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 部或任何部分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。 Grace Wine Holdings Limited 怡園酒業控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8146） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 三 個 月 的 第 一 季 度 業 績 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為較其他於聯交所上市的公司可能帶有更高投資風險的中小 型公司提供一個上市市場。有意投資者應瞭解投資於該等公司的潛在風險，並 應經過審慎周詳考慮後方作出投資決定。 鑒於在GEM上市的公司一般為中小型公司，於GEM買賣的證券可能會較於聯 交所主板買賣的證券承受較高的市場波動風險，同時無法保證於GEM買賣的 證券將會存在高流通性市場。 本公告乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供 有關怡園酒業控股有限公司（「怡園酒業」或「本公司」，連同其附屬公司統稱為 ...

Financial Performance - The company's revenue for the fiscal year 2022 decreased by RMB 22.6 million or 26.7% to RMB 62.1 million, compared to RMB 84.7 million in fiscal year 2021, primarily due to a reduction in total sales volume[21]. - Total sales volume dropped from 1,092,000 bottles in fiscal year 2021 to 827,000 bottles in fiscal year 2022, with the average selling price per bottle decreasing from RMB 77.5 to RMB 75.1[21]. - The overall gross profit decreased by RMB 9.3 million or 20.3% to RMB 36.5 million in fiscal year 2022, while the gross profit margin increased from 54.0% to 58.7%[24]. - Other income and net gains slightly decreased by RMB 0.3 million or 13.0% to RMB 1.9 million, primarily from government subsidies and bank interest income[25]. - Selling and distribution expenses increased by RMB 1.0 million or 7.5% to RMB 13.5 million, mainly due to marketing and promotional activities[26]. - The company reported a net loss of RMB 0.6 million for fiscal year 2022, compared to a profit of RMB 7.7 million in fiscal year 2021[30]. - Income tax expenses decreased by RMB 2.7 million or 64.3% to RMB 1.5 million, mainly due to a reduction in pre-tax profits from subsidiaries in China[29]. - As of December 31, 2022, the company's cash and cash equivalents amounted to RMB 73.4 million, an increase of 8.4% from RMB 67.7 million as of December 31, 2021[31]. - The company's capital debt ratio as of December 31, 2022, was 9.9%, compared to 0% as of December 31, 2021[32]. - Employee costs for the fiscal year 2022 were RMB 15.6 million, down from RMB 16.3 million in the fiscal year 2021[37]. Market Conditions and Challenges - In the fiscal year 2022, the company faced significant challenges due to lockdown measures in major markets, particularly in Shanxi, which was under lockdown for nine months, severely impacting sales[9]. - The total wine production in China for 2022 was approximately 214,000 kiloliters, representing a year-on-year decline of 21.9%[14]. - The Chinese government is implementing policies to stimulate economic growth and stabilize prices, which is expected to support the recovery of domestic economic activities[13]. - The wine industry in China is projected to have significant growth potential, as per capita consumption remains below the global average[14]. - The company anticipates benefiting from the recovery of the domestic economy in 2023, which is expected to boost sales volume and performance[20]. - Sales in Shanxi province represent a substantial portion of total revenue, and the company is actively developing new products and distribution channels to mitigate risks associated with market fluctuations[143]. Strategic Initiatives and Future Plans - The company anticipates the opening of its gin and whiskey distillery in Fujian by mid-2023, which is expected to bring new opportunities[10]. - The company plans to launch a new gin series and several new products with the expected commissioning of the distillery in mid-2023, marking its entry into the spirits market[19]. - The company aims to develop into a leading premium alcoholic beverage enterprise in China, focusing on long-term value creation for shareholders[11]. - The company is focusing on operational integration to enhance efficiency and establish a strong platform for future growth[10]. - The company aims to enhance brand awareness for "怡園酒莊" and improve market coverage through increased distribution channels and integrated online and offline sales strategies[17]. - The company continues to invest in the development of alcoholic beverage production projects, including whiskey and gin production[107]. - The company aims to become a leader in the Chinese wine production market and plans to optimize its operations in major cities including Shanxi, Shanghai, Beijing, Guangdong, and Zhejiang[107]. Governance and Management - The company has adopted a prudent financial management policy to ensure liquidity for daily operations and capital expenditures[33]. - The company has no foreign currency hedging policy and does not use any financial instruments for hedging[34]. - The board consists of 3 independent non-executive directors, exceeding one-third of the total board members, ensuring compliance with GEM Listing Rules[73]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to oversee specific matters[74]. - The board is responsible for overall leadership and strategic decision-making, ensuring effective management of the company[74]. - The company has maintained a high level of corporate governance to protect shareholder interests and enhance corporate value[69]. - The management team has extensive experience in the wine industry, with key personnel having over 11 years of relevant experience[61]. - The company has established a mechanism for the board to seek independent professional opinions, with costs borne by the company, to ensure independent judgment in decision-making[78]. Risk Management - The company has implemented a comprehensive risk management process that includes identifying, assessing, responding to, and monitoring risks across various operational functions[138]. - The internal audit function is established to review the effectiveness of the risk management and internal control systems, with direct communication to the audit committee[137]. - The