Company Overview - Want Want China Holdings Limited is listed on The Stock Exchange of Hong Kong Limited with stock code 0151[4] - The company's executive directors include Mr. Tsai Eng-Meng (Chairman and CEO), Mr. Tsai Shao-Chung, Mr. Tsai Wang-Chia (COO), Mr. Huang Yung-Sung (CMO), and Mr. Chu Chi-Wen (CFO)[4] - The company's principal place of business and headquarters address is at Units 07-08, 7th Floor, FTLife Tower, No. 18 Sheung Yuet Road, Kowloon Bay, Kowloon, Hong Kong[6] - The company's website is www.want-want.com[6] - The company's auditor is Ernst & Young Certified Public Accountants[5] - The company's legal advisor is Sullivan & Cromwell (Hong Kong) LLP[5] - 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[5] - The company's registered office is at Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands[6] - The company's share registrar and transfer office is Suntera (Cayman) Limited, Suite 3204, Unit 2A, Block 3, Building D, P.O. Box 1586, Gardenia Court, Camana Bay, Grand Cayman, KY1-1100, Cayman Islands[6] - The company's Hong Kong branch share registrar and transfer office is Computershare Hong Kong Investor Services Limited, Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong[6] Business Operations - The company has 422 sales offices, 35 production bases, and 81 factories in the Chinese mainland as of March 31, 2022, and collaborates with over 10,000 distributors[8] - The company's Vietnam production base began construction in 2020 to support overseas market expansion and future development strategies[7] - The company's principal activities include manufacturing, distribution, and sale of rice crackers, dairy products, beverages, snack foods, and other products[8] - The company's operations are primarily located in the Chinese mainland, with exports to North America, East Asia, Southeast Asia, and Europe[8] - The company was listed on the Hong Kong Stock Exchange on March 26, 2008, and previously listed on the Singapore Exchange Securities Trading Limited in 1996 before delisting in 2007[7] - The company introduced the "Want Want" brand in the Chinese mainland in 1989 and established its first subsidiary in Hunan province in 1992[7] - The company transitioned from a rice cracker-focused business to a diversified food and beverages company in the years following its establishment in 1962[7] Corporate Culture and Activities - The company held a new corporate theme song contest in 2021 to strengthen team spirit and communication with distributors[12] - The company organizes traditional Chinese festive activities annually to improve team cohesion and employee belonging[15] - The company held the Want Want Family Day to enhance communication with employees and their families, showcasing employee achievements and building a positive corporate culture[16] Financial Performance - Revenue for the year ended March 31, 2022, reached RMB 23,984,891 thousand, a 9.0% increase from the previous year[33] - Profit for the year ended March 31, 2022, was RMB 4,189,114 thousand, a 1.0% increase from the previous year[33] - EBITDA for the year ended March 31, 2022, was RMB 5,734,383 thousand, a 4.3% decrease from the previous year[33] - Basic earnings per share for the year ended March 31, 2022, were RMB 35.16 cents, a 3.9% increase from the previous year[33] - Total assets as of March 31, 2022, were RMB 29,857,981 thousand, a 4.4% decrease from the previous year[34] - Total equity as of March 31, 2022, was RMB 16,708,778 thousand, an 11.6% increase from the previous year[34] - Total liabilities as of March 31, 2022, were RMB 13,149,203 thousand, a 19.2% decrease from the previous year[34] - Dividends for the year ended March 31, 2022, amounted to RMB 4,691,334 thousand, a 174.3% increase from the previous year[33] - Shares buy-back for the year ended March 31, 2022, totaled RMB 819,493 thousand, a 48.8% decrease from the previous year[33] - Return on equity for the year ended March 31, 2022, was calculated based on profit attributable to equity holders of the Company divided by the average of the opening and closing balances of the equity[32] - Revenue for the 2021 fiscal year reached RMB 23,984.9 million, representing a growth of over 100 times compared to the annual revenue before the company's investment in the Chinese mainland[36] Awards and Recognitions - The export product Pea Crisp (Apple Cinnamon Flavour) won the 2021 Monde Selection Gold Quality Award in April 2021[37] - The Hot-Kid Occupational Cans marketing proposal won the 9th TopDigital Innovative Marketing Award – IP Marketing – Gold Award in July 2021[38] - The collaboration between Want Want and NetEase Music "Sounds Delicious" won the Cross-Industry Joint Marketing Gold Award at the 12th Golden Mouse Digital Marketing Awards in April 2021[39] - Want Want Rice Prawn Chips won "The Best Flavour Snack" at the 3rd iSEE Innovation Award in May 2021[41] - Research on key technology of active lactoferrin yogurt won the