INTERIM REPORT 2021 中期報告 China Tontine Wines Group Limited （於百慕達註冊成立之有限公司） 股份代號 : 389 中期報告 2021 目錄 目錄 財務概覽 2 公司資料 4 管理層討論及分析 6 企業管治及其他資料 22 簡明綜合財務報表審閱報告 26 簡明綜合損益及其他全面收益表 28 簡明綜合財務狀況表 29 簡明綜合權益變動表 30 簡明綜合現金流量表 31 簡明綜合財務報表附註 32 1 中國通天酒業集團有限公司 2021年中期報告 財務概覽 財務概覽 | --- | --- | --- | |----------------------------------------|---------------------------|-------------------------------------| | | 二零二一年 | 截至六月三十日止六個月 \n二零二零年 | | | 人民幣千元 （未經審核） | 人民幣千元 （未經審核） | | 盈利能力數據 | | | | 收益 | 64,492 | 56,088 | | 毛利（損） | 18, ...

Financial Performance - For the year ended December 31, 2020, the company reported revenue of RMB 107,881,000, a decrease of 67.6% compared to RMB 333,149,000 in 2019[7]. - The gross loss for 2020 was RMB (62,491,000), resulting in a gross margin of (57.93%), down from a gross profit margin of 22.2% in 2019[7]. - The total comprehensive loss attributable to owners of the company for 2020 was RMB (162,160,000), compared to a loss of RMB (813,000) in 2019[7]. - Basic and diluted loss per share for 2020 was RMB (0.04), compared to RMB (0.04) in 2019[7]. - The total revenue for the year ended December 31, 2020, was RMB 107,881,000, a decrease of nearly 68% year-on-year[51]. - The overall gross loss for the year was RMB 62,491,000, with a gross margin of -57.9%, a decline of 80.1 percentage points compared to the previous year[54]. - Sales and distribution expenses increased by 8.0% year-on-year to RMB 32,220,000, reflecting the impact of the pandemic on traditional marketing channels[54]. - The total sales cost for the year was RMB 170,372,000, a decrease of 34.2% year-on-year, primarily due to reduced production and sales activities[55]. Asset and Liability Management - Non-current assets decreased to RMB 190,920,000 in 2020 from RMB 226,922,000 in 2019[11]. - Current assets also decreased to RMB 349,283,000 in 2020 from RMB 529,102,000 in 2019[11]. - The current ratio improved to 8.1 in 2020 from 5.7 in 2019, indicating better short-term financial health[11]. Market and Industry Trends - In 2020, the group experienced a decline in both sales volume and revenue due to the impact of the COVID-19 pandemic, similar to many other wine companies[29]. - The pandemic led to a significant drop in consumer demand and consumption scenarios, prompting the group to adjust its marketing strategies targeting various consumer segments[30]. - The domestic wine industry faced challenges with declining production and import volumes, exacerbated by the pandemic, but this also provided opportunities for domestic wine brands[28]. - The group anticipates that the domestic wine industry will benefit from reduced competition from imported wines due to the pandemic, providing opportunities for market share growth[45]. Strategic Initiatives - The group implemented effective cost control and efficiency optimization strategies to minimize losses during the challenging market conditions[30]. - The group increased investment in media advertising and actively promoted online sales through popular live-streaming channels to expand its customer acquisition model[30]. - The group focused on brand promotion through various activities, including wine promotion events, to boost sales and reduce inventory[30]. - The group recognized the need for structural adjustments in the industry, with a shift towards brand consolidation and increased market concentration[28]. - The group aims to leverage the current market conditions to achieve self-growth and long-term strategic planning[28]. Digital Transformation and Product Development - In 2020, the group actively deepened its digital transformation, signing contracts with Ant Chain and 58 Youpin to leverage advantages in the wine industry chain, data, financial services, and new retail[32]. - The company aims to develop more personalized products, including ginseng wine and ice wine, to meet current consumer demands, with a total of 131 product offerings[60]. - The company is actively pursuing digital transformation and has partnered with Ant Chain and 58 Youpin to enhance its position in the wine industry[60]. - The company plans to utilize the regional advantages of Tonghua for raw materials and integrate with the new retail model of 58 Youpin for mutual benefits[32]. Consumer Behavior and Health Trends - The group is focusing on developing health-oriented products, such as ginseng liquor, which has received positive customer feedback[90]. - The company recognizes the shift towards health-conscious consumption, which is expected to benefit the wine industry in the long term[101]. Production and Sales Performance - The group produced a total of 5,011 tons of various products from its production