company has identified COVID-19 as a significant risk, impacting sales due to economic and social conditions, leading to a cautious cash management strategy to ensure sufficient liquidity[140]. - The risk management system is designed to provide reasonable assurance against significant misstatements or losses, rather than absolute guarantees[132]. - The company is continuously improving its risk management system to cover a broader range of risk factors, including environmental, social, and governance risks[132]. - The board is responsible for managing ESG risks and has established a robust risk management framework to address climate-related risks, including extreme weather events[190]. Corporate Culture and Employee Welfare - The company emphasizes the importance of corporate culture as a foundation for long-term business development and economic achievement[98]. - The company has a strong commitment to employee welfare, creating a harmonious and supportive work environment[176]. - The gender ratio of employees, including senior management, is 1.28:1 (male to female) for the fiscal year 2022, indicating a balanced gender diversity within the group[94]. - The company values stakeholder feedback as a driving force for sustainable development and encourages communication through their contact email[168]. Environmental, Social, and Governance (ESG) Initiatives - The company’s environmental, social, and governance (ESG) report highlights its sustainable development strategies and performance during the reporting period from January 1, 2022, to December 31, 2022[162][163]. - The company aims to reduce greenhouse gas emissions and promote energy-saving practices across its operations and supply chain[190]. - The company has implemented policies for sustainable wine production, including responsible irrigation and the use of fertilizers and pesticides[179]. - The company actively promotes community engagement through volunteer activities and charitable donations[187]. - The company has established standard processes to ensure the quality of grape cultivation, complying with the Agricultural Law of the People's Republic of China[199]. - Multiple tests and inspections are conducted on grapes to maintain the highest quality of wine, including measurements of sugar content, acidity, and chemical residue levels[199].

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之內容概不 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。 Grace Wine Holdings Limited 怡園酒業控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8146） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 公 告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為較其他於聯交所上市的公司可能帶有更高投資風險的中小 型公司提供一個上市市場。有意投資者應瞭解投資於該等公司的潛在風險，並 應經過審慎周詳考慮後方作出投資決定。 鑒於在GEM上市的公司一般為中小型公司，於GEM買賣的證券可能會較於聯 交所主板買賣的證券承受較高的市場波動風險，同時無法保證於GEM買賣的 證券將會存在高流通性市場。 本公告乃遵照GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關怡園 酒業控股有限公司（「怡園酒業」或「本公司」，連同其附屬公司統稱為「本集團」 或「我們」）的資料，本公司董事（ ...

Financial Performance - For the nine months ended September 30, 2022, the company reported revenue of RMB 51,957,000, a decrease of 21.6% compared to RMB 66,314,000 for the same period in 2021[17] - The gross profit for the nine months ended September 30, 2022, was RMB 31,606,000, down 15.8% from RMB 37,542,000 in the previous year[17] - The profit before tax for the nine months ended September 30, 2022, was RMB 8,219,000, a decrease of 25.5% compared to RMB 11,011,000 in 2021[17] - The net profit attributable to the owners of the company for the nine months ended September 30, 2022, was RMB 5,090,000, down 22.5% from RMB 6,564,000 in the same period last year[17] - The basic and diluted earnings per share for the nine months ended September 30, 2022, were RMB 0.64, compared to RMB 0.82 for the same period in 2021[17] - The total comprehensive income for the nine months ended September 30, 2022, was RMB 5,636,000, compared to RMB 5,932,000 in the previous year[19] - The company reported a foreign exchange gain of RMB 546,000 for the nine months ended September 30, 2022, compared to a loss of RMB 632,000 in the same period last year[19] - The revenue from the mainland China market for the nine months ended September 30, 2022, was RMB 51,449,000, down from RMB 65,269,000 in the previous year, indicating a decrease of about 21.1%[31] - The net profit for the nine months ended September 30, 2022, was RMB 6,564,000, compared to RMB 5,932,000 for the same period in 2021, reflecting an increase of approximately 10.7%[30] - The company recognized other income and net gains of RMB 1,272,000 for the nine months ended September 30, 2022, slightly down from RMB 1,374,000 in the same period of 2021[33] Taxation - The total tax expense for the nine months ended September 30, 2022, was RMB 3,129,000, representing an effective tax rate of 28.3% in mainland China[36] - The total tax expense for the three months ended September 30, 2022, was RMB 2,275,000, with an effective tax rate of 28.3% in mainland China[36] - The weighted average applicable tax rate for the nine months ended September 30, 2022, was 27.9%[36] - The pre-tax profit for the nine months ended September 30, 2021, was RMB 15,502,000, with a total tax expense of RMB 4,447,000[38] Shareholder Information - As of September 30, 2022, Macmillan Equity holds 411,350,000 shares, representing 51.38% of the company's equity[79] - Palgrave Enterprises Limited, owned by Ms. Wang Suiying, holds 173,180,000 shares, accounting for 21.63% of the company's equity[79] - The total number of stock options granted under the stock option plan as of September 30, 2022, is 13,000,000, which is approximately 1.62% of the issued shares[85] - The total number of shares available for issuance under the stock option plan is 67,000,000, representing about 8.37% of the issued shares as of September 30, 2022[85] Corporate Governance - The audit committee reviewed the unaudited consolidated financial