Second Prize of the Technical Progress Award from the China Dairy Industry Association in September 2021[42] - Want Want Group won the Special Contribution Award of the China Food Health Seven Star Award for the seventh time in September 2021[43] - The research and application of lactoferrin detection technology in fermented milk won the Second Prize of the Science and Technology Award from the China Food Industry Association in December 2021[43] - Want Want ranked third in the list of "Taiwan Top 25 International Brands" in December 2021[44] Revenue and Profit Analysis - Group revenue reached a record high of RMB 23,984.9 million, a 9.0% year-on-year increase[46][47][48][49] - Revenue from key product segments: Rice crackers RMB 5,592.3 million (↑0.2%), Daily products & beverages RMB 12,873.5 million (↑16.9%), Snack foods RMB 5,397.2 million (↑1.6%)[46][47] - Emerging channels contributed approximately 40% of revenue, with new products playing a significant role[46][47] - Profit attributable to equity holders of the Company increased by 1.1% to RMB 4,202.7 million[46][47][48][49] - Gross profit margin decreased by 3.4 percentage points to 44.8% due to rising raw material and packaging costs[48][49] - Operating profit decreased by 4.9% to RMB 5,456.8 million, but remained nearly flat year-on-year excluding one-off gains from the previous year[49] - Total dividends for 2021FY amounted to USD 699 million, including interim, final, and special dividends[46][47] - Overseas markets returned to mid-to-high single-digit year-on-year revenue growth as supply chain pressures eased[49] - Traditional channels contributed approximately 80% of revenue, while modern and emerging channels showed high-single and double-digit growth respectively[46][47] - The Group will continue to monitor external environmental changes and manage cost risks to maintain healthy development[49] - Revenue from traditional channels achieved a high single-digit year-on-year growth in 2021FY[51] - Revenue from modern channels achieved a near high single-digit growth in 2021FY, driven by new products and convenience store channels[51] - Emerging channels contributed close to a double-digit percent of the Group's overall revenue in 2021FY, with 40% of revenue from new products launched in the past three years[52] - Revenue from vending machines doubled in 2021FY compared to the previous financial year[54] - Overseas sales in 2021FY saw a mid-to-high single-digit growth rate in the second half, with double-digit growth excluding exchange rate effects[55] - The factory in Vietnam is expected to commence production in mid-2022, with new offices in Southeast Asia already operational[55] Product and Brand Development - The Group launched several new brands, including "Baby Mum-Mum," "Mr. Bond," "Fix x Body," "Queen Alice," "Mr. Hot," "Got Rice," and "Prime of Love"[59][60] - The Group's B2B model includes online/offline cooperation, self-developed e-shopping mall, maternity channels, OEM business channels, and special channels[53] - The Group's B2C model includes self-operated online flagship stores, vending machines, and theme stores[54] - The Group aims to develop suitable products for local consumers' preferences in overseas markets[55] - Total revenue for the 2021FY grew by 9.0% year-on-year, reaching RMB23,984.9 million[63] - Revenue from the dairy products and beverages segment increased by 16.9% year-on-year, with double-digit growth in both halves of the year[63] - Revenue from the rice crackers segment remained flat year-on-year, with a low-to-mid single-digit growth in the second half of the year[63] - Revenue from the snack foods segment grew by 1.6% year-on-year, with mid-to-high single-digit growth in the second half of the year[63] - Revenue from "Hot-Kid Milk" accounted for over 90% of the dairy products and beverages segment, recording a year-on-year growth rate of 18.4%[67] - New products introduced in the past three years accounted for nearly a double-digit percentage of the Group's total revenue in the 2021FY[61] - Revenue from the candies sub-category increased by 5.1% year-on-year, with significant growth in emerging channels[69] - Overseas sales of rice crackers, which accounted for approximately 20% of the segment revenue, resumed a mid-single digit growth in the second half of the year[65] - New products under the "Got Rice" brand, such as "Want Want Donuts" and "Crispy Rice Chips," were launched to meet health demands[66] - The Group launched new dairy products like "Hot-Kid Chocolate Milk" and "Nut Milk," which together contributed sales of over RMB100 million in the 2021FY[68] - Revenue from the popsicles sub-category grew by 2.7% year-on-year in the 2021FY, with "Dongchi" exceeding annual sales of RMB200 million[72] - The social media campaign "Have a craving for Dongchi" generated over 220 million views, contributing to the brand's success[72] Cost and Profit Margins - The cost of sales for the Group in the 