bases in Tonghua, Jilin, and Baiyanghe, Shandong as of December 31, 2020[64]. - Sales revenue from sweet wine amounted to RMB 49,605,000, making up 46.0% of total revenue, although the production and sales volume declined due to the pandemic[87]. - The group achieved sales revenue of RMB 41,754,000 from dry wine, which accounted for 38.7% of total revenue, with both production and sales volume decreasing[88]. Governance and Management - The company has established a robust governance structure with independent non-executive directors overseeing audit and remuneration committees[116]. - The company is committed to maintaining high standards in financial management and compliance, supported by experienced financial professionals[115]. - The management team has extensive experience in the wine industry, with key members having over 30 years of experience in various management positions[120]. Employee and Shareholder Information - The total number of employees in Hong Kong and China as of December 31, 2020, was 370, a decrease from 460 in 2019, with total salary and related costs amounting to approximately RMB 16,943,000, down from RMB 29,712,000 in 2019[197]. - The company has a total of 2,013,018,000 issued shares as of December 31, 2020[183]. - Mr. Wang Guangyuan holds 495,178,720 shares, representing 24.60% of the company's total issued shares[182].

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 56,088,000, a decrease of 66.0% compared to RMB 164,854,000 for the same period in 2019[15]. - The total comprehensive loss attributable to owners of the company was RMB (70,881,000), compared to a profit of RMB 6,693,000 in the same period last year[15]. - Basic and diluted loss per share was RMB (3.5), compared to earnings of RMB 0.3 per share in 2019[15]. - The gross loss for the period was RMB (21,836,000), resulting in a gross loss margin of (38.9%), compared to a gross profit margin of 25.5% in 2019[15]. - The company reported a loss before tax of RMB 74,179,000, compared to a profit before tax of RMB 8,754,000 in the previous year[146]. - The gross loss for the same period was RMB 21,836,000, compared to a gross profit of RMB 42,018,000 in 2019[146]. - The total loss attributable to the company for the six months ended June 30, 2020, was RMB (70,881) thousand, compared to a profit of RMB 6,693 thousand for the same period in 2019[194]. Liquidity and Financial Ratios - Current ratio improved to 9.6 as of June 30, 2020, compared to 5.7 at the end of 2019[20]. - Quick ratio also improved to 5.9 from 3.5 in the previous year[20]. - As of June 30, 2020, the company had cash and cash equivalents of approximately RMB 161,525,000, ensuring sufficient financial resources for business development and operational needs[104]. - The total current assets were RMB 412,142,000, down 22.1% from RMB 529,102,000 in the previous year[150]. - The net current assets decreased to RMB 369,126,000, compared to RMB 436,356,000 as of December 31, 2019, reflecting a decline of 15.4%[150]. - The total liabilities decreased to RMB 43,016,000 from RMB 92,746,000, indicating a reduction of 53.6%[150]. Operational Efficiency - Inventory turnover days increased to 471 days, while trade receivables turnover days were 312 days[20]. - The average inventory turnover days increased to approximately 471 days from 388 days in the previous year, indicating longer inventory realization times[79]. - Trade receivables amounted to RMB 83,075,000, with a turnover period of 312 days as of June 30, 2020[80]. - The company’s raw material costs decreased by approximately 29.9% to RMB 66,947,000, accounting for about 85.9% of total sales costs[49]. - The total sales cost for the period was RMB 77,924,000, reflecting a decline of 36.6% compared to the previous year[49]. Market and Sales Performance - For the first half of 2020, the company recorded total revenue of RMB 56,088,000, with sweet and dry wines accounting for 88.6% of total revenue[42]. - Sweet wine sales generated RMB 32,364,000, making up 57.7% of total revenue, although sales volume declined due to the pandemic[83]. - Dry wine sales amounted to RMB 17,313,000, accounting for 30.9% of total revenue, with both sales volume and revenue decreasing year-on-year due to production impacts from the pandemic[85]. - The group recorded total revenue of RMB 16,396,000 in the East China region, accounting for 29.2% of total revenue, while the Northeast region generated RMB 13,411,000, representing 23.9% of total revenue, an increase of 4.3 percentage points year-on-year[75]. - The company experienced a significant drop in wine production, with a reported production volume of 12.7 million liters