Financial Performance - The company's operating revenue for 2019 was ¥3,737,888,401.79, an increase of 37.38% compared to ¥2,720,804,229.54 in 2018[24]. - The net profit attributable to shareholders for 2019 was ¥319,444,153.93, representing a growth of 42.06% from ¥224,872,734.80 in 2018[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥295,628,348.35, up 42.48% from ¥207,492,987.88 in 2018[24]. - The net cash flow from operating activities improved significantly to ¥108,155,641.70, a 144.83% increase from a negative cash flow of ¥241,264,509.24 in 2018[24]. - The total assets at the end of 2019 reached ¥4,138,472,440.33, a 54.85% increase from ¥2,672,517,626.28 at the end of 2018[24]. - The net assets attributable to shareholders increased by 85.94% to ¥2,507,611,114.43 from ¥1,348,626,001.38 in 2018[24]. - The basic earnings per share decreased by 39.53% to ¥0.78 from ¥1.29 in 2018[24]. - The company achieved a revenue of 373,788.84 million yuan, representing a year-on-year growth of 37.38%[92]. - The net profit reached 32,092.15 million yuan, with a year-on-year increase of 41.07%, and the net profit attributable to shareholders was 31,944.42 million yuan, up by 42.06%[92]. Market Dynamics - The company faces intensified market competition due to the rise of e-commerce and diversified retail formats, impacting traditional distribution channels[5]. - The wine market has experienced significant price fluctuations, with prices generally rising during peak sales seasons like Mid-Autumn and Spring Festival[6]. - The company is actively exploring business transformation in response to changing consumer preferences and market dynamics[5]. - The consumption of premium liquor has been on the rise, driven by increased national income and a shift in consumer preferences towards brand and quality[49]. - The overall market for alcoholic beverages in China is growing, with consumer spending on food, tobacco, and alcohol accounting for 28.2% of per capita consumption expenditure[90]. Brand and Reputation - The company emphasizes the importance of brand reputation in the liquor industry, as market concentration is low and counterfeit products disrupt market order[8]. - The company has developed a unique product authenticity system that enhances the credibility of its products and strengthens relationships with upstream suppliers and downstream customers[70]. - The company has been recognized as a "China Famous Trademark" and has been included in the "China's 500 Most Valuable Brands" list for nine consecutive years from 2010 to 2019[69]. Marketing and Sales Strategy - The company has established a comprehensive marketing network and aims to enhance its service offerings through an internet-sharing economy platform[38]. - The company focuses on multi-channel marketing strategies, combining traditional and emerging sales channels to enhance market influence and competitiveness[74]. - The company has expanded its advertising efforts in major transportation hubs and core commercial areas to promote its brands and products[96]. - The company has established a nationwide direct supply network, enhancing efficiency by eliminating traditional distribution intermediaries, which strengthens its core competitiveness[74]. - The company has developed an information management system that effectively manages nearly 4,000 products, enhancing operational efficiency and decision-making[84]. Investment and Capital Management - The company has committed to invest ¥88,976.46 million in various projects, with ¥19,647.40 million already invested, achieving a progress rate of 22.08%[132]. - The marketing network construction project has a total committed investment of ¥52,883.5 million, with 2.70% progress achieved[132]. - The company has no significant changes in the feasibility of the projects or the use of raised funds[135]. - The company has permanently supplemented its working capital with remaining raised funds, following the termination of certain investment projects[139]. Cash Dividend Policy - The company reported a cash dividend of 1.6 CNY per 10 shares, totaling 66,687,744 CNY for the year, which represents 100% of the distributable profit[159]. - The total distributable profit for the year was 763,666,017.27 CNY, with the cash dividend amount accounting for 20.88% of the net profit attributable to ordinary shareholders[163]. - The company has maintained a consistent cash dividend policy, with a cash dividend payout ratio of 20.88% in 2019, compared to 20.59% in 2018[163]. - The company has established a cash dividend policy where the minimum proportion of cash dividends in profit distribution is set at 80% for mature stages without significant capital expenditure, 40% for mature stages with significant capital expenditure, and 20% for growth stages with significant capital expenditure[197]. Risk Factors - The company acknowledges the risk of counterfeit liquor products affecting market order and brand reputation[150]. - The company faces market competition risks due to the increasing number of participants in the liquor distribution sector[147]. - The company anticipates market price fluctuations for liquor products, influenced by seasonal demand and consumer behavior changes[150].