2021FY increased by 16.2% year-on-year to RMB13,237.5 million, driven by double-digit increases in key raw material costs[72] - Gross profit margin for the Group decreased by 3.4 percentage points to 44.8% in the 2021FY, with gross profit increasing by 1.3% year-on-year to RMB10,747.4 million[73] - The rice crackers segment's gross profit margin decreased by 4.7 percentage points to 41.4% in the 2021FY, primarily due to rising palm oil costs[73] - The dairy products and beverages segment's gross profit margin decreased by 2.9 percentage points to 46.7% in the 2021FY, mainly due to increased costs of tinplate and whole milk powder[73] - The snack foods segment's gross profit margin decreased by 3.5 percentage points to 44.2% in the 2021FY, driven by higher costs of paper and plastic pellets[73] - The Group launched several new products in the snack foods segment, including "fruit-flavored aerated gummies," "Hot-Kid Super QQ," "YA-MI Sandwich Bun," and "Jelly Jelly," which features low-sugar, low-calorie, and collagen peptides[72] - The Group is optimizing production processes and diversifying channels to maintain healthy profitability in the dairy products and beverages segment[73] - The Group is focusing on product upgrades and introducing high-margin new products to sustain profitability in the snack foods segment[73] Expenses and Profitability - Distribution costs increased by RMB367.6 million (13.3% YoY) to RMB3,133.2 million, accounting for 13.1% of revenue, up 0.5 percentage points YoY[74] - Administrative expenses rose by RMB21.30 million (0.8% YoY) to RMB2,734.7 million, but decreased as a percentage of revenue by 0.9 percentage points to 11.4%[74] - Operating profit decreased by 4.9% YoY to RMB5,456.8 million, with an operating profit margin of 22.8%, due to a 3.4 percentage point decline in gross profit margin[74] - Income tax expense for 2021FY was RMB1,545.3 million, with an income tax rate of 26.9%, down 3.9 percentage points YoY[74] - Profit attributable to equity holders increased by 1.1% YoY to RMB4,202.7 million, but the margin decreased by 1.4 percentage points to 17.5%[74] Cash Flow and Financial Position - Net cash increased by RMB1,002.6 million to RMB10,100.6 million as of 31 March 2022, driven by RMB3,910.5 million net cash generated from operating activities[76] - Cash and bank deposits (including long-term deposits) decreased by RMB1,928.3 million to RMB17,002.8 million as of 31 March 2022, with RMB accounting for 85.1%[76] - Total borrowings decreased by RMB2,930.9 million to RMB6,902.2 million as of 31 March 2022, mainly due to repayment of USD-denominated borrowings[76] - Short-term borrowings increased by RMB15.89 million to RMB3,355.9 million, while long-term borrowings decreased by RMB2,946.8 million to RMB3,546.4 million[76] - The Group repaid USD500 million bonds in full upon maturity in April 2022, with a balance of USD499.9 million as of 31 March 2022[76] - Net gearing ratio as of 31 March 2022 was -0.61 times, unchanged from 31 March 2021[78] - Net cash inflow from operating activities was RMB 3,910.5 million, driven by profit before income tax of RMB 5,734.4 million[78] - Cash outflow for financing activities was RMB 5,342.4 million, including RMB 2,642.6 million for repayment of USD-denominated borrowings[78] - Cash and cash equivalents as of 31 March 2022 amounted to RMB 11,055.8 million, with total liquidity of RMB 17,002.8 million including long-term deposits[78] - Capital expenditure for FY2021 was RMB 460.5 million, with significant investments in production plant expansions in Vietnam[78] Inventory and Turnover - Inventory as of 31 March 2022 increased to RMB 3,226.2 million, up by RMB 697.4 million compared to 2021, while inventory turnover days decreased by 6 days[82][83] - Trade receivables turnover days remained stable at 15 days for both 2021 and 2022[89] - Trade payables turnover days improved to 28 days in 2022 from 33 days in 2021[89] Employee and Compensation - Average number of employees in FY2021 was 41,265, with total employee compensation of RMB 4,403.4 million[90] - The average number of employees in 2021FY was 41,265, an increase of 72 employees compared to the previous year[91] - Total remuneration expenses for 2021FY amounted to RMB4,403.4 million[91] Foreign Exchange and Dividends - The Group's foreign exchange risks mainly arise from overseas procurement of raw materials and equipment, overseas dividend payments, and certain recognized assets or liabilities[92] - The Group did not hedge against its foreign exchange risks during the 2021FY[93] - The Board recommended a final dividend of US2.10 cents per share for the 2021FY, amounting to approximately US$250 million (RMB1,692 million)[95] - The Board also recommended a special dividend of US2.94 cents per share for the 2021FY, amounting to approximately US$350 million (RMB2,369 million)[95] - Total dividends for the 2021FY would be US5.87 cents per share, amounting to approximately