澜沧古茶(06911) - 2024 - 年度业绩

Performance Summary and Financial Statements Financial Highlights Pu'er Lancang Ancient Tea faced severe challenges in FY2024, experiencing a significant performance decline with total revenue down 31.5% and gross profit shrinking 46.8%, resulting in a net loss of RMB 308 million attributable to owners 2024 Key Financial Indicators | Indicator | 2024 (RMB Thousand) | 2023 (RMB Thousand) | YoY Change % | | :--- | :--- | :--- | :--- | | Revenue | 361,328 | 527,345 | (31.5%) | | Gross Profit | 188,014 | 353,118 | (46.8%) | | (Loss) Profit Before Tax | (293,300) | 92,349 | N/A | | (Loss) Profit Attributable to Owners of the Company | (307,545) | 80,080 | N/A | | Basic and Diluted (Loss) Earnings Per Share (Yuan) | (2.44) | 0.84 | N/A | Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2024, the company recorded a net loss of RMB 309 million, a stark contrast to the RMB 78.52 million net profit in FY2023, primarily due to revenue decline, gross profit contraction, and significant asset impairment losses - The "Other Gains and Losses" item recorded a substantial loss of RMB 185 million, a key factor in the full-year shift from profit to loss, mainly due to impairment losses on property, plant, equipment, and right-of-use assets[5][29] - Despite a significant revenue decline, selling and marketing expenses increased from RMB 161 million to RMB 172 million, and administrative expenses rose from RMB 88.88 million to RMB 95.73 million, indicating a disconnect between cost control and revenue changes[5] Consolidated Statement of Financial Position At the end of 2024, the company's total assets decreased to RMB 1.34 billion and net assets declined to RMB 673 million, reflecting a significant reduction in non-current assets due to impairment and increased liquidity pressure from higher borrowings and reduced cash Key Balance Sheet Item Changes (2023 vs 2024) | Item | 2024 (RMB Thousand) | 2023 (RMB Thousand) | | :--- | :--- | :--- | | Non-current Assets | 228,576 | 416,214 | | Of which: Property, Plant and Equipment | 67,196 | 139,847 | | Of which: Right-of-use Assets | 62,948 | 179,723 | | Current Assets | 1,113,103 | 1,211,762 | | Of which: Inventories | 903,365 | 841,440 | | Of which: Bank Balances and Cash | 65,370 | 262,313 | | Current Liabilities | 486,971 | 385,355 | | Of which: Bank and Other Borrowings | 230,900 | 132,200 | | Net Assets | 672,730 | 1,010,307 | Notes to the Consolidated Financial Statements The financial statement notes reveal deep operational issues, with the auditor's report highlighting significant uncertainties related to going concern, alongside details of revenue decline, substantial asset impairment, inventory buildup, and slower accounts receivable collection - The auditor's report and financial statement notes indicate that the substantial annual loss and current liabilities exceeding cash reserves constitute significant uncertainties that may cast substantial doubt on the Group's ability to continue as a going concern[23][112] - The company recognized RMB 192 million in asset impairment losses, primarily including RMB 94.78 million for property, plant, and equipment and RMB 94.68 million for right-of-use assets, reflecting a pessimistic adjustment to future cash flow expectations[29][43] - Inventories increased from RMB 841 million to RMB 903 million, mainly due to sales decline leading to finished goods accumulation, while impairment provisions for trade receivables significantly increased from RMB 4.11 million to RMB 21.67 million, indicating rising collection risk[33][35] - Given the FY2024 loss and challenging market environment, the Board resolved not to declare a final dividend for 2024 to conserve funds and enhance risk response capabilities[32][106] Management Discussion and Analysis Business Overview and Operating Performance In 2024, the company faced slow consumer market recovery, online channel impact, and price competition, severely affecting its offline-centric sales model and leading to overall revenue decline, despite a 173% growth in key account channel revenue - The company attributed the performance decline to external market conditions (weak consumption, intensified competition) and internal operational missteps, particularly a chaotic online-offline channel strategy leading to a severe imbalance in input-output ratio[44][45][55] Revenue Performance by Sales Channel (YoY Change) | Sales Channel | 2024 Revenue (RMB Million) | YoY Change | | :--- | :--- | :--- | | Distributors | 181.0 | -52.3% | | Direct Customers | 46.7 | -18.1% | | Key Accounts | 54.5 | +173.0% | | Online Sales | 79.1 | +11.4% | Revenue Performance by Product Line | Product Line | 2024 Revenue (RMB Million) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | 1966 Series | 227.6 | 63.0% | -37.4% | | Tea Mama and Yan Leng Series | 117.1 | 32.4% | -21.0% | - The company formulated new operating strategies, including market-oriented product adjustments, price system optimization, stabilizing offline business, improving online operations, and actively seizing growth opportunities in KA channels and raw tea business[56][57] Financial Review The financial review details the reasons for performance deterioration, including a 31.5% revenue decline, a sharp drop in gross margin to 52.0% due to promotional discounts, increased selling expenses from online promotion, surging financial asset impairment losses, and substantial long-term asset impairment - Gross margin decreased from 67.0% to 52.0%, primarily due to a sluggish market environment, prompting the company to adopt discounted sales or