Financial Performance - Total revenue for Q1 2020 was CNY 1,294,864,150.76, an increase of 14.96% compared to CNY 1,126,381,584.74 in the same period last year[7] - Net profit attributable to shareholders was CNY 97,778,416.99, up 10.26% from CNY 88,680,620.08 year-on-year[7] - Net profit excluding non-recurring gains and losses reached CNY 97,414,443.04, representing a 29.22% increase from CNY 75,387,220.56 in the previous year[7] - Basic and diluted earnings per share were both CNY 0.23, reflecting a 4.55% increase from CNY 0.22 in the previous year[7] - The company reported a net profit margin improvement, with net profit increasing year-over-year, although specific figures were not disclosed in the provided data[43] - The company's net profit for the current period is 99,199,268.19, an increase from 93,901,073.69 in the previous period, representing a growth of approximately 5.0%[45] - Operating profit for the current period is 120,755,955.30, slightly down from 122,151,537.19, indicating a decrease of around 1.1%[45] - The company reported a significant reduction in financial expenses, down to 3,121,430.40 from 6,830,395.93, a decrease of approximately 54.4%[45] - Sales expenses increased to 97,974,193.42 from 84,599,751.61, marking an increase of about 15.5%[45] - The tax expenses decreased significantly to 22,015,661.11 from 28,456,060.68, reflecting a reduction of approximately 22.5%[45] - The company reported a credit impairment loss of -4,695,993.23, indicating a negative impact on financial performance[45] - The company’s management expenses were reported at 21,004,570.26, up from 16,326,986.92, an increase of about 28.0%[45] Cash Flow and Assets - The net cash flow from operating activities was negative CNY 265,094,495.54, a significant decline of 9,427.75% compared to negative CNY 2,782,339.64 in the same period last year[7] - Cash flow from operating activities showed a net outflow of CNY 26,509,450, a decline of 9,427.75% year-on-year, attributed to increased cash payments for goods and services[18] - The cash inflow from operating activities totaled CNY 1,251,777,772.41, a decrease of 4.7% compared to CNY 1,314,137,743.26 in the previous period[54] - The cash outflow from operating activities amounted to CNY 1,516,872,267.95, an increase of 15.2% from CNY 1,316,920,082.90 in the prior period[56] - The total cash and cash equivalents at the end of the period were CNY 550,160,185.81, down from CNY 1,024,926,596.44 in the previous period[61] - The company reported a significant decrease in cash received from sales, totaling CNY 185,644,743.43, compared to CNY 482,148,720.63 in the prior period[59] - The company paid CNY 474,031,872.55 for goods and services, a decrease from CNY 585,274,551.83 in the previous period[59] - The company experienced a cash decrease of CNY -366,417,905.06 during the period, compared to an increase of CNY 917,909,318.61 in the previous period[61] Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,058,689,223.17, a decrease of 1.93% from CNY 4,138,472,440.33 at the end of the previous year[7] - Current liabilities decreased to CNY 1,401,857,530.31 from CNY 1,580,166,745.97, representing a reduction of approximately 11.3%[37] - The total equity attributable to shareholders increased to CNY 2,604,716,261.74 from CNY 2,507,611,114.43, marking an increase of about 3.9%[37] - Accounts receivable increased by 77.29% to CNY 110,904,400, primarily due to unsettled receivables from large KA stores[17] - Fixed assets rose by 369.57% to CNY 43,574,400, mainly due to the implementation of a fundraising project for a product R&D center[17] - The company reported an increase in accounts receivable from ¥62,556,771.24 on December 31, 2019, to ¥110,904,437.63 on March 31, 2020, indicating a rise of approximately 77.2%[33] - The company's inventory decreased from ¥1,669,894,822.66 on December 31, 2019, to ¥1,443,086,642.25 on March 31, 2020, reflecting a reduction of about 13.5%[33] - Inventory decreased to CNY 391,094,809.25 from CNY 436,952,193.21, a decline of approximately 10.5%[41] Business Operations and Strategy - The company launched new products, including the "Fishing Platform Boutique (Iron Cap) Wine," which contributed significantly to sales and profits[19] - The e-commerce business, "Huazhi Youxuan," has shown significant operational improvement and has become a new growth point for revenue[19] - The company launched the "Huazhi Youxuan" WeChat mini-program to enhance