Financial Performance - Revenue for the fiscal year 2024 decreased by 46.8% to RMB 346 million, down from RMB 650 million in fiscal year 2023[9] - Revenue decreased from RMB 65.0 million in FY2023 to RMB 34.6 million in FY2024, a decline of 46.8% due to a downturn in the Chinese market[16] - Gross profit decreased from RMB 47.6 million in FY2023 to RMB 26.3 million in FY2024, a drop of 44.7%, while gross margin increased from 73.3% to 76.1%[19] - The company recorded a net loss of RMB 41.0 million in FY2024 compared to a profit of RMB 10.2 million in FY2023[25] - Cash and cash equivalents decreased by 17.7% from RMB 41.9 million as of December 31, 2023, to RMB 34.5 million as of December 31, 2024[26] - Administrative expenses rose by 5.7% from RMB 24.4 million in FY2023 to RMB 25.8 million in FY2024[22] - Financing costs for FY2024 amounted to RMB 1.2 million, including bank loan interest of RMB 1.114 million[23] Sales and Market Trends - Bottled wine sales dropped from 738,000 bottles in fiscal year 2023 to 438,000 bottles in fiscal year 2024[13] - The average selling price per bottle decreased from RMB 88.1 in fiscal year 2023 to RMB 78.9 in fiscal year 2024[13] - Export sales of bottled wine to Hong Kong increased to 1,066,000 bottles in 2024, up from 985,000 bottles in 2023[10] - Economic challenges in China, including deflationary pressures and cautious consumer spending, are expected to persist for the next three to five years[9] - The company identified major risks including weak consumer demand in China, which is expected to continue affecting sales due to economic uncertainties and high-end wine demand decreasing significantly[124] - Sales in Shanxi province account for a substantial portion of total sales; any significant decline in this market could lead to a major drop in wine sales and revenue[125] Strategic Initiatives - The company plans to enhance operational efficiency and cost management to adapt to the current sales scale[10] - Strategic partnerships, such as the collaboration with Cathay Pacific for supplying wines, are aimed at increasing brand recognition[9] - The company is focusing on core consumers who appreciate quality wines, ensuring more effective resource allocation[10] - The company is focusing on diversifying its business and developing new sales channels, including online sales and partnerships with distributors outside Shanxi[125] - The company is prioritizing the use of grapes from its own vineyards in Shanxi and Ningxia to ensure uninterrupted wine production amid climate change and environmental risks[126] Corporate Governance - The company has adopted all applicable provisions of the corporate governance code as per GEM Listing Rules Appendix C1, Section 2[60] - The board consists of 3 independent non-executive directors, exceeding one-third of the total board members, ensuring compliance with GEM Listing Rules[65] - The chairman and CEO roles are held by the same individual, which the board deems appropriate for the company's interests[62] - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Investment Committee to oversee specific matters[66] - The company emphasizes the importance of good corporate governance to establish an effective accountability culture[68] Risk Management - The company has established a risk management and internal control system to monitor operational, financial, reporting, and compliance risks[117] - The audit committee is responsible for overseeing the risk management and internal control systems, reviewing risk records, and approving internal audit plans[119] - The board is responsible for ensuring the effectiveness of the risk management and internal control systems, with annual reviews conducted[118] - No significant internal control deficiencies were identified, and the board believes that the company's risk assessment and internal control functions are adequate and effective[128] Sustainability and ESG - The environmental, social, and governance (ESG) report covers the period from January 1, 2024, to December 31, 2024, detailing the group's sustainable development strategies and performance[143] - The ESG report is prepared in accordance with the GEM Listing Rules and includes key performance indicators disclosed in a quantifiable manner[145] - The company has identified significant sustainability issues affecting its business and disclosed both positive and negative information in the ESG report[145] - Yiyuan Winery focuses on sustainable practices, including responsible sourcing and production, aiming to reduce its ecological footprint and enhance climate resilience in its operations[157] Employee Welfare and Development - The company emphasizes employee welfare by creating a supportive work environment and providing training and development opportunities[157] - The employee turnover rate is 4.04% for females and 3.81% for males, with a total of 100 full-time employees and 2 part-time employees as of December 31, 2024[186][193] - The company provides significant health measures, including major illness medical expense subsidies and annual health check-ups for employees[199] - Regular employee performance evaluations are conducted to assess capabilities and determine promotions and salary adjustments[200] Communication and Shareholder Engagement - The company is committed to maintaining open communication with shareholders regarding its operations and market environment[88] - The company encourages shareholder participation in meetings and ensures that annual general meetings are held to facilitate communication between the board and shareholders[130] - The company has established multiple communication channels with shareholders, including the publication of interim and annual reports, and holding annual general meetings[138]
怡园酒业(08146) - 2024 - 年度财报