] Employee and Management Information - For the six months ended 30 September 2023, the average number of employees was approximately 38,887, a decrease of 2,342 compared to the year ended 31 March 2023[48] - Total remuneration expenses for the first half of 2023FY amounted to RMB 2,217.4 million[48] - The company invests significantly in continuing education and training programs for its employees to improve their professional knowledge and skills[48] Shareholder Information - The Board has resolved not to declare an interim dividend for the first half of 2023FY[48] - The company may consider conducting share repurchases to maximize shareholders' interests in a prudent manner[48] - The company repurchased a total of 2,677,000 shares for an aggregate amount of HK$13,383,000 during the six months ended 30 September 2023[153] - The directors believe that the share repurchases will enhance the earnings per share of the company[153]

Financial Performance - Revenue for the six months ended September 30, 2023, was RMB 11,274,818 thousand, representing a 4.1% increase from RMB 10,832,945 thousand in the same period of 2022[2] - Gross profit increased by 10.0% to RMB 5,100,690 thousand, up from RMB 4,638,428 thousand year-on-year[2] - Operating profit rose by 19.5% to RMB 2,475,563 thousand compared to RMB 2,072,092 thousand in the previous year[2] - Profit attributable to equity holders of the company was RMB 1,732,245 thousand, an increase of 8.5% from RMB 1,596,054 thousand[2] - Basic and diluted earnings per share increased by 8.7% to RMB 14.58 from RMB 13.41[2] - The gross profit margin improved to 45.2%, up from 42.8% in the prior year, reflecting a 2.4 percentage point increase[2] - The operating profit margin also improved to 22.0%, compared to 19.1% in the previous year, an increase of 2.9 percentage points[2] - The group reported a profit before tax of RMB 2,366,916 thousand, with income tax expenses amounting to RMB 639,730 thousand, resulting in a net profit of RMB 1,727,186 thousand for the period[14] - Profit attributable to equity holders increased by 8.5% to RMB 1.7322 billion, with a profit margin of 15.4%, up 0.7 percentage points from the previous year[26] Revenue Breakdown - The revenue breakdown includes RMB 2,059,979 thousand from rice snacks, RMB 6,096,666 thousand from dairy and beverages, RMB 3,031,829 thousand from leisure foods, and RMB 86,344 thousand from other products[14] - In the first half of fiscal year 2023, total revenue grew by 4.1% year-on-year to reach RMB 11.2748 billion, with dairy and beverage products accounting for 54% and rice snacks and leisure foods for 45% of total revenue[35] - The dairy and beverage segment saw a year-on-year revenue increase of 7.1%, reaching RMB 6.0967 billion, driven by a nearly 20% growth in canned milk sales[37] - The rice snacks category reported a revenue increase of 4.5% year-on-year, reaching RMB 2.060 billion, with overseas business contributing approximately 20% of this segment's performance[36] - The leisure food segment experienced a revenue decline of 1.5% year-on-year, totaling RMB 3.0318 billion, primarily due to a weak performance in the ice cream subcategory[38] Assets and Liabilities - Total assets as of September 30, 2023, were RMB 27,358,320 thousand, up from RMB 25,974,077 thousand as of March 31, 2023[6] - Total liabilities increased to RMB 12,902,369 thousand from RMB 11,270,007 thousand, indicating a rise in financial obligations[7] - Trade receivables as of September 30, 2023, amounted to RMB 947.45 million, up from RMB 900.396 million as of March 31, 2023[23] - Trade payables increased to RMB 1.11581 billion as of September 30, 2023, compared to RMB 970.395 million as of March 31, 2023[25] - Net cash as of September 30, 2023, was RMB 8.1133 billion, a decrease of RMB 204 million from March 31, 2023[48] - The total borrowings as of September 30, 2023, increased by RMB 2.2879 billion to RMB 7.6302 billion, with RMB borrowings accounting for nearly 85% of total borrowings[49] Capital Expenditures - Capital expenditures totaled RMB 220,252 thousand, with RMB 48,682 thousand allocated to rice snacks, RMB 66,265 thousand to dairy and beverages, RMB 47,035 thousand to leisure foods, and RMB 18,855 thousand to other products[14] - Capital expenditures for the first half of FY2023 were RMB 220.3 million, primarily for expanding production facilities for various product categories[51] Market Strategy and Growth - The company continues to focus on expanding its market presence in North America, East Asia, Southeast Asia, and Europe, enhancing its product distribution capabilities[8] - The company continues to focus on channel diversification and product innovation to drive long-term growth[27] - The group plans to expand emerging channels and overseas markets in the second half of fiscal year 2023, focusing on seasonal sales activities[34] - The group reported a significant increase in profit from dairy and beverages, reaching RMB 2,022,069 thousand, compared to RMB 1,656,504 thousand in the previous year[14] - The group's overseas business revenue achieved high double-digit growth in the first