its online and offline retail integration, aiming to improve store quality and efficiency[25] - The company has shifted its product R&D center's location from Diqing to Beijing, with an investment of ¥60 million for the project[26] - The company has successfully completed the termination of the "Information Technology Marketing System Construction Project" and the "Product R&D Center Construction Project," reallocating the remaining funds for permanent working capital[27] - The company is leveraging the rapid development of e-commerce in the liquor industry to enhance brand promotion and sales efficiency through various online platforms[25] - The logistics sector's development has allowed the company to reduce the necessity of building its own warehousing and logistics systems, relying instead on third-party logistics services[25] - The company terminated the "Marketing Network Construction Project" and redirected the remaining funds to supplement working capital due to significant changes in project feasibility and the impact of the COVID-19 pandemic[25] - The company has invested CNY 2,934,280 in marketing network construction, achieving 4.88% of the planned investment[23] Miscellaneous - The company did not have any non-recurring gains or losses classified as recurring during the reporting period[7] - The company did not undergo an audit for the first quarter report[62] - The company has not reported any non-operating fund occupation by controlling shareholders or their affiliates during the reporting period[30]

Financial Performance - Operating revenue for the period reached CNY 961,060,074.66, a 48.31% increase year-on-year[8] - Net profit attributable to shareholders increased by 49.12% to CNY 90,170,673.69 compared to the same period last year[8] - The total operating revenue for the reporting period was 285,275.85 million yuan, an increase of 37.72% compared to the same period last year, primarily due to the expansion of brand stores and increased sales per store[22] - The net profit attributable to the parent company was ¥766,039,938.81, compared to ¥651,592,973.28 in the previous year, reflecting a growth of 17.6%[50] - The company's operating revenue for the current period reached CNY 379,811,539.92, a significant increase of 58.3% compared to CNY 240,054,133.33 in the previous period[61] - The total profit for the current period was CNY 118,876,288.28, representing a 52.4% increase from CNY 78,096,987.11 in the previous period[58] - Net profit for the current period was ¥296,039,903.55, representing a 46.7% increase compared to ¥201,768,151.61 in the same period last year[70] Assets and Liabilities - Total assets increased by 36.37% to CNY 3,644,622,337.73 compared to the end of the previous year[8] - Total liabilities decreased to ¥713,435,290.27 from ¥1,182,245,064.17, a reduction of 39.6%[47] - The balance of accounts payable at the end of the reporting period was 100,191.10 million yuan, a decrease from the previous period[37] - The balance of other current assets at the end of the reporting period was 133,764.57 million yuan, an increase of 51.47% from the beginning of the year, mainly due to an increase in VAT input tax to be certified[21] Cash Flow - Cash flow from operating activities showed a negative net amount of CNY -328,453,060.39, a decline of 136.48%[8] - The net cash flow from operating activities was -32,845.31 million yuan, a decrease of 136.48% year-on-year, primarily due to increased cash payments for goods and services[22] - The net cash flow from financing activities was 91,867.52 million yuan, an increase of 2243.37% year-on-year, primarily due to increased cash received from investments[22] - Cash inflows from operating activities reached approximately 3.23 billion, up from 2.30 billion, indicating a growth of around 40.14%[83] - The net cash flow from financing activities was approximately 918.68 million, a significant improvement from 39.20 million in the previous period[88] Expenses - The operating cost for the reporting period was 222,613.70 million yuan, reflecting a growth of 38.89% year-on-year, mainly driven by the increase in operating revenue[22] - The financial expenses for the reporting period were 1,743.93 million yuan, an increase of 121.1% year-on-year, mainly due to increased interest expenses from short-term bank loans[22] - The company reported a sales expense of ¥83,626,191.60, which is an increase of 30.5% from ¥64,116,841.30 year-on-year[51] - The