US$699 million, representing a 174% increase compared to the 2020FY[95] - The Group returned a total of approximately US$826 million (RMB5,510 million) to its shareholders in 2021FY, including dividends and share repurchases, representing a 67% increase compared to the 2020FY[95] - The Group's total return to shareholders in 2021FY represented approximately 131% of the profit attributable to equity holders[95] - The Group's functional currency is USD, while the presentation currency is RMB, with over 90% of operating activities conducted in the Chinese mainland[92] Board and Governance - The Board consists of 15 Directors, including 7 executive Directors, 3 non-executive Directors, and 5 independent non-executive Directors as of 31 March 2022[102] - The Board is responsible for overseeing the Group's operating and financial performance, approving annual budgets, financial results, major investments, and material contracts[101] - The Board has delegated specific responsibilities to committees including Audit and Risk Management, Remuneration, Nomination, and Strategy Committees[101] - The ESG Committee was established in August 2020 to assist the Board in managing environmental, social, and governance matters[101] - The Board

Financial Performance - The company reported a revenue of HKD 4.5 billion for the fiscal year, representing a year-over-year increase of 10%[5] - The net profit for the year was HKD 1.2 billion, which is a 15% increase compared to the previous year[5] - The company has set a performance guidance of 12% revenue growth for the upcoming fiscal year[5] - In FY2020, revenue increased by 9.5% year-on-year to RMB21,998 million, while net profit attributable to equity holders rose by 13.9% to RMB4,158 million[46] - Operating profit for FY2020 grew by 19.4% year-on-year, reaching RMB5,736 million[46] - The profit for the year in FY2021 was RMB4,147,681, compared to RMB3,636,243 in FY2020[43] Market Expansion and Strategy - User data showed a growth in active customers by 20%, reaching 1.5 million users[5] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[5] - New product launches are expected to contribute an additional HKD 500 million in revenue next year[5] - The company aims to leverage both online and offline channels to launch new products and enhance growth opportunities[47] - The company has diversified its product offerings to include rice crackers, dairy products, beverages, and snack foods[18] - The company has expanded its market reach to include exports to North America, East Asia, Southeast Asia, and Europe[18] Research and Development - The company has invested HKD 300 million in R&D for new technologies aimed at improving product quality and sustainability[5] - The Group has applied for 96 patents, with 75 patents awarded, including 17 related to energy saving, emission reduction, and environmental protection[86] - The Group's R&D emphasizes the development of functional products that cater to diverse consumer health needs[97] Sustainability and Environmental Initiatives - Environmental initiatives are being prioritized, with a commitment to reduce carbon emissions by 30% over the next five years[5] - The cumulative investment in upgrading environmental protection technologies reached RMB 211 million, demonstrating the company's commitment to sustainability[73] - The Group aims to improve energy and water efficiency by 10% and reduce greenhouse gas emissions density by 13% over the next five years, in line with the National 14th Five-Year Plan and Vision 2035[86] - The Group is committed to sustainability in packaging materials, focusing on carbon reduction, lightweight, recycling, and degradation[97] - The Group prioritizes the use of FSC-certified Tetra Pak packaging materials, resulting in the sustainable management of 4,834 hectares (72,508 acres) of forest due to the procurement of 4.15 billion paper packs in 2020[124] Quality and Safety Management - The company emphasizes the importance of product quality and consumer trust as its top competitive advantage[48] - The Group has implemented a WSQM system that integrates GFSI requirements and is based on HACCP principles for food safety management[96] - The Group conducts annual simulation recall exercises at all production bases, ensuring effective monitoring of the production and sales process[153] - The Group's complaint handling system is guided by the "Action Procedures for Customers' complaint," ensuring effective resolution of customer issues[148] Employee Engagement and Management - As of March 31, 2021, the Group had 39,132 employees, with 55% being female and 45% male[79] - The Group emphasizes a people-oriented management philosophy, valuing relationships and talent acquisition[25] - The Group has established various employee welfare programs, including festival benefits, wedding gifts, and commercial insurance, to enhance employee satisfaction and well-being[181] - The Group conducts exit interviews