CITIC Wine(SH:600084)2021-04-23 16:00Financial Performance - In 2020, the company reported a net profit attributable to shareholders of -56,403,174.79 RMB, a decrease of 478.05% compared to the previous year[7]. - The operating revenue for 2020 was 94,614,896.59 RMB, representing a decline of 61.90% from 248,314,310.48 RMB in 2019[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -61,424,785.42 RMB, a significant decline from 8,482,488.25 RMB in 2019[26]. - The company's basic earnings per share for 2020 was -0.0502 RMB, a decrease of 477.44% compared to 0.0133 RMB in 2019[27]. - The weighted average return on net assets was -2.5932% in 2020, a decrease of 3.2732 percentage points from 0.6800% in 2019[30]. - The company reported an operating loss of 57.12 million yuan and a net loss attributable to shareholders of 56.40 million yuan[65]. - The company’s revenue for 2020 was below 100 million RMB, triggering a risk warning for potential delisting according to stock exchange regulations[146]. - The company reported a net profit of -56,403,174.79 RMB for 2020, indicating a negative profit situation[156]. Cash Flow and Assets - The net cash flow from operating activities was -29,709,364.09 RMB, an improvement from -41,909,983.04 RMB in 2019[26]. - The total assets at the end of 2020 were 2,281,390,356.19 RMB, a slight decrease of 0.33% from 2,288,972,460.23 RMB in 2019[26]. - As of December 31, 2020, the company's total assets amounted to CNY 2.281 billion, and net assets were CNY 2.147 billion[56]. - Cash and cash equivalents at the end of the period were 62,614,581.64 yuan, down 31.17% from the previous year[97]. Market and Sales Performance - The company experienced a significant decrease in non-current asset disposal gains, reporting only ¥634,305.21 in 2020 compared to ¥4,014,831.52 in 2019[33]. - The domestic wine production in China decreased from 45.1 million liters in 2019 to 41.3 million liters in 2020, a decline of 8.43% year-on-year[41]. - The import volume of wine dropped from 66.2 million liters in 2019 to 47.1 million liters in 2020, a decrease of 28.85% year-on-year[41]. - The company’s finished product inventory was 1,785.09 thousand liters, with a significant decrease in sales volume for high-end products by 59.25%[106]. - The sales volume for direct sales (including group purchases) was 280.05 thousand liters, down from 432.78 thousand liters in the previous period[115]. - High-end wine revenue decreased by 56.54% to ¥33,043,864.40, while mid-to-low-end wine revenue decreased by 66.97% to ¥38,195,788.33[122]. Operational Challenges - The company is subject to delisting risk warnings as its net profit was negative and operating revenue was below 100 million RMB[11]. - Increased competition in the wine industry is leading to reduced sales and profit margins, with challenges from strong competitors in the beverage market[148]. - Rising operational costs, including sales, wages, and promotional expenses, are putting pressure on the company's profitability[149]. - The company has not declared any dividends for the past three years, reflecting its financial challenges[157]. Strategic Initiatives - The company aims to enhance product quality and brand awareness, particularly focusing on the cultural promotion of grape production areas in response to the domestic market challenges[41]. - The company plans to optimize its sales system and market layout, particularly focusing on the Xinjiang market as a key profit growth point[61]. - The company is focusing on high-end blended products and has developed a long-term plan for brandy quality reserves[60]. - The company plans to explore new retail channels such as live streaming sales in the future[113]. - The company aims to enhance the market share of its "Western Region" product line and achieve a breakthrough in sales scale with quality products at affordable prices[141]. Environmental and Social Responsibility - The company has implemented strict environmental management systems and emergency response plans for environmental incidents[180]. - The total wastewater treated in 2020 was 35,000 tons, with COD discharge of 2.27 tons and ammonia nitrogen discharge of 0.0241 tons[187]. - The company has installed online monitoring devices in its wastewater treatment systems, tracking parameters such as COD, ammonia nitrogen, pH value, and drainage flow, with data sent in real-time to the Changji Environmental Monitoring Center[192]. Shareholder and Governance Issues - The company’s major shareholder has had all shares frozen, but this has not yet impacted the company's operations or governance[152]. - The largest shareholder, CITIC Guoan Group Co., Ltd., holds 387,473,586 shares, representing 34.48% of the total shares, with shares frozen[198]. - The company has maintained a long-term credit rating of C from United Credit Rating due to liquidity issues faced by its major shareholder[166].