Financial Performance - The company's revenue for 2020 was approximately RMB 602 million, a decrease of about 17.2% compared to 2019[11]. - The net loss recorded was approximately RMB 6 million, primarily due to the impact of COVID-19 lockdown measures, which caused a revenue decline of about 35% in the first half of 2020 compared to the same period in 2019[11]. - The company's revenue decreased by RMB 12.5 million or 17.2% to RMB 60.2 million in the fiscal year 2020, down from RMB 72.7 million in 2019[29]. - The total sales volume dropped to 780,000 bottles in 2020 from 1,097,000 bottles in 2019, while the average selling price increased from RMB 66.3 to RMB 77.2 due to higher sales of premium wines[29]. - Gross profit fell by RMB 3.4 million or 10.6% to RMB 28.5 million in 2020, with a gross profit margin slightly increasing from 43.9% to 47.4% due to higher margin premium wine sales[32]. - The company recorded a net loss of RMB 0.6 million in 2020, compared to a net profit of RMB 30,000 in 2019[39]. Sales and Marketing - Approximately 90% of sales were executed on a cash-on-delivery basis in 2020, significantly positively impacting cash flow[12]. - The sales and distribution expenses increased by approximately 68.5% to about RMB 81 million due to enhanced marketing efforts in late 2020[11]. - The two highest gross margin products, Chairman's Reserve and Deep Blue, saw sales increases of approximately 18% and 7% respectively compared to the previous year[12]. - The sales of the winery exceeded the expected target by 67% through promotions on Douyin and distribution via convenience stores and online platforms[17]. - The company reported sales of RMB 40.6 million in the second half of fiscal year 2020, compared to RMB 43.2 million in the same period of the previous year[52]. Market and Industry Trends - The domestic wine market is expected to recover as dining and commercial gatherings return to pre-pandemic levels, indicating a potential growth in wine consumption[21]. - The wine industry in China is projected to have stable growth potential due to increasing consumer demand and changing consumption patterns[21]. - The Chinese government is promoting regional coordinated development and new urbanization, which will enhance competition and cooperation in the wine industry[24]. - The company faces intense competition from local and imported wine producers, which may affect sales growth due to their stronger financial resources and product innovation capabilities[156]. Strategic Plans and Investments - The company plans to deepen its presence in the Shanxi market and significantly increase overall revenue as part of its long-term strategy[18]. - The company plans to launch gin products in 2021, following the completion of initial production in 2020[27]. - The company aims to enhance product quality and consumer satisfaction while maintaining its wine brand's position in the market[27]. - The company plans to allocate approximately 15.2% or RMB 5.0 million of the net proceeds to construct the second phase of the Ningxia winery[53]. - The company intends to use approximately 8.1% or RMB 2.7 million of the net proceeds for initial production costs at the Ningxia winery, including raw material procurement and utility expenses[53]. Corporate Governance - The company has adopted all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix 15[88]. - The board consists of 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors, meeting the requirement of having more than one-third independent directors[94]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[96]. - The company emphasizes the importance of good corporate governance to establish an effective accountability culture[96]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[88]. Risk Management - The company has established a risk management and internal control system to manage operational, financial, reporting, and compliance risks, ensuring reasonable assurance against material misstatements or losses[143]. - The company has implemented a comprehensive risk management system that includes environmental, social, and governance risk factors[143]. - The management is closely monitoring cash flow during the COVID-19 pandemic, ensuring sufficient liquidity for normal operations in the foreseeable future[60]. - The company has identified COVID-19 as a continuing risk that could significantly impact sales and revenue if the situation worsens[152]. Sustainability and Social Responsibility - Grace Wine's environmental, social, and governance (ESG) report reflects its commitment to sustainable development strategies and performance[171]. - The company emphasizes the importance of stakeholder feedback in driving its sustainable development initiatives[178]. - The company actively engages with local communities to address their needs and contribute positively to social development[186]. - Employee welfare and development are prioritized, with initiatives aimed at attracting and retaining talent through training and support programs[199]. - The company emphasizes sustainable development, focusing on green operations and responsible production practices to minimize environmental impact[185].