company incurred a tax expense of CNY 27,392,159.58, up from CNY 16,016,029.64 in the previous period, reflecting higher profitability[58] Shareholder Equity - Net assets attributable to shareholders increased by 83.82% to CNY 2,478,998,421.68 compared to the end of the previous year[8] - The company's equity attributable to shareholders reached ¥2,132,728,169.51, compared to ¥1,128,516,642.90, marking an increase of 89.0%[50] - The balance of capital reserves at the end of the reporting period was 85,721.49 million yuan, an increase of 300.97% from the beginning of the year, primarily due to the premium generated from the issuance of shares[22] Comprehensive Income - The total comprehensive income for the current period was CNY 90,699,732.03, compared to CNY 60,954,522.09 in the previous period[58] - The total comprehensive income amounted to approximately 160.76 million, compared to 149.63 million in the previous period, reflecting an increase of about 7.55%[82] Inventory and Receivables - Accounts receivable increased by 137.24% to CNY 11,226,100.00, attributed to an increase in bank acceptance bills received from customers[20] - Prepayments rose by 102.12% to CNY 691,439,400.00, mainly due to increased advance payments for products from Moutai and Wuliangye[20] - Inventory levels decreased to ¥459,212,458.15 from ¥975,253,549.45, a decline of 53.0%[44] Other Financial Metrics - Basic earnings per share decreased by 37.14% to CNY 0.22[8] - The basic and diluted earnings per share for the current period were both CNY 0.22, down from CNY 0.35 in the previous period[58] - Earnings per share (EPS) for the current period was ¥0.71, down from ¥1.14 in the previous period[73] - The company reported a significant increase in investment income, totaling ¥70,204,805.76, compared to ¥76,961,389.71 in the previous period[78] Audit and Reliability - The third quarter report was not audited, indicating potential implications for financial reliability[98]

Financial Performance - Total revenue for the first half of 2019 reached ¥1,891,698,387.43, representing a 32.89% increase compared to ¥1,423,473,753.89 in the same period last year[22] - Net profit attributable to shareholders was ¥200,886,278.55, up 45.40% from ¥138,165,648.47 year-on-year[22] - Net profit after deducting non-recurring gains and losses was ¥177,367,777.67, a 37.39% increase from ¥129,097,449.32 in the previous year[22] - Basic earnings per share increased to ¥0.91, reflecting a 13.75% growth from ¥0.80 in the same period last year[22] - The company achieved a revenue of 1,891.70 million RMB in the first half of 2019, representing a year-on-year growth of 32.89%[64] - The net profit for the same period was 204.56 million RMB, an increase of 46.44%, with the net profit attributable to shareholders reaching 200.89 million RMB, up by 45.40%[64] Assets and Liabilities - Total assets as of the end of the reporting period were ¥3,510,062,911.06, a 31.34% increase from ¥2,672,517,626.28 at the end of the previous year[25] - The total current assets as of June 30, 2019, amounted to ¥2,621,510,681.36, a rise from ¥1,958,732,154.56 at the end of 2018, indicating a growth of about 33.8%[190] - Total assets increased to ¥2,961,153,039.10 as of June 30, 2019, compared to ¥2,310,761,707.07 at the end of 2018, marking a growth of approximately 28.1%[196] - Total liabilities decreased to ¥845,663,957.25 from ¥1,182,245,064.17 in the previous year, reflecting a reduction of about 28.5%[196] - The total share capital as of the last trading day before the report was 231,554,667 shares[25] Cash Flow - The company reported a net cash flow from operating activities of -¥181,376,057.98, which is a decline of 131.80% compared to -¥78,246,597.18 in the previous year[22] - The net cash flow from financing activities was ¥979,776,446.51, a significant increase of 15,574.68% from -¥6,331,482.39, mainly due to cash received from stock issuance[71] - Cash and cash equivalents increased by ¥793,535,875.36, a rise of 1,028.51% compared to -¥85,463,031.50 in the previous year[71] - Cash and cash equivalents rose significantly to ¥919,204,137.70 from ¥266,177,343.45, showing an increase of approximately 245.5%[189] Investments and Capital - The company invested ¥153,960,000.00 during the reporting period, a 100% increase compared to ¥0.00 in the same period last year[78] - The company has cumulatively invested ¥15,396.00 million of the raised funds, with no changes in the use of