performance for the nine months ended September 30, 2022, and found it compliant with applicable accounting standards and GEM listing rules[102] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance by all directors for the nine months ended September 30, 2022[95] - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[98] - The chairman and CEO roles are held by the same individual, which the board believes is appropriate for the company's overall interests[99] - There were no interests held by directors or major shareholders in any competing businesses as of September 30, 2022[93] Operational Insights - The company remains optimistic about future business recovery due to the gradual rebound in consumer demand driven by government economic recovery policies[58] - The company plans to continue its operations in wine production and distribution in Ningxia and Shanxi provinces, China[57] - The company experienced a slight decline in gross profit for the nine months ended September 30, 2022, due to the impact of COVID-19, but the average cost per bottle of wine decreased, leading to a slight increase in gross profit margin[57] Stock Options - The stock options granted during the nine months ended September 30, 2022, include 3,000,000 options granted on May 17, 2022[87] - The maximum percentage of stock options that can be exercised is 30% during specified vesting periods[89] - The exercise price for stock options granted is determined by the board but cannot be lower than the highest of the closing price on the grant date or the average closing price over the preceding five trading days[85] Dividend Information - The company declared a special final dividend of HKD 0.62 per share for the year 2021, amounting to RMB 4,000,000[41] - The company did not recommend any dividend for the nine months ended September 30, 2022[41] - The company did not recommend any dividend for Q3 2022, consistent with Q3 2021[70]

Financial Performance - Revenue for the first half of 2022 was RMB 282 million, a decrease of 34% compared to the same period in 2021[18] - Revenue for the six months ended June 30, 2022, was RMB 28,184 thousand, a decrease of 34% compared to RMB 42,836 thousand for the same period in 2021[22] - Gross profit for the six months ended June 30, 2022, was RMB 17,082 thousand, down 29% from RMB 24,079 thousand in the previous year[22] - The net profit for the six months ended June 30, 2022, was RMB 836 thousand, a decline of 76% compared to RMB 3,537 thousand in the same period of 2021[24] - Total comprehensive income for the six months ended June 30, 2022, was RMB 1,318 thousand, compared to RMB 3,248 thousand in the previous year, reflecting a decrease of 59%[24] - The adjusted profit before tax for the total operations for the six months ended June 30, 2022, was RMB 1,690 thousand, down from RMB 6,725 thousand in the same period of 2021[43] - Other income and net gains for the six months ended June 30, 2022, totaled RMB 728,000, a decline of 35.4% from RMB 1,128,000 in the same period of 2021[51] - The pre-tax profit for the six months ended June 30, 2022, was RMB 3,724,000, a decrease of 61.5% compared to RMB 9,698,000 for the same period in 2021[58] - The total tax expense for the six months ended June 30, 2022, was RMB 854,000, down from RMB 3,188,000 in the same period of 2021[56] - The company declared a special final dividend of HKD 0.62 per ordinary share for the year 2021, amounting to RMB 4,000,000[62] - The company did not recommend or declare any dividend for the six months ended June 30, 2022[62] Impact of COVID-19 - The business was significantly impacted by COVID-19 lockdowns in China, affecting logistics and marketing activities[18] - National wine production from January to May 2022 was 79,000 kiloliters, a decrease of 31.3% year-on-year, due to the impact of COVID-19[103] - The company received government subsidies totaling RMB 357,000 related to COVID-19 for the six months ended June 30, 2022, down from RMB 606,000 in 2021[51] Marketing and Sales Strategy - The company plans to adopt a "guerrilla" marketing strategy to recover sales in the second half of the year, focusing on smaller events instead of large gatherings[18] - The company plans to launch a new gin series and several new products with the commencement of production at the distillery in the second half of 2022[110] - The company aims to enhance market coverage through increased distribution channels and integrated online and offline processes[109] Assets and Liabilities - Non-current assets as of June 30, 2022, totaled RMB 172,301 thousand, an increase from RMB 158,421 thousand as of December 31, 2021[26] - Current assets as of June 30, 2022, amounted to RMB 151,829 thousand, slightly up from RMB 150,905 thousand at the end of 2021[26] - Current liabilities as of June 30, 2022, were RMB 46,340 thousand, compared to RMB 46,267 thousand at the end of the previous year[26] - Total assets as of June 30, 2022, amounted to RMB 324,130 thousand, an increase from RMB 309,326 thousand at the end of the previous year[45] - The total liabilities as of June 30, 2022, were RMB 66,410 thousand, compared to RMB 49,222 thousand at the end of the previous year[45] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB (1,235) thousand, a decrease from RMB 2,476 thousand in the same period of 2021[34] - The net cash flow used in investing activities for the six months ended June 30, 2022, was RMB (21,183) thousand, compared to RMB (3,796) thousand in the prior year[34] - The net cash flow from financing activities for the six months ended June 30, 2022, was RMB 25,039 thousand, a significant increase from RMB (656) thousand in the same period of 2021[34] - The total cash and cash equivalents at the end of June 30, 2022, were RMB 70,775 thousand, down from RMB 88,592 thousand at the end of June 30, 2021[34] Employee and Management Information - As of June 