half of fiscal year 2023, with significant revenue increases in Asia and the Americas[30] Shareholder Returns and Governance - The company decided not to declare an interim dividend for the six months ended September 30, 2023, compared to RMB 919.506 million for the same period in 2022[22] - The company aims to maximize shareholder value through prudent cash dividend distribution and share repurchase policies[59] - The company has repurchased a total of 2,677,000 shares for a total amount of HKD 13,383,000 at an average price of HKD 5.00 per share during April 2023[63] - As of September 30, 2023, the company has repurchased an additional 14,513,000 shares for a total amount of HKD 70,867,170 at an average price of HKD 5.06 per share[65] - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[61] - The company will continue to review its governance structure as necessary, considering its current development stage[61] Operational Efficiency - Distribution costs increased by RMB 10.5 million, or 0.7%, to RMB 1.4748 billion in the first half of FY2023, while the distribution cost as a percentage of revenue decreased by 0.4 percentage points to 13.1%[45] - Inventory turnover days decreased to 86 days as of September 30, 2023, down from 90 days as of March 31, 2023[53] - The average number of employees in the first half of FY2023 was approximately 38,887, a decrease of 2,342 from the previous year[57] Compliance and Reporting - The company has adopted new and revised Hong Kong Financial Reporting Standards, which primarily affect the disclosure of deferred tax assets but do not impact the overall financial position[12] - The company has not applied initial recognition exemptions for lease transactions prior to the recent amendments, which has led to changes in the recognition of deferred tax assets related to lease liabilities[12] - The Audit and Risk Management Committee has reviewed the unaudited interim results for the six months ended September 30, 2023[60] - The company has issued a total of 11,864,893,135 shares as of the announcement date[65] - The company’s functional currency is USD, while over 90% of its operations are in mainland China, leading to foreign exchange risks primarily from overseas procurement[58]

Company Listing and Stock Information - Want Want China Holdings Limited is listed on The Stock Exchange of Hong Kong Limited with stock code 0151[1] Board of Directors and Committees - The company's executive directors include Mr. Tsai Eng-Meng as Chairman and CEO, Mr. Tsai Shao-Chung, Mr. Tsai Wang-Chia as COO, Mr. Huang Yung-Sung as CMO, and Mr. Chu Chi-Wen as CFO[4] - The company's independent non-executive directors include Dr. Pei Kerwei, Mr. Hsieh Tien-Jen, Mr. Lee Kwok Ming, Mr. Pan Chih-Chiang, and Mrs. Kong Ho Pui King, Stella[4] - The company's audit and risk management committee is chaired by Mr. Lee Kwok Ming, with members including Dr. Pei Kerwei, Mr. Hsieh Tien-Jen, Mr. Pan Chih-Chiang, and Mrs. Kong Ho Pui King, Stella[4] - The company's remuneration committee is chaired by Mr. Hsieh Tien-Jen, with members including Dr. Pei Kerwei, Mr. Tsai Shao-Chung, Mr. Lee Kwok Ming, Mr. Pan Chih-Chiang, and Mrs. Kong Ho Pui King, Stella[4] - The company's nomination committee is chaired by Dr. Pei Kerwei, with members including Mr. Tsai Shao-Chung, Mr. Hsieh Tien-Jen, Mr. Lee Kwok Ming, Mr. Pan Chih-Chiang, and Mrs. Kong Ho Pui King, Stella[5] - The company's strategy committee is chaired by Mr. Tsai Eng-Meng, with members including Mr. Liao Ching-Tsun, Mr. Tsai Shao-Chung, Mr. Tsai Wang-Chia, Mr. Huang Yung-Sung, Mr. Chu Chi-Wen, Mr. Tsai Ming-Hui, Ms. Lai Hong Yee, Dr. Pei Kerwei, Mr. Hsieh Tien-Jen, Mr. Lee Kwok Ming, Mr. Pan Chih-Chiang, and Mrs. Kong Ho Pui King, Stella[5] - The company's ESG committee is chaired by Mr. Tsai Wang-Chia, with members including Mr. Chu Chi-Wen, Dr. Pei Kerwei, Mr. Lee Kwok Ming, Mrs. Kong Ho Pui King, Stella, Ms. Cao Yong-Mei, Mr. Chen Chien-Chen, Mr. Yu Ching Lun, and Mr. Lee Ming-Chun[6] Auditors and Legal Advisors - The company's auditor is Ernst & Young Certified Public Accountants, and its legal advisor is Sullivan & Cromwell (Hong Kong) LLP[6] Principal Banks - The company's principal banks include Bank of China (Hong Kong) Limited, China Merchants Bank Co., Limited, Citigroup Inc., and CTBC Bank Co., Ltd, Hong Kong Branch[6] Overseas Expansion and Production - The company's Vietnam production base commenced construction in 2020 to strengthen overseas market expansion and future development strategy[8] - In 2022, the new factory in Tiền Giang province, Vietnam commenced production, marking the first step towards the company's "Dream of the World"[8] - Want Want's Vietnam factory officially commenced production, marking the first step towards the "Dream of the World"[40] - The Group's factory in Vietnam officially commenced production, representing the first step towards the "Dream of the World"[40] Operational Overview - As of 31 March 2023, the company had 422 sales offices, 35 production bases, and 81 factories in the Chinese mainland, working with over 10,000 distributors[9] - The company's principal activities