WANT WANT CHINA(00151)2022-12-15 09:13Financial 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 US249.9 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 US81,166,070, 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]