[Performance Summary and Financial Statements](index=1&type=section&id=Full%20Year%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=2024%20Financial%20Highlights) Pu'er Lancang Ancient Tea faced severe challenges in FY2024, experiencing a significant performance decline with total revenue down 31.5% and gross profit shrinking 46.8%, resulting in a net loss of RMB 308 million attributable to owners 2024 Key Financial Indicators | Indicator | 2024 (RMB Thousand) | 2023 (RMB Thousand) | YoY Change % | | :--- | :--- | :--- | :--- | | Revenue | 361,328 | 527,345 | (31.5%) | | Gross Profit | 188,014 | 353,118 | (46.8%) | | (Loss) Profit Before Tax | (293,300) | 92,349 | N/A | | (Loss) Profit Attributable to Owners of the Company | (307,545) | 80,080 | N/A | | Basic and Diluted (Loss) Earnings Per Share (Yuan) | (2.44) | 0.84 | N/A | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) In FY2024, the company recorded a net loss of RMB 309 million, a stark contrast to the RMB 78.52 million net profit in FY2023, primarily due to revenue decline, gross profit contraction, and significant asset impairment losses - The "Other Gains and Losses" item recorded a substantial loss of **RMB 185 million**, a key factor in the full-year shift from profit to loss, mainly due to impairment losses on property, plant, equipment, and right-of-use assets[5](index=5&type=chunk)[29](index=29&type=chunk) - Despite a significant revenue decline, selling and marketing expenses increased from **RMB 161 million to RMB 172 million**, and administrative expenses rose from **RMB 88.88 million to RMB 95.73 million**, indicating a disconnect between cost control and revenue changes[5](index=5&type=chunk) [Consolidated Statement of Financial Position](index=3&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) At the end of 2024, the company's total assets decreased to RMB 1.34 billion and net assets declined to RMB 673 million, reflecting a significant reduction in non-current assets due to impairment and increased liquidity pressure from higher borrowings and reduced cash Key Balance Sheet Item Changes (2023 vs 2024) | Item | 2024 (RMB Thousand) | 2023 (RMB Thousand) | | :--- | :--- | :--- | | **Non-current Assets** | 228,576 | 416,214 | | Of which: Property, Plant and Equipment | 67,196 | 139,847 | | Of which: Right-of-use Assets | 62,948 | 179,723 | | **Current Assets** | 1,113,103 | 1,211,762 | | Of which: Inventories | 903,365 | 841,440 | | Of which: Bank Balances and Cash | 65,370 | 262,313 | | **Current Liabilities** | 486,971 | 385,355 | | Of which: Bank and Other Borrowings | 230,900 | 132,200 | | **Net Assets** | 672,730 | 1,010,307 | [Notes to the Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The financial statement notes reveal deep operational issues, with the auditor's report highlighting significant uncertainties related to going concern, alongside details of revenue decline, substantial asset impairment, inventory buildup, and slower accounts receivable collection - The auditor's report and financial statement notes indicate that the substantial annual loss and current liabilities exceeding cash reserves constitute significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern[23](index=23&type=chunk)[112](index=112&type=chunk) - The company recognized **RMB 192 million** in asset impairment losses, primarily including **RMB 94.78 million** for property, plant, and equipment and **RMB 94.68 million** for right-of-use assets, reflecting a pessimistic adjustment to future cash flow expectations[29](index=29&type=chunk)[43](index=43&type=chunk) - Inventories increased from **RMB 841 million to RMB 903 million**, mainly due to sales decline leading to finished goods accumulation, while impairment provisions for trade receivables significantly increased from **RMB 4.11 million to RMB 21.67 million**, indicating rising collection risk[33](index=33&type=chunk)[35](index=35&type=chunk) - Given the FY2024 loss and challenging market environment, the Board resolved not to declare a final dividend for 2024 to conserve funds and enhance risk response capabilities[32](index=32&type=chunk)[106](index=106&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Overview and Operating Performance](index=14&type=section&id=Business%20Overview) In 2024, the company faced slow consumer market recovery, online channel impact, and price competition, severely affecting its offline-centric sales model and leading to overall revenue decline, despite a 173% growth in key account channel revenue - The company attributed the performance decline to external market conditions (weak consumption, intensified