include manufacturing, distribution, and sale of rice crackers, dairy products, beverages, and snack foods[9] - The company's operations are primarily located in the Chinese mainland, with an extensive nationwide sales and distribution network, and exports to North America, East Asia, Southeast Asia, and Europe[9] Financial Performance - Annual profit for 2022FY was RMB 3,362,711 thousand, a decrease from RMB 4,189,114 thousand in 2021FY[29] - Revenue for 2023FY was RMB 22,928,219 thousand, compared to RMB 23,984,891 thousand in 2022FY[31] - Basic earnings per share for 2023FY were RMB 28.35 cents, down from RMB 35.16 cents in 2022FY[31] - Total assets decreased to RMB 25,974,077 thousand in 2023FY from RMB 29,857,981 thousand in 2022FY[32] - Total equity declined to RMB 14,704,070 thousand in 2023FY from RMB 16,708,778 thousand in 2022FY[32] - Current liabilities increased to RMB 8,774,979 thousand in 2023FY from RMB 9,248,528 thousand in 2022FY[32] - Non-current assets remained stable at RMB 13,168,233 thousand in 2023FY compared to RMB 13,269,649 thousand in 2022FY[32] - Profit before income tax for 2023FY was RMB 4,779,950 thousand, down from RMB 5,734,383 thousand in 2022FY[31] - Dividends attributable to equity holders of the company were RMB 2,652,397 thousand in 2023FY, compared to RMB 4,691,334 thousand in 2022FY[31] - Shares repurchased and cancelled in 2023FY amounted to RMB 81,105 thousand, a significant decrease from RMB 819,493 thousand in 2022FY[31] Awards and Recognitions - Want Want's "Research and Application of Low Carbon, Energy Saving, and Automation Technologies" project won the Project Award at the 7th China Grand Awards for Industry[37] - Hot-Kid Baby Mum-Mum Organic Gentle Teething Wafers Super Berries and Want Want Lactoferrin Laboratory Lactoferrin Yogurt – Original Flavor won Monde Selection Gold Quality Awards[33] - Want Want Lactoferrin Laboratory Lactoferrin Yogurt – Original Flavor Reinforced Version won Monde Selection Silver Quality Award[33] - Research on fruit yogurt technology won the Second Prize of the Technology Advancement Award from the China Dairy Industry Association[34] - Fix XBody Soba Noodles and Low GI Chia Seed Crackers were awarded 2021-2022 Excellent Innovative Products of China Instant Food Industry[35] - Want Want Zhejiang Ming Want Dairy Plant won the "Award for Excellence in Consistent TPM Commitment – 2022"[38] - Want Want continues to be one of the top 25 Best Taiwan Global Brands and was ranked third[38] - Want Won the 2022 China Dairy Industry High Quality Development Enterprise Award[34] Revenue and Market Performance - Total revenue for 2022FY declined by 4.4% year-on-year to RMB22,928.2 million[44][45] - Gross profit margin decreased by 0.9 percentage points to 43.9% in 2022FY, but rebounded to 44.9% in the second half of the year, up 1.9 percentage points year-on-year[46][50] - Profit attributable to equity holders of the Company decreased by 19.8% year-on-year to RMB3,371.6 million in 2022FY[44][46] - Revenue from rice crackers and snack foods segments maintained mid-to-high single-digit growth, contributing 51% of total revenue[45][49] - Emerging content e-commerce channels experienced rapid growth, while overseas markets recorded double-digit growth[45][49] - New products launched within the past five years contributed a near double-digit percentage of the Group's revenue in 2022FY[45] - The Group plans to deepen product and channel diversification strategies, expand emerging channels and overseas markets, and increase point-of-sale coverage[47][50] - Traditional distribution channels saw low-to-mid single-digit growth in rice cracker and snack foods segments despite a decline in dairy product sales[49][51] - The Group will launch a series of small-pack products to enhance product mix and convenience for consumers[51] - The popsicles sub-category and beans, jellies, and other snack foods sub-category achieved double-digit growth in 2022FY[45] - The Group plans to enhance the penetration rate of convenience store channels and launch a new dairy product, "Daily Milk," made from raw cow milk to meet diversified consumer needs[52] - In 2022FY, the Group achieved revenue growth in rice crackers and snack foods segments despite reduced consumer traffic due to pandemic restrictions, driven by new product combinations and active development of emerging channels[52] - The Group's overseas business achieved double-digit growth in 2022FY, with balanced growth rates across all three key product segments, supported by improved supply chain efficiency and expansion into overseas Chinese markets[52] - The Group will increase the number of vending machines and expand theme stores to promote the rapid development of maternity, OEM, and special channels, aiming to serve more end-consumers with diversified shopping choices[52] - The Group launched new brands such as "Baby Mum-Mum," "Fix XBody," "Mr. Hot," "Mr. Bond," "Queen Alice," and "Got Rice" to meet the needs of different consumer age groups[55][56][57][58] - The Group actively developed new e-commerce models like content e-commerce and social e-commerce, which