in the first half of 2020, a decrease of 30.2%[38]. Marketing and Strategic Initiatives - The company is focusing on enhancing its market presence and exploring new product development strategies[15]. - The pandemic has accelerated the shift towards online customer acquisition, with increased marketing investments in digital channels[41]. - The group enhanced its marketing strategies by leveraging new media platforms and live streaming to boost sales during the pandemic[55]. - The company is leveraging the current market changes to enhance brand promotion through innovative marketing strategies, including online sales and promotional events[46]. - The company plans to launch ginseng-infused wine products in the second half of the year, capitalizing on the health-conscious trend among consumers[93]. Human Resources and Compensation - The total workforce employed by the company in Hong Kong and China as of June 30, 2020, was 381, down from 460 as of December 31, 2019[107]. - Total salary and related costs, including directors' remuneration, amounted to RMB 7,879,000 for the period, compared to RMB 12,412,000 for the same period in 2019, representing a decrease of approximately 36.5%[107]. - The company has implemented a competitive compensation package for employees, including training, medical insurance, and retirement benefits[107]. - The company encourages employees to participate in external professional and technical seminars to enhance their skills and market awareness[107]. - The company regularly reviews its human resources and compensation policies based on local laws, market conditions, and individual performance evaluations[107]. Shareholder Information - The company’s major shareholder, Mr. Wang Guangyuan, holds 675,582,720 shares, representing 33.56% of the total issued shares as of June 30, 2020[120]. - Major shareholders include 上昇國際 with a beneficial ownership of 675,582,720 shares, representing 33.56% of the company[126]. - The company maintained a sufficient public float of at least 25% of its issued share capital since its listing[133]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[135]. Governance and Compliance - The company has adopted the corporate governance code and has complied with its principles, with the exception of the separation of the roles of chairman and CEO[136]. - The stock option plan adopted in 2009 was terminated after the adoption of a new plan in 2019, with no new options granted under the former plan[111]. - The company has adopted a stock option plan to incentivize employees, with a total of 266,200,000 shares available for issuance upon exercise of options, accounting for about 13.22% of the total issued shares as of June 30, 2020[116].

Financial Performance - Revenue for the year ended December 31, 2019, was RMB 333,149,000, a decrease of 6.1% from RMB 354,911,000 in 2018[17] - Gross profit for 2019 was RMB 74,102,000, resulting in a gross margin of 22.2%, compared to 21.6% in 2018[17] - The net loss attributable to shareholders for 2019 was RMB 4,517,000, with a basic and diluted loss per share of RMB (0.04)[17] - In 2019, the total revenue of the company was RMB 333,149,000, with a net profit of RMB 4,517,000, representing a year-on-year growth of 12.2%[53] - The overall gross profit was RMB 74,102,000, with a gross profit margin of 22.2%, an increase of 0.6 percentage points compared to the previous year[53] - The company reduced its sales costs by about 7% to RMB 259,047,000, primarily due to a decrease in raw material costs, which amounted to RMB 208,990,000, down approximately 8.6%[57] - Advertising and promotional expenses were significantly reduced by about 51% to RMB 1,949,000, contributing to improved operational efficiency[57] Assets and Liabilities - Current assets increased to RMB 529,102,000 in 2019 from RMB 500,351,000 in 2018, while current liabilities rose to RMB 92,746,000[20] - The current ratio decreased to 5.7 in 2019 from 9.5 in 2018, indicating a decline in liquidity[22] - The company reported a net asset value per share of RMB 0.33, unchanged from 2018[22] - Shareholders' equity remained stable at RMB 579,508,000 in 2019, slightly up from RMB 576,565,000 in 2018[20] - The net operating working capital as of December 31, 2019, was approximately RMB 436,356,000, a decrease from RMB 447,628,000 in 2018[60] Market Conditions - In 2019, the domestic wine market faced challenges with a slowdown in consumption growth and a continuous decline in production[36] - The overall import volume and value of wine continued to decline, but the market remained active due to tariff adjustments[36] - The domestic wine market faced challenges, with a 