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]

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]