30, 2022, the group had 160 employees, an increase from 147 employees as of December 31, 2021[129] - Employee costs for the first half of 2022 amounted to RMB 5.9 million, slightly down from RMB 6.1 million in the first half of 2021[129] - The group’s management compensation for the first half of 2022 included a total of RMB 871,000, down from RMB 1,083,000 in the same period of 2021[99] Share Options and Capital Management - The company has a total of 12,400,000 unexercised stock options as of the reporting date, which could result in the issuance of an additional 12,400,000 ordinary shares if fully exercised[92] - The company has capital commitments of RMB 3,149,000 for property and machinery projects as of June 30, 2022, compared to RMB 11,913,000 as of December 31, 2021[95] - The company issued 600,000 shares at an exercise price of HKD 0.186 per share, raising a total of approximately RMB 97,000 after expenses[78] Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[163] - The audit committee has reviewed the unaudited consolidated financial performance for the six months ended June 30, 2022, and confirmed compliance with applicable accounting standards and GEM listing rules[166] - The roles of the chairman and CEO are held by the same individual, which the board believes is appropriate for the company's overall interests[164] - The board includes a mix of executive, non-executive, and independent non-executive directors, ensuring diverse oversight[167]

Financial Performance - Revenue for the first quarter of 2022 was RMB 15,736,000, a decrease of 46.5% compared to RMB 29,433,000 in the same period of 2021[16] - Gross profit for the first quarter of 2022 was RMB 9,249,000, down 44.3% from RMB 16,724,000 year-over-year[16] - Profit before tax for the first quarter of 2022 was RMB 2,463,000, a decline of 69.8% compared to RMB 8,168,000 in the first quarter of 2021[16] - Net profit attributable to owners of the company for the first quarter of 2022 was RMB 1,789,000, down 67.9% from RMB 5,572,000 in the same period last year[16] - Basic and diluted earnings per share for the first quarter of 2022 were RMB 0.22, compared to RMB 0.70 in the first quarter of 2021[16] - Total comprehensive income for the first quarter of 2022 was RMB 1,660,000, a decrease of 70.3% from RMB 5,594,000 in the same period of 2021[18] Expenses - Selling and distribution expenses for the first quarter of 2022 were RMB 2,289,000, a decrease from RMB 4,284,000 in the same period of 2021[16] - Administrative expenses for the first quarter of 2022 were RMB 4,934,000, compared to RMB 4,760,000 in the first quarter of 2021[16] - The company reported other income and gains of RMB 463,000 for the first quarter of 2022, down from RMB 520,000 in the previous year[16] - The company reported a total tax expense of RMB 674,000 for the three months ended March 31, 2022, compared to RMB 2,596,000 for the same period in 2021[30] - Income tax expense decreased by RMB 1.9 million or 74% from RMB 2.6 million in Q1 2021 to RMB 674,000 in Q1 2022 due to a reduction in pre-tax profit[47] Sales and Market Performance - Revenue from the mainland China market was RMB 15,340,000, while revenue from other jurisdictions was RMB 396,000 for the same period in 2022[27] - Revenue decreased by RMB 13.7 million or 46.5% from RMB 29.4 million in Q1 2021 to RMB 15.7 million in Q1 2022 due to a decline in total sales[38] - Total sales volume dropped from 396,000 bottles in Q1 2021 to 222,000 bottles in Q1 2022, with the average selling price per bottle decreasing from RMB 74.4 to RMB 71.0[38] Shareholder Information - Major shareholder Macmillan Equity holds 411,350,000 shares, representing 51.42% of the company[58] - Palgrave Enterprises, owned by another major shareholder, holds 173,180,000 shares, representing 21.65%[58] - The company’s issued share capital remained unchanged at RMB 674,000,000 as of March 31, 2022[20] Corporate Governance - The audit committee has reviewed the unaudited condensed consolidated financial results for the three months ended March 31, 2022, and found them compliant with applicable accounting standards and GEM listing rules[84] - The company has adopted a code of conduct for directors' securities transactions, confirming compliance by all directors during the reporting period[76] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[82] Future Outlook - The company plans to launch a new gin series and several new products with the expected commencement of production at the new distillery in mid to late 2022[40] - The company remains cautiously optimistic about market recovery as COVID-19 impacts are expected to diminish[40] - The company has not provided specific future guidance or outlook in the current report[60] Stock Options - The company has a stock option plan adopted on June 1, 2018, allowing for the issuance of up to 80,000,000 shares, which is 10% of the total issued shares as of the listing date[62] - The total number of shares available for issuance under the share option scheme is 70,000,000, representing approximately 8.75% of the issued shares as of March 31, 2022[69] - As of March 31, 2022, the number of shares granted and unexercised under the share option scheme was 10,000,000 shares, accounting for about 1.25% of the issued shares[69] - The total number of share options exercised during the reporting period was 2,000,000[72] Miscellaneous - The company has not disclosed any new product or technology developments in the current report[60] - There are no updates on market expansion or acquisitions mentioned in the report[60] - The report indicates that there are no other significant strategies disclosed at this time[60] - The board of directors includes executive directors Chen Fang and Lin Wei Jie, and non-executive directors Zhou Hao and Zhang Ji Hang, along with independent non-executive directors He Zheng De, Lin Liang You, and Alec Peter Tracy[85] - The first quarter performance report for 2022 has been released[86]