funds reported[80] - The company plans to increase its capital stock by 8 shares for every 10 shares held, based on a total of 231,554,667 shares, resulting in a total capital increase of 1,045,661,893.42 CNY[103] - The company issued 57,888,667 new shares, increasing the total share capital from 173,666,000 to 231,554,667[141] Market and Competition - The company is facing increased market competition due to the rise of e-commerce and the diversification of retail terminals[97] - The market for alcoholic beverages has experienced significant price fluctuations, influenced by rising national income and changing consumer behavior[98] - The company is at risk of counterfeit products in the alcohol distribution industry, which could harm its brand reputation[99] Operational Efficiency - The company has established a comprehensive marketing network covering various channels, including chain liquor stores, retail outlets, and e-commerce, enhancing its market presence[34] - The company has established a nationwide direct supply network, enhancing efficiency by eliminating traditional distribution intermediaries, which has strengthened its market influence and competitiveness[47] - The company operates 22 warehouses across 16 provinces and 3 municipalities, optimizing logistics and inventory management to enhance operational efficiency[56] - The company has implemented a flat sales network that connects directly with end consumers, allowing for rapid response to market trends and consumer demands[48] Product Development and Innovation - The company actively participates in product development, collaborating with distilleries to create market-demand-driven products, enhancing its product offerings[34] - The company has developed a comprehensive product system with nearly 4,000 types of domestic and international premium alcoholic beverages, catering to diverse consumer preferences[54] - The company has successfully developed new products and obtained general agency rights, continuously creating new business growth points[51] Shareholder and Governance - The annual shareholders' meeting had a participation rate of 75.01% on May 9, 2019[102] - The company has maintained a stable and positive profit distribution strategy to ensure long-term returns to shareholders[103] - The company has not engaged in any major related party transactions during the reporting period[114] - The company has no significant litigation or arbitration matters during the reporting period[109] Audit and Compliance - The company’s financial report for the half-year has been audited by Da Hua Accounting Firm, with an audit fee of 600,000 CNY[107] - The company reported a standard unqualified audit opinion for the half-year report, indicating no significant issues found during the audit[175]

Financial Performance - Total revenue for Q1 2019 reached ¥1,126,381,584.74, an increase of 41.14% compared to ¥798,081,474.37 in the same period last year[8] - Net profit attributable to shareholders was ¥88,680,620.08, up 45.16% from ¥61,092,396.27 year-on-year[8] - Net profit excluding non-recurring gains and losses was ¥75,387,220.56, reflecting a 25.29% increase from ¥60,171,814.21 in the previous year[8] - Basic earnings per share rose to ¥0.42, a 20.00% increase from ¥0.35 in the same period last year[8] - Operating profit for the current period was ¥122,151,537.19, up 49.5% from ¥81,667,185.20 in the previous period[68] - Net profit for the current period was ¥93,901,073.69, representing a 42.5% increase from ¥65,924,497.71 in the previous period[68] - Total operating revenue for the current period reached ¥1,126,381,584.74, a significant increase of 41.0% compared to ¥798,081,474.37 in the previous period[65] - The total comprehensive income for the current period was ¥94,499,650.65, compared to ¥66,871,939.90 in the previous period, marking a growth of 41.4%[72] Assets and Liabilities - Total assets at the end of the reporting period amounted to ¥3,491,501,222.45, a 30.64% increase from ¥2,672,517,626.28 at the end of the previous year[8] - Total current assets increased to 3,419,747,947.02 from 2,596,745,109.21 year-over-year[48] - The total liabilities decreased from CNY 1,296,092,273.61 to CNY 1,130,811,658.05, representing a reduction of approximately 12.8%[51] - The total equity increased from CNY 1,376,425,352.67 to CNY 2,360,689,564.40, reflecting a growth of about 71.5%[54] - The company's cash and cash equivalents at the end of the