(Yicai Global) July 11 -- Taiwanese food manufacturer Want-Want Holdings Ltd.'s [HKG:0151] market value has plunged 60 percent over the past two years, despite four share buy-backs, as sales decline.
The Taipei-based company's market cap has dropped more than HKD100 billion (USD12.9 billion). The share buy-backs totaled over HKD120 million.
Want-Want blames poor sales on a downturn in China's overall market which is being affected by the recent change in Chinese demographics. Want-Want's products mainly target children, yet China's birth rate has been shrinking over the last ten years with less than 150 million newborns born annually since 2006.
This is the first time that the company has recorded a fall in performance for two consecutive years since it entered the Chinese market in 1994 and is not a good omen for the prospects of Chinese children's brands.
Many other brands associated with children and infants are suffering serious losses. Yashily, a brand that produces and sells infant formula milk powder, has predicted that its profits will shrink by about 85 percent from 2015 to June 2016. Other companies, such as toy makers, are also facing a drop in domestic sales.