Financial Performance - For the nine months ended September 30, 2020, the company reported a revenue of RMB 39,632 thousand, compared to RMB 46,895 thousand for the same period in 2019, representing a decrease of approximately 15.5%[10] - The gross profit for the three months ended September 30, 2020, was RMB 9,770 thousand, an increase from RMB 7,485 thousand in the same period of 2019, indicating a growth of about 30.6%[10] - The company recorded a net loss of RMB 329 thousand for the nine months ended September 30, 2020, improving from a net loss of RMB 2,955 thousand in the same period of 2019[12] - The basic and diluted loss per share for the nine months ended September 30, 2020, was RMB (0.04), compared to RMB (0.37) for the same period in 2019, showing a significant reduction in loss per share[10] - The total comprehensive loss for the nine months ended September 30, 2020, was RMB (653) thousand, compared to RMB (1,421) thousand for the same period in 2019, reflecting an improvement of approximately 54%[12] - The company reported other income and gains of RMB 1,431 thousand for the nine months ended September 30, 2020, compared to RMB 1,368 thousand in the same period of 2019, indicating a slight increase of about 4.6%[10] - The net interest income from banks for the nine months ended September 30, 2020, was RMB 529,000, down from RMB 724,000 in the same period of 2019, representing a decrease of 26.9%[23] - The total tax expense for the nine months ended September 30, 2020, was RMB 2,017,000, slightly up from RMB 2,002,000 in the same period of 2019[26] - The retained earnings as of September 30, 2020, were RMB 99,345,000, a decrease from RMB 100,112,000 as of January 1, 2020[14] - The company’s total equity as of September 30, 2020, was RMB 253,422,000, compared to RMB 250,642,000 as of January 1, 2020, reflecting a growth of 0.7%[14] Market and Product Development - The company plans to continue exploring market expansion opportunities and new product development to enhance future growth prospects[8] - The company plans to launch its gin product in the market by the end of 2021, following the completion of its distillery acquisition in October 2019[37] - Despite challenges in the business environment, the company is optimistic about achieving better results in 2020 due to market recovery[37] Cost Management and Efficiency - The management emphasized the importance of cost control measures to improve profitability in the upcoming quarters[8] - The company is committed to enhancing its operational efficiency through the adoption of new technologies and strategies[8] - Sales and distribution expenses increased by RMB 0.8 million or 23.1% from RMB 3.5 million in Q3 2019 to RMB 4.3 million in Q3 2020, primarily due to higher marketing and promotional expenses[44] - Administrative expenses decreased by RMB 2.7 million or 15.8% from RMB 17.0 million in Q3 2019 to RMB 14.3 million in Q3 2020, mainly due to no share-based compensation paid to certain management personnel in Q3 2019 amounting to RMB 2.6 million[45] - Financing costs increased by RMB 31,000 or 47.7% from RMB 65,000 in Q3 2019 to RMB 96,000 in Q3 2020, primarily due to the recognition of the discount on the derecognition of long-term lease liabilities for leased office apartments[46] Sales Performance - Revenue for the third quarter of 2020 reached RMB 20.0 million, a 14.8% increase from RMB 17.4 million in the same quarter of 2019[36] - The gross profit margin improved to 48.8% for the third quarter of 2020, up from 42.9% in the same quarter of 2019[36] - The company sold 493,000 bottles of wine in the third quarter of 2020, down from 686,000 bottles in the same quarter of 2019, with the average selling price increasing from RMB 60.4 to RMB 80.4[38] - The total sales cost decreased by 28.2% to RMB 20.5 million in the third quarter of 2020, compared to RMB 28.6 million in the same quarter of 2019[39] - The overall gross profit increased by 4.4% to RMB 19.1 million in the third quarter of 2020, driven by higher sales of premium wine products[42] Harvest and Production - The grape harvest for 2020 was 187 tons, with 60 tons for entry-level wine and 70 tons for high-end wine, compared to 175 tons in 2019, with 3 tons for entry-level and 113 tons for high-end wine[50] - The quality of grapes from Shanxi winery in Q3 2020 was affected by adverse weather, leading to a lower expected production of high-end base wine compared to Q3 2019[51] - The company has obtained grapes from suppliers in Ningxia province, minimizing the impact of Shanxi province's harvest results on the expected production levels of high-end wines for 2020[51] - The average unit production cost of wine inventory will be influenced by the total yield of self-cultivated grapes, impacting the financial performance of subsequent years[50] Governance and Compliance - The board did not recommend any dividend distribution for Q3 2020, consistent with Q3 2019[52] - Management is closely monitoring cash flow during the COVID-19 pandemic and believes there are no significant liquidity issues anticipated in the foreseeable future[53] - The company did not purchase, sell, or redeem any of its listed securities during the third quarter of 2020[73] - The board confirmed that all directors complied with the established code of conduct for securities trading during the third quarter of 2020[71] - The audit committee reviewed the unaudited consolidated financial results for the third quarter of 2020 and found them compliant with applicable accounting standards and regulations[83] - The company has adopted a share option scheme since June 1, 2018, but no options have been granted to date[69] - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[77] - The nomination committee was restructured to comply with corporate governance rules as of March 20, 2020[80] - The company has no arrangements that would result in directors or senior management holding any interests in the company's shares or related securities during the third quarter of 2020[70] - The company has no known interests or short positions in its shares or related securities held by any individuals or corporations as of September 30, 2020[68] - The company’s independent non-executive director has interests in a competing business, BP Wines (AU) Pty Ltd, which operates in the wine production and sales sector[74] - The roles of chairman and CEO are held by the same individual, which the board considers appropriate for the company's current management structure[79]

