• With over 100 varieties of snack foods and

confectionery products, Oishi is now one of the

leading national brands in the industry.
• Liwayway Group is headed by Carlos Chan, an
entrepreneur who has drawn inspiration from the
small entrepreneurs across Asia who do
business aggressively as they seek their own
fortunes. Sharing in this spirit, Liwayway prides
itself as an Asian company.
• Liwayway is determined to build on its success
and continue its steady growth to become a more
mature and professional organization, while
retaining its daring and sense of adventure.
 History
Oishi, started in 1946 as Liwayway, was originally a family-owned corn
starch (gawgaw) and coffee repacking business. The name of the
business, "Liwayway, in Tagalog " meaning "dawn" , was selected to
reflect the optimism of the Philippines following the aftermath of WORLD
WAR II.
• By 1966, in addition to distributing starch, the company also was
distributing basic commodities, coffee, and confectioneries. It was
incorporated as the Liwayway Marketing Corporation (LMC) in 1966.
• Brothers Carlos and Manuel Chan, at the time, were behind the
company. The parents of the Chan brothers are immigrants to the
Philippines from Fugian Province, China.
• The company began distributing Oishi Prawn Crackers and Kirei Yummy
Flakes in 1974. The company claims to have used technology from
Japan to make the products.
• In the 1970s, under the leadership of
Manuel Chan, LMC quietly entered the
nascent snack food industry and
introduced its first product, Oishi Prawn
Crackers.
• In 1993, he opened the first of many companies that form what is now
Liwayway Investment (International) Company Limted (LIICL), the
holding company for Liwayway's operations in China.
• Today, LIICL factories are also established in strategic areas outside
Shanghai, such as Harbin, Hubei, Tianjin, Hebei, Zhengzhou, Suzhou,
Xuzhou, Kunming, Jiangxi, Shandong and Xinjiang. The introduction of
new products and expansion of sales distribution in urban and inner
cities continue to pave for accelerated growth for Oishi business.
 Shanghai Famous Brand. In 1996 the Shanghai Bureau of
Industry and Commerce created the Shanghai Famous
Brand. More than ten governmental (e.g. Hygiene Bureau,
and Bureau of Industry and Commerce) and non-
governmental (e.g. Food Industry Association, and Consumer
Protection Association) agencies will judge whether a brand
is worthy of this award. The criteria are:
 to be a name brand;
 to be one of the top five in the industry;
 to have earned consumer trust; and
 to have quality and production techniques that adhere to
country standards.
• In 2001, Oishi was recognized as a Shanghai Famous Brand.
• Magnolia Gold Award. Established in 1997, the Magnolia Gold Award
is one of the highest honors given to expatriates by the City of
Shanghai. Recipients are business leaders, philanthropists, and
scientists who have made significant contributions to society.
• In 1998, Carlos Chan was conferred this award.
• In 2005, Carlos Chan was also awarded Honorary Citizen of Shanghai.
 Network and Distribution
• We value our relationship with our sales and marketing team, which links
us to our customers and store partners. With over 2,600 marketing staff
across China, Oishi can sustain a direct and personal connection with the
market.
• Our products are sold in the capitals and smaller townships of China.
From Shanghai to Xinjiang, we work hand in hand with our dealers to bring
our products to their regions. Our distributors range from small family
businesses to large enterprises.
• Our manufacturing presence and market coverage around China is
bolstered by our sales offices in strategic locations such as Beijing, Tianjin,
Shenyang, Changchun, Jinan, Qingdao, Hefei, Xi’an, Chengdu,
Chongqing, Guiyang and Guangzhou. Our network supports over 700
dealers nationwide.
• We started our network distribution in Shanghai and key provincial cities.
Soon after, we were able to build strong partnerships with both national
and regional retailers.
Quality Assurance
To ensure the safety and hygiene of our products, Liwayway factories
are being managed using the standards of ISO and HACCP (Hazards
Analysis and Critical Control Point). The majority of our factories are
ISO certified, or are undergoing the process of certification.
Continuous improvement is always our goal. Quality assurance of our
products is guided by the model of a process-based quality
management system. The principle of a Good Chef is expressed in
each process.
A Good Chef ensures:
• Clean equipment and good personal hygiene.
• Choice ingredients and appealing presentation.
• Good quality—a good chef is not wasteful.
• Cleanliness and safety in the working environment
A Good Chef prepares food that smells good, looks good, and tastes good.
Our goal is to make everyone a Good Chef—staff, machine operators,
quality assurance staff, supervisors, and managers.
 Research and Development
• China is a vast country with distinct regional differences in taste and
cuisine. Our R&D team carefully studies these unique markets. We
believe that knowledge and innovation add value to our products.
• China is also an international market. Many companies around the
world from various industries have come to China. We recognize that
to be able to build sustain a strong brand, we must continuously
endeavor to maintain international standards.
• Oishi has been recognized for its quality, good value, packaging
design, and product variety. The company has put a lot of resources
in acquiring new snack food technology and developing new flavors.
Each year, new Oishi products are introduced to the national China
market. The Oishi product range now includes savory snacks, natural
potato chips, juices and juice beverages, cocoa powder drink, cocoa
covered pies, cereal bars, milk-based soft cadies, hard candies,
marshmallows, ready-to-fry prawn chips, peanut-based products, wafers
and biscuits.
Mission and Vision
At Oishi, we aim to be the leading food company in the markets we
serve by cultivating the following ideals:

• Providing our consumers with the widest range of quality food

products at best value.
• Upholding and living by the creed of business integrity in all our
dealings.
• Developing and nurturing long-term relationships with our customers,
distributors, and suppliers.
• Maintaining an excellent work force by involving ourselves in the
development of our employee's skills and knowledge.
 Cuckoobird

• Oishi is a fun snack! Our mission is to

make our customers smile and have fun;
Cuckoobird is at the forefront of this
mission. Through our marketing activities,
Cuckoobird reaches out by visiting
schools, parks, and supermarkets,
dispensing humor and good cheer to
everyone.
 Expansion
Carlos Chan began prospecting on the expansion of Oishi to
China in 1984, following the liberalization of the Chinese
economy under Deng Xiaoping starting in 1978.
• The company's China division, established in 1993, is
headquartered in Qingpu District, Shanghai.
• To improve distribution in China, the company established a factory
network there. Oishi also established a presence in Vietnam in
1997 and in Myanmar in 1999.
• In 2006, factories were opened in Indonesia and Thailand.
• Interlink Direct Ltd. imports Oishi products from China to the United
Kingdom.
Reception
• In 1998, for his contributions to Shanghai, Carlos Chan received
a "Magnolia Gold Award".
• In 2005 the City of Shanghai made Carlos Chan an honorary
citizen. In 1996 Oishi was declared a “ Shanghai” famous
brand".
• In August 2013 Carlos Chan, with a project wealth of $500
million, was #25 on the month‘s Forbes Philippines Rich List.
• Russell Flannery of Forbes wrote that "Oishi’s spelling looks a
lot like the Japanese word for delicious, oishii."
Oishi Products
SNACKS
BEVERAGES
From its humble beginnings of “gawgaw” and
coffee 70 years ago, Liwayway Marketing
Corporation has taken on bigger and more
exciting adventures. In 1974, Oishi was brought
to life and has become the much celebrated
snack brand, with iconic products like Oishi Prawn
Crackers and Kirei. The adventure continued with
a dash of creativity and innovation from products
like Marty’s Cracklin’ Vegetarian Chicharon, to
surprise bursts of chocolate from Pillows. Today,
Oishi’s World of O, Wow! Continues to expand,
leaving trails of fun and flavorful treats across
Asia: China, Vietnam, Myanmar, Thailand,
Indonesia, Cambodia, and India.
 Oishi Group Public Company Limited
and its Subsidiaries Independent Auditor’s Report on Review of Interim Financial Information

To the Board of Directors of Oishi Group Public Company Limited

Interim financial statements I have reviewed the accompanying consolidated and separate statements of financial position of
Oishi Group Public Company Limited and its subsidiaries, and of Oishi Group Public Company Limited,

for the three-month and nine- respectively, as at 30 June 2018; the consolidated and separate statements of comprehensive income for the
three-month and nine-month periods ended 30 June 2018; the consolidated and separate statements of changes
in equity and cash flows for the nine-month period ended 30 June 2018; and condensed notes (“interim financial

month periods ended information”). Management is responsible for the preparation and presentation of this interim financial
information in accordance with Thai Accounting Standard 34, “Interim Financial Reporting”. My responsibility is
to express a conclusion on this interim financial information based on my review.