contributed to substantial growth[52] - The Vietnam factory's commencement of production will leverage cost and geographical advantages to complement the Group's existing production and supply chain networks[52] - Five new overseas subsidiaries in Southeast Asia, America, and Europe have started operations to support the Group's strategy of expanding into overseas markets[52] - Total revenue for 2022FY declined by 4.4% year-on-year to RMB22,928.2 million, with rice crackers and snack foods segments growing by 4.5% and 7.8% respectively, while dairy products and beverages segment decreased by 13.5%[60][64] - Revenue from the rice crackers segment grew by 4.5% year-on-year to RMB5,843.3 million, driven by channel diversification and double-digit growth in overseas markets[61][65] - Revenue from the dairy products and beverages segment decreased by 13.5% year-on-year to RMB11,130.5 million, with "Hot-Kid Milk" recording a double-digit decline but resuming growth in Q4 2022FY[63][66] - New products in the rice crackers segment launched within the past five years contributed a mid-to-high single-digit percentage of the segment's revenue in 2022FY[62][65] - Revenue from the snack foods segment grew by 7.8% year-on-year to RMB5,820.3 million, with popsicles and beans/jellies sub-categories achieving double-digit growth[69] - The Group launched "Hot-Kid Milk in Little Red Bottle" (PET-bottled), generating over RMB80 million in revenue in 2022FY[67] - New flavored milk products like "Nut Milk" and "Chocolate Milk" exceeded RMB200 million in revenue in 2022FY[67] - The Group obtained 94 patents in 2022FY and won the "7th China Industry Award" for its low-carbon and automation technology research[59] - Revenue from new products in the dairy products and beverages segment launched within the past five years exceeded RMB700 million in 2022FY[63][66] - The Group achieved double-digit growth in emerging channels, including content e-commerce and smart vending machines, enhancing point-of-sale coverage[62][65] - Revenue from the candies sub-category increased by mid-single digit year-on-year, reaching a new all-time record high, with double-digit growth in modern channels[70] - The Group launched "Want Want QQ Juice 100," an innovative product with "chewable juice," which was well-received by consumers[70] - Revenue from the dairy and beverages category exceeded RMB 80 million in 2022FY, with new products like "Nut Milk" and "Chocolate Milk" contributing to a record high of over RMB 200 million[71] - Snack foods revenue reached RMB 5.8203 billion in 2022FY, a year-on-year increase of 7.8%, with double-digit growth in ice cream and beans/jellies sub-categories[72] - The "Frozen Delight" product achieved revenue of nearly RMB 300 million in 2022FY, driven by high summer temperatures and increased freezer penetration[72] - The Group's cost of sales in 2022FY was RMB 12.8572 billion, a year-on-year decrease of 2.9%, despite increases in raw material costs such as whole milk powder and sugar[73] - Gross profit margin decreased by 0.9 percentage points to 43.9% in 2022FY, but improved by 2.1 percentage points in the second half of the year to 44.9%[73] - The gross profit margin for rice crackers increased by 1.2 percentage points to 42.6% in 2022FY, with a significant improvement to 45.3% in the second half due to high-margin gift pack sales[74] - The dairy and beverages segment's gross profit margin decreased by 1.9 percentage points to 44.8% in 2022FY, impacted by an 18% year-on-year increase in the unit cost of imported whole milk powder[75] - The snack foods segment's gross profit margin decreased by 0.8 percentage points to 43.4% in 2022FY, but improved to 44.7% in the second half due to cost optimizations[76] - The gross profit margin for the leisure food category in 2022FY was 43.4%, a decrease of 0.8 percentage points year-on-year, mainly due to double-digit cost increases in raw materials such as white sugar, skimmed milk powder, and eggs[79] - Distribution costs for 2022FY decreased by RMB115.1 million to RMB3,018.1 million, with distribution costs as a percentage of revenue increasing by 0.1 percentage point to 13.2%[80] - Administrative expenses for 2022FY increased by RMB114.5 million to RMB2,849.2 million, representing a 4.2% increase compared to 2021FY, with administrative expenses as a percentage of revenue rising by 1.0 percentage point to 12.4%[81] - The Group's operating profit for 2022FY decreased by 11.2% to RMB4,846.7 million, with the operating profit margin declining by 1.7 percentage points to 21.1%[82] - Income tax expense for 2022FY was RMB1,417.2 million, with the income tax rate increasing by 2.7 percentage points to 29.6%[83] - Profit attributable to equity holders of the Company for 2022FY decreased by 19.8% to RMB3,371.6 million, with the margin decreasing by 2.8 percentage points to 14.7%[84] - As of 31 March 2023, the Group's net cash decreased by RMB1,783.3 million to RMB8,317.3 million compared to 31 March 2022, mainly due to dividend payments[89] - Total borrowings as of 31 March 2023 decreased by RMB1,559.9 million to RMB5,342.3 million compared to 31 