Want Want China (00151) reported audited results for the year ended 31 March 2026, showing modest topline growth offset by margin pressure and higher expenses.

Revenue and Profitability • Group revenue rose 3.8% year-on-year to RMB 24.40 billion, while sales volumes increased by the high-single-digit range. • Gross profit edged up 1.0% to RMB 11.30 billion; however, the gross margin contracted 1.3 ppt to 46.3%, reflecting higher prices for imported whole milk powder and palm oil. • Operating profit declined 14.0% to RMB 5.02 billion; the operating margin slid 4.2 ppt to 20.6%. • Profit attributable to equity holders fell 11.5% to RMB 3.84 billion, with the net margin narrowing to 15.7% (-2.7 ppt). • Basic EPS decreased to RMB 32.51 cents from RMB 36.71 cents.

Segment Performance • Dairy Products & Beverages: Revenue up 1.9% to RMB 12.34 billion (51% of total). Gross margin decreased 2.6 ppt to 47.1% amid a mid-teen rise in milk-powder costs. • Rice Crackers: Revenue rose 0.6% to RMB 5.94 billion; gross margin improved 1.0 ppt to 45.1% on stronger gift-pack pricing. • Snack Foods: Revenue grew 10.4% to RMB 5.92 billion, the fastest-growing segment, supported by candy and biscuit strength; gross margin gained 1.3 ppt to 45.8%. • Other Products: Revenue climbed 48.6% to RMB 0.21 billion.

Cost Structure and Expenses • Cost of sales increased 6.3% to RMB 13.10 billion, driven by higher dairy and palm-oil prices. • Distribution expenses rose 16.9% to RMB 3.54 billion, lifting the ratio to revenue to 14.5% (+1.6 ppt), mainly due to elevated marketing and logistics spend. • Administrative expenses expanded 11.4% to RMB 3.35 billion (13.7% of revenue, +0.9 ppt) following organisational restructuring and headcount growth.

Cash Flow and Balance Sheet • Operating cash inflow reached RMB 4.53 billion; capex nearly doubled to RMB 1.20 billion, focused on new production bases and plant upgrades. • Cash, bank and long-term deposits totalled RMB 15.86 billion, while borrowings fell to RMB 2.66 billion, resulting in net cash of RMB 13.20 billion and a net gearing of ‑0.66 times. • Inventory days improved slightly to 73 (-1 day); trade receivable days held at 14; trade payable days lengthened to 30 (+2 days).

Dividend The Board proposed a final dividend of US 1.38 cents per share (approximately RMB 1.15 billion), down from US 2.04 cents a year earlier, citing the need to preserve cash for future capex and potential overseas investments. Subject to approval at the AGM on 25 August 2026, payment is scheduled for 17 September 2026.

Outlook and Strategy Management will continue to drive multi-product, multi-channel growth with emphasis on specialty snack retail, e-commerce and overseas expansion. Ongoing focus areas include product innovation around health and functionality, channel refinement, and operational efficiencies to protect margins against raw-material volatility.