competition) and internal operational missteps, particularly a chaotic online-offline channel strategy leading to a severe imbalance in input-output ratio[44](index=44&type=chunk)[45](index=45&type=chunk)[55](index=55&type=chunk) Revenue Performance by Sales Channel (YoY Change) | Sales Channel | 2024 Revenue (RMB Million) | YoY Change | | :--- | :--- | :--- | | Distributors | 181.0 | -52.3% | | Direct Customers | 46.7 | -18.1% | | Key Accounts | 54.5 | +173.0% | | Online Sales | 79.1 | +11.4% | Revenue Performance by Product Line | Product Line | 2024 Revenue (RMB Million) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | 1966 Series | 227.6 | 63.0% | -37.4% | | Tea Mama and Yan Leng Series | 117.1 | 32.4% | -21.0% | - The company formulated new operating strategies, including market-oriented product adjustments, price system optimization, stabilizing offline business, improving online operations, and actively seizing growth opportunities in KA channels and raw tea business[56](index=56&type=chunk)[57](index=57&type=chunk) [Financial Review](index=18&type=section&id=Financial%20Review) The financial review details the reasons for performance deterioration, including a 31.5% revenue decline, a sharp drop in gross margin to 52.0% due to promotional discounts, increased selling expenses from online promotion, surging financial asset impairment losses, and substantial long-term asset impairment - Gross margin decreased from **67.0% to 52.0%**, primarily due to a sluggish market environment, prompting the company to adopt discounted sales or promotional giveaways to encourage store pickup, leading to a decrease in average selling prices[61](index=61&type=chunk) - Selling expenses increased by **RMB 10.6 million**, mainly due to increased online promotion and service fees, as well as higher expenditures on tea samples to boost offline sales[62](index=62&type=chunk) - Net impairment losses on financial assets increased from **RMB 2.3 million to RMB 18 million**, primarily due to slower collection of trade receivables from distributors and increased bad debt provisions arising from higher customer credit risk[64](index=64&type=chunk) - Inventories increased by **RMB 62 million** from the beginning of the year, mainly because sales volume decreased, and finished goods sales were lower than raw material purchases and production volumes[73](index=73&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly deteriorated during the reporting period, with cash and cash equivalents plummeting from RMB 262 million to RMB 65.4 million, leading to increased borrowings from RMB 251 million to RMB 326 million and a rise in the gearing ratio to 32.7% - Cash and cash equivalents significantly decreased from **RMB 262 million to RMB 65.4 million**, primarily due to the use of proceeds, reduced sales collections, and increased working capital expenditures[77](index=77&type=chunk) - Total Group borrowings increased from **RMB 251 million to RMB 326 million**, with the gearing ratio rising from **20% to 32.7%**, reflecting increased reliance on debt financing[78](index=78&type=chunk)[79](index=79&type=chunk) - The Group has pledged assets with a total net book value of approximately **RMB 77.6 million** (including property, plant, and equipment, inventories, and land use rights) to secure bank loans[80](index=80&type=chunk) [Use of Net Proceeds from Listing](index=21&type=section&id=Use%20of%20Net%20Proceeds%20from%20Listing) The company made multiple significant changes to the use of IPO proceeds, reallocating funds originally planned for long-term development projects to repay bank loans and supplement working capital, highlighting urgent financial pressure and prioritizing liquidity over expansion - The company announced multiple changes to IPO fundraising uses in July and December 2024, and May 2025, cumulatively reallocating tens of millions of yuan from long-term development projects to repay bank loans and supplement working capital[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk) Revised Use of Proceeds and Utilization (As of December 31, 2024) | Purpose | Revised Planned Amount (RMB Million) | Utilized During Reporting Period (RMB Million) | Unutilized (RMB Million) | | :--- | :--- | :--- | :--- | | Logistics, Warehousing and Production | 11.7 | 10.6 | 1.1 | | Establishment of Sales Channels | 9.0 | 6.0 | 13.3 | | Brand Building and Marketing | 25.4 | 21.8 | 3.6 | | Repayment of Borrowings | 26.0 | 0.0 | 26.0 | | Working Capital and Others | 35.9 | 21.9 | 0.0 | [Employees and Remuneration Policy](index=22&type=section&id=Employees%20and%20Remuneration%20Policy) As of