Financial Performance - The company's revenue for the first half of 2020 was RMB 196 million, significantly lower than the same period in 2019, but the decline in sales narrowed from approximately 46.0% in Q1 to about 23.8% in Q2[8] - Revenue for the six months ended June 30, 2020, was RMB 19,625,000, a decrease of 33.5% compared to RMB 29,461,000 for the same period in 2019[12] - The company's total revenue for the six months ended June 30, 2020, was RMB 19,625,000, a decrease of 33.5% from RMB 29,461,000 in the same period of 2019[33] - Revenue from the mainland China market was RMB 19,556,000, down from RMB 28,755,000 in the same period of 2019, indicating a decline of 32.1%[34] - The total sales volume dropped to 254,000 bottles in the first half of 2020 from 425,000 bottles in the first half of 2019, while the average selling price increased from RMB 69.2 to RMB 77.3 due to higher sales of premium wine products[81] Profitability - The company recorded a post-tax profit of approximately RMB 5 million in Q2 2020, compared to a post-tax loss of about RMB 24 million in Q1 2020[8] - Gross profit for the six months ended June 30, 2020, was RMB 9,339,000, down 13.5% from RMB 10,823,000 in 2019[12] - Gross profit fell by RMB 1.5 million or 13.7% to RMB 9.3 million in the first half of 2020, with a gross margin increase from 36.7% in 2019 to 47.6% in 2020[84] - The net loss for the six months ended June 30, 2020, was RMB 1,945,000, an improvement from a net loss of RMB 3,013,000 in the same period of 2019[14] - The company reported a loss of RMB 1.9 million for the first half of 2020, compared to a loss of RMB 3.0 million in the same period of 2019[91] Cash Flow and Liquidity - The company's cash flow from operating activities for the six months ended June 30, 2020, was a net outflow of RMB 2,727,000, compared to a net inflow of RMB 10,504,000 for the same period in 2019[22] - The company reported a net decrease in cash and cash equivalents of RMB 8,567,000, with an ending balance of RMB 85,590,000 as of June 30, 2020, compared to RMB 89,244,000 at the end of June 30, 2019[22] - As of June 30, 2020, the company's cash and cash equivalents amounted to RMB 85.6 million, a decrease of 8.7% from RMB 93.7 million as of December 31, 2019[92] - The company has not foreseen any significant liquidity issues and believes it has sufficient funds for normal operations in the foreseeable future[115] Assets and Liabilities - Current assets as of June 30, 2020, totaled RMB 157,604,000, a decrease from RMB 168,133,000 as of December 31, 2019[16] - Current liabilities as of June 30, 2020, were RMB 8,874,000, significantly reduced from RMB 17,112,000 at the end of 2019[16] - The company's total equity as of June 30, 2020, was RMB 252,575,000, down from RMB 254,075,000 at the end of 2019[18] - Non-current assets as of June 30, 2020, were valued at RMB 107,176,000, slightly up from RMB 106,994,000 at the end of 2019[16] Operational Developments - The construction of the distillery is scheduled to begin later this year, with completion expected to be delayed from Q2 2021 to Q4 2021[9] - The company plans to utilize an existing distillery owned and operated by an independent third party for early operations during the construction period[9] - The company has established 12 distributors in major cities in Shanxi, with 11 of them being newly selected this year, focusing on tailored sales and marketing support policies for each partner[8] Market Outlook - The company is optimistic about the recovery of wine consumption based on sales figures as of June 30, 2020, despite the ongoing impact of the COVID-19 pandemic[9] - The company expects a recovery in wine consumption as the impact of the pandemic diminishes and social activities resume[74] - China is projected to become the second-largest wine consumer globally by 2021, indicating long-term growth potential in the wine industry[74] Corporate Governance - The company has maintained high standards of corporate governance, adhering to all applicable provisions of the corporate governance code[135] - The chairman and CEO roles are held by the same individual, which the board believes is appropriate for the company's interests[137] - The nomination committee was restructured to comply with the corporate governance code, ensuring a majority of independent non-executive directors[138] Shareholder Information - As of June 30, 2020, the company’s major shareholder, Macmillan Equity, holds 404,820,000 shares, representing 50.60% of the total equity[123] - The company did not declare any dividends for the six months ended June 30, 2020, consistent with the previous year[47] Expenses - Selling and distribution expenses rose by RMB 0.1 million or 5.5% to RMB 2.7 million in the first half of 2020, primarily due to increased marketing expenses[86] - Administrative expenses decreased by RMB 2.1 million or 18.9% to RMB 9.0 million in the first half of 2020, mainly due to the absence of share-based payments made in the previous year[87] - Employee costs for the first half of 2020 were RMB 45 million, down from RMB 60 million in the same period of 2019, with a total of 146 employees as of June 30, 2020[99]

Financial Performance - Revenue for the first quarter of 2020 was RMB 6,861,000, a decrease of 46.0% compared to RMB 12,700,000 in the same period of 2019[17] - Gross profit for the first quarter was RMB 3,067,000, down 27.7% from RMB 4,244,000 year-on-year[17] - The company reported a loss before tax of RMB 2,287,000, an improvement from a loss of RMB 3,076,000 in the previous year, indicating a 25.7% reduction in losses[17] - The net loss attributable to owners of the company for the quarter was RMB 2,442,000, compared to RMB 3,192,000 in the same quarter of 2019, reflecting a 23.5% decrease in net losses[17] - The basic and diluted loss per share for the first quarter was RMB 0.31, compared to RMB 0.40 in the same period last year[17] - Other income and gains for the quarter amounted to RMB 436,000, down from RMB 726,000 in the previous year[17] - The company incurred administrative expenses of RMB 4,421,000, a decrease from RMB 6,639,000 in the same quarter of 2019, representing a 33.3% reduction[17] - The total comprehensive loss for the quarter was RMB 1,913,000, compared to RMB 4,161,000 in the same period last year, indicating a 54.0% improvement[19] - The foreign exchange difference from the translation of financial statements resulted in a gain of RMB 529,000, compared to a loss of RMB 969,000 in the previous year[19] - Revenue for the three months ended March 31, 2020, was RMB 6,861,000, a decrease of 46.0% compared to RMB 12,700,000 for the same period in 2019[28] - Total revenue from the mainland China market was RMB 6,792,000, down from RMB 12,646,000 in 2019, representing a