March 2022, primarily due to repayment of borrowings using the Group's own funds[89] - The Group's net gearing ratio as of 31 March 2023 was -0.57 times, compared to -0.61 times in 2022[90] - Net cash inflow from operating activities in 2022FY was RMB4,218.7 million, primarily driven by a profit before income tax of RMB4,780.0 million[90] - Net cash outflow for financing activities in 2022FY was RMB7,428.7 million, including RMB2,129.7 million for borrowings and RMB5,078.9 million for dividend payments[90] - Net cash outflow for investing activities in 2022FY was RMB3,153.5 million, mainly due to RMB2,664.7 million placed in bank deposits with original maturity of more than three months[90] - Cash and cash equivalents as of 31 March 2023 amounted to RMB5,047.9 million, with total liquidity reaching RMB13,659.6 million including long-term bank deposits[90] - Capital expenditure for 2022FY was RMB531.3 million, with significant investments in production plants and equipment for key product segments[90] - Inventory turnover days increased by 11 days to 90 days in 2022FY, primarily due to higher raw material inventory levels in response to pandemic uncertainties[93] - Trade receivables turnover days remained stable at 15 days for both 2022FY and 2021FY[96] - Trade payables turnover days increased slightly to 29 days in 2022FY, compared to 28 days in 2021FY[96] - No assets of the Group were pledged as of 31 March 2023[96] - Average number of employees for 2022FY was approximately 41,229, a decrease of 36 employees compared to the previous year[97] - Total remuneration expenses for 2022FY amounted to RMB4,564.0 million[97] - The Group's functional currency is USD, with over 90% of operating activities conducted in mainland China, where the functional currency is RMB[97] - The Board recommended a final dividend of US2.10 cents per share for 2022FY, amounting to approximately US$249.5 million (RMB1,717.7 million)[97] - An interim dividend of US1.14 cents per share for 2022FY was paid in January 2023, amounting to approximately US$135.5 million (RMB934.7 million)[97] - Total dividends for 2022FY amounted to US3.24 cents per share, representing approximately 79% of the profit attributable to equity holders[97] - The Group used hedging products to mitigate foreign exchange risks during 2022FY[97] Corporate Governance - The Company is committed to maintaining high standards of corporate governance practices and procedures[98] - The Company complied with the Corporate Governance Code of the Hong Kong Stock Exchange Listing Rules, except for a deviation from code provision C.2.1[99] - Directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended 31 March 2023[100] - The Board consists of 15 Directors as of March 31, 2023, including 7 executive Directors, 3 non-executive Directors, and 5 independent non-executive Directors[105] - The Board is responsible for overseeing the Group's operating and financial performance, approving annual operating

Financial Performance - Revenue decreased by 4.4% to RMB 22,928,219 thousand compared to RMB 23,984,891 thousand in the previous year[2] - Gross profit declined by 6.3% to RMB 10,071,028 thousand from RMB 10,747,394 thousand[2] - Operating profit dropped by 11.2% to RMB 4,846,711 thousand from RMB 5,456,813 thousand[2] - Net profit attributable to equity holders of the company fell by 19.8% to RMB 3,371,584 thousand from RMB 4,202,655 thousand[2] - Gross margin decreased by 0.9 percentage points to 43.9% from 44.8%[2] - Operating profit margin declined by 1.7 percentage points to 21.1% from 22.8%[2] - Net profit margin attributable to equity holders of the company decreased by 2.8 percentage points to 14.7% from 17.5%[2] - Total revenue for the fiscal year ending March 31, 2023, was RMB 22,928,219 thousand, a decrease of 4.4% compared to RMB 23,984,891 thousand in the previous year[15][16] - Total revenue for fiscal year 2022 decreased by 4.4% year-on-year to RMB 22.9282 billion, with dairy and beverage categories declining by double digits due to pandemic restrictions[33] - Gross profit margin for fiscal year 2022 decreased by 0.9 percentage points to 43.9%, but rebounded to 44.9% in the second half of the year, up 1.9 percentage points year-on-year[33] - Net profit attributable to equity holders decreased by 19.8% year-on-year to RMB 3.3716 billion in fiscal year 2022[33] - Operating profit for FY2022 decreased by 11.2% to RMB 4.8467 billion, with the operating profit margin dropping by 1.7 percentage points to 21.1%[54] - Net profit attributable to equity holders for FY2022 decreased by 19.8% to RMB 3.3716 billion, with the profit margin dropping by 2.8 percentage points to 14.7%[55] Segment Performance - The Dairy and Beverage segment generated the highest revenue at RMB 11,130,495 thousand, accounting for 48.5% of total revenue, but saw a 13.5% decline from the previous year[15][16] - The Rice Snacks segment revenue increased by 4.5% to RMB 5,843,348 thousand, representing 25.5% of total revenue[15][16] - The Snack Foods segment revenue grew by 7.8% to RMB 5,820,262 thousand, contributing 25.4% to total revenue[15][16] - The Other