30 June 2018 Scope of Review

I conducted my review in accordance with Thai Standard on Review Engagements 2410, “Review of Interim
Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial

and
information consists of making inquiries, primarily of persons responsible for financial and accounting matters,
and applying analytical and other review procedures. A review is substantially less in scope than an audit
conducted in accordance with Thai Standards on Auditing and consequently does not enable me to obtain
assurance that I would become aware of all significant matters that might be identified in an audit. Accordingly,
I do not express an audit opinion.

Independent auditor’s report Conclusion

Based on my review, nothing has come to my attention that causes me to believe that the accompanying interim

on review of interim financial financial information is not prepared, in all material respects, in accordance with Thai Accounting Standard 34,
“Interim Financial Reporting”.

information
(Nittaya Chetchotiros)
Certified Public Accountant
Registration No. 4439

KPMG Phoomchai Audit Ltd.

Bangkok
10 August 2018
 Consolidated Separate
financial statements financial statements
30 June 30 September 30 June 30 September
Assets Note 2018 2017 2018 2017
(Unaudited) (Unaudited)
(in thousand Baht)
Current assets
Cash and cash equivalents 1,249,723 1,446,506 1,009,222 1,286,789
Trade accounts receivable 4, 5 1,217,347 709,389 154,689 116,357
Other receivables 4 86,845 80,394 108,578 109,045
Dividend receivable from subsidiary 4 - - - 419,999
Short-term loans to subsidiary 4 - - 490,000 1,287,000
Inventories 3 316,194 359,746 43,273 41,916
Other current assets 3, 4, 6 892,895 44,842 8,633 7,008
Total current assets 3,763,004 2,640,877 1,814,395 3,268,114

Non-current assets
Investments in subsidiaries 7 - - 1,597,492 693,280
Property, plant and equipment 3, 8 5,607,476 6,676,134 219,455 294,755
Intangible assets 35,996 36,572 15,965 15,991
Leasehold rights 36,295 40,797 24,244 26,096
Deferred tax assets 21,169 51,899 14,889 11,610
Other non-current assets 4 281,303 260,546 178,043 172,483
Total non-current assets 5,982,239 7,065,948 2,050,088 1,214,215

Total assets 9,745,243 9,706,825 3,864,483 4,482,329

 Consolidated Separate
financial statements financial statements
30 June 30 September 30 June 30 September
Liabilities and equity Note 2018 2017 2018 2017
(Unaudited) (Unaudited) Equity
(in thousand Baht) Share capital:
Current liabilities Authorised share capital 375,000 375,000 375,000 375,000
Trade accounts payable 4 815,154 977,087 222,105 296,136
Issued and paid-up share capital 375,000 375,000 375,000 375,000
Current portion of debentures 9 1,000,000 - 1,000,000 -
Share premium on ordinary shares 609,402 609,402 609,402 609,402
Payables for acquisition of assets 4 71,806 135,103 24,650 9,999
Retained earnings
Current portion of finance lease liabilities 9 - 12,969 - -
Appropriated to legal reserve 37,500 37,500 37,500 37,500
Other payables 4 865,922 821,992 270,640 298,017
Current tax payable 18,857 42,056 6,063 19,432 Unappropriated 4,631,344 4,393,710 249,402 772,760
Other current liabilities 55,630 41,108 20,311 18,375 Other components of equity
Total current liabilities 2,827,369 2,030,315 1,543,769 641,959 Currency translation differences (2,238) (1,870) - -
Revaluation surplus on land 164,736 164,736 - -
Non-current liabilities Equity attributable to owners of the parent 5,815,744 5,578,478 1,271,304 1,794,662
Debentures 9 1,000,000 2,000,000 1,000,000 2,000,000 Non-controlling interests 6,656 12,100 - -
Deferred tax liabilities 14,555 - - - Total equity 5,822,400 5,590,578 1,271,304 1,794,662
Non-current provisions for employee benefits 76,590 71,794 49,103 45,708
Other non-current liabilities 4 4,329 14,138 307 -
Total liabilities and equity 9,745,243 9,706,825 3,864,483 4,482,329
Total non-current liabilities 1,095,474 2,085,932 1,049,410 2,045,708
Total liabilities 3,922,843 4,116,247 2,593,179 2,687,667

