WANT WANT CHINA(00151)2024-12-12 08:30Revenue 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].