Products segment revenue rose by 9.9% to RMB 134,114 thousand, though it only accounted for 0.6% of total revenue[15][16] - Rice cracker category revenue grew by 4.5% to RMB 5.8433 billion, driven by channel diversification and double-digit growth in overseas markets[43] - Dairy and beverage category revenue declined by 13.5% to RMB 11.1305 billion, with a double-digit decline in "Want Want Milk" but recovery in Q4 FY2022 and further acceleration in FY2023[45] - Snack category revenue grew by 7.8% to RMB 5.8203 billion, with double-digit growth in ice cream, beans, and jelly subcategories, and mid-single-digit growth in the candy subcategory[46] Financial Position - Total assets decreased to RMB 25,974,077 thousand from RMB 29,857,981 thousand[6] - Total equity decreased to RMB 14,704,070 thousand from RMB 16,708,778 thousand[7] - Total liabilities decreased to RMB 11,270,007 thousand from RMB 13,149,203 thousand[7] - Total assets decreased by 13.0% to RMB 25,974,077 thousand as of March 31, 2023, compared to RMB 29,857,981 thousand in the previous year[18][20] - Total liabilities decreased by 14.3% to RMB 11,270,007 thousand as of March 31, 2023, from RMB 13,149,203 thousand in the previous year[18][20] - Net cash as of March 31, 2023, was RMB 8.3173 billion, a decrease of RMB 1.7833 billion compared to March 31, 2022, primarily due to dividend payments[55] Cost and Margin Analysis - Cost of goods sold decreased by 2.9% to RMB 12.8572 billion, with significant price increases for key raw materials such as whole milk powder and sugar, but cost pressures eased in the second half of the year[47] - Gross profit margin decreased by 0.9 percentage points to 43.9%, but improved by 2.1 percentage points in the second half of the year to 44.9% due to cost optimization and product mix adjustments[48] - Rice cracker category gross margin increased by 1.2 percentage points to 42.6%, with a significant improvement in the second half of the year to 45.3% due to higher sales of high-margin gift packs and lower palm oil costs[49] - Dairy and beverage category gross margin decreased by 1.9 percentage points to 44.8%, primarily due to an 18% increase in the cost of imported whole milk powder, but is expected to improve as raw material costs stabilize[50] - Snack category gross margin decreased by 0.8 percentage points to 43.4%, but improved in the second half of the year to 44.7% due to cost management and product structure optimization[51] Expenses and Profitability - Distribution costs for FY2022 were RMB 3.0181 billion, a decrease of RMB 115.1 million compared to FY2021, with the distribution cost to revenue ratio rising by 0.1 percentage points to 13.2%[52] - Administrative expenses for FY2022 increased by 4.2% to RMB 2.8492 billion, with the administrative expense to revenue ratio rising by 1.0 percentage points to 12.4%[53] - Operating profit for FY2022 decreased by 11.2% to RMB 4.8467 billion, with the operating profit margin dropping by 1.7 percentage points to 21.1%[54] - Net profit attributable to equity holders for FY2022 decreased by 19.8% to RMB 3.3716 billion, with the profit margin dropping by 2.8 percentage points to 14.7%[55] Capital Expenditures and Investments - The company's capital expenditures increased by 15.4% to RMB 531,292 thousand in FY2023, up from RMB 460,547 thousand in FY2022[16][19] - Capital expenditures for FY2022 were RMB 531.3 million, with significant investments in production facilities for rice products, dairy and beverages, and snack foods[58] Contract Liabilities and Revenue Recognition - Contract liabilities for rice products increased to RMB 402,635 thousand, up 36.4% year-over-year[21] - Contract liabilities for dairy and beverages rose to RMB 775,203 thousand, a 14.2% increase compared to the previous year[21] - Contract liabilities for snacks grew to RMB 404,499 thousand, marking a 46.8% year-over-year growth[21] - Total contract liabilities reached RMB 1,591,926 thousand, up 26.8% from the previous year[21] - Revenue recognized from contract liabilities for rice products was RMB 295,195 thousand, down 24.8% year-over-year[22] - Revenue recognized from contract liabilities for dairy and beverages was RMB 678,570 thousand, a 13.1% decrease compared to the previous year[22] - Total revenue recognized from contract liabilities was RMB 1,255,592 thousand, down 19.3% year-over-year[22] Exchange Gains and Other Income - Net exchange gain was RMB 17,600 thousand, compared to a net loss of RMB 2,171 thousand in the previous year[23] - Long-term bank deposit income increased to RMB 241,394 thousand, up 70.3% year-over-year[23] Earnings Per Share and Dividends - Basic earnings per share were RMB 28.35 cents, down from RMB 35.16 cents in the previous year[26] - The company proposed a final dividend of 2.10 US cents per share for the 2022 fiscal year, amounting to approximately $249.5 million (approximately RMB 1.7177 billion)[65] - The total dividend for the 2022 fiscal year was 3.24 US cents per share, totaling approximately $385 million, representing 79% of the company's profit attributable to equity holders for the year[65] - The company proposed