Financial Performance - Revenue increased by 40.6% to RMB 847 million compared to the previous year, with a net profit of RMB 77 million, up from a net loss of RMB 6 million in 2020[10] - In 2021, the company's revenue increased by 40.6% compared to the previous year, primarily due to enhanced marketing and sales efforts post-COVID-19[20] - Revenue increased by RMB 24.5 million or 40.6% to RMB 84.7 million for the fiscal year ended December 31, 2021, compared to RMB 60.2 million for the fiscal year ended December 31, 2020[25] - Net profit for fiscal year 2021 was RMB 7.7 million, a turnaround from a net loss of RMB 0.6 million in fiscal year 2020[33] - Overall gross profit increased by RMB 17.2 million or 60% to RMB 45.8 million in fiscal year 2021, with a gross profit margin rising from 47.4% to 54.0%[27] Sales and Market Expansion - Tobacco, sugar, and hotel sales increased by 99%, convenience store sales rose by 25%, wine sales grew by 44.5%, and supermarket sales surged by 1,175%[10] - The company plans to launch a new gin series to cater to a diversifying market and has identified several key markets outside Shanxi Province as focus areas for the year[11] - The company is actively seeking partnerships with offline distributors in Shanxi to mitigate sales risks and expand its distribution channels[20] - The company has launched a new wine from Ningxia, believing it will enhance opportunities for expansion into other provinces in China[171] - The company is expanding its market presence in Southeast Asia, aiming for a 25% increase in market share by the end of the next fiscal year[89] Production and Development - A new distillery for gin and whiskey in Fujian Province is set to commence production in June, with a visitor center expected to be completed by the end of 2022[11] - The construction progress of the new distillery in Fujian is approximately 80% complete, with production expected to commence in mid-2022[23] - The company reported a significant increase in production capacity, with a 20% year-over-year growth in output[81] - The company has invested in quality control and feasibility studies for new product development to reduce risks associated with market acceptance[171] - Research and development investments have increased by 30%, focusing on sustainable production techniques[90] Financial Management and Strategy - The company maintains a cautious approach to resource allocation and cash flow, with a consistent cash policy during the pandemic[11] - The company has not foreseen any significant liquidity issues and believes it has sufficient funds to continue normal operations in the foreseeable future[62] - The company is reallocating part of the unutilized net proceeds to the construction of the distillery for whiskey and gin production in Fujian Province[61] - The anticipated recovery of the economy due to effective vaccination and pandemic control measures is expected to lead to substantial growth in product sales[24] - The company has been closely monitoring cash flow during the COVID-19 pandemic to maintain liquidity[62] Corporate Governance - The company has maintained compliance with all applicable corporate governance codes, ensuring transparency and accountability[87] - The board of directors has confirmed the independence of all non-executive directors, ensuring a balanced governance structure[91] - The board is responsible for ensuring compliance with laws and regulations, as well as overseeing the financial reporting process[145] - The company has adopted a nomination policy outlining the criteria and procedures for the nomination and appointment of directors[149] - The board is tasked with evaluating the company's ability to continue as a going concern and ensuring appropriate internal controls are in place[153] Risk Management - The company has identified COVID-19 as a continuing risk that may impact sales and revenue, particularly in key sales regions, and is implementing cautious cash management strategies to mitigate potential losses[167] - The company continues to enhance its risk management and internal control systems to ensure effective monitoring of operational, financial, and compliance risks[164] - The board of directors is responsible for overseeing the effectiveness of the risk management and internal control systems, with annual reviews conducted in collaboration with the audit committee[159] - The company has established a risk management process that includes identifying, assessing, responding to, and monitoring risks, enhancing overall risk management capabilities[165] Shareholder Engagement - The company encourages shareholder participation in meetings and ensures that annual general meetings are held each year[196] - Shareholders can request special meetings if they hold at least 10% of the paid-up capital with voting rights[197] - The company has adopted a standard code for securities trading to prevent insider trading by directors and employees[195]