decline of 46.3%[29] - Other income and gains for the three months ended March 31, 2020, amounted to RMB 436,000, a decrease of 40.0% from RMB 726,000 in 2019[29] - The total tax expense for the three months ended March 31, 2020, was RMB 155,000, compared to RMB 116,000 in 2019, reflecting an increase of 33.6%[32] - Basic loss per share for the three months ended March 31, 2020, was RMB 2,442,000, compared to RMB 3,192,000 for the same period in 2019[34] - The company’s total customer contract revenue from product sales was RMB 6,861,000 for the three months ended March 31, 2020[28] - The company’s total loss before tax for the three months ended March 31, 2020, was RMB 2,287,000, compared to a loss of RMB 3,076,000 in 2019[34] - Revenue decreased by RMB 5.8 million or 46.0% to RMB 6.9 million in Q1 2020 from RMB 12.7 million in Q1 2019, primarily due to a significant drop in sales caused by COVID-19[39] - The number of bottles sold in Q1 2020 was 167,000, down from 246,000 in Q1 2019, while the average selling price increased from RMB 64.5 to RMB 69.1 due to a higher proportion of premium wine sales[39] - Gross profit decreased by RMB 1.2 million or 27.7% to RMB 3.1 million in Q1 2020, with the gross profit margin increasing from 33.4% in Q1 2019 to 44.7% in Q1 2020 due to lower unit costs of sold wine[41] - Selling and distribution expenses remained stable at RMB 1.3 million in Q1 2020 compared to RMB 1.4 million in Q1 2019[44] - Administrative expenses decreased by RMB 2.2 million or 33.4% to RMB 4.4 million in Q1 2020, mainly due to the absence of share-based payments in the previous year[45] - Net loss for Q1 2020 was RMB 2.4 million, a decrease of RMB 0.8 million or 23.5% from RMB 3.2 million in Q1 2019[48] - Other comprehensive income for Q1 2020 was RMB 0.5 million, compared to a loss of RMB 1.0 million in Q1 2019, attributed to exchange rate differences[49] Corporate Governance - The board did not recommend any dividend for Q1 2020, consistent with Q1 2019[50] - The company plans to maintain a cautious and defensive strategy in response to the ongoing economic impact of COVID-19, with expectations for sales to return to normal levels as conditions improve[38] - As of March 31, 2020, Macmillan Equity holds 404,820,000 shares (50.60%) and Palgrave Enterprises holds 173,180,000 shares (21.65%) in the company[58] - The company has not granted any stock options since the adoption of the stock option plan on June 1, 2018[60] - No shares or debt securities were purchased, sold, or redeemed by the company or its subsidiaries during the first quarter of 2020[64] - The company has maintained compliance with the corporate governance code and has adopted all applicable provisions[67] - The roles of Chairman and CEO are held by the same individual, Chen Fang, which the board believes is appropriate for the company's interests[69] - The nomination committee was not initially compliant with the corporate governance code but regained compliance on March 20, 2020[70] - The company has confirmed that all directors complied with the standard code of conduct regarding securities trading during the first quarter of 2020[63] - No interests or potential conflicts of interest were reported by directors or major shareholders in competing businesses as of March 31, 2020[65] - The company has not established any arrangements that would result in directors or executives holding any interests in the company's shares or related securities during the first quarter of 2020[61] - The company has not disclosed any rights to acquire shares or debt securities during the first quarter of 2020[61] - The audit committee has been established and consists of two independent non-executive directors and one non-executive director, with Mr. Lin Liangyou as the chairman[71] - The audit committee reviewed the unaudited consolidated financial performance for Q1 2020 and found it compliant with applicable accounting standards and GEM listing rules[71] - The board of directors includes executive directors Ms. Chen Fang and Mr. Fan Zhichao, along with non-executive and independent non-executive directors[72]

Financial Performance - In 2019, Grace Wine Holdings Limited achieved revenue of RMB 730 million, showing slight growth compared to 2018[31] - The gross profit margin increased significantly from 35.1% in 2018 to 43.8% in 2019[31] - The profit before tax rose by 20% to RMB 45 million, despite a one-time administrative expense of RMB 26 million related to the transfer of shares from the major shareholder[31] - In 2019, the company's revenue slightly increased by RMB 0.2 million or 0.2% to RMB 72.7 million, compared to RMB 72.6 million in 2018[43] - The overall gross profit increased by RMB 6.5 million or 25.5% to RMB 31.9 million in 2019, due to reduced sales costs[47] - The overall gross margin improved from 35.1% in 2018 to 43.9% in 2019, primarily due to lower unit costs of sold wine[47] - The net profit for FY2019 decreased by RMB 6.1 million to RMB 0.03 million, with a net profit margin dropping from 8.5% in FY2018 to 0.04% in FY2019[53] - Other income and gains decreased by RMB 4.9 million or 71.5% to RMB 2.0 million in FY2019, primarily due to the absence of gains from the sale of subsidiaries in FY2018 amounting to RMB 5.7 million[48] Market Strategy and Expansion - The company decided to reform its distribution strategy in the Shanxi market, moving away from exclusive agency distribution to establish closer relationships with frontline sales channels[31] - A new whisky and gin production line was acquired, expected to commence production in Q2 2021, allowing for business expansion into Fujian province[32] - The management remains optimistic about the recovery of wine consumption post-COVID-19, particularly as Shanxi is not one of the most severely affected regions[32] - The company completed the acquisition of 100% equity in Wanhao Asia Limited on October 11, 2019, which owns Fujian Dexi Winery[40] - The company is actively preparing for the construction of a production facility expected to be completed by early 2021[40] - The company anticipates that new products will benefit from its existing distribution network and years of beverage production experience[40] - The company is exploring various funding sources for its new projects and will update investors accordingly[40] Cost Management and Financial Health - The company is actively monitoring cash flow and has taken measures to reduce costs through streamlined operations[32] - The sales cost decreased by RMB 6.3 million or 13.4% to RMB 40.8 million in 2019, due to lower production costs of sold inventory[46] - Employee costs, including