CITIC Wine(SH:600084)2022-04-25 16:00Financial Performance - In 2021, the company achieved a net profit attributable to shareholders of 16,904,951.87 CNY, a significant recovery from a net loss of 56,403,174.79 CNY in 2020[7]. - The operating revenue for 2021 was 217,230,395.17 CNY, representing a 129.59% increase compared to 94,614,896.59 CNY in 2020[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -45,500,182.73 CNY, an improvement from -61,424,785.42 CNY in the previous year[25]. - The company's total assets increased by 2.62% to 2,341,059,245.97 CNY at the end of 2021, compared to 2,281,390,356.19 CNY at the end of 2020[25]. - The net cash flow from operating activities was -4,926,851.99 CNY, showing an improvement from -29,709,364.09 CNY in 2020[25]. - The basic earnings per share for 2021 was 0.0150 CNY, recovering from -0.0502 CNY in 2020[25]. - The weighted average return on net assets was 0.7843% in 2021, a significant recovery from -2.5932% in 2020[25]. - The company reported a cumulative undistributed profit of -1,730,212,464.76 CNY as of the end of 2021[7]. - The company will not distribute profits or increase capital reserves due to the negative net profit situation[7]. Revenue and Sales - The company's total operating revenue for the reporting period was 217 million RMB, an increase of 123 million RMB compared to the same period last year[34]. - The net profit attributable to shareholders of the listed company was 17 million RMB, reversing a loss of 56 million RMB from the previous year[34]. - The main business revenue was 211.24 million yuan, with an operating profit of 17.19 million yuan and a total profit of 17.95 million yuan[61]. - The company achieved a total operating revenue of 217.23 million yuan, an increase of 129.59% compared to the same period last year[61]. - The high-end product sales volume increased by 215.41% to 749.01 thousand liters, with sales revenue reaching 93,622,149.86 RMB, a 183.33% increase year-over-year[100]. - The mid-low-end product sales volume increased by 225.74% to 4,204.96 thousand liters, generating sales revenue of 94,722,216.38 RMB, a 147.99% increase compared to the previous year[100]. - Direct sales revenue increased to ¥61,940,649.31, up 168.23% year-on-year, while wholesale agency revenue rose to ¥126,403,716.93, up 162.53% year-on-year[118]. - The total sales volume for the current period was 4,672.93 thousand liters, compared to 1,613.28 thousand liters in the previous period[111]. Cost and Expenses - Operating costs rose to 99,131,807.58, reflecting a 108.35% increase year-over-year, driven by the substantial rise in finished wine revenue[63]. - Research and development expenses increased by 212.37% to 882,524.27, attributed to the absence of government subsidies that reduced R&D costs in the previous year[63]. - The cost of raw materials accounted for 51.13% of total costs, amounting to ¥50,690,871.49, reflecting a year-on-year increase of 150.61%[120]. - The cost of finished wine increased significantly, with raw material costs, labor costs, depreciation, and freight all rising by over 20% due to a substantial increase in finished wine sales during the reporting period[123]. Operational Developments - The company conducted approximately 7,000 batches of testing for grapes and wine throughout the year, enhancing its food safety database[35]. - The company expanded its wine quality safety testing center, which now covers an area of 1,400 square meters and is equipped with advanced testing instruments[35]. - The company has established a food safety traceability system to meet product traceability requirements[35]. - The company has built a multifunctional seedling breeding base to support the cultivation of high-quality grape varieties and expand its seedling sales business[40]. - The