Want Want China Stocks Profit Warning: Q1 Profit Down 38% YoY

Want Want China (00151) announced on July 26 that its profit attributable to equity holders for the three months ending June 30 is expected to decline approximately 38% year-on-year. Revenue for the quarter is projected to decrease about 6% compared to the same period last year due to weakened market sentiment. The profit decline resulted from falling revenue combined with rising operating expenses during the period.

Want Want Reports Double-Digit Decline in Traditional Wholesale Channel

Want Want stated that starting from the 2026 fiscal year, the traditional wholesale channel — which accounts for over half of total revenue — has been negatively affected by slower terminal sales momentum. Distributors faced operational challenges that created pressure on some key products. Revenue from the traditional wholesale channel for the three months ending June 30 declined by double digits year-on-year.

Operating expenses continued to climb year-on-year with increases reaching high single digits. The rise stemmed from the establishment of business divisions for different product categories, which led to increased marketing investments for new channels and new products, as well as higher personnel costs.

Company Announces Organizational Optimization and Dealer Support Measures

Want Want stated it will continue to optimize its internal organization and implement measures to control operating expense effectiveness. The company will differentiate products sold through different sales channels and provide distributors with higher-margin new products accompanied by supporting measures to help distributors develop markets.

The company will optimize its distributor incentive policies to encourage distributors and enhance their willingness to sell the group's products, thereby strengthening sustainable growth momentum.

FAQ

What caused Want Want China's profit decline in Q1? Want Want China's profit attributable to equity holders for the three months ending June 30 declined approximately 38% year-on-year due to weakened market sentiment that caused revenue to fall about 6%, combined with rising operating expenses that increased at a high single-digit rate.

How did Want Want's traditional wholesale channel perform in Q1? Want Want's traditional wholesale channel, which accounts for over half of total revenue, experienced a double-digit year-on-year revenue decline for the three months ending June 30, negatively affected by slower terminal sales momentum and operational challenges faced by distributors.