to understand the reasons for employee resignations and gather feedback for improving workplace satisfaction[195] - The Group promotes a fair employment principle, ensuring no discrimination based on age, gender, nationality, or other factors[190] Awards and Recognition - The company was recognized as one of Taiwan's top 25 international brands, ranking third in November 2020[50] - The company won multiple awards at the 12th Golden Mouse Digital Marketing Contest, including a Gold Award for cross-industry joint marketing[58][59] - The "Aiyo Rice Noodles Series" key technology and industrialization research won the third prize of the Technology Innovation Award, while the electrolysis functional water technology received the second prize of the Technology Progress Award[54][55]

2019/2020 | Corporate Information | 2 | Directors and Senior Management | 109 | | --- | --- | --- | --- | | 公司資料 | | 董事及高級管理人員 | | | Corporate Profile | 5 | Report of the Directors | 120 | | 公司簡介 | | 董事會報告 | | | Corporate Culture | 7 | Independent Auditor's Report | 146 | | 企業文化 | | 獨立核數師報告 | | | Spirit of Want Want | 10 | Consolidated Balance Sheet | 152 | | 旺旺精神 | | 綜合資產負債表 | | | Elite Dragon of the World | 12 | Consolidated Income Statement | 154 | | 世界聚龍 | | 綜合收益表 | | | Financial Highlights | 13 | Conso ...

Financial Performance - Revenue for the fiscal year 2018/2019 reached $5.6 billion, representing a 6.8% year-over-year growth[1] - Net profit increased by 12.3% to $1.2 billion, driven by cost optimization and higher sales volume[1] - Revenue for the year ended 31 March 2019 was RMB 20,712,027 thousand, an increase from RMB 20,149,781 thousand in the previous year[34] - Profit before income tax for the year ended 31 March 2019 was RMB 4,806,321 thousand, up from RMB 4,293,467 thousand in the previous year[34] - Net profit attributable to equity holders of the company for the year ended 31 March 2019 was RMB 3,476,599 thousand, compared to RMB 3,115,834 thousand in the previous year[35] - Basic earnings per share for the year ended 31 March 2019 were RMB 27.93 cents, up from RMB 24.93 cents in the previous year[36] - Total assets as of 31 March 2019 were RMB 29,836,438 thousand, an increase from RMB 26,683,103 thousand in the previous year[39] - Total equity as of 31 March 2019 was RMB 15,428,236 thousand, up from RMB 14,610,900 thousand in the previous year[39] - Dividends for the year ended 31 March 2019 were RMB 2,877,682 thousand, an increase from RMB 2,473,233 thousand in the previous year[37] - Revenue for FY2018 increased by 2.8% to RMB20,712.0 million compared to FY2017[42] - Gross profit grew by 9.2% to RMB9,400.2 million due to an increase in gross profit margin[42] - Profit attributable to equity holders of the company increased by 11.6% to RMB3,476.6 million[42] - Total revenue for the year ended 31 March 2019 increased by 2.8% to RMB20,712.0 million compared to the previous year[165] - Gross profit margin increased by 2.7 percentage points year-on-year to 45.4%[165] - Operating profit (excluding other income and other gains – net) increased by 16.8% to RMB4,077.4 million[165] - Profit attributable to equity holders of the Company increased by 11.6% year-on-year to RMB3,476.6 million[166] - The margin of profit attributable to equity holders increased by 1.3 percentage points to 16.8%[166] - Operating expense as a percentage of revenue was 25.7%, amounting to RMB5,322.8 million[165] - EBITDA increased by 9.4% to RMB4,586.5 million[163] - Total revenue for FY2018 increased by 2.8% to RMB 20.712 billion, with emerging channels becoming a key driver of growth[167] - Gross profit margin rose by 2.7 percentage points to 45.4% in FY2018, driven by optimized product mix and improved channel profitability[167] - Operating profit (excluding other income and gains) increased by 16.8% to RMB 4.077 billion in FY2018[167] - Net profit attributable to equity holders grew by 11.6% to RMB 3.477 billion, with a profit margin increase of 1.3 percentage points to 16.8%[167] - Total revenue for 2018FY increased by 2.8% to RMB20,712.0 million compared to 2017FY[191] - Revenue from rice crackers segment grew by 3.9% to RMB5,813.5 million in 2018FY[191][192] - Revenue from snack foods segment increased by 3.5% to RMB5,101.1 million in 2018FY[191] - Dairy products and beverages segment revenue rose by 1.6% to RMB9,729.6 million in 2018FY[191] Market Expansion and Growth - The company expanded its market share in China by 2.5%, reaching a total market penetration of 18.7%[1] - The company expects revenue growth of 5-7% for the next fiscal year, with a focus on expanding in Southeast Asia[1] - The company's first subsidiary in China was established in Hunan province in 1992, marking its entry into the Chinese market[9] - The company expanded from a rice cracker company to a diversified food and beverages company in the following years after entering China[9] - The company's subsidiary, Want Want Holdings Ltd., was listed