Changjiang Business Daily news ●Changjiang Business Daily reporter Jiang Chuya Trainee reporter Xu Yang has benefited from years of persistence in diversified business strategies, and China Want Want's performance has hit new highs. On June 28, China Want Want (0151.HK) released

Yangtze Business Daily news ●Changjiang Business Daily reporter Jiang Chuya Trainee reporter Xu Yang

Thanks to its persistence in diversified business strategies over the years, China Want Want's performance has hit new highs.

On June 28, China Want Want (0151.HK) released its financial report for fiscal year 2021 (April 1, 2021 - March 31, 2022), which showed that the company achieved operating income of 23.985 billion yuan (RMB, the same below), a year-on-year increase 9%, and the net profit attributable to the parent company was 4.203 billion yuan, a year-on-year increase of 1.08%.

China Want Want's main products are rice crackers, dairy products and beverages, and snack foods. In fiscal year 2021, despite the impact of the epidemic and rising raw material costs, the company's core product Wangzai milk, main rice cracker brand, candy and other product categories have achieved high revenue.

A reporter from Changjiang Business Daily noticed that the diversified development of emerging channels is an important driving force for the performance growth of China wangwang. The financial report shows that from 2016 to 2021, the CAGR (compound annual growth rate) of its emerging channel revenue exceeded 40%. In 2021, the revenue from emerging channels accounted for nearly double digits, and nearly 40% of the revenue from emerging channels came from new products.

continues to implement diversification and achieves new highs.

According to the 2021 fiscal year financial report released by China Want Want, its performance increased by 9.0% year-on-year to approximately 23.985 billion, setting a new high since listing. The net profit attributable to the parent company was 4.203 billion yuan, a year-on-year increase of 1.08%. , basic earnings per share was 0.35 yuan. Although the second half of 2021 was affected by the epidemic, overall revenue still maintained high single-digit growth.

In terms of main product income, the dairy and beverage business is China Want Want’s main source of income. In fiscal year 2021, the company's revenue from rice crackers, dairy products and beverages, and snack foods were 5.592 billion yuan, 12.873 billion yuan, and 5.397 billion yuan respectively, accounting for 23.32%, 53.67%, and 22.5% of the revenue respectively. Dairy products and beverages and snack food categories both experienced growth, at 16.9% and 1.6% year-on-year respectively.

The company stated that the accelerated growth of the group's performance was mainly due to China Want Want's business strategy of diversified development over the years.

In fiscal year 2021, Want Want China maintained healthy operating capabilities driven by the steady growth of traditional channels, driven by emerging channels and the addition of new products.

’s financial report shows that in fiscal year 2021, wholesale channel performance achieved high single-digit growth, mainly due to the improvement of supply chain efficiency and the replenishment of terminal outlets. The performance of emerging channels has maintained rapid growth, accounting for nearly double digits in the group. Nearly 40% of the revenue from emerging channels comes from new products. From 2016 to 2021, its emerging channel revenue CAGR exceeded 40%.

The dual pressure of epidemic costs has developed steadily

The financial report shows that China Want Want’s gross profit reached 10.7474 billion yuan, an increase of 1.3% from the same period last year; the gross profit margin was 44.8%, a decrease of 3.4 percentage points from the same period last year. Mainly affected by the increase in the use cost of some bulk raw materials compared with the same period last year. For example, the cost unit price YOY of palm oil changed by more than 60%. China Want Want's cost of goods sold in fiscal year 2021 was 13.2375 billion yuan, an increase of 16.2% compared with the same period last year.

Due to the sharp increase in raw material prices, the gross profit margin has declined. China Want Want's operating profit for fiscal year 2021 fell by 4.9% compared with the same period last year, reaching 5.4568 billion yuan, with an operating profit margin of 22.8%.

Under the pressure of the general environment, China Want Want has alleviated the pressure by continuously optimizing the product structure, launching new featured products, lean production management and other diversified methods. The company's Wangzai milk, candy, and rice cracker brands all achieved new highs in revenue.

In fiscal year 2021, China Want Want's overseas business was affected by the global epidemic and supply chain pressure, and its revenue declined year-on-year. However, according to the financial report, its revenue in the second half of the year achieved mid-to-high single-digit growth, which was an improvement from the first half of the year.

In addition, China Want Want has begun to expand overseas markets in Southeast Asia. Vietnam factory is expected to be officially put into production in mid-2022. Currently, China Want Want has spread to 63 countries in Asia, Africa, North America , South America, Oceania , and Europe. and region.