CITIC Wine(SH:600084)2020-04-28 16:00Financial Performance - The company reported a net profit attributable to shareholders of 14,919,370.53 RMB for 2019, a significant recovery from a loss of 157,252,313.74 RMB in 2018[7]. - The operating revenue for 2019 was 248,314,310.48 RMB, representing a decrease of 27.48% compared to 342,399,094.63 RMB in 2018[24]. - The net cash flow from operating activities was -41,909,983.04 RMB, an improvement from -170,900,990.16 RMB in the previous year[24]. - The total assets decreased by 18.38% to 2,288,972,460.23 RMB at the end of 2019, down from 2,804,283,952.84 RMB in 2018[24]. - The company's net assets attributable to shareholders increased slightly by 0.76% to 2,203,262,482.63 RMB at the end of 2019[24]. - Basic earnings per share for 2019 were 0.0133 RMB, recovering from a loss of 0.1399 RMB per share in 2018[27]. - The weighted average return on net assets was 0.68% for 2019, a significant improvement from -6.94% in 2018[27]. - The company reported a cumulative undistributed profit of -1,685,458,630.22 RMB, indicating ongoing financial challenges[7]. - The company will not distribute profits or increase capital reserves due to the negative net profit situation[7]. Revenue and Sales - In Q4, the company reported operating revenue of CNY 83,230,545.49, a significant increase compared to Q3's CNY 40,044,764.04[28]. - The net profit attributable to shareholders for Q4 was CNY 13,520,128.74, recovering from a loss of CNY 5,939,484.24 in Q2[28]. - The company achieved total assets of CNY 2.289 billion and net assets of CNY 2.191 billion as of December 31, 2019[54]. - The annual operating revenue for 2019 was CNY 248.31 million, a decrease of 27.48% compared to the previous year[60]. - The company’s high-end product sales reached 76,024,441.08 RMB, a year-on-year increase of 42.93%, while mid-low end product sales dropped to 115,647,295.07 RMB, a decrease of 15.41%[96]. - Total sales revenue for the company in 2019 was 191,671,736.15 RMB, with a total sales volume of 4,983.71 kiloliters, compared to 189,912,936.83 RMB and 6,145.77 kiloliters in the previous year[108]. - The Xinjiang region accounted for 50.99% of total sales revenue, with sales of 97,731,688.80 RMB, an increase from 86,729,260.41 RMB in the previous year[108]. Production and Operations - The company operates five major production and bottling plants and a logistics center, utilizing advanced winemaking equipment from France and Italy[43]. - The company has established four boutique small production area ecological vineyards, enhancing its production quality through unique geographical advantages[47]. - The actual production capacity of the Manas plant is 30,000 kiloliters, while the designed capacity is 40,000 kiloliters[92]. - The company’s inventory of finished wine at the end of the period was 1,869.06 kiloliters, while semi-finished wine inventory was 101,811.73 kiloliters[93]. Costs and Expenses - Operating costs decreased by 46.17% to 113.60 million yuan from 211.02 million yuan year-on-year, mainly due to the same consolidation scope changes[66]. - The gross profit margin for the main business was 53.56%, an increase of 15.88 percentage points compared to the previous year[70]. - The cost of raw materials in the liquor segment was 81,715,954.21, accounting for 71.94% of total costs, with a slight increase of 0.46% compared to the previous year[77]. - The labor cost in the liquor segment decreased by 12.38% to 7,338,982.43, representing 6.46% of total costs[77]. - The depreciation cost in the liquor segment also saw a reduction of 12.75%, amounting to 16,220,653.08, which is 14.28% of total costs[77]. - Advertising expenses dropped by 91.58% to ¥6,855,430.33, primarily due to a significant reduction in advertising and promotional spending[119][122]. Market and Competition - The company faces risks including macroeconomic fluctuations, intensified industry competition, and rising operational costs[11]. - Increased competition from imported wines poses a significant challenge to the domestic wine market[142]. - The company plans to explore new sales channels, including live streaming sales, to adapt to changing market dynamics[103]. Legal and Regulatory Issues - The company has experienced a complete freeze of shares held by its major shareholder, which has not yet impacted its operations[144]. - The controlling shareholder, Guoan Group, had 345,657,419 shares of the company frozen by the Liaoning Provincial High People's Court on March 19, 2019[176]. - The company has faced multiple rounds of share freezes, with 387,473,586 shares being a recurring figure, reflecting significant legal and financial challenges[182]. - The ongoing legal disputes and share freezes may impact the company's stock performance and investor confidence moving forward[184]. Corporate Governance and Social Responsibility - The company continues to fulfill its social responsibilities while navigating these challenges, indicating a commitment to corporate governance[188]. - The company has established a comprehensive regulatory framework to protect shareholder rights, ensuring compliance with relevant laws and regulations[190]. - The company emphasizes employee rights, providing fair working conditions and benefits, including full payment of social insurance and annual health check-ups[191]. - The company supports local farmers by providing technical assistance and timely payments, benefiting over 1,100 farmers in the region[196]. - The company prioritizes environmental protection, achieving all indicators in line with national environmental standards[200].