Monday, October 2, 2023
Martin Hennecke
HKEx Stock Code : 00151 
Corporate Profile
Principally engaged in the manufacturing, distribution and sales of food and beverages.

Business Review - For the year ended December 31, 2012

Rice crackers

Revenue of rice crackers for 2012 amounted to US$812.1 million. As the revenue of rice crackers recorded during lunar new year represents a significant portion of our annual sales, the dates on which lunar new year falls have a significant impact on the annual sales of rice crackers of the Group. Since the number of days for recording lunar new year sales in 2012 was shorter than that of 2011 and 2013, revenue of rice crackers recorded in 2012 for this festive season was smaller than that of 2011. In particular, revenue from our gift pack decreased from US$232.8 million in 2011 to US$217.6 million in 2012 but we expect the seasonality effect of our lunar new year sales to return to normal in 2013. The overall performance of our rice crackers was also affected in part by the suspension of our sale of subbrand rice cracker products in the first half of 2012 due to profit consideration. However, revenue of our core brand, ˇ§Want Wantˇ¨ rice crackers, recorded a growth of 4.0% from 2011 to US$577.8 million. In the future, our Group will introduce different flavoured rice crackers and invest in shopping guides and displays at points-of-sales to drive rice cracker products consumption.

Dairy products and beverages

Revenue of dairy products and beverages grew by 22.6% from US$1,393.6 million in 2011 to US$1,708.6 million in 2012 which was driven mainly by the steady growth in the sales of ˇ§Hot-Kid milkˇ¨ and the realization of the associated price increase strategy. Despite the overall market slowdown in 2012, revenue of ˇ§Hot-Kid milkˇ¨ increased by 23.3% over the previous year to US$1,529.0 million in 2012 due to its firmly established reputation. Besides, revenue of other beverages, which accounted for 7.7% of the revenue of dairy products and beverages, increased by 37.2% over the previous year. In particular, the revenue of yogurt drinks and ˇ§O Bubble fruit milkˇ¨ increased by 43.4% and 27.0% respectively over the previous year. The Group will continue to launch specific products with high margin and continue to leverage on our established brands and channels towards the sustainable revenue growth of our dairy products and beverages.

Snack foods

Revenue of snack foods increased by 14.8% from US$723.0 million in 2011 to US$829.8 million in 2012, primarily due to our effective marketing strategy and well management of points-of-sales. All our main snack food products recorded a remarkable growth where revenue of popsicles and jellies, ball cakes as well as beans and others increased by 16.8%, 17.2% and 22.6%, respectively, over the previous year. The Group will organize various marketing activities in the future and work towards more impressive display at points-of-sales to highlight and present our snack foods products in an eye-catching manner and draw consumers' attention so as to drive revenue growth.

Business Outlook - For the year ended December 31, 2012

2012 marks the 30th anniversary of the founding of Want Want and the 20th anniversary of our entry into mainland China. We cherished our current results that has not come easily and we are confident in our future and our spirit is high.

The slowdown in the Chinese economy and overall retail industry in 2012 have further reinforced our dedication in implementing our marketing initiatives in recent years. The visibility of our great variety of Want Want products is greatly enhanced when our Want Want products appear in thousands of pointsof- sales by way of standardized shelf spaces and displays customized based on product features. At the same time, the determination of our distributors and retail partners in carrying our products in the long run is fortified. All of the above is critical to the medium and long term development of our Want Want brand and products. In the future, we will continue to invest in shopping guides and other resources at our points-of-sales to help consumers to find and readily add their favorite Want Want products to their shopping carts.

Further, in view of rising labour costs in mainland China, we have launched a series of production automation program, which included upgrading selected equipment, optimizing production process and concentrating certain of our production lines in our new highly automated facility. Through our efforts and commitment to continuous improvement, we hope to ensure stability in our product quality and also for our products to achieve the highest competitiveness.

To ensure our products with Chinese characteristics attract market attention, we will continue to optimize our business organizational structure according to market needs, which include dividing the current business group into product divisions in order to assign staff dedicated to groom products with lower visibility. We will also increase the number of regional product managers in our sales division who will work closely with the central product managers to ensure customer satisfaction and effective use of channel resources to meet our intensive market development objective.

Although we have been thriving in the China market for 20 years, we still have to be creative and flexible at all times to cope with the changing market. We believe the competition for ˇ§peopleˇ¨ is our major competition in the future, which includes gaining the recognition of our Company from our customers, suppliers and employees. Therefore, we will continue to provide value-added services to our distributors and retailers, establish long-term strategic partnership with our major suppliers and find means to improve employees' loyalty. We firmly believe that the future of our Group will be a wonderland filled with hopes and boundless possibilities, if all of our Want Want people can cooperate wholeheartedly and seamlessly.

Source: Want Want China (00151) Annual Results Announcement
Chairman TSAI Eng-Meng Issued Capital (shares) 13,224M
Par Value USD 0.02 Market Capitalisation (HKD) 136,998M
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