on the Singapore Exchange Securities Trading Limited in May 1996[9] - The company was listed on the Hong Kong Stock Exchange on 26 March 2008 and was selected as a constituent of the Hang Seng Mainland Composite Index and the Morgan Stanley Capital International China Index in the same year[9] - The company's Taiwan Depositary Receipts were listed on the Taiwan Stock Exchange Corporation on 28 April 2009[9] - The company was selected as a constituent stock of the Hang Seng Index in Hong Kong on 5 December 2011[9] - The company's Taiwan Depositary Receipts were voluntarily withdrawn from listing on the Taiwan Stock Exchange on 15 October 2013[9] - The company's operations are primarily located in China, with additional operations in Taiwan, Japan, Hong Kong, and Singapore[10] - The company has an extensive nationwide sales and distribution network throughout China and exports products to markets including the United States, Canada, Southeast Asia, and Europe[10] - The company plans to introduce more unique new products to cater to different consumer scenarios and groups[42] - Over 90% of the Group's revenue and businesses were generated in Mainland China during the reporting period (1 April 2018 to 31 March 2019)[56][58] - The company plans to launch rice crackers with local characteristics in overseas markets as part of its expansion strategy[196] - In 2019FY, the Group will focus on product differentiation strategies, increasing the proportion of customized products and introducing new products like functional drinks and "Mr. Bond milk tea"[198] - Emerging channels became a new driving force for snack foods revenue growth in 2018FY[199] - The Group will concentrate resources on market-potential products like "Lactic Acid Bacteria" and "O-Bubble Fruit milk" in 2019FY[198] - Export sales of rice crackers achieved mid single-digit growth in 2018FY, with further expansion planned for overseas markets[196] Product Development and Innovation - New product launches contributed $450 million in revenue, accounting for 8% of total sales[1] - R&D investment increased by 15% to $120 million, focusing on innovative food and beverage technologies[1] - The company completed two strategic acquisitions, totaling $300 million, to enhance its product portfolio[1] - The company plans to invest $200 million in new production facilities to support future growth[1] - The company won the Food Safety Innovation Technology Award in July 2018[45][46] - The company won two bronze awards in the 9th Golden Mouse Digital Marketing Contest[47] - The company won the China Food Health Seven Star Award for the fourth consecutive year[49] - The company won the China Dairy Industry Quality and Safety Management Outstanding Enterprise Award and Outstanding New Product Award in August 2018[50][51] - The company was listed in the "Taiwan's Top 20 International Brands" for the 10th consecutive year with a brand value of US$897 million[52][53] - The Group is committed to developing leading and prospective products, focusing on safety, health, and taste, with an R&D strategy of "leading in technology and innovating the entire industrial chain"[69][71] - The Group continues to develop functional products, focusing on sugar reduction, organic nutrition, functional health, and green packaging, while integrating Chinese food culture into its products[74] - The company has achieved 100% localization of certain raw materials previously imported from overseas, such as aluminum[79] - The company focuses on reducing sugar, fat, and sodium content in products while increasing healthy carbohydrates from whole grains, fruits, and vegetables[75] - The company integrates traditional Chinese dietary culture, such as tea and soup culture, into its product development[75] - New products like "Tian She Mi Shao," "Dongchi," and "QQ juicy gummy" were launched, offering unique consumer experiences[179] - The Group introduced three "Palace" series snack foods inspired by IP elements from the Palace Museum[185][188] Operational Efficiency and Cost Management - Gross margin improved by 1.2 percentage points to 45.6%, driven by better cost management[1] - The company had 10,000 wholesalers, 427 sales offices, 35 production bases, and 85 factories in China as of 31 March 2019[30] - Non-current assets as of 31 March 2019 were RMB 8,641,902 thousand, compared to RMB 9,330,069 thousand in the previous year[39] - Current liabilities as of 31 March 2019 were RMB 6,295,159 thousand, down from RMB 8,728,952 thousand in the previous year[41] - The company has established a comprehensive supplier management system, including selection, evaluation, grading, and improvement processes[76][77] - The company prioritizes suppliers with outstanding performance in energy conservation, emission reduction, and social contribution[83] - The company has implemented a strict imported raw material filing system to strengthen traceability[82] - The company has developed an online