director remuneration, amounted to RMB 13.8 million in FY2019, up from RMB 11.3 million in FY2018, with a total of 148 employees as of December 31, 2019[63] - The company plans to utilize RMB 800,000 for general working capital for the fiscal year ending December 31, 2020[75] - The company has focused on marketing and brand building activities to promote sales, expanding its market presence and establishing relationships with potential new distributors[72] Corporate Governance - The company has adopted all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix 15[109] - The board of directors consists of 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors, ensuring compliance with GEM Listing Rules[115] - The company has established three board committees: audit committee, remuneration committee, and nomination committee, to oversee specific areas of governance[116] - The company has confirmed that all directors complied with the standard code regarding securities trading during the year[113] - The company has implemented a diversity policy for board members, considering various factors such as gender, age, and professional experience[121] - The company has appropriate insurance arrangements for directors and senior management against legal liabilities arising from corporate activities[119] Risk Management - The company has established a risk management and internal control system to monitor various risks, including operational, financial, reporting, and compliance risks[158] - The audit committee is responsible for overseeing the company's risk management and internal control systems[136] - The company has increased investment in quality control and feasibility studies for new product development to reduce risks associated with the introduction of new wines or beverages[168] - The company faces intense competition in the local Chinese market and from imported wines, which may impact sales growth due to the presence of well-resourced foreign competitors[168] Sustainability and Community Engagement - The company emphasizes sustainable value creation through its operations, as outlined in its Environmental, Social, and Governance (ESG) report[181] - The company aims to enhance its sustainable development strategy based on feedback from customers, partners, and the public[185] - The company is committed to reducing waste and emissions while improving energy efficiency and water conservation in its operations[194] - Employee health and safety are prioritized, with training and welfare activities implemented to support staff development[194] - Stakeholder engagement is crucial to the company's sustainable strategy, involving employees, customers, suppliers, and the broader community[198] Product Development and Innovation - The company is investing in new technology development, allocating $E million towards R&D initiatives aimed at enhancing product offerings[87] - Continuous research and development efforts are focused on identifying suitable grape varieties for wine production[196] - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on expanding the product line in the upcoming year[87] Awards and Recognition - The company received multiple awards, including the Best Chinese Red at the Wine Pinnacle Awards for its 2016 Cabernet Sauvignon[190] - The 2019 Hong Kong International Wine and Spirits Competition awarded the 2016 Cabernet Sauvignon a silver medal and the 2016 Shiraz a bronze medal[190]

Financial Performance - Revenue for the third quarter of 2019 was RMB 46,895,000, a decrease of 4.5% compared to RMB 48,984,000 in the same period of 2018[15] - Gross profit for the third quarter increased to RMB 18,308,000, up 23.5% from RMB 14,853,000 year-over-year[15] - The net loss for the third quarter was RMB 2,955,000, compared to a profit of RMB 3,444,000 in the same quarter of 2018[15] - The company reported a basic and diluted loss per share of RMB 0.37 for the third quarter[15] - Total comprehensive loss for the third quarter amounted to RMB 1,421,000, compared to a comprehensive income of RMB 6,172,000 in the same period last year[17] - The company recorded a tax expense of RMB 2,002,000 for the third quarter, compared to a tax credit of RMB 3,677,000 in the same quarter of 2018[15] - Other income for the third quarter was RMB 1,368,000, down from RMB 6,509,000 in the same period of 2018[15] - Revenue decreased by RMB 2.1 million or 4.3% to RMB 46.9 million in Q3 2019, primarily due to a decline in sales from distributors in Shanxi[54] - The company recorded a net profit attributable to owners of RMB 58,000 for the three months ended September 30, 2019, compared to a profit of RMB 2,477,000 for the same period in 2018, indicating a decline of approximately 97.7%[49] - The company reported a basic loss per share of RMB 0.00369 for the nine months ended September 30, 2019, compared to a profit of RMB 0.00514 for the same period in 2018[49] Assets and Equity - The company’s total assets as of September 30, 2019, were RMB 141,579,000[19] - The total equity attributable to the owners of the company was RMB 251,992,000 as of September 30, 2019[21] - As of September 30, 2019, the company had total issued share capital of RMB 674,000 and a share premium of RMB 141,579,000[21] - As of September 30, 2019, Macmillan Equity holds 404,820,000 shares, representing 50.60% of the company's equity[71] - Palgrave Enterprises Limited owns 173,180,000 shares, accounting for 21.65% of the company's equity[71] Business Strategy and Outlook - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[14] - The management expressed optimism about future growth despite the current financial challenges faced in the third quarter[14] - The company plans to strengthen sales channels and marketing efforts for wine products while reducing operating expenses to maintain stable profitability amid a challenging market environment[53] Acquisitions and Investments - The company completed the acquisition of all issued shares of Wan Hao Asia Limited for a total consideration of HKD 15 million, expected to diversify its business and expand new revenue sources[53] - The company completed the acquisition of Wan Hao Asia Limited on October 11, 2019, for a total consideration of HKD 15.0 million[79] Operational Metrics - The company sold 686,000 bottles of wine in Q3 2019, down from 808,000 bottles in Q3 2018, while the average selling price increased from RMB 60.4 to RMB 68.4 due to a higher proportion of premium wine sales[54] - The harvest of self-cultivated grapes in 2019 was 175.0 tons, down from 269.5 tons in 2018, with a significant increase in the percentage of grapes eligible for premium wine