Financial Performance - For the nine months ended September 30, 2021, the company reported revenue of RMB 66,314,000, a 67.5% increase from RMB 39,632,000 in the same period of 2020[11] - The gross profit for the nine months ended September 30, 2021, was RMB 37,542,000, compared to RMB 19,109,000 in the previous year, representing a 96.5% increase[11] - The net profit for the three months ended September 30, 2021, was RMB 3,027,000, up from RMB 1,616,000 in the same quarter of 2020, indicating an increase of 87.3%[11] - The company achieved a pre-tax profit of RMB 11,011,000 for the nine months ended September 30, 2021, compared to RMB 1,688,000 in the same period of 2020[11] - The total comprehensive income for the nine months ended September 30, 2021, was RMB 5,932,000, compared to a loss of RMB 653,000 in the same period of 2020[13] - Revenue from customer contracts for the three months ended September 30, 2021, was RMB 23,478,000, compared to RMB 20,007,000 for the same period in 2020, reflecting a 12.3% growth[22] - The company reported a total comprehensive income of RMB 5,932,000 for the nine months ended September 30, 2021, compared to a total comprehensive loss of RMB 329,000 in the same period of 2020[16] - The retained earnings as of September 30, 2021, increased to RMB 105,022,000 from RMB 99,691,000 as of January 1, 2021, indicating a growth of 5.3%[16] - The total equity as of September 30, 2021, was RMB 258,558,000, up from RMB 254,075,000 as of January 1, 2021, representing a 1.9% increase[16] - The company reported a significant increase in pre-tax profit from RMB 6,217,000 in the nine months ended September 30, 2020, to RMB 15,502,000 in the same period of 2021[33] Expenses and Costs - The company reported a significant increase in sales costs, which were RMB 28,772,000 for the nine months ended September 30, 2021, compared to RMB 20,523,000 in the previous year[11] - Tax expenses for the nine months ended September 30, 2021, amounted to RMB 4,447,000, compared to RMB 2,017,000 in the same period of 2020, reflecting a 120.5% increase[27] - The income tax expense increased by 120% to RMB 4.4 million in the third quarter of 2021 due to increased pre-tax profits from the company's mainland China subsidiaries[64] - The total tax expense for the nine months ended September 30, 2021, was RMB 4,447,000, representing an effective tax rate of 40.4%[31] Market Strategy and Growth - The company is focusing on expanding its market presence and enhancing product offerings, although specific new products or technologies were not detailed in the report[10] - The company has indicated plans for future growth, although specific guidance or projections were not provided in the earnings call[10] - The overall financial performance reflects a strong recovery and growth trajectory post-pandemic, with significant improvements in key financial metrics[10] - The company plans to continue expanding its market presence and product offerings, focusing on wine production and distribution as part of its growth strategy[19] - The company plans to utilize part of the proceeds from its listing for the construction of distillation facilities for a whiskey and gin production facility acquired in 2019[53] Shareholder Information - As of September 30, 2021, the company’s major shareholder, Macmillan Equity, holds 411,350,000 shares, representing 51.42% of the total equity[75] - The company’s board member, Ms. Chen Fang, has a beneficial ownership of 411,350,000 shares through Macmillan Equity, which she wholly owns[69] - Palgrave Enterprises Limited, owned by Ms. Wang Sui Ying, holds 173,180,000 shares, representing 21.65% of the total equity[75] - The beneficial ownership of shares by Mr. Chen Jin Qiang and Mr. Ding Dan Ming through Palgrave Enterprises includes 177,640,000 shares, representing 22.21% of the total equity[75] Stock Options and Corporate Governance - The company granted 10,000,000 share options in May 2021, with an exercise price of HKD 0.186 per share, vesting on May 17 of 2022, 2023, and 2024[41] - The company has a stock option plan adopted on June 1, 2018, allowing the issuance of up to 80,000,000 shares, which is 10% of the total issued shares as of the listing date[79] - The stock option plan restricts the total number of shares issued to any participant within a 12-month period to not exceed 1% of the total issued shares[80] - The company’s stock option plan allows for a maximum of 30% of the total options to be exercised within specific periods[86] - The audit committee has been established and consists of two independent non-executive directors and one non-executive director, ensuring compliance with GEM listing rules[99] - The audit committee reviewed the unaudited consolidated financial performance for the nine months ended September 30, 2021, confirming compliance with applicable accounting standards and GEM listing regulations[99] - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[100] Sales and Distribution - The company sold 817,000 bottles of wine in the third quarter of 2021, up from 493,000 bottles in the third quarter of 2020, with an average selling price of RMB 80.9 per bottle[56] - The average cost per bottle sold decreased to RMB 35.2 in the third quarter of 2021 from RMB 41.6 in the third quarter of 2020[57] - The sales and distribution expenses increased by 170% to RMB 11.6 million in the third quarter of 2021, primarily due to enhanced brand promotion and marketing efforts[60] Other Financial Metrics - Basic earnings per share for the nine months ended September 30, 2021, was RMB 8.205, compared to a loss of RMB 0.411 for the same period in 2020, based on a weighted average of 800,000,000 shares[35] - No interim dividend was recommended for the nine months ended September 30, 2021, consistent with the previous year[36] - The company has not made any adjustments for diluted earnings per share due to the anti-dilutive effect of share options during the reporting periods[35] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending September 30, 2021[90] - The company has complied with all applicable corporate governance codes as of September 30, 2021[96] - The company’s chairperson and CEO, Ms. Chen Fang, has held both positions since joining the group in 2002, which the board believes is beneficial for the company and its shareholders[97] - There were no changes in the rights to acquire shares or debentures by directors or senior management as of September 30, 2021[87] - The company has not established any arrangements that would result in directors or senior management holding any interests in shares or debentures of the company or its subsidiaries during the reporting period[87]