quality assessment system to identify root causes of quality issues and provide early warning signs of risks[84] - The company has won the title of "Digital Promotion of China's Food Industry Transformation Model Enterprise" at the 3rd China Food Industry Internet Conference in 2018[84] - The company has established a full-process management system for raw material suppliers, ensuring compliance, quality, and safety[76] - The company strictly adheres to the "Food Recall Management Measures" and has established a standardized simulation traceability system and recall process[86][89] - The company conducted 502 two-way simulation traceability tests during the reporting period, with a conformity rate of 99% and an average tracing time of less than 4 hours[91] - The company implemented the Want Want Standard Safety Management System (WSSM System) and conducted quarterly EHS theme activities during the reporting period[100] - The company's product packaging, promotional materials, and advertisements are reviewed by the intellectual property and related departments to ensure compliance with laws and regulations[94][96] - The company provides employees with suitable protective equipment and conducts regular occupational health checkups for those exposed to occupational hazards[99] - The company's remuneration system is systematically designed and adjusted based on actual conditions, following principles of fairness and sustainable development[101] - The company conducted 284 specialized occupational health training sessions in 2018 to inform employees exposed to occupational hazards[103] - The company implemented a dual-track promotion system, offering separate channels for management and non-management roles (sales/technicians)[114] - Employees receive 2-5 additional days of annual leave based on their rank, in addition to statutory leave[105] - The company provides various employee benefits including festival welfare, wedding gifts, funeral consolation money, and commercial insurance[106] - The company strictly prohibits employment discrimination based on age, gender, nationality, race, and religion, and enforces a no-child-labor policy[111] - The company follows the WSSM (Want Want Standard Safety Management) system and conducts quarterly safety-themed activities to enhance workplace safety[103] - The company has established a comprehensive attendance management system, ensuring legal compliance with overtime payments and compensatory time off[107] - The company emphasizes lifelong learning and provides annual training programs for all employees to support their career development[113] - The company has set up a performance assessment system to assist employees in achieving promotion goals through relevant training[116] - The company adheres to the Labor Law of the People's Republic of China, ensuring fair and legal termination of employment contracts[112] - The company has 644 internal trainers as of 31 March 2019, with an average of 34 training hours per employee[118] - The company established a whistle-blowing mechanism with a hotline and mailbox to report corruption and fraud, offering rewards for real-name whistle-blowing[120] - The company conducted special audits in high-risk areas for corruption and fraud, promoting anti-corruption through videos, articles, and case studies[119] - The company implemented a "zero tolerance" policy towards violations of work and business ethics[119] Environmental Sustainability - Energy efficiency increased by 13.9% compared to 2015, equivalent to saving 23,000 tonnes of standard coal[61] - Water resource utilization efficiency increased by 12.1% compared to 2015, equivalent to saving 1,135,600 tonnes of water[62] - Cumulative investment in upgrading environmental protection technologies reached RMB193 million, with RMB28.0 million invested during the reporting period[61][63] - Solar photovoltaic power generation amounted to 1,450,000 kWh during the reporting period[64] - Cumulative investment in upgrading environmental protection technologies reached RMB193 million since 2016[125] - Waste water discharge reduced by 164,000 tonnes due to production water process optimization[127] - Utilisation efficiency of water resources increased by 12.1% compared to 2015[127] - RMB28.00 million was devoted to upgrading environmental protection technologies[123] - The company formulated internal monitoring standards for sewage treatment to ensure compliance with national or local standards[127] - Wastewater discharge reduced by 164,000 tons through production process optimization[129] - Total chemical oxygen demand (COD) emissions were 325 tonnes during the reporting period[129] - Nitrogen oxide (NOX) emissions reduced by 19,943 kg through modifications to gas-burning boilers[131] - Volatile organic compounds (VOCs) emissions reduced by 5,150 tonnes through equipment upgrades[131] - Total carbon dioxide emissions were 570,937 tonnes, with an emission intensity of 28.9 tCO2e