CITIC Wine(SH:600084)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 reached ¥117,175,949.57, an increase of 177.05% compared to the same period last year[20]. - The net profit attributable to shareholders was ¥11,244,532.91, a significant recovery from a loss of ¥32,503,855.25 in the previous year[20]. - The net cash flow from operating activities was ¥11,024,502.77, improving from a negative cash flow of ¥22,487,011.85 in the same period last year[20]. - Basic earnings per share for the first half of 2021 were ¥0.0100, recovering from a loss of ¥0.0289 per share in the same period last year[20]. - The weighted average return on net assets was 0.5224%, a significant improvement from -1.4862% in the previous year[20]. - The company achieved total revenue of 117 million yuan in the first half of 2021, an increase of 75 million yuan compared to the same period last year[34]. - The net profit attributable to shareholders was 11 million yuan, marking a turnaround from a loss of 33 million yuan in the same period last year[36]. - The company's operating revenue increased by 177.05% year-on-year, reaching ¥117,175,949.57, primarily due to the rise in finished wine sales[42]. - Operating costs rose by 121.95% year-on-year to ¥47,530,288.10, corresponding to the increase in revenue[44]. - The total comprehensive income for the first half of 2021 was ¥11,121,533.90, contrasting with a total comprehensive loss of ¥32,813,575.97 in the same period of 2020[145]. Assets and Liabilities - The total assets at the end of the reporting period amounted to ¥2,310,031,001.14, reflecting a 1.26% increase from the previous year[20]. - The net assets attributable to shareholders were ¥2,152,940,155.36, showing a slight increase of 0.28% compared to the end of the previous year[20]. - Total liabilities were reported at ¥170,128,311.31, compared to ¥147,026,556.35, indicating an increase of around 15.7%[131]. - The company's equity attributable to shareholders was RMB 2,139,902,689.83, slightly up from RMB 2,134,363,799.84, reflecting a growth of about 0.3%[131]. - The total owner's equity amounted to $2.13 billion, with a significant decrease in retained earnings of -$1.74 billion[163]. - The total owner's equity at the end of the period is 3,001,336,860.55 CNY, a decrease from the previous period's total of 3,016,846,511.54 CNY, reflecting a decline of approximately 0.5%[195]. Operational Developments - The company has developed a sales network with 190 distributors across the country, focusing on core regions in Xinjiang and beyond[27]. - The company has introduced new grape varieties and cultivation techniques in collaboration with research teams, enhancing the quality of its wine products[36]. - The company has received a total of 74 gold awards and 73 silver awards for its products, establishing a strong brand reputation[33]. - The company is committed to promoting ecological consumption and high-quality wine production, leveraging its unique geographical advantages in Xinjiang[28]. - The company has implemented advanced winemaking technologies, including special membrane separation technology for producing enriched wines[32]. - The company optimized its sales system by reducing traditional channel operations and focusing on e-commerce new retail initiatives[38]. - The company launched innovative products, including the mixed wine "Niya Legend" and the membrane permeation technology product "Tianfang Yeyan" grape-rich wine, enhancing product uniqueness and market appeal[37]. Government and Regulatory Matters - The company received government subsidies amounting to ¥6,102,117.45, which are closely related to its normal business operations[21]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[7]. - There are no plans for profit distribution or capital reserve transfer to increase share capital during this reporting period[6]. - The company’s chairman received a warning and a fine of 50,000 yuan from the China Securities Regulatory Commission for unrelated disclosure violations, which do not impact the company's operations[92]. - The company’s credit rating was maintained at level C by a credit rating agency, indicating a need for caution[93]. - The company’s stock has been subject to delisting risk warnings since April 27, 2021, as per the Shanghai Stock Exchange regulations[106]. Environmental and Social Responsibility - The wastewater treatment system has been upgraded, achieving an average COD concentration of 62.55 mg/L and ammonia nitrogen of 1.766 mg/L, with a total wastewater treatment of 9,219 m³ in the first half of 2021[78][82]. - The company reported zero emissions of smoke and SO2 due to the use of centralized heating, and all noise monitoring results were compliant[79]. - The company has a 100% safe disposal rate for general solid waste, with no hazardous waste generated during production[79]. - There were no significant environmental violations or penalties reported during the period[85]. - The company has established an emergency response plan for environmental incidents, with a dedicated emergency team in place[84]. - The company has implemented strict environmental management systems and complies with national environmental protection laws and regulations[73]. Challenges and Risks - The company faces a risk of delisting if the audited net profit remains negative and revenue is below 100 million yuan for 2021[53]. - The company is exposed to macroeconomic fluctuations that could impact consumer income and confidence, potentially reducing demand[54]. - Increased competition in the wine industry is leading to shrinking sales and profit margins, with local brands struggling against stronger competitors[57]. - Rising operational costs, including sales, wages, and promotional expenses, are putting pressure on the company's profitability[58]. - Shareholder shares are subject to judicial freeze, with 100% of the shares held by major shareholders currently frozen[59]. - The company continues to monitor the impact of COVID-19, which could affect production, transportation, and sales if outbreaks occur[60]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period was 43,130[116]. - The largest shareholder, CITIC Guoan Group Co., Ltd., held 387,473,586 shares, representing 34.48% of the total shares[117]. - CITIC Guoan Investment Co., Ltd. held 117,452,712 shares, accounting for 10.45% of the total shares[117]. - Sun Wei increased his holdings by 14,400,007 shares, bringing his total to 56,000,033 shares, which is 4.98% of the total[117]. - The total number of pledged shares by CITIC Guoan Group was 34,545,000 shares, with 21,545,000 shares pledged to Shenwan Hongyuan Securities[118]. - The company reported no changes in the total number of shares or share capital structure during the reporting period[113]. Corporate Structure and Governance - The company has three first-level subsidiaries as of June 30, 2021, indicating a stable corporate structure[198]. - The company is engaged in the production and sale of wine, as well as grape planting and agricultural development, diversifying its business activities[200]. - The company was established in 1997 and is listed on the Shanghai Stock Exchange, with a registered capital of 300 million CNY[198]. - The company has a governance structure that includes a shareholders' meeting, board of directors, and supervisory board, ensuring compliance and oversight[198]. - The company is headquartered in Urumqi, Xinjiang, with its registered address at 39 Hongshan Road[199]. - The company has not reported any changes in accounting policies or prior period error corrections in the current financial statements[195].