Financial Performance - Revenue decreased by approximately 42.9% to approximately RMB 107,988,000 compared to RMB 189,139,000 in 2023[2] - Gross profit decreased to approximately RMB 7,361,000 from RMB 28,149,000 in 2023[2] - Total comprehensive expense for the year attributable to owners of the Company amounted to approximately RMB 347,437,000, up from RMB 70,806,000 in 2023[2] - Basic and diluted loss per share increased to RMB 106.55 cents from RMB 26.59 cents in 2023[2] - The Group incurred a net loss attributable to equity owners of approximately RMB321,302,000 for the year ended 31 December 2024[21] - The Group reported a net loss attributable to equity holders of approximately RMB 321,302,000 for the year ended December 31, 2024[24] - The company reported a basic loss for the year attributable to owners of approximately RMB 321,302,000 in 2024, compared to RMB 80,199,000 in 2023, indicating a significant increase in losses[55][58] Assets and Liabilities - Non-current assets decreased significantly from RMB 199,743,000 in 2023 to RMB 28,668,000 in 2024[7] - Current assets decreased from RMB 353,691,000 in 2023 to RMB 188,766,000 in 2024[7] - Net current assets decreased from RMB 301,025,000 in 2023 to RMB 128,657,000 in 2024[7] - Total assets less current liabilities decreased from RMB 500,768,000 in 2023 to RMB 157,325,000 in 2024[8] - Total equity decreased from RMB 497,385,000 in 2023 to RMB 157,325,000 in 2024[8] - As of 31 December 2024, the total assets and total liabilities of the Subject Subsidiaries were RMB149,481,000 and RMB218,830,000, respectively[19] - The Group has current liabilities of RMB60,109,000 while available bank and cash balances were RMB755,000[21] - As of December 31, 2024, the Group's current liabilities amounted to RMB 60,109,000, while cash and cash equivalents were RMB 755,000[24] Financial Challenges and Governance - The Company faced significant challenges in obtaining financial documents and controlling certain subsidiaries due to the resignation of former executives[11] - The Board is unable to ascertain the current situation of the Subject Subsidiaries due to incomplete and unreliable information provided[15] - The Company has sent 19 demand letters to retrieve necessary financial documents from former executives but received only limited and insufficient documents[14] - The Board has deconsolidated the financial information of the Subject Subsidiaries from the Group's consolidated financial statements as of 31 December 2024[19] - The Group's directors believe that preparing the consolidated financial statements on a going concern basis is appropriate, given the expected sufficient financial resources for at least the next twelve months[25] - The Group's financial performance and position as of 31 December 2024 were impacted by the inability to consolidate certain subsidiaries, affecting overall financial reporting[75] - The Group's independent auditor's report for the year ended 31 December 2024 includes a qualified opinion due to communication challenges with former executive directors[79] - The loss of control over certain subsidiaries was attributed to the former executive directors' refusal to provide essential financial documents after their resignation in November 2024[80] - There exists a material uncertainty regarding the Group's ability to continue as a going concern due to significant losses and limited cash resources[92] Revenue and Sales - The Group's revenue from major products for the year ended December 31, 2024, was RMB 107,988,000, a decrease of 43% from RMB 189,139,000 in 2023[48] - Revenue from dry wines contributed RMB 80,300,000 in 2024, down from RMB 101,103,000 in 2023, representing a decline of approximately 20.6%[48] - The sales revenue from sweet wine and dry wine accounted for 84.2% of the Group's total revenue, while brandy and other wine products accounted for 15.8%[113] - Online sales accounted for 55% of total sales, while offline sales accounted for 45% throughout the year 2024[129] - The Group recorded revenue of RMB81,825,000 in the Eastern Region market, which accounted for 75.8% of the Group's total revenue[128] Expenses and Cost Management - The Group's gross profit decreased year-on-year to RMB7,361,000, with a gross profit margin of 7%, down from 14.9% in the previous year, representing a decline of 73.8%[118][116] - Selling and distribution expenses amounted to RMB7,947,000, a year-on-year decrease of 79.5%[119] - Administrative and other operating expenses were RMB12,322,000, representing a year-on-year decrease of 63%[120] - The Group recorded a total impairment of current and long-term assets amounting to RMB250,956,000 due to the unavailability of financial information from Subject Subsidiaries[121] - The Group's total comprehensive expense for the year was RMB347,437,000[122] Industry Context - The total retail sales of consumer goods in China reached RMB48.3 trillion in 2024, reflecting a year-on-year increase of 3.5%[108] - The retail sales of tobacco and alcohol amounted to approximately RMB615.9 billion, marking a year-on-year increase of 5.7%[108] - Wine production by large-scale alcohol enterprises in China totaled 118,000 kiloliters in 2024, representing a year-on-year decrease of 14.5%[108] - The domestic wine industry remains sluggish, with ongoing challenges from rising raw material costs and increased production expenses[108] - The focus of the wine industry in 2024 is on destocking due to the economic slowdown and incomplete recovery of consumer confidence[108] Corporate Governance and Compliance - The Company complied with the Corporate Governance Code, except for the deviation from code provision C.2.1 regarding the roles of chairman and CEO being held by the same individual[164] - All Directors confirmed their compliance with the Model Code for Securities Transactions during the year[165] - The Company has adopted the standard code of conduct for securities trading as per the Listing Rules Appendix C3, confirming compliance by all directors throughout the year[168] - The Audit Committee, comprising three independent non-executive Directors, reviewed the accounting principles and practices, and discussed financial reporting matters for the year ended December 31, 2024[170] Workforce and Employment - As of December 31, 2024, the Group employed a workforce of 82 in Hong Kong and the PRC, a decrease from 252 employees including the Tonghua subsidiary as of December 31, 2023[151] - Total salaries and related costs for the year amounted to approximately RMB 19,421,000, representing an increase of 8.0% from RMB 17,980,000 in 2023[151]
通天酒业(00389) - 2024 - 年度业绩