production from 64.4% to 97.1%[62][63] Corporate Governance - The company has maintained compliance with all applicable corporate governance codes as of the report date[83] - The roles of Chairman and CEO are held by the same individual, Chen Fang, which the board deems appropriate for the company's interests[85] - The Audit Committee has been established, consisting of two independent non-executive directors and one non-executive director, with Mr. Lin Liangyou as the chairman[86] - The Audit Committee reviewed the unaudited consolidated financial performance for Q3 2019, confirming compliance with applicable accounting standards and GEM listing rules[86] - The board of directors includes executive directors Ms. Chen Fang and Mr. Fan Zhichao, along with non-executive and independent non-executive directors[87] Financial Reporting and Standards - The company adopted new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements for the period[28] - The group has adopted the new accounting policy under HKFRS 16 for recognizing right-of-use assets and lease liabilities[35] - The group applies a single discount rate for leases with reasonably similar characteristics[33] - The group will reassess lease terms when significant events or circumstances change that affect the exercise of renewal options[39] - The group applies short-term lease exemptions for leases with a term of 12 months or less[38] Expenses and Costs - The company recognized expenses of RMB 10,957,000 related to the issuance of new shares[21] - Sales and distribution expenses increased by RMB 0.8 million or 29.9% to RMB 3.5 million in Q3 2019, attributed to higher marketing and promotional expenses[57] - Financing costs related to the interest on newly recognized lease liabilities increased by RMB 65,000[35] - The group confirmed rental expenses from short-term leases amounting to RMB 639,000[35] - Rental expenses related to previously classified operating leases decreased by RMB 323,000[35] - Amortization of prepaid land lease expenses decreased by RMB 634,000[35] Other Income and Gains - Bank interest income for the nine months ended September 30, 2019, was RMB 724,000, an increase from RMB 214,000 in the same period of 2018, reflecting a growth of approximately 238%[42] - The total revenue from other income and gains for the nine months ended September 30, 2019, was RMB 1,368,000, compared to RMB 356,000 in the same period of 2018, indicating an increase of approximately 284%[42] - Government subsidies received amounted to RMB 483,000 for the nine months ended September 30, 2019, compared to RMB 23,000 in the same period of 2018, showing a significant increase[42] Shareholder Actions - The company did not recommend any dividend for the nine months ended September 30, 2019, compared to a special interim dividend of RMB 10,000,000 declared in 2018[46] - No dividends were recommended for Q3 2019, consistent with Q3 2018[64] - The company has not granted any stock options since the adoption of the stock option plan on June 1, 2018[75] - The company has not purchased, sold, or redeemed any of its listed securities during the third quarter of 2019[77] - No securities transactions were reported by the directors that violated trading guidelines during the third quarter of 2019[77] - There are no reported interests held by the compliance advisor or its associates in relation to the company as of September 30, 2019[82]

Financial Performance - For the six months ended June 30, 2019, the company's revenue reached RMB 295 million, a decrease of 16.5% compared to RMB 353 million in the same period of 2018[23]. - Revenue for the six months ended June 30, 2019, was RMB 29,461,000, a decrease of 16.3% from RMB 35,276,000 in the same period of 2018[27]. - The company reported a net loss attributable to the company for the six months ended June 30, 2019, was RMB 3,013,000, compared to a profit of RMB 967,000 in the same period of 2018[29]. - Basic and diluted loss per share for the six months ended June 30, 2019, was RMB (0.38), compared to earnings of RMB 0.16 in 2018[27]. - Total comprehensive loss for the six months ended June 30, 2019, was RMB (3,072,000), compared to a total comprehensive income of RMB 3,351,000 in 2018[29]. - Gross profit for the six months ended June 30, 2019, was RMB 10,823,000, down 3.9% from RMB 11,256,000 in 2018[27]. - The company reported a decrease in cash flow from operating activities, which may impact future operational capabilities and investment strategies[41]. - The company recorded a net loss for the first half of 2019 due to a slowdown in domestic wine demand, resulting in decreased revenue and gross profit compared to the same period in 2018[134]. Sales and Market Trends - The company reported a 46.7% increase in sales volume and a 15.5% increase in revenue in the second quarter of 2019 compared to the same period in 2018, indicating a positive trend[23]. - Revenue from the mainland China market was RMB 28,755,000, accounting for over 90% of total revenue, indicating a strong reliance on this market[5]. - Total sales volume dropped from 598,000 bottles in the first half of 2018 to 425,000 bottles in the first half of 2019, while the average selling price increased from RMB 59.0 to RMB 69.2 due to higher sales of premium wine products[138]. - The company plans to enhance its online sales platforms and diversify its marketing strategies to capture a larger share of the Chinese wine market[135]. - Market research indicated that many potential customers in their 30s and 40s are not familiar with the brand, prompting the company to focus on increasing brand awareness among this demographic in the second half of 2019[24]. Future Plans and Strategies - The company anticipates a recovery in gross profit to normal levels in the second half of 2019 as higher-cost inventory has largely been sold out[23]. - The company plans to launch two new products from Ningxia by the end of 2019, following an update of its wine varieties[23]. - The company is planning to open a new office in Taiyuan, Shanxi Province, in the second half of 2019 to better serve partners and customers[24]. - The company is actively seeking partnerships with distributors in various regions, with some agreements already successfully signed[135]. - The company has decided to suspend the second phase of the Ningxia winery's construction to reassess market developments and potential risks[134]. Corporate Governance and Shareholder Relations - The board is analyzing cash flow for dividend policy formulation, aiming to provide the best dividend distribution strategy for shareholders[24]. - The company expresses optimism about distributing