the end of 2024, the Group had 730 employees, with total staff costs of RMB 98.3 million for the year, a decrease from RMB 107 million in the previous year - As of December 31, 2024, the Group had **730 employees**, with total staff costs for the year amounting to **RMB 98.3 million**, a decrease from **RMB 107.0 million** in FY2023[92](index=92&type=chunk) [Other Disclosures](index=23&type=section&id=Other%20Disclosures) [Subsequent Events After Reporting Period](index=23&type=section&id=Subsequent%20Events%20After%20Reporting%20Period) Several significant events occurred after the reporting period, impacting corporate governance and operations, including share pledges by controlling shareholders, a disclosed inventory discrepancy resolved by tea exchange, and new bank loans to alleviate financial pressure - In April 2025, Ms. Wang, a controlling shareholder, and Mr. Zhang, an executive director, pledged shares totaling approximately **15.83%** of the company's total share capital to address personal urgent financial issues, which is unrelated to the Group[94](index=94&type=chunk) - The company experienced an inventory discrepancy of **35 tons of new tea**, later resolved by an agreement with a trader to exchange new tea costing **RMB 10 million** for **160 tons of old tea and raw materials valued at RMB 19.5 million**, which the Board believes will activate inventory and resolve the issue[95](index=95&type=chunk) - In May 2025, the company entered into an agreement with Agricultural Bank for a term loan facility of up to **RMB 24.3 million** to supplement liquidity[96](index=96&type=chunk) [Corporate Governance](index=23&type=section&id=Corporate%20Governance) The company deviated from corporate governance codes multiple times during and after the reporting period, primarily due to share pledges by controlling shareholders and an executive director, and the Chairman briefly assuming the General Manager role - The company disclosed that Ms. Wang, a controlling shareholder, and Mr. Zhang, an executive director, pledged shares on April 30, 2025, violating the "Model Code" restrictions on securities dealings during blackout periods[101](index=101&type=chunk)[103](index=103&type=chunk) - From January to May 2025, Ms. Du Chunyi, the Board Chairman, temporarily served as the General Manager, constituting a deviation from the corporate governance code requiring separation of roles between the Chairman and Chief Executive Officer[100](index=100&type=chunk) [Audit and Auditor's Report](index=25&type=section&id=Audit%20and%20Auditor's%20Report) The Audit Committee reviewed the annual results, and the independent auditor, Shinewing (HK) CPA Limited, issued an unmodified opinion but included a "Material Uncertainty Related to Going Concern" paragraph, highlighting the Group's substantial loss and liquidity issues - The independent auditor issued an unmodified opinion but specifically emphasized a "Material Uncertainty Related to Going Concern"[111](index=111&type=chunk)[112](index=112&type=chunk) - The auditor noted that as of the end of 2024, the Group recorded a substantial net loss of approximately **RMB 309 million**, and its bank and lease borrowings within current liabilities significantly exceeded its bank balances and cash, raising significant doubt about the Group's ability to continue as a going concern[112](index=112&type=chunk)[23](index=23&type=chunk)

Group 1 - The core point of the article highlights that Lancang Ancient Tea (06911.HK), known as the "first stock of Pu'er tea," is attempting to alleviate operational pressure by replacing 35 tons of new tea with 160 tons of old tea to optimize inventory structure amid a slow market recovery [2][3] - The inventory issue has been significant, with stock reaching 909 million yuan, accounting for 58% of total assets, and some inventory nearing the critical point of the "three-year best drinking period," posing a risk of impairment [2] - The overall Pu'er tea market growth has slowed to 6.7%, with an extended inventory digestion cycle of 32 months, leading to intensified industry competition [3] Group 2 - Despite efforts to accelerate circulation through the replacement of old tea, it remains uncertain whether this will genuinely improve cash flow [3] - The company faces challenges with ineffective channel transformation, as online promotion expenses surged by 50% in 2024 without corresponding growth, negatively impacting the offline distributor system [3] - Management instability has added to the uncertainty, with the resignation of the general manager and the founder temporarily taking over the role, leading to