Financial Performance - The company's revenue for the first half of 2021 was RMB 428 million, representing a 45.4% increase compared to the same period in 2019 and a 118.3% increase compared to 2020[7]. - Revenue for the six months ended June 30, 2021, was RMB 42,836,000, an increase of 118.4% compared to RMB 19,625,000 for the same period in 2020[11]. - For the six months ended June 30, 2021, total revenue was RMB 42,836,000, a significant increase from RMB 19,625,000 for the same period in 2020, representing a growth of approximately 118.5%[36]. - The wine production segment generated revenue of RMB 42,836,000, while the spirits production segment reported no revenue during the same period[32]. - The adjusted profit before tax for the group was RMB 6,725,000, compared to a loss of RMB 1,445,000 in the previous year, indicating a turnaround in profitability[32]. - The net profit for the six months ended June 30, 2021, was RMB 3,537,000, a significant recovery from a net loss of RMB 1,945,000 in the same period of 2020[13]. - The group reported a total comprehensive income of RMB 3,248,000 for the six months ended June 30, 2021, compared to a total comprehensive loss of RMB 1,500,000 in 2020[13]. - The pre-tax profit for the group for the six months ended June 30, 2021, was RMB 9,698,000, compared to a pre-tax loss of RMB 1,445,000 for the same period in 2020, indicating a significant turnaround[44]. - The total tax expense for the six months ended June 30, 2021, was RMB 3,188,000, compared to RMB 500,000 for the same period in 2020, representing a substantial increase of 536%[46]. - The basic and diluted earnings per share for the six months ended June 30, 2021, were RMB 0.44, compared to a loss per share of RMB 0.24 in the same period of 2020[11]. Sales and Marketing Activities - The company hosted 16 events at its winery and organized 32 tasting events in various cities to promote its products, averaging two promotional activities per week[7]. - Online sales on platforms like Tmall and JD.com have increased, reflecting market expansion outside Shanxi, with top contributing cities being Shanghai, Beijing, Guangdong, and Zhejiang[8]. - The company is actively exploring various ways to expand its market and distribution channels, signing cooperation agreements with multiple offline distributors[92]. - The company plans to continue enhancing brand promotion to improve market awareness and increase product value for consumers[92]. - Sales and distribution expenses increased by RMB 5.5 million or 199.3% to RMB 8.2 million in the first half of 2021, primarily due to enhanced brand promotion and marketing efforts[98]. Production and Development - The company launched its first wine from Ningxia earlier this year and is evaluating the possibility of increasing production at its Ningxia facility[8]. - The construction of the distillery for whiskey and gin is progressing as planned, expected to be completed in Q4 2021, which will facilitate expansion into Fujian Province[8]. - The company completed the acquisition of Wanhao Asia Limited, which owns Fujian Dexi Wine Industry Co., aiming to diversify into the spirits market[93]. - The company has invested RMB 21.8 million in the construction and acquisition of production equipment for the distillery as of June 30, 2021[117]. - The initial production cost for the first phase of the Ningxia distillery was RMB 5 million, with a remaining balance of RMB 1.7 million as of September 4, 2020[121]. Financial Position and Assets - Total assets as of June 30, 2021, were RMB 258,940,000, a slight increase from RMB 255,974,000 as of December 31, 2020[15]. - The group reported a total liability of RMB 16,475,000 as of June 30, 2021, down from RMB 26,433,000 at the end of the previous year[34]. - The wine production segment's assets were valued at RMB 148,956,000, while the spirits production segment's assets were RMB 29,079,000[34]. - Trade receivables from third parties amounted to RMB 2,237,000 as of June 30, 2021, an increase from RMB 1,226,000 as of December 31, 2020[58]. - The aging analysis of trade receivables shows that RMB 2,201,000 is within 60 days, up from RMB 1,240,000 in the previous year[59]. Expenses and Costs - Gross profit for the six months ended June 30, 2021, was RMB 24,079,000, representing a gross margin of 56.2%, compared to RMB 9,339,000 and a gross margin of 47.6% in 2020[11]. - The company's gross profit rose by RMB 14.8 million or 157.8% to RMB 24.1 million in the first half of 2021, with the gross profit margin increasing from 47.6% to 56.2%[96]. - The sales cost increased by RMB 8.5 million or 82.4% to RMB 18.8 million in the first half of 2021, primarily due to the increase in total sales[95]. - Administrative expenses rose by RMB 1.1 million or 11.9% to RMB 10.1 million in the first half of 2021, mainly due to increased administrative costs related to whisky and gin production projects[99]. - Employee costs for the first half of 2021 were RMB 6.1 million, up from RMB 4.5 million in the same period of 2020, with a total of 165 employees as of June 30, 2021[109]. Corporate Governance and Compliance - The company maintains high standards of corporate governance, adhering to all applicable provisions of the corporate governance code as of June 30, 2021[156]. - The audit committee has reviewed the unaudited condensed consolidated financial results for the six months ending June 30, 2021, and found them compliant with applicable accounting standards and GEM listing rules[159]. - The company has adopted a code of conduct for directors' securities transactions, confirming compliance by all directors for the six months ending June 30, 2021[151]. - The chairman and CEO roles are held by the same individual, which the board believes is appropriate for the company's interests[157]. - The company has not engaged in any insider trading activities as per the established code of conduct for directors[151].

