Want Want China Holdings Ltd.

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Company Background

Want Want China Holdings is a Taiwanese confectionery company headquartered in Shanghai, China. It offers a wide array of products ranging from snack foods such as gummies to baby milk powder and other dairy products. It holds an about 80% share of the rice cracker market, taking advantage of technical assistance provided by the Japanese company Iwatsuka Confectionery. Want Want China was listed on the Hong Kong Stock Exchange in 2008.

The predecessor of Want Want China was a Taiwan-based food manufacturing factory opened in 1962 by the father of Tsai Eng-meng, Want Want China's current chairman. At the age of 19, Tsai succeeded his father in the business. When he was 24, he visited Japan to meet Iwatsuka's founder Keisaku Maki to ask for technical assistance. Want Want China started growing dramatically from 1983, when Maki agreed to provide technical support.

Rice crackers are the company's core business. Technical staff sent by Iwatsuka guide employees on how to select materials and manage facilities. Implementation of strict quality control has helped the company gain customer confidence in China, where food safety problems have often occurred.

Want Want China has more than 100 factories and over 300 sales offices throughout China. With a sales force of more than 10,000, the company has extended its marketing reach deeply into the country's interior, including the Xinjiang Uighur Autonomous Region and Qinghai Province. It generates 80% of its total sales from regional small enterprises, such as privately owned shops.

The company is working to strengthen its dairy products division as a way to diversify its operations further. As such, it has tied up with the Japanese company Morinaga Milk Industry. While the Chinese market makes up approximately 80% of its rice cracker sales, the company will have to focus more other markets for growth.

Business Summary

Want Want China Holdings Ltd. is an investment holding company, which engages in the manufacture, distribution & sale of food and beverages. It operates through the following segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. The Rice Crackers segment manufactures sugar coated crackers, savory crackers, and fried crackers. The Dairy Products and Beverages segment includes flavored milk, yogurt drinks, ready-to-drink coffee, carbonated drinks, herbal tea, and milk powder. The Snack Foods segment comprises of candies, popsicles and jellies, ball cakes, beans, and nuts. The Other Products segment consists of mainly wine and other food products. The company was founded on October 3, 2007 and is headquartered in Shanghai, China.

Financial Highlights

Mar 2022	HKD	USD
Revenue	29,094.66M	3,737.52M
Gross Profit	12,654.17M	1,625.56M
Operating income	5,918.97M	760.35M
Income before tax	6,958.75M	893.92M
Net income	5,097.99M	654.89M
EBITDA	7,061.10M	907.07M
Diluted EPS	0.42	0.05
Dividends Per Share	0.22	0.02
Total Assets	36,863.64M	4,707.15M
Total liabilities	16,234.43M	2,072.99M
Total equity	20,536.38M	2,622.31M
Operating cash flow	4,856.27M	623.84M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Revenue	23,890.39M	24,201.23M	22,545.59M	25,154.70M	29,094.66M
Gross Profit	10,293.14M	10,647.54M	10,468.42M	11,743.35M	12,654.17M
Operating income	4,188.53M	4,766.01M	4,914.27M	5,862.01M	5,918.97M
Income before tax	5,067.77M	5,622.36M	5,668.38M	6,857.39M	6,958.75M
Net income	3,671.49M	4,062.27M	4,094.33M	4,754.36M	5,097.99M
EBITDA	5,231.53M	5,730.21M	5,929.03M	6,937.42M	7,061.10M
Diluted EPS	0.29	0.32	0.32	0.38	0.42
Dividends Per Share	0.14	0.23	0.23	0.16	0.22
Total Assets	33,284.64M	34,896.66M	32,590.90M	37,055.26M	36,863.64M
Total liabilities	15,058.93M	16,837.84M	15,812.76M	19,298.40M	16,234.43M
Total equity	18,072.65M	17,944.88M	16,689.04M	17,670.68M	20,536.38M
Operating cash flow	6,265.04M	5,086.58M	5,436.35M	6,201.75M	4,856.27M

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Revenue	3,059.21M	3,086.06M	2,884.31M	3,244.63M	3,737.52M
Gross Profit	1,318.05M	1,357.74M	1,339.24M	1,514.74M	1,625.56M
Operating income	536.35M	607.74M	628.69M	756.12M	760.35M
Income before tax	648.93M	716.94M	725.17M	884.51M	893.92M
Net income	470.14M	518.00M	523.79M	613.25M	654.89M
EBITDA	669.90M	730.70M	758.51M	894.83M	907.07M
Diluted EPS	0.03	0.04	0.04	0.04	0.05
Dividends Per Share	0.01	0.02	0.03	0.02	0.02
Total Assets	4,241.01M	4,445.46M	4,204.78M	4,766.28M	4,707.15M
Total liabilities	1,918.75M	2,144.96M	2,040.12M	2,482.28M	2,072.99M
Total equity	2,302.75M	2,285.98M	2,153.17M	2,272.91M	2,622.31M
Operating cash flow	802.25M	648.62M	695.48M	799.94M	623.84M

Valuation Measures

Mar 2022
PER	16.97
ROA	13.79%
ROE	26.68%
Operating margin	20.34%
Profit margin	17.52%

Key executives

Chairman & Chief Executive Officer: Eng-Meng Tsai
COO, Executive Director, VP-Dairy & Beverages: Wang Chia Tsai
Chief Financial Officer & Executive Director: Chi Wen Chu
Managing Director-Research & Development Center: Chun-Chiang Chen
Managing Director-Information Technology Center: Hung-Hsing Ting

Shareholders

TSAI ENG MENG (53.1%)
Iwatsuka Confectionery Co., Ltd. (5.1%)
CHENG WEN HSIEN (3.8%)
The Vanguard Group, Inc. (0.9%)
BlackRock Fund Advisors (0.9%)
TSAI SHAO CHUNG (0.8%)
TSAI WANG CHIA (0.8%)
TAI WANG JUNG (0.8%)
Burgundy Asset Management Ltd. (0.7%)
Allspring Global Investments LLC (0.6%)

Contact Details

Website:http://www.want-want.com
Address: FTLife Tower, Kowloon Bay, No. 18 Sheung Yuet Road, Kowloon, Hong Kong

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Last Updated on 17 Aug, 2022