Shares of WANT WANT CHINA (00151) have extended their decline, falling nearly 10% in recent trading. At the time of writing, the stock was down 8.85% to HK$3.09, with a turnover of HK$78.09 million.

The movement follows the company's release of its annual results for the period ending in March. Total revenue reached RMB 24.401 billion, marking a year-on-year increase of 3.8%. However, net profit attributable to shareholders fell by 11.5% to RMB 3.837 billion.

The pressure on profitability stemmed primarily from rising costs and operating expenses. On the cost side, the unit consumption costs for imported whole milk powder and palm oil saw mid-double-digit and low-double-digit percentage increases, respectively. Meanwhile, overall operating expenses climbed by 14.2% year-on-year.

Analysts have noted that the company's revenue for the 2026 fiscal year faces headwinds, though profit margins may remain largely stable. In the context of weak consumer demand, revenue for the first fiscal quarter and the full 2026 fiscal year is expected to be under pressure.

On the profitability front, the company has reportedly locked in the cost price for bulk milk powder for the next six to nine months. It is anticipated that a potential decline in bulk powder prices could lead to an improvement in the company's gross profit margin in the first half of fiscal 2026. The impact of rising PET costs is expected to be limited. Combined with efforts to improve expense efficiency and workforce productivity, the company's profit margin for the 2026 fiscal year is projected to remain broadly steady.