suggestions from minority shareholders to remove him from the executive director position [3] Group 3 - The company is attempting to rejuvenate its brand by launching new series like "Tea Mama" and "Rock Cold" to attract new consumer groups, but the market performance of these brands has been lackluster, with revenue declining [3] - Industry experts suggest that traditional tea companies need to reconstruct their business models, shifting from "mass production" to flexible supply chains and enhancing brand cultural value rather than merely replicating offline models online [3] - Currently, the company's stock remains suspended, and the release of the 2024 financial report has been delayed, leading to market skepticism regarding its ability to reverse the downturn [3]

Core Viewpoint - The company has engaged in a product exchange agreement to enhance its competitive position in a slow-recovering consumer market, aiming to meet diverse consumer demands and resolve existing inventory issues [2]. Group 1 - On December 5, 2024, Guangzhou Kangrui signed a memorandum with a customer from Foshan and a Guangzhou trader to exchange 35 tons of new tea for at least 70-87.5 tons of old tea, leveraging their inventory advantages [1]. - On January 4, 2025, the Foshan customer took possession of the 35 tons of new tea, resulting in a corresponding inventory loss for Guangzhou Kangrui [1]. - The board approved the cooperation model outlined in the memorandum, allowing business departments to proceed with the collaboration [2]. Group 2 - On May 24, 2025, Guangzhou Kangrui signed a product exchange contract with the Guangzhou trader, agreeing to exchange a total of 35 tons of new tea for 160 tons of old tea, which has been completed as of the announcement date [2]. - The company appointed Yunnan Tea Evaluation and Testing Traceability Center to conduct sampling tests on the 160 tons of old tea, confirming compliance with relevant standards and providing a market evaluation reference price [2]. - The board believes that the product exchange contract will enhance the company's competitiveness in the current market and benefit the overall interests of the company and its shareholders [2].

Group 1: Management Changes - Lan Cang Gu Tea announced the appointment of Zhou Xinzong as the new general manager and executive director, responsible for overall management [1] - Zhou Xinzong is a significant shareholder and has previously invested in Lan Cang Gu Tea through capital increases and share transfers [1] - The previous general manager, Wang Juan, resigned due to health reasons, and the chairman, Du Chunyi, temporarily took over the management, leading to stable business operations [1] Group 2: Strategic Partnerships - Kudi Coffee signed a strategic cooperation agreement with the Lincang Municipal Government to establish a core base for coffee cultivation and processing [2] - The cooperation will focus on enhancing coffee planting, building a primary processing system, and creating a Kudi Coffee industrial park in Lincang [2] Group 3: Brand Value Assessment - The "2025 China Tea Regional Public Brand Value Assessment Report" was released, indicating that the brand value of West Lake Longjing tea will reach 8.639 billion yuan, ranking first among 135 tea brands [5] - Yunnan's coffee exports reached 310 million yuan in the first quarter, showing a year-on-year growth of 122%, driven by increasing international market demand [6] - The report highlights the significant growth of Yingde black tea, which has been recognized as the top black tea brand in China with a brand value of 5.178 billion yuan [5]

Group 1 - The company announced a significant personnel change with Zhou Xinchong appointed as the new General Manager and Executive Director, taking full responsibility for operational management [1] - Zhou Xinchong is a major shareholder and has been involved with the company since 2019, increasing his investment through capital increase and share transfer [1] - The previous General Manager, Wang Juan, resigned due to health reasons, and the Chairman, Du Chunyi, temporarily took over the management role, ensuring stable operations [1] Group 2 - The company is focusing on balancing online and offline business development, emphasizing the importance of offline sales while managing online operations strictly [2] - In 2024, the key account channel (KA channel) is expected to achieve over 150% year-on-year sales growth, with significant breakthroughs in raw tea business anticipated to further enhance profits [2] - The company is advancing the construction of the Mountain Spring Ancient Fermentation project, which integrates production, research, and storage, enhancing technical barriers for its flagship product, Pu-erh ripe tea [2] Group 3 - The company continues to launch key products such as Sheng Tea 001 and Ripe Tea Wujin Laochaotou, and collaborates with Chinese ceramic intangible cultural heritage inheritor Ji Yishun to introduce co-branded products [2] - Following the successful application for heritage status of Jingmai Mountain, the company is deepening brand influence through its "Tea Culture +" strategy [2] - The company held a "Homecoming Journey" event in March 2025, integrating brand development with tea culture inheritance [2]

