Want Want China (00151.HK): Issues Profit Warning; Q1 Revenue Down ~6%, Shareholders' Profit Down ~38%
NewTimeSpace News: Want Want China Holdings Limited (stock code: 0151) issued a profit warning announcement on July 26.
According to the announcement, based on currently available information, including the Group's unaudited consolidated management accounts for the three months ended June 30, 2026, the Group expects that (i) revenue for the three months ended June 30, 2026 decreased by approximately 6% compared to the same period in the previous financial year, mainly due to weakening market sentiment; and (ii) profit attributable to equity holders of the company for the three months ended June 30, 2026 decreased by approximately 38% compared to the same period in the previous financial year, mainly due to declining revenue but rising operating expenses. If these trends continue without significant changes, the company expects that its interim results for the six months ended September 30, 2026 will be negatively affected.
The announcement stated that continuing the trends mentioned in the company's 2025/2026 annual report, since the beginning of the 2026 financial year (April 1, 2026), the traditional wholesale channel, which accounts for more than half of the Group's total revenue, has been negatively affected by slowing terminal sales pace. Distributors have encountered operational challenges, creating pressure on some of the Group's main products. Therefore, revenue from the traditional wholesale channel for the three months ended June 30, 2026 declined by double digits compared to the same period in the previous financial year. Additionally, after establishing business divisions for each product category, increased investment in new channels and new products drove up marketing expenses and personnel costs, causing operating expenses for the three months ended June 30, 2026 to continue rising compared to the same period in the previous financial year, with an increase reaching high single digits.
The announcement disclosed that the Group will continue to optimize internal organization and adopt operating expense effectiveness control measures. At the same time, the Group will (i) streamline and differentiate products sold through different sales channels; (ii) provide distributors with new products carrying higher profit margins, and cooperate with relevant supporting measures to assist distributors in developing markets; and (iii) optimize distributor incentive policies to encourage distributors and enhance their willingness to sell the Group's products, thereby strengthening sustainable growth momentum.
The announcement cautioned that the information contained in this announcement represents the Board's preliminary assessment based solely on currently available information. The information has not been reviewed or audited by the Group's external auditors. The Group's actual results for the six months ended September 30, 2026 may differ from the information disclosed in this announcement.
NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.