its first dividend this year to reward shareholder support[24]. - The chairman expressed gratitude to shareholders and customers for their support over the years and is committed to achieving better results in the future[25]. - The company maintains high standards of corporate governance, adhering to all applicable provisions of the GEM Listing Rules[190]. - There are no known interests or conflicts of interest among directors or major shareholders in any competing businesses as of June 30, 2019[185]. Financial Position and Assets - Non-current assets as of June 30, 2019, totaled RMB 94,405,000, a slight decrease from RMB 95,741,000 as of December 31, 2018[33]. - Current assets as of June 30, 2019, were RMB 168,314,000, compared to RMB 168,732,000 as of December 31, 2018[33]. - The company's total equity as of June 30, 2019, was RMB 250,242,000, a slight decrease from RMB 250,642,000 as of December 31, 2018[36]. - The company reported a net cash and bank balance of RMB 89,244,000 as of June 30, 2019, compared to RMB 82,099,000 as of December 31, 2018[33]. Expenses and Costs - Selling and distribution expenses increased by RMB 0.7 million or 38.7% to RMB 2.6 million in the first half of 2019, primarily due to increased promotional and exhibition expenses[143]. - Administrative expenses decreased by RMB 1.0 million or 8.2% to RMB 11.1 million in the first half of 2019, mainly due to the absence of listing expenses from the previous period[143]. - The company reported total tax expenses of RMB 1,085,000 for the six months ended June 30, 2019, down from RMB 2,538,000 in the same period of 2018[81]. - The cost of goods sold for the six months ended June 30, 2019, was RMB 10,250,000, down from RMB 15,372,000 in the same period of 2018[77]. Compliance and Audit - The financial data presented is unaudited and has been reviewed by the company's audit committee, ensuring a level of oversight in financial reporting[45]. - The audit committee has reviewed the unaudited financial performance for the first half of 2019, confirming compliance with applicable accounting standards and regulations[193]. - The company has adopted new accounting standards effective January 1, 2019, which may affect the presentation of financial data but did not have a significant impact on the financial position[47].

Financial Performance - Revenue for the first quarter of 2019 was RMB 12,700,000, a decrease of 38.9% compared to RMB 20,762,000 in the same period of 2018[10] - Gross profit for the first quarter of 2019 was RMB 4,244,000, down 30.4% from RMB 6,084,000 year-on-year[10] - The company reported a loss before tax of RMB 3,076,000, compared to a profit of RMB 1,270,000 in the first quarter of 2018[10] - Net loss attributable to owners of the company for the first quarter of 2019 was RMB 3,192,000, compared to a profit of RMB 155,000 in the same period last year[10] - Basic and diluted loss per share for the first quarter of 2019 was RMB (0.40), compared to earnings of RMB 0.03 per share in 2018[10] - Total comprehensive loss for the first quarter of 2019 was RMB 4,161,000, compared to a total comprehensive income of RMB 450,000 in the same period of 2018[12] - The company reported a loss of RMB (3,192) thousand for the period, compared to a profit of RMB 155 thousand in the same period of the previous year[16] - Revenue decreased by RMB 8.1 million or 38.8% to RMB 12.7 million in Q1 2019 from RMB 20.8 million in Q1 2018, primarily due to timing differences in sales orders related to the Lunar New Year[51] - The company recorded a net loss of RMB 3.2 million in Q1 2019, compared to a net profit of RMB 0.1 million in Q1 2018[60] Expenses - Selling and distribution expenses increased to RMB 1,358,000 from RMB 1,015,000 year-on-year, reflecting a rise of 34%[10] - Administrative expenses rose to RMB 6,639,000, up from RMB 4,396,000 in the previous year, indicating a 50.9% increase[10] - Selling and distribution expenses increased by RMB 0.4 million or 33.8% to RMB 1.4 million in Q1 2019, mainly due to higher promotional expenses[56] - Administrative expenses rose by RMB 2.2 million or 51.0% to RMB 6.6 million in Q1 2019, primarily due to share-based payments of RMB 2.6 million to certain management personnel[57] Income and Gains - Other income and gains for the first quarter of 2019 amounted to RMB 726,000, an increase of 14% from RMB 637,000 in the previous year[10] - Other income and net gains remained stable at RMB 0.7 million in Q1 2019, compared to RMB 0.6 million in Q1 2018[54] - The group received a government subsidy related to its contribution to the Shanghai wine industry, amounting to RMB 460,000[43] Equity and Share Capital - The total equity attributable to the owners of the company as of March 31, 2019, was RMB 249,080 thousand, a decrease from RMB 250,642 thousand at the beginning of the year[16] - The total issued share capital as of January 1, 2019, was RMB 674 thousand, with a share premium of RMB 141,579 thousand[16] - Macmillan Equity holds 404,820,000 shares, representing approximately 50.60% of the company's equity[68] - Palgrave Enterprises owns 173,180,000 shares, accounting for about 21.65% of the company's equity[68] Corporate Governance - The company maintains high corporate governance standards to protect shareholder interests[78] - The roles of Chairman and CEO are held by the same individual, Ms. Chen Fang, which the board deems appropriate under current circumstances[78] - The audit committee consists of two independent non-executive directors and one non-executive director, with Mr. Lin Liangyou as the chairman[80] - The audit committee reviewed the unaudited consolidated financial performance for the first quarter of 2019, confirming compliance with applicable accounting standards and GEM listing rules[80] - The board of directors includes executive directors Ms. Chen Fang and Mr. Fan Zhichao, along with non-executive directors Ms. Hou Dandan and Mr. Zhou Hao[81] Market Focus and Strategy - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[9] - The company’s main subsidiaries are engaged in the production and distribution of wine products, indicating a focus on the beverage sector[20] - The company was listed on the GEM of the Hong Kong Stock Exchange on June 27, 2018, marking its entry into the public market[19] Financial Reporting Standards - The company has adopted the new Hong Kong Financial Reporting Standard No. 16, which has no significant financial impact on the unaudited consolidated financial data[22] - The company’s financial data is presented in RMB thousands, ensuring clarity in financial reporting[22] Lease and Financing - The group recognized