Financial Performance - For the three months ended March 31, 2021, the company reported revenue of RMB 29,433,000, a significant increase from RMB 6,861,000 in the same period of 2020, representing a growth of approximately 329%[16] - The gross profit for the same period was RMB 16,724,000, compared to RMB 3,067,000 in 2020, indicating a gross margin improvement[16] - The company achieved a profit before tax of RMB 8,168,000, a turnaround from a loss of RMB 2,287,000 in the previous year[16] - Net profit attributable to the owners of the company for the quarter was RMB 5,572,000, compared to a loss of RMB 2,442,000 in the same quarter of 2020[16] - The total comprehensive income for the period was RMB 5,594,000, compared to a loss of RMB 1,913,000 in the previous year[18] - Basic and diluted earnings per share for the quarter were RMB 0.70, compared to a loss per share of RMB 0.31 in the previous year[16] - Revenue increased from RMB 6.9 million in Q1 2020 to RMB 29.4 million in Q1 2021, representing a growth of 329.0%[44] - Gross profit increased from RMB 3.1 million in Q1 2020 to RMB 16.7 million in Q1 2021, a rise of 445.3%[46] - Overall gross margin improved from 44.7% in Q1 2020 to 56.8% in Q1 2021, attributed to higher margins from new distributors in Shanxi Province[46] - Net profit for Q1 2021 was RMB 5.6 million, compared to a loss of RMB 2.4 million in Q1 2020[53] Revenue Sources - Revenue from the mainland China market was RMB 29,202,000, while other jurisdictions contributed RMB 231,000, compared to RMB 6,792,000 and RMB 69,000 respectively in 2020, indicating a substantial increase in the mainland market[31] - Other income and net gains totaled RMB 520,000 for the three months ended March 31, 2021, compared to RMB 436,000 in the same period of 2020, reflecting an increase of approximately 19%[33] - Other income and net gains rose from RMB 436,000 in Q1 2020 to RMB 520,000 in Q1 2021, a 19.3% increase[48] Expenses and Taxation - The total tax expense for the period was RMB 2,596,000, compared to RMB 155,000 in the same period of 2020, showing a significant rise in tax obligations[36] - Selling and distribution expenses increased from RMB 1.3 million in Q1 2020 to RMB 4.3 million in Q1 2021, a growth of 228.0%[49] - Administrative expenses slightly increased from RMB 4.4 million in Q1 2020 to RMB 4.8 million in Q1 2021, a rise of 7.7%[50] - Tax expenses surged from RMB 155,000 in Q1 2020 to RMB 2.6 million in Q1 2021, a 15.7-fold increase[52] Corporate Governance - The company is committed to maintaining transparency and accuracy in its financial reporting, as confirmed by the board of directors[12] - The group has adopted revised Hong Kong Financial Reporting Standards, but these revisions did not impact the unaudited consolidated financial information[28] - The company has complied with all applicable corporate governance codes during the first quarter of 2021[76] - The roles of Chairman and CEO are held by Ms. Chen Fang, which the board believes is beneficial for the company's overall interests[77] - The audit committee has been established and consists of two independent non-executive directors and one non-executive director, ensuring compliance with GEM listing rules[79] - The audit committee reviewed the unaudited consolidated financial performance for Q1 2021 and confirmed that it meets applicable accounting standards and GEM listing regulations[79] - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[80] Shareholder Information - As of March 31, 2021, Macmillan Equity and Palgrave Enterprises hold 50.60% and 21.65% of the company's shares respectively[63] - Ms. Wang Suiying holds 1.40% of the company's shares, totaling 11,160,000 shares[63] - Mr. Chen Jingqiang and Mr. Ting Tan Ming control 21.65% and 23.04% of the shares through their respective entities[63] - The weighted average number of ordinary shares in issue during the period was 800,000,000, unchanged from the previous year[41] - The company has not granted any stock options since the adoption of the stock option plan on June 1, 2018[67] - No purchases, sales, or redemptions of the company's listed securities occurred in the first quarter of 2021[71] - The company did not recommend any interim dividend for the three months ended March 31, 2021, consistent with the previous year[41] - The company does not recommend any dividend distribution for Q1 2021, consistent with Q1 2020[55] Market Strategy - The company continues to focus on expanding its market presence and enhancing product offerings, although specific new products or technologies were not detailed in the report[15] - The financial results reflect a strong recovery and growth trajectory, positioning the company favorably for future opportunities[15] - The group reported a pre-tax profit of RMB 9,329,000 from mainland China, with a tax expense calculated at a rate of 25%[38] - The number of bottles sold rose from 167,000 in Q1 2020 to 369,000 in Q1 2021, indicating a significant recovery in sales[44]