10.2% decline in domestic wine production to 451,000 kiloliters in 2019[48] - Imported wine volumes decreased by 10.6% year-on-year, with import value dropping by 7% to USD 2.208 billion[48] - The competitive landscape in the domestic wine market is intensifying, prompting the company to accelerate product upgrades and focus on mid-to-high-end product positioning[49] Product Development and Sales - The group optimized its operations, resulting in increased profits despite a challenging market environment[37] - The group expanded its online sales channels while maintaining existing offline channels, effectively managing distributors[37] - New product development included collaborations with well-known brands, such as a custom wine for the hot pot chain Haidilao[39] - The sales of ice wine products saw significant growth, contributing to new profit increases for the company[39] - The company aims to improve product quality and brand strength to compete with international wine pressures[36] - The company plans to enhance product development, focusing on customized products and those appealing to younger consumers, while strengthening brand promotion and channel management[42] - The group launched 14 new products in 2019, contributing approximately 10% to total revenue[67] Marketing and Consumer Trends - The company is focusing on brand building and enhancing consumer recognition of its products[37] - The Chinese wine market is evolving, with a shift towards mid-to-high-end consumers, particularly younger generations[39] - The company anticipates a significant decline in domestic wine market sales in the first quarter of 2020 due to the impact of the COVID-19 pandemic[95] - The company is focusing on new marketing models and enhancing product quality and distribution channels to align with consumer preferences, significantly reducing traditional advertising costs[97] Governance and Management - The company has a strong management team with extensive experience in finance, accounting, and the wine industry, enhancing operational effectiveness[111][112][114] - The company has a robust financial management structure, with a qualified CFO overseeing financial and accounting operations[114] - The board consists of three independent non-executive directors, accounting for over one-third of the board[151] - The audit committee consists entirely of independent non-executive directors, ensuring oversight of accounting principles and risk management[174] - The board is committed to ensuring compliance with applicable laws, regulations, and corporate governance standards[190] Employee and Operational Insights - The total number of employees in Hong Kong and China as of December 31, 2019, was 460, a decrease from 480 in 2018[171] - Total salary and related costs for the year, including director remuneration, amounted to approximately RMB 29,712,000, compared to RMB 29,177,000 in 2018, reflecting an increase of about 1.8%[171] - The company encourages employee participation in professional and technical seminars to enhance their skills and market awareness[170] Future Outlook - The company aims to capitalize on the policy opportunities in the Tonghua region to promote ice wine products, which are expected to achieve higher gross margins as market recognition increases[98] - The anticipated economic growth in China is projected to be between 5% and 6%, impacting the wine industry and necessitating product refinement and market position consolidation[101] - The company is positioned to capitalize on growth opportunities in the wine market, supported by its strategic initiatives and management expertise[120]

TONTINE China Tontine Wines Group Limited 中國通天酒業集團有限公司 (於百慕建註冊成立之有限公司) 股份代號 : 389 中期報告 目錄 目錄 財務概覽 2 公司資料 4 管理層討論及分析 6 企業管治及其他資料 22 簡明綜合損益及其他全面收益表 28 簡明綜合財務狀況表 29 簡明綜合權益變動表 30 簡明綜合現金流量表 31 簡明綜合財務報表附註 32 1 中國通天酒業集團有限公司 2019年中期報告 財務概覽 財務概覽 | --- | --- | --- | |---------------------------------------------------|----------------------------------------|-------------------------------------------------------------| | | 二零一九年 人民幣千元 （未經審核） | 截至六月三十日止六個月 \n二零一八年 人民幣千元 （未經審核） | | 盈利能力數據 | | | | 收益 | 164,854 | 160,48 ...

T N E TONTINE China Tontine Wines Group Limited 中國通天酒業集團有限公司 (於百慕建註冊成立之有限公司) 股份代號：389 目錄 財務概覽 | --- | --- | |--------------------------|-------| | | | | | 2 | | 公司資料 | 4 | | 主席報告 | 6 | | 二零一八年主要事件 | 8 | | 管理層討論及分析 | 10 | | 董事及高級管理層 | 20 | | 董事會報告 | 24 | | 企業管治報告 | 34 | | 環境、社會及管治報告 | 49 | | 獨立核數師報告 | 71 | | 綜合損益及其他全面收益表 | 74 | | 綜合財務狀況表 | 75 | | 綜合權益變動表 | 76 | | 綜合現金流量表 | 77 | | 綜合財務報表附註 | 79 | 財務概覽 財務概覽 附註： | --- | --- | --- | --- | --- | --- | |--------------------------------------|---------------------- ...