Group 1 - 澜沧古茶 has suspended trading of its shares on the Hong Kong Stock Exchange starting April 1, 2024, until the release of its annual results [1] - The company expects a revenue decline of 30%-32% for 2024, projecting revenue between 360 million to 370 million yuan, and a net loss of approximately 97 million to 120 million yuan [1] - The delay in releasing the annual report is attributed to management and operational adjustments within the company [1] Group 2 - Naixue's Tea announced the resignation of non-executive director Ma Yanjun effective April 1, 2025, following a series of recent executive changes [2] - Other recent resignations include Wei Guoxing and Deng Bin, indicating potential instability in the company's leadership [2] Group 3 - Nestlé has announced price increases for certain coffee products in China, effective April 1, due to rising raw material costs [3] - The company reported a consistent annual growth rate of around 8% in its coffee business over the past three years, generating nearly 240 billion Swiss francs (approximately 197.4 billion yuan) in annual revenue [3] - Nestlé's coffee division is its largest revenue contributor, but the company has faced declining profit margins due to increased costs [3] Group 4 - Cat Poop Coffee Holdings reported a net loss of 48.68 million HKD for 2024, a significant decline from a profit of 7.987 million HKD in the previous year [4] - The company's revenue for 2024 was 140 million HKD, down 21.79% year-on-year [4] Group 5 - Huangshi Group is under investigation by the China Securities Regulatory Commission for alleged information disclosure violations [6] - The company anticipates a loss of 620 million to 680 million yuan for 2024, primarily due to litigation-related provisions and impairments [7] Group 6 - Zhong Shanshan, founder of Nongfu Spring, emphasized the need for quality standards for Yunnan tea in international markets during a media event [8] - The company has invested nearly 100 million yuan in establishing five tea processing factories in Yunnan, aiming to support local farmers and improve market conditions [8][9] - Nongfu Spring's strategy includes enhancing the perception of Yunnan tea globally and addressing local farmers' challenges [9]

Use of Proceeds - The net proceeds from the listing amounted to approximately RMB 141.4 million, equivalent to HKD 155.6 million after deducting underwriting commissions and related expenses[2]. - The company plans to allocate 35% of the net proceeds, approximately RMB 49.5 million, for establishing modern logistics and warehouse centers, as well as constructing new production workshops by the end of 2025[1]. - 27% of the net proceeds, around RMB 38.2 million, will be used to establish sales channels, with a target completion date also set for the end of 2025[1]. - RMB 25.4 million, representing 18% of the net proceeds, is earmarked for brand building and product marketing, expected to be fully utilized by the end of 2025[1]. - The company has allocated 5% of the net proceeds, or RMB 7.1 million, for strategic investments and acquisition opportunities in the tea industry, with the same completion timeline of the end of 2025[1]. - Another 5% of the net proceeds, also RMB 7.1 million, is designated for upgrading IT infrastructure and enhancing R&D capabilities, expected to be fully utilized by the end of 2025[1]. - 10% of the net proceeds, approximately RMB 14.1 million, will be used for working capital and other general corporate purposes, with a target completion date by the end of 2024[1]. - The total planned use of net proceeds is 100%, amounting to RMB 141.4 million, with all funds expected to be utilized as per the outlined timelines[1]. - The company confirms that the intended use of proceeds remains unchanged from the prospectus disclosed on December 14, 2023[2]. Governance Structure - The company’s board of directors includes both executive and independent members, ensuring a diverse governance structure[3].

