want want china buys planes from ceo holding company, says it expects management to "frequently travel overseas"
2024-09-03
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according to red star capital bureau on september 3, want want china (00151.hk) issued an announcement on september 1 that on august 31, a subsidiary of the company entered into an aircraft purchase agreement with the seller. the aircraft model is an airbus a318-112 business jet, and the price is about us$19.4 million, equivalent to rmb 138 million.
screenshot from want want china announcement
want want china said that the reason for purchasing the aircraft was that “the management needs to travel back and forth from time to time to supervise the domestic operations.” it also mentioned overseas business and said, “it is expected that the management of the group will need to travel back and forth to different overseas regions more frequently.”
the red star capital bureau noted that want want china's performance in the past two years has not been as good as in 2021. going overseas has been one of want want china's growth points in the past two years. at the same time, want want china is constantly launching new categories and sub-brands, and recently opened the first offline physical store of "bond coffee".
spend hundreds of millions of dollars to buy an airplane
“management will travel more frequently to different overseas locations”
the announcement shows that the seller is a contact of tsai eng-meng, chairman and ceo, executive director and ultimate controlling shareholder of want want china - a company whose main business is fixed asset investment and holding, and tsai eng-meng is the controlling shareholder of the company.
want want china said that the group has 420 business offices and 34 production bases widely distributed in china, and the management needs to travel back and forth in china from time to time to supervise the domestic operations.
at the same time, the group's overseas revenue achieved mid- to high-double-digit growth, with significant growth in revenue in asia, america and oceania during the period. as the group continues to advance its overseas market development, it is expected that the group's management will need to travel more frequently to different overseas regions.
on september 2, red star capital interviewed want want china, asking questions such as "why did you purchase the aircraft at this time?", "has the aircraft been used for management travel before?" and "current overseas operations and plans and expectations for future overseas operations". as of press time, the other party has not responded.
red star capital bureau noticed that want want china's overseas business is accelerating, and the purchase of aircraft reflects this. it is understood that in 2022, want want china's new factory in tien giang province, vietnam, began production, which is regarded by want want as the first step in its "world dream". in fiscal year 2022, want want china's overseas business achieved double-digit growth. in fiscal year 2023, want want china stated that its overseas market revenue maintained double-digit growth, with significant revenue growth in asia, america and oceania.
buying airplanes is more like an additional investment by want want china in its search for overseas opportunities, and going overseas is also want want china's hope for new growth.
performance levels in the past two years have not been as good as in 2021
in addition to going overseas, want want is also exploring diversification
in the past two years, china want want's performance has been lower than that in fiscal year 2021.
in the 2022 fiscal year (april 1, 2022 to march 31, 2023), want want china's revenue and net profit attributable to shareholders both declined.
in fiscal year 2023, want want china's performance has recovered, with revenue and net profit attributable to shareholders increasing year-on-year. revenue increased by 2.9% year-on-year to 23.586 billion yuan; net profit attributable to shareholders was 3.99 billion yuan, up 18.4% year-on-year. however, this performance level is still lower than the revenue and net profit attributable to shareholders in 2021.
image from want want china's 2023 annual report
specifically speaking of categories, among the three major businesses of want want china, only the rice cracker business revenue continued to grow from fiscal year 2021 to fiscal year 2023. the contribution of overseas markets is indispensable to the growth in fiscal year 2023. want want china said that the rice cracker category benefited from the continued growth of overseas markets and emerging channels, and its overall revenue grew by 2.3%. according to financial report data, overseas markets accounted for about 20% of the revenue of the rice cracker category in fiscal year 2023.
the growth trend of want want china's other two businesses is fluctuating. revenue from dairy products and beverages fell 13.5% year-on-year to 11.1305 billion yuan in fiscal 2022. although it resumed growth in fiscal 2023, revenue was still lower than the level in 2021. revenue from snack foods (including candy, ice cream, steamed buns, etc.) declined in fiscal 2023, with revenue of 5.502 billion yuan, a year-on-year decline of 5.5%.
the red star capital bureau noted that many of the flagship products in these two businesses have a history of more than 20 years. for example, wangzai qq candy was launched in 2002, while langweixian and jelly were launched earlier.
in the past two years, while china want want has accelerated its overseas expansion, it has also been trying to diversify. it has launched the ready-to-drink coffee brand bond coffee, the spicy brand mr. hot, the complementary rice cake brand babymama, etc., but its performance is not as good as its traditional products.
not long ago, want want china also launched a new juice product called "a fruit forest" and opened the first offline physical store of "bond coffee" in caohejing, shanghai, focusing on freshly brewed coffee and baked goods.
red star news reporter zhang luxi
editor: deng lingyao
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