Equity
Share capital:
Authorised share capital 375,000 375,000 375,000 375,000
Issued and paid-up share capital 375,000 375,000 375,000 375,000
Share premium on ordinary shares 609,402 609,402 609,402 609,402
Period Ending: 2018 2018 2017 2017
30/06 31/3 31/12 30/09

Period Length: 9 Months 6 Months 3 Months 12 Months

Net Income/Starting Line 832.39 540.02 296.39 1443.2

Cash From Operating Activities 754.45 513.98 102.9 2388.62
Depreciation/Depletion 659.28 453.56 237.65 1016.85
Amortization - - - -
Deferred Taxes - - - -
Non-Cash Items 4.54 -16.74 23.11 135.52
Cash Receipts - - - -
Cash Payments - - - -
Cash Taxes Paid 74.66 45.64 1.78 2.73
Cash Interest Paid 36.19 23.68 12.58 53.7
Changes in Working Capital -741.75 -462.87 -454.24 -206.95
Cash From Investing Activities -301.51 -251.35 -154.03 -499.92
Capital Expenditures -325.44 -262.92 -160.09 -516.32
Other Investing Cash Flow Items, Total 23.93 11.56 6.06 16.4
Cash From Financing Activities -649.16 -467.89 -19.07 -1035.68
Financing Cash Flow Items -36.19 -23.68 -12.58 -53.7
Total Cash Dividends Paid -600 -431.25 - -468.75
Issuance (Retirement) of Stock, Net - - - 9.47
Issuance (Retirement) of Debt, Net -12.97 -12.97 -6.48 -522.7
Foreign Exchange Effects -0.56 -0.17 1.43 -0.15
Net Change in Cash -196.78 -205.43 -68.77 852.86

Price
The prices of Oishi products
should be competitive in order to
attract more customers and
consumers. At present, the prices
of the Oishi snack food are
competitive. However, the firm can
add more value to the products by
giving freebies or additional
benefits to loyal customers. This
will ensure that loyal customers
will not shift to other brands. It will
also entice new customers,
particularly those in the areas not
yet covered by the company.
Promotion
Promotional or advertising programs are necessary to
increase consumer awareness on the Oishi brand and its
products. In increasing consumer-awareness, the
company should increase its advertising and promotional
activities. The company should put significant investment
in advertising so that revenue-generation can be increased
even more. It can enhance increase sales by 20-50% and
entice more customers thereby increasing market share.
All forms of media must be utilized such as the traditional
advertising facilities in the print and broadcast media. The
Internet is another major tool for promoting the product.
Presently, the company’s website provides basic
information on the products. The website can be enhanced
by adding more information such as the health benefits
that the products can offer to the consumers. The US FAS
said that young adults or the 80ers (those belonging to the
18-34 year-old range) are increasingly using the Internet in
buying snack food. Thus, LHCL can use the Internet to
increase its sales and attract these “high-tech” consumers.

People
In order to implement the marketing
mix program, a creative marketing
department or team must be
established. The creative team will
be responsible for the development
of creative advertising materials and
promotional tools. They will do
further market research to identify
which segment of the market is most
receptive of the products and to
identify more specifically the
consumers’ needs, desires and
buying behaviors.
Products
As stated earlier, consumers are now changing their
perceptions on snacks. The consumers, particularly
the mothers of young children, are more conscious
about the health benefits they or their children could
get from the products they buy. A very important
question here is, “Does the company produce the
products that the consumers want?” It is not the
company who will dictate what products it would sell
but the consumers should dictate what products
they should buy. Hence, it is necessary for LHCL to
manufacture snack food products that satisfy the
desires of their consumers. The firm should start
using health-enhancing ingredients while minimizing
the changes it could make to the products. It is also
necessary to create product differentiation. The
Oishi brand should be differentiated with other
brands by the adding more characteristics to the
products, such as lowering its costs or providing
incentives to consumers and customers.