promotional giveaways to encourage store pickup, leading to a decrease in average selling prices[61] - Selling expenses increased by RMB 10.6 million, mainly due to increased online promotion and service fees, as well as higher expenditures on tea samples to boost offline sales[62] - Net impairment losses on financial assets increased from RMB 2.3 million to RMB 18 million, primarily due to slower collection of trade receivables from distributors and increased bad debt provisions arising from higher customer credit risk[64] - Inventories increased by RMB 62 million from the beginning of the year, mainly because sales volume decreased, and finished goods sales were lower than raw material purchases and production volumes[73] Liquidity and Capital Resources The company's liquidity significantly deteriorated during the reporting period, with cash and cash equivalents plummeting from RMB 262 million to RMB 65.4 million, leading to increased borrowings from RMB 251 million to RMB 326 million and a rise in the gearing ratio to 32.7% - Cash and cash equivalents significantly decreased from RMB 262 million to RMB 65.4 million, primarily due to the use of proceeds, reduced sales collections, and increased working capital expenditures[77] - Total Group borrowings increased from RMB 251 million to RMB 326 million, with the gearing ratio rising from 20% to 32.7%, reflecting increased reliance on debt financing[78][79] - The Group has pledged assets with a total net book value of approximately RMB 77.6 million (including property, plant, and equipment, inventories, and land use rights) to secure bank loans[80] Use of Net Proceeds from Listing The company made multiple significant changes to the use of IPO proceeds, reallocating funds originally planned for long-term development projects to repay bank loans and supplement working capital, highlighting urgent financial pressure and prioritizing liquidity over expansion - The company announced multiple changes to IPO fundraising uses in July and December 2024, and May 2025, cumulatively reallocating tens of millions of yuan from long-term development projects to repay bank loans and supplement working capital[86][87][88] Revised Use of Proceeds and Utilization (As of December 31, 2024) | Purpose | Revised Planned Amount (RMB Million) | Utilized During Reporting Period (RMB Million) | Unutilized (RMB Million) | | :--- | :--- | :--- | :--- | | Logistics, Warehousing and Production | 11.7 | 10.6 | 1.1 | | Establishment of Sales Channels | 9.0 | 6.0 | 13.3 | | Brand Building and Marketing | 25.4 | 21.8 | 3.6 | | Repayment of Borrowings | 26.0 | 0.0 | 26.0 | | Working Capital and Others | 35.9 | 21.9 | 0.0 | Employees and Remuneration Policy As of the end of 2024, the Group had 730 employees, with total staff costs of RMB 98.3 million for the year, a decrease from RMB 107 million in the previous year - As of December 31, 2024, the Group had 730 employees, with total staff costs for the year amounting to RMB 98.3 million, a decrease from RMB 107.0 million in FY2023[92] Other Disclosures Subsequent Events After Reporting Period Several significant events occurred after the reporting period, impacting corporate governance and operations, including share pledges by controlling shareholders, a disclosed inventory discrepancy resolved by tea exchange, and new bank loans to alleviate financial pressure - In April 2025, Ms. Wang, a controlling shareholder, and Mr. Zhang, an executive director, pledged shares totaling approximately 15.83% of the company's total share capital to address personal urgent financial issues, which is unrelated to the Group[94] - The company experienced an inventory discrepancy of 35 tons of new tea, later resolved by an agreement with a trader to exchange new tea costing RMB 10 million for 160 tons of old tea and raw materials valued at RMB 19.5 million, which the Board believes will activate inventory and resolve the issue[95] - In May 2025, the company entered into an agreement with Agricultural Bank for a term loan facility of up to RMB 24.3 million to supplement liquidity[96] Corporate Governance The company deviated from corporate governance codes multiple times during and after the reporting period, primarily due to share pledges by controlling shareholders and an executive director, and the Chairman briefly assuming the General Manager role - The company disclosed that Ms. Wang, a controlling shareholder, and Mr. Zhang, an executive director, pledged shares on April 30, 2025, violating the "Model Code" restrictions on securities dealings during blackout periods[101][103] - From January to May 2025, Ms. Du Chunyi, the Board Chairman, temporarily served as the General Manager, constituting a deviation from the corporate governance code requiring separation of roles between the Chairman and Chief Executive Officer[100] Audit and Auditor's Report The Audit Committee reviewed the annual results, and the independent auditor, Shinewing (HK) CPA Limited, issued an unmodified opinion but included a "Material Uncertainty Related to Going Concern" paragraph, highlighting the Group's substantial loss and liquidity issues - The independent auditor issued an unmodified opinion but specifically emphasized a "Material Uncertainty Related to Going Concern"[111][112] - The auditor noted that as of the end of 2024, the Group recorded a substantial net loss of approximately RMB 309 million, and its bank and lease borrowings within current liabilities significantly exceeded its bank balances and cash, raising significant doubt about the Group's ability to continue as a going concern[112][23]