Financial Performance - Revenue for the year ended December 31, 2024, was RMB 107,988,000, a decrease of 43% compared to RMB 189,139,000 in 2023[4] - Gross profit for 2024 was RMB 7,361,000, resulting in a gross profit margin of 7%, down from 14.88% in 2023[4] - Total comprehensive loss attributable to owners of the Company for 2024 was RMB 321,302,000, compared to a loss of RMB 80,199,000 in 2023[4] - Basic and diluted loss per share for 2024 was (106.55) RMB cents, compared to (26.59) RMB cents in 2023[4] - The Group recorded a loss and total comprehensive expense of RMB347,437,000 for the year[45] - The Group reported a net loss attributable to equity owners of approximately RMB 321.3 million for the year ended December 31, 2024[76] Assets and Liabilities - Non-current assets decreased to RMB 28,668,000 in 2024 from RMB 199,743,000 in 2023[9] - Current assets also declined to RMB 188,766,000 in 2024 from RMB 353,691,000 in 2023[9] - Shareholders' equity dropped significantly to RMB 92,577,000 in 2024 from RMB 403,920,000 in 2023[9] - Current liabilities of the Group stood at RMB 60.1 million, while available bank and cash balances were only RMB 755,000 as of December 31, 2024[76] - The Group's financial position as of December 31, 2024, is outlined in the consolidated financial statements[117] Operational Efficiency - The current ratio decreased to 3.14 in 2024 from 6.7 in 2023, indicating reduced liquidity[9] - The gearing ratio increased to 28% in 2024 from 10% in 2023, reflecting higher financial leverage[9] - Inventory turnover days increased to 329 days in 2024 from 408 days in 2023, suggesting slower inventory movement[9] - The inventory turnover days improved to approximately 329.24 days from 408 days in the previous year, indicating effective inventory management[53][58] - Trade receivables turnover days stood at 327.74 days, with trade receivables amounting to RMB 76,680,000, highlighting ongoing efforts in marketing and brand promotion[54][59] Governance and Management Changes - The company appointed Mr. Sun Jialiang as Chairman and CEO on September 30, 2024[11] - Mr. Wang Guangyuan resigned as Chairman and CEO on June 12, 2024[11] - The company experienced significant changes in its board, with multiple resignations and appointments throughout 2024[11][18][25] - The Audit Committee and Remuneration Committee were established with new members appointed on September 30, 2024[21][22] - The company is focusing on enhancing its governance structure with the appointment of new independent non-executive directors[18] - The Nomination Committee was formed with Mr. Sun Jialiang as Chairman, emphasizing the company's commitment to leadership stability[25] - The company secretary position was filled by Mr. Lai Wai Hing on November 13, 2024, indicating a focus on compliance and governance[18] - The company is undergoing a strategic review of its board composition to improve oversight and decision-making processes[25] - The company has seen a high turnover in executive positions, which may impact operational continuity and strategic direction[11][25] - The company is actively seeking to strengthen its leadership team to navigate future challenges and opportunities in the market[25] Market Performance - The sales revenue of 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%[36] - Revenue from the Eastern Region market was RMB 81,825,000, accounting for 75.8% of the group's total revenue, indicating strong market performance in that region[57][60] - In 2024, online sales accounted for 55% of the Group's total sales, while offline sales made up 45%[66] - In 2024, China's wine imports reached 280 million liters, with an import value of RMB 11.55 billion, reflecting year-on-year increases of 13.6% and 37.2%, respectively[62] - The Group anticipates that diversification into niche categories such as white wine and sparkling wine will be a key trend moving forward[63] Employee and Compensation - The Group employed a workforce of 82 in Hong Kong and China, with total salaries and related costs amounting to approximately RMB19,421,000, an increase from RMB17,980,000 in 2023[185] - The total salary and related costs for the year amount to RMB 19,421,000, compared to RMB 17,980,000 in 2023, reflecting an increase of approximately 8%[187] - The Group has adopted a share option scheme to motivate employees and reward their performance[184] - The 2023 Share Option Scheme aims to incentivize and retain high-caliber employees, with eligibility based on contributions to the Group's development[130] Shareholder Information - Bon Voyage Development Limited holds 40,000,000 shares of the company, representing approximately 13.27% of the issued share capital[84] - As of December 31, 2024, Mr. Wang Guangyuan holds 49,517,872 shares, representing approximately 16.42% of the company's issued share capital[165] - Mr. Li Jerry Y. and Mr. Zhu Minghui each hold 49,517,872 shares, also representing approximately 16.42% of the company's issued share capital, in addition to being beneficial owners of 20,000,000 shares each, which is about 6.63%[166] - The total number of shares held by Sky Source International Investments Limited is 69,517,872, accounting for approximately 23.05% of the issued share capital of the company[166] - The total number of Shares that may be issued under the 2023 Share Option Scheme shall not exceed 10% of the total number of Shares in issue on the Adoption Date[134] Compliance and Regulatory - The Company has maintained the prescribed public float as required under the Listing Rules throughout the year[191] - The Company has obtained all necessary permits and environmental approvals for its business operations, ensuring compliance with applicable environmental protection standards[197] - The existing auditor, Prism Hong Kong Limited, will retire at the upcoming annual general meeting and is eligible for re-appointment[200]
通天酒业(00389) - 2024 - 年度财报