additional depreciation expenses related to right-of-use assets amounting to RMB 113,000 for the three months ended March 31, 2019[31] - Rental expenses related to previously classified operating leases decreased by RMB 115,000 during the same period[32] - Financing costs related to confirmed additional lease liabilities increased by RMB 23,000 for the three months ended March 31, 2019[33] - Financing costs were RMB 23,000 in Q1 2019, with no bank borrowings or other loans drawn during the period[58] Shareholder Contributions and Interests - The company received shareholder contributions amounting to RMB 2,599 thousand during the period[16] - The company has not granted any stock options since the adoption of the stock option plan on June 1, 2018[71] - As of March 31, 2019, there were no known interests or short positions held by directors or senior management in the company's shares[67] - There are no known interests in any competing businesses held by directors or major shareholders as of March 31, 2019[76] - The company has established a non-compete agreement with Ms. Chen Fang and Macmillan Equity effective from June 27, 2018[76]

Revenue and Sales Performance - The total revenue for the year 2018 increased to RMB 726 million, up 3.1% from RMB 704 million in 2017[10] - Online revenue grew by 34.1% compared to 2017, indicating strong growth potential in digital channels[10] - Revenue from collaborations with industry opinion leaders increased 1.3 times compared to 2017, with expectations for further growth in 2019[11] - In 2018, the company's revenue increased by RMB 2.2 million or 3.1% to RMB 726 million, primarily due to increased sales from distributors and online sales[24] - The company sold 1,221,000 bottles of wine in 2018, compared to 1,202,000 bottles in 2017, with an average selling price rising from RMB 58.5 to RMB 59.4[24] - The company anticipates a decline in revenue for Q1 2019 compared to the same period in 2018, with a possibility of recording a net loss[22] - The Chinese wine market is expected to continue growing, driven by increasing consumer purchasing power and urbanization, presenting better business opportunities for the company[22] Cost and Profitability - The cost of goods sold was impacted by decisions made after a significant market downturn in 2013, leading to increased unit production costs[10] - Sales costs rose by RMB 10.8 million or 29.8% to RMB 471 million in 2018, mainly due to increased production costs of sold inventory[25] - Overall gross profit decreased by RMB 8.7 million or 25.4% to RMB 254 million in 2018, with gross margin dropping from 48.4% to 35.3%[26] - The company anticipates that the cost of goods sold will return to normal levels in the second half of 2019 as inventory levels decrease[10] - In the fiscal year 2018, the net profit increased from RMB 1.1 million in 2017 to RMB 6.2 million, resulting in a net profit margin rise from 1.6% to 8.5%[36] Operational Efficiency and Sustainability - Water and electricity consumption at the Shanxi winery was reduced by 33% and 7% respectively as part of energy-saving initiatives[13] - The total grape harvest from the Shanxi winery increased from 204.60 tons in 2017 to 269.50 tons in 2018, impacting production costs[39] - The company emphasizes sustainable development strategies, focusing on environmental protection and community welfare[189] - The company aims to maintain a balance in grape production quality while adhering to environmental limits[189] - The company has developed a policy framework to manage sustainability-related issues, including product quality and labor practices[189] Management and Governance - The company has a strong management team with diverse backgrounds in finance, real estate, and the wine industry, enhancing its strategic capabilities[76] - The company is committed to maintaining high standards of governance and accountability through its board and committee structures[72] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters[97] - The company has adopted all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix 15[92] - The company has appropriate insurance arrangements for directors and senior management against legal actions arising from corporate activities[100] Future Plans and Strategies - The company plans to continue strengthening its brand presence and product quality in the coming year[11] - The company plans to expand its market presence in North America and Europe, targeting a 20% increase in market share by 2025[80] - New product launches are expected to contribute an additional $30 million in revenue next year, with a focus on innovative technology[81] - The company aims to improve its supply chain efficiency, targeting a 15% reduction in operational costs[85] - The company is exploring new strategies for growth, including potential market expansion and product innovation[76] Financial Management - The group had no external borrowings as of December 31, 2018, resulting in a capital-to-debt ratio of zero[38] - The group has adopted a cautious financial management approach to ensure liquidity for daily operations and capital expenditures[41] - The company plans to maintain a dividend payout ratio not exceeding 30% of distributable profits based on past experiences and future capital needs[36] - The company has not declared any final dividends for the fiscal year 2018[60] - The company has not reported any significant events after December 31, 2018, up to the report date[62] Stakeholder Engagement - The company encourages shareholder participation in annual general meetings, with provisions for special meetings if requested by shareholders holding at least 10% of the voting shares[172] - The company has established multiple communication channels with shareholders and stakeholders, including quarterly and annual reports, and annual general meetings[177] - The company actively engages with stakeholders through various communication channels to gather feedback and maintain relationships[190] - The company identified 30 sustainability-related issues that could impact its operations, reflecting its commitment to stakeholder engagement[192] Awards and Recognition - The company received multiple awards for its wine products, including recognition as one of the Top 10 Annual Influential Brands of 2017[11] - The company has been recognized with multiple awards, including the Silver Medal at the Cathay Pacific Hong Kong International Wine & Spirit Competition in 2018[187] - The company has been recognized for its innovative leadership, with Chen Fang named one of the "Most Innovative Women in Food and Drink" by Fortune magazine in 2014[68]