reporting period amounted to 1,328.75 million CNY, an increase of 169.62% compared to the beginning of the year, primarily due to funds raised from the stock issuance[24] Cash Flow - The net cash flow from operating activities improved significantly to -¥2,782,339.64, a 97.87% improvement from -¥130,864,237.17 in the same period last year[8] - Cash inflow from operating activities totaled CNY 1,314,137,743.26, an increase from CNY 748,964,672.23 in the prior period[83] - Cash outflow from operating activities was CNY 1,316,920,082.90, compared to CNY 879,828,909.40 in the previous period[83] - Cash inflow from financing activities reached CNY 979,935,105.41, significantly higher than CNY 100,000,000.00 in the previous period[86] - Net cash flow from financing activities was CNY 909,755,538.83, compared to CNY 37,396,249.05 in the prior year[86] Market and Competition - The company faced market competition risks due to the increasing number of participants in the liquor distribution sector and the rise of e-commerce sales channels[31] - The company is actively adjusting its sales strategies and marketing approaches to enhance its competitive edge in response to market dynamics[31] Investments and Projects - Total funds raised amounted to 97,195.07 million, with 14,618.64 million invested in the current quarter[37] - The cumulative investment in committed projects reached 88,976.46 million, with a progress rate of 16.43%[37] - The company plans to continue using unutilized raised funds for project construction, stored in a dedicated bank account[40] Tax and Expenses - The company reported a significant increase in income tax expenses, which amounted to 28.46 million CNY, a year-on-year growth of 69.16%, primarily due to increased operating revenue[25] - The company reported a decrease in tax and additional charges to ¥2,338,115.55 from ¥3,067,860.77, a reduction of 23.9%[65] - The company's financial expenses increased to ¥6,830,395.93, up from ¥6,196,887.88, primarily due to higher interest expenses[65] Other Financial Metrics - The weighted average return on equity was 4.46%, down from 5.29% in the previous year[8] - The company reported no non-recurring gains or losses that were reclassified as regular gains or losses during the reporting period[8] - The company has no outstanding issues regarding the use of raised funds or any non-operational fund occupation by major shareholders[40][41] - There were no changes in the feasibility of committed investment projects during the reporting period[40] - The company did not apply new financial instrument standards or new revenue standards for the current year[93]

Financial Performance - The company's operating revenue for 2018 was ¥2,720,804,229.54, representing a 13.06% increase from ¥2,406,518,403.67 in 2017[23]. - The net profit attributable to shareholders for 2018 was ¥224,872,734.80, a 10.94% increase compared to ¥202,700,951.33 in 2017[23]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥207,492,987.88, which is a 22.66% increase from ¥169,162,760.08 in 2017[23]. - The net cash flow from operating activities was negative at -¥241,264,509.24, a decline of 166.08% compared to ¥365,095,328.30 in 2017[23]. - The total assets at the end of 2018 were ¥2,672,517,626.28, reflecting a 35.13% increase from ¥1,977,753,918.59 at the end of 2017[23]. - The net assets attributable to shareholders at the end of 2018 were ¥1,348,626,001.38, up 19.87% from ¥1,125,037,986.10 at the end of 2017[23]. - The basic earnings per share for 2018 was ¥1.29, a 10.26% increase from ¥1.17 in 2017[23]. - The diluted earnings per share for 2018 was also ¥1.29, reflecting the same 10.26% increase from ¥1.17 in 2017[23]. - The company reported a significant decrease in cash flow from operating activities, indicating potential liquidity challenges[28]. Market Dynamics - The company faces intensified market competition due to the rise of e-commerce and the diversification of retail terminals, impacting traditional distribution channels[7]. - The company operates in a competitive liquor distribution market with a low concentration of major players, leading to increased competition[7]. - The company acknowledges the risks associated with market price volatility and the potential impact on its revenue[8]. - The company is focused on transforming its business model in response to changing consumer preferences and market dynamics[7]. - The market trend shows a shift towards brand loyalty and