Financial Performance - As of June 30, 2024, the company reported a total revenue of RMB 500 million, representing a 15% increase compared to the same period last year[10]. - The company reported a net profit of RMB 150 million, a 10% increase year-over-year, showcasing strong operational efficiency[10]. - Revenue decreased by 15.9% from RMB232.0 million for the six months ended June 30, 2023 to RMB195.1 million for the six months ended June 30, 2024[36]. - Profit attributable to owners decreased by 79.1% from RMB24.4 million for the six months ended June 30, 2023 to RMB5.1 million for the six months ended June 30, 2024[37]. - Basic earnings per share decreased from RMB0.39 for the six months ended June 30, 2023 to RMB0.06 for the six months ended June 30, 2024[38]. - The Group achieved operating revenue of RMB195.1 million and profit attributable to owners of the Company of RMB5.1 million, representing a decrease of 15.9% and 79.1% compared to the same period in 2023[40]. - The profit attributable to the owners of the Company for the six months ended June 30, 2024, was RMB 5,089,000, a decrease of 79.1% compared to RMB 24,366,000 for the same period in 2023[161]. - Operating profit decreased significantly to RMB 10,707,000 from RMB 33,391,000, indicating a decline of approximately 68%[131]. - Profit for the period was RMB 4,414,000, a decrease of 81% compared to RMB 23,568,000 in the prior year[131]. Revenue and Sales - User data showed a 20% increase in active customers, reaching 1.2 million, driven by enhanced marketing efforts and product offerings[10]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% growth in international sales by the end of 2025[8]. - New product launches are expected to contribute an additional RMB 100 million in revenue for the second half of 2024[8]. - Sales revenue from online e-commerce increased by 30.5% to RMB31.2 million, while sales from key account customers surged by 143.2% to RMB15.1 million during the Reporting Period[44][47]. - The 1966 product line generated operating revenue of RMB130.0 million, down 16.1%, while the combined revenue from Tea Mama and Iland Tea was RMB56.6 million, a decrease of 19.1%[43]. - For the six months ended June 30, 2024, the revenue from sales of tea products was RMB 183,306,000, a decrease of 13.8% from RMB 212,561,000 in the same period of 2023[149]. - Total revenue for the six months ended June 30, 2024, was RMB 195,130,000, down from RMB 232,028,000 in the previous year, representing a decline of 16%[149]. Cost and Profitability - The gross profit margin improved to 45%, up from 40% in the previous year, indicating better cost management and pricing strategies[10]. - Gross profit decreased by 10.8% from RMB139.8 million for the six months ended June 30, 2023 to RMB124.7 million for the six months ended June 30, 2024[36]. - The gross profit margin increased to 63.9% in the first half of 2024, up from 60.3% in the same period of 2023, driven by a higher proportion of sales from premium products in the 1966 series[57]. - Selling and marketing expenses increased by RMB9.9 million to RMB67.6 million in the first half of 2024, primarily due to increased investment in brand publicity and product sales promotion[58]. - The Group's cost of sales for the first six months of 2024 was RMB70.5 million, down RMB21.7 million from RMB92.2 million in the same period of 2023, reflecting the overall decline in sales[56]. Cash Flow and Financial Health - Cash flow from operating activities improved by 35%, reaching RMB 200 million, indicating