a final dividend of 2.10 US cents per share for the fiscal year ending March 31, 2023, subject to approval at the Annual General Meeting, with payment expected on or around September 14, 2023[75] Share Repurchases - The company repurchased a total of 17,445,000 shares on the Hong Kong Stock Exchange during the fiscal year ending March 31, 2023, at a total cost of HK$89,273,930 (excluding fees)[71] - After the fiscal year end, the company repurchased an additional 2,677,000 shares on the Hong Kong Stock Exchange at a total cost of HK$13,383,000 (excluding fees)[73] - The company's board believes that the share repurchases are in the best interests of the company and its shareholders and can enhance the company's earnings per share[73] Corporate Governance and Meetings - The company's Annual General Meeting is scheduled to be held on August 22, 2023, with the notice to be published on the company's website and sent to shareholders in due course[74] - The company's share register will be closed from August 26 to August 30, 2023, to determine eligibility for the proposed final dividend[75] Overseas Expansion and New Products - Overseas business achieved double-digit growth in fiscal year 2022, with balanced growth across three major categories[37] - The Vietnam factory has officially commenced production, marking the first step in the company's global expansion strategy[32] - New products launched within the last five years accounted for nearly double-digit percentage of the company's total revenue in fiscal year 2022[33] - The company plans to launch a new dairy product, "Daily Milk Drink," in small blue bottles to meet diverse consumer needs[35] - The company will continue to expand its presence in emerging channels such as content e-commerce and social e-commerce, which showed significant growth in fiscal year 2022[36] - The company has established five new overseas subsidiaries in Southeast Asia, America, and Europe to support its overseas market expansion strategy[37] Inventory and Receivables Management - Inventory turnover days increased to 90 days in FY2022, up from 79 days in FY2021, due to increased raw material reserves in response to pandemic uncertainties[60] - Trade receivables turnover days remained stable at 15 days for both FY2022 and FY2021[62] - Trade payables turnover days increased slightly to 29 days in FY2022, up from 28 days in FY2021[63] Employee and Compensation - The company's average number of employees in FY2022 was 41,229, a slight decrease of 36 compared to FY2021, with total employee compensation at RMB 4.564 billion[63] Financial Reporting Standards - The company adopted revised Hong Kong Financial Reporting Standards (HKFRS) for the first time in the current year, including amendments to HKFRS 3, HKAS 16, and HKAS 37, with no material impact on financial performance[10] - HKFRS 3 amendments replaced previous financial reporting frameworks with the 2018 Conceptual Framework, with no significant changes to recognition principles, and had no impact due to no business combinations during the year[11] - HKAS 16 amendments prohibit deducting costs from proceeds of property, plant, and equipment sales before intended use, with retrospective application from April 1, 2021, and no impact as no such sales occurred[11] - HKAS 37 amendments clarify that costs directly related to contracts include incremental costs and allocated costs, with prospective application from April 1, 2022, and no impact as no loss-making contracts were identified[11] - HKFRS 9 amendments clarify fees considered when assessing changes in financial liability terms, with prospective application from April 1, 2022, and no impact as no changes or exchanges of financial liabilities occurred[12] - The company has not yet applied newly issued but not yet effective HKFRS standards, including amendments to HKFRS 10, HKAS 28, HKFRS 16, and HKFRS 17, with no expected material impact on financial performance[13] Geographic and Customer Concentration - Over 90% of the company's revenue and non-current assets are located in China[14] - No single customer accounted for 10% or more of the company's total revenue in both FY2023 and FY2022[14]

Financial Performance - Total revenue for the first half of FY2022 declined by 4.8% year-on-year to RMB10,832.9 million[10] - Gross profit margin decreased by 4.0 percentage points year-on-year to 42.8%[10] - Profit attributable to equity holders of the Company decreased by 23.6% year-on-year to RMB1,596.1 million[10] - The total revenue for the first half of FY2022 decreased by 4.8% year-on-year, reaching CNY 10.8329 billion, with a gross margin decline of 4.0 percentage points to 42.8%[11] - The profit attributable to equity holders of the company fell by 23.6% year-on-year, amounting to CNY 1.5961 billion[11] - The Group's operating profit for the first half of 2022FY was RMB2,072.1 million, a decrease of 25.5% year-on-year, with an operating profit margin of 19.1%[24] - Profit for the period was RMB 1,590,078, a decrease of 23.7% compared to RMB 2,083,788 in the same period last year[54] - Total comprehensive income for the period was RMB 1,183,496, a