quality, with leading brands like Moutai and Wuliangye gaining market share[112]. - The retail landscape is evolving with a focus on digital transformation and the integration of online and offline sales channels[112]. Consumer Trends - The production of liquor in China has shown a compound annual growth rate of 6.68% from 2002 to 2018, increasing from 3.69 million kiloliters to 10.38 million kiloliters[44]. - The liquor import volume in 2018 reached 2.37 million kiloliters, with an import value of approximately $5.60 billion, marking an 18.15% year-on-year growth[46]. - Per capita disposable income in China rose from ¥18,310.80 in 2013 to ¥28,228.00 in 2018, reflecting a significant increase in consumer spending power[51]. - The per capita consumption expenditure on food, tobacco, and alcohol increased from ¥4,126.70 in 2013 to ¥5,631.00 in 2018, with an annual growth rate of 6.43%[51]. - The consumption of white liquor is expected to reach 15.15 million kiloliters by 2020, driven by rising demand for premium brands[52]. - The number of middle-class consumers in China reached 109 million, representing a substantial market for premium liquor consumption[78]. Product and Brand Strategy - The company aims to enhance its marketing network and product offerings to meet the evolving market demands in the liquor industry[39]. - The company has established a unique product authenticity system, enhancing its credit rating in the consumer market[89]. - The company has been recognized as a "China Famous Trademark" and has received multiple awards from major liquor brands, indicating strong brand recognition[88]. - The company has developed a comprehensive product system with nearly 4,000 types of products, including well-known brands like Moutai and Wuliangye, catering to diverse consumer preferences[101]. - The company's product selection and development strategy has created new business growth points, ensuring continuous revenue generation[100]. Distribution and Sales Channels - The company has established a nationwide direct supply network, eliminating traditional distribution intermediaries and improving efficiency[93]. - The company has nearly 4,000 retail store clients, allowing for quick delivery and reduced procurement costs for customers[96]. - The company has entered over 20 large supermarkets and is actively expanding its online sales channels through platforms like JD.com and Tmall[97]. - The company has expanded its retail network by adding 556 new retail store clients, establishing a solid foundation for further development of the Huazhi Wine Cellar channel[91]. - The company has developed 62 terminal suppliers to enhance its business coverage and leverage the strengths of these suppliers in the traditional sales channels[92]. Financial Policies and Dividends - The company plans to distribute a cash dividend of 2.00 yuan (including tax) for every 10 shares based on a total of 231,554,667 shares, with no bonus shares issued[10]. - The total distributable profit for the fiscal year 2018 was 651,592,973.28 CNY, with the cash dividend amount accounting for 100% of the total profit distribution[152]. - The company has a clear and transparent profit distribution decision-making process, ensuring the protection of minority shareholders' rights[152]. - The company is in a mature development stage and aims to maintain a minimum cash dividend ratio of 80% during profit distribution[152]. - The company maintains a profit distribution policy that emphasizes continuity and stability, prioritizing reasonable returns for investors, with a minimum cash dividend of 10% of the distributable profit for the year[165]. Risk Management and Compliance - The company recognizes market competition risks and aims to adjust its sales strategies based on market dynamics and customer needs[148]. - The company is sensitive to market price fluctuations and plans to adjust its operational policies accordingly to mitigate impacts on profitability[148]. - The company guarantees compliance with legal regulations and internal procedures when reviewing related party transactions to protect its interests[177]. - The company has committed to not selling alcoholic products to related parties and will cease purchasing products from related alcoholic enterprises for sales[180]. - The company will ensure that any cash dividends from wholly-owned or controlled subsidiaries are paid to the company before distributing dividends to shareholders[171].