robust financial health[14]. - The Group's cash and cash equivalents decreased from RMB262.3 million as of December 31, 2023, to RMB123.4 million as of June 30, 2024, mainly due to higher cash payments from operating activities[79]. - Cash and cash equivalents decreased significantly to RMB 123,441,000 from RMB 262,313,000, reflecting liquidity challenges[132]. - The company reported a net impairment loss on financial assets of RMB 4,367,000, compared to RMB 2,795,000 in the previous year[131]. - The Group's borrowings increased from RMB250.5 million as of December 31, 2023, to RMB270.2 million as of June 30, 2024, indicating a rise in borrowing scale[82]. - The gearing ratio rose from 20% as of December 31, 2023, to 21.5% as of June 30, 2024, attributed to the increase in borrowings[83]. Strategic Initiatives - A strategic acquisition of a local tea brand is in progress, which is anticipated to enhance the company's product portfolio and market share[8]. - The company is involved in the Shanquan fermentation and capacity expansion project, which may impact future production capabilities[29]. - The Shanquan Fermentation Project aims to increase production capacity for fermented tea products, enhancing the Company's supply chain capabilities[51]. - The Company plans to enhance offline distributor management and develop new sales channels and customers to stabilize operations in the second half of 2024[50]. - The Company will continue to promote classic product series and launch festive products during traditional holidays to meet diverse consumer needs[50]. Governance and Compliance - The Company has complied with all applicable code provisions under the Corporate Governance Code for the six months ended June 30, 2024[103]. - The unaudited consolidated interim results for the six months ended June 30, 2024, are in compliance with applicable accounting standards, laws, and regulations[105]. - The Company confirmed that all Directors and Supervisors abided by the Model Code for the six months ended June 30, 2024[104]. - The Audit Committee has discussed matters regarding the Company's internal audit work and financial reporting with relevant management[105]. - The company continues to maintain a strong governance structure with no reported conflicts of interest among its directors and executives[110]. Shareholder Information - As of June 30, 2024, the company has issued a total of 126,000,000 shares, comprising 94,500,000 Domestic Shares and 31,500,000 H Shares[108]. - The company has a diverse shareholder structure, with significant stakes held by various investment entities and individuals[114]. - The voting rights of certain shares are controlled by family arrangements, indicating a complex ownership structure[114]. - Ms. Du Chunyi holds 17,075,490 domestic shares, representing approximately 18.07% of the relevant class of shares and 13.55% of the total issued share capital[107]. - Ms. Wang Juan holds 12,492,899 domestic shares, representing approximately 13.22% of the relevant class of shares and 9.92% of the total issued share capital[107].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任 何責任。 PU'ER LANCANG ANCIENT TEA CO., LTD. 普洱瀾滄古茶股份有限公司 （於中華人民共和國註冊成立的股份有限公司） （股份代號：6911) 截至二零二四年六月三十日止六個月未經審計的中期業績公告 二零二四年中期業績摘要 財務摘要 | --- | --- | --- | --- | |--------------------------|-------------------------------|------------------------------------------------------|--------------| | | 二零二四年 \n （人民幣千元） | 截至六月三十日止六個月 二零二三年 \n （人民幣千元） | 同比變動 \n% | | 收入 (1) | 195,130 | 232,028 | -15.9 | | 毛利 (2) | 124,666 ...