significant decrease of 46.8% from RMB 2,220,118 in the previous year[54] Revenue Segmentation - Products accounting for 44% of total revenue recorded a year-on-year increase, with popsicles and QQ Gummies achieving double-digit revenue growth[9] - Revenue from traditional distribution channels declined by mid-single digits year-on-year, primarily due to weak sell-through momentum of dairy products and beverages[12] - The snack foods segment achieved high-single-digit growth, driven by new product expansion and enhanced product display strategies[12] - Revenue from modern channels remained stable year-on-year, with newly launched products contributing double-digit percentages to modern channel revenue[13] - Revenue from the rice crackers segment increased by 5.1% year-on-year, reaching RMB1,972.0 million, with core-brand rice crackers growing by 4.4%[20] - Revenue from the dairy products and beverages segment decreased by 13.2% year-on-year to RMB5,693.0 million, primarily due to pandemic impacts[20] - Revenue from popsicles achieved approximately RMB200 million in the first half of 2022FY, marking a new sales peak, driven by innovative packaging and marketing campaigns[21] Cost and Margin Analysis - Gross profit declined by 12.9% year-on-year to RMB4,638.4 million[22] - The gross profit margin for the rice crackers segment was 37.2%, down 3.8 percentage points year-on-year, primarily due to a more than 40% increase in palm oil costs[22] - The gross profit margin for dairy products and beverages was 45.3% in the first half of 2022FY, a year-on-year decrease of 4.1 percentage points, primarily due to a 21% increase in whole milk powder costs[23] - The gross profit margin for snack foods was 42.2% in the first half of 2022FY, representing a year-on-year decrease of 2.4 percentage points, attributed to rising costs of white sugar, skimmed milk powder, and plastic pellets[23] Operational Adjustments - The Group improved its supply chain contingency mechanism to ensure smooth production and operations[8] - The international supply chain recovery drove growth in overseas revenue[9] - Marketing investments were increased in store scenarios and product displays to adapt to changing market conditions[8] - The Group will continue to monitor the pandemic's impact on sales and adjust strategies accordingly[9] - The Group plans to continue launching high-quality new products to cater to differentiated consumer needs[16] Cash Flow and Financial Position - As of September 30, 2022, the Group's net cash was RMB7,137.0 million, a decrease of RMB2,963.6 million from March 31, 2022, primarily due to dividend payments totaling RMB4,144.2 million[24] - Cash and bank deposits amounted to RMB13,258.6 million as of September 30, 2022, a decrease of RMB3,744.2 million from March 31, 2022, mainly due to dividend payments[24] - Net cash inflow from operating activities for the first half of FY2022 was RMB1,908.1 million, with a profit before income tax of RMB2,150.2 million[25] - The net decrease in cash and cash equivalents was RMB 5,033,635, compared to a decrease of RMB 2,399,049 in the previous year, indicating a 109.1% increase in cash outflow[60] Dividend and Shareholder Returns - The Board recommended an interim dividend of US 1.14 cents per share for the first half of FY2022, totaling approximately US$135.5 million (equivalent to approximately RMB 919.5 million), representing a 37% increase compared to the interim dividend of US 0.83 cents per share for the first half of FY2021[35] - The final dividend for FY2021 was US 2.10 cents per share, amounting to approximately US$249.9 million (equivalent to approximately RMB 1,726.8 million)[35] - The special dividend for FY2021 was US 2.94 cents per share, amounting to approximately US$349.8 million (equivalent to approximately RMB 2,417.4 million)[35] Employee and Management Information - The average number of employees for the first half of FY2022 was approximately 41,040, a decrease of 225 employees compared to the average for the year ended 31 March 2022[35] - Total remuneration expenses for the first half of FY2022 amounted to RMB 2,239.4 million[35] - Total compensation for key management increased to RMB10,801,000 for the six months ended 30 September 2022, up from RMB8,191,000 in the same period of 2021[145] Share Capital and Ownership - As of September 30, 2022, the total issued share capital of the company is 11,899,528,135 shares[162] - Tsai Eng-Meng holds 177,000,000 shares, representing approximately 53.12% of the company's issued share capital[156] - The company repurchased a total of 15,800,000 shares for an aggregate amount of HK$81,166,070, which were subsequently cancelled[163] Risk Management and Compliance - The Group's foreign exchange risks mainly arise from procurement of raw materials and equipment from overseas, overseas dividend payments, and certain recognised assets or liabilities[35] - The Group's financial risk management policies remained unchanged since the last year-end[68] - The Group utilized a certain amount of hedging products to address possible foreign exchange risk during the first half of FY2022[35]