per million RMB of output value[133] - Solar photovoltaic power generation project in Shanghai factory generated 1,450,000 kWh, reducing carbon dioxide emissions by approximately 1,160 tonnes[134][135] - Total non-hazardous waste amounted to 33,900 tonnes, with effective recycling and disposal measures in place[136] - Total energy consumption was 1,833,691 MWh, with electricity accounting for 357,413 MWh, natural gas for 1,121,059 MWh, and steam for 355,219 MWh[144] - Energy intensity was 92.97 MWh per million RMB of output value[144] - Saved electricity 42,000 kWh and 1,800,000 kWh through energy-saving measures in packaging materials factories and air compressors/water chillers respectively[145] - Saved 29,000 tonnes of steam annually through energy-saving renovations in confectionery and rice cracker plants[145] - Saved 700,000 m³ of natural gas annually through energy-saving renovations of rice cracker machines[145] - Reduced water consumption by 340,000 tonnes during the reporting period[149] - Total production output was 1,590,000 tonnes with packaging material usage of 222,000 tonnes, a 4% year-on-year decrease in packaging material usage per unit produced[150] - The Group prioritizes FSC-certified Tetra Pak packaging materials from renewable forests[150] - Water intensity decreased to 475.6 tonnes per million RMB of output value[148] - The Group promotes green procurement by collaborating with suppliers equipped with solvent recyclers and optimizing VOCs treatment[151] Corporate Social Responsibility and Employee Welfare - The Group has 45,100 serving employees, with 55% female and 45% male, and an average of 34 training hours per employee[65] - The Group obtained a total of 115 certificates for quality and food safety management systems, including ISO22000, ISO9001, HACCP, and BRC[67][70] - The company carried out 284 special occupational health training sessions for employees exposed to occupational hazards in 2018[99] - The company provides employees with suitable protective equipment and conducts regular occupational health checkups for those exposed to occupational hazards[99] - The company's remuneration system is systematically designed and adjusted based on actual conditions, following principles of fairness and sustainable development[101] - The company conducted 284 specialized occupational health training sessions in 2018 to inform employees exposed to occupational hazards[103] - The company implemented a dual-track promotion system, offering separate channels for management and non-management roles (sales/technicians)[114] - Employees receive 2-5 additional days of annual leave based on their rank, in addition to statutory leave[105] - The company provides various employee benefits including festival welfare, wedding gifts, funeral consolation money, and commercial insurance[106] - The company strictly prohibits employment discrimination based on age, gender, nationality, race, and religion, and enforces a no-child-labor policy[111] - The company follows the WSSM (Want Want Standard Safety Management) system and conducts quarterly safety-themed activities to enhance workplace safety[103] - The company has established a comprehensive attendance management system, ensuring legal compliance with overtime payments and compensatory time off[107] - The company emphasizes lifelong learning and provides annual training programs for all employees to support their career development[113] - The company has set up a performance assessment system to assist employees in achieving promotion goals through relevant training[116] - The company adheres to the Labor Law of the People's Republic of China, ensuring fair and legal termination of employment contracts[112] - The company has 644 internal trainers as of 31 March 2019, with an average of 34 training hours per employee[118] - The company established a whistle-blowing mechanism with a hotline and mailbox to report corruption and fraud, offering rewards for real-name whistle-blowing[120] - The company conducted special audits in high-risk areas for corruption and fraud, promoting anti-corruption through videos, articles, and case studies[119] - The company implemented a "zero tolerance" policy towards violations of work and business ethics[119] - The Want Foundation, established in 1997, conducts nationwide charitable activities with 18 branches across China[157] Marketing and Branding - E-commerce sales grew by 25% year-over-year, contributing $1.1 billion to total revenue[1] - The company won two bronze awards in the 9th Golden Mouse Digital Marketing Contest[47] - The company was listed in the "Taiwan's Top 20 International Brands" for the 10th consecutive year with a brand value of US$897 million[52][53] - The "Hot-Kid seasoning" announcement received over 200 million impressions[183][187] - The "A Bite to be Cute" event on TikTok attracted over 150,000 impressions and total online promotion impressions exceeded 5 million[184][188