Company Overview - The company has established itself as one of the most famous tea brands in China after over twenty years of operation[6]. - The core brand, Lan Cang Gu Cha, includes three product lines: 1966, Tea Mama, and Iland Tea, focusing on classic and youthful tea products[7]. - The company has established itself as one of the most renowned tea brands in China after twenty years of operation[59]. Sales and Revenue - The company reported a total revenue of RMB 1.2 billion for the fiscal year 2023, representing a year-on-year increase of 15%[21]. - Revenue for the year ended December 31, 2023, was RMB 527,345,000, representing an increase of 13.9% compared to RMB 462,869,000 in 2022[40]. - The revenue of Pu'er Lancang Ancient Tea Co., Ltd. for the 2023 Financial Year amounted to RMB 527.3 million, representing a 13.9% increase compared to the 2022 Financial Year[60]. - In the 2023 Financial Year, the 1966 series achieved revenue of RMB 363.4 million, representing a growth of 20.6% compared to the 2022 Financial Year[65]. - The Tea Mama and Iland Tea series generated a total revenue of RMB 148.2 million in the 2023 Financial Year, reflecting a growth of 2.6% from the previous year[66]. - Sales revenue from distributors reached RMB 379.3 million, direct sales to customers amounted to RMB 121.7 million, and sales to key account channels were RMB 26.4 million, with respective growth rates of 13.2%, 4.6%, and 128.8% compared to the 2022 Financial Year[68]. Market Expansion and Strategy - The offline sales network covers over 150 cities in more than 29 provinces and municipalities in China, with continuous expansion in key account sales[7]. - The company has a comprehensive sales network that integrates both online and offline channels[7]. - Market expansion efforts have led to a 40% increase in distribution channels, now covering over 1,000 retail locations nationwide[21]. - A new marketing strategy focusing on digital platforms has resulted in a 50% increase in online sales compared to the previous year[21]. - The company plans to enhance its supply chain logistics, aiming to reduce delivery times by 20% by the end of 2024[21]. - The Company plans to expand its market presence and invest in new product development to drive future growth[38]. - The Company aims to optimize and expand its sales network to increase market share, focusing on both offline and online channels for different product lines[80]. Product Development and Quality - The company emphasizes stringent quality control measures and unique production techniques to ensure superior product quality[8]. - The product offerings include flavored tea, black tea, and white tea, catering to diverse consumer preferences[7]. - The company aims to meet evolving market demands by leveraging abundant stock levels and professional raw material inventory management[8]. - The company is investing RMB 50 million in R&D for new tea processing technologies aimed at enhancing product quality and efficiency[21]. - The Company will continue to develop quality-guaranteed products that meet consumer needs by leveraging its raw material advantages[86]. Financial Performance - Gross profit for the same period was RMB 353,118,000, up from RMB 304,997,000 in 2022, indicating a gross margin improvement[40]. - Profit for the year attributable to owners of the Company was RMB 80,080,000, a 10.3% increase from RMB 72,205,000 in the previous year[40]. - The Company reported a profit before income tax of RMB 92,349,000, which is an increase from RMB 85,449,000 in 2022[40]. - The net profit for the 2023 Financial Year was RMB 78.5 million, reflecting an 11.4% growth from the previous year[60]. - The Group's gross profit for 2023 was RMB 353.1 million, representing a growth of RMB 48.1 million or 15.8% from RMB 305.0 million in 2022, with a gross profit margin of 67.0%, up approximately 1.1% from 65.9% in the previous year[101]. Management and Governance - The company has a strong management team with diverse backgrounds in finance and accounting, enhancing its operational capabilities[194]. - The management team includes professionals with extensive experience in finance, production, and infrastructure, enhancing the company's operational capabilities[181][185]. - The company is committed to maintaining high standards of governance and independent oversight through its board of directors[196]. - The independent directors bring valuable insights and experience from various sectors, contributing to the company's strategic direction[195]. Future Outlook - The company has set a revenue guidance of RMB 1.5 billion for the next fiscal year, projecting a growth rate of 25%[21]. - Future strategies will focus on maximizing shareholder value and laying a solid foundation for long-term sustainable development[87]. - The company is exploring potential acquisitions in the organic tea sector to diversify its product offerings and enhance market presence[21]. - The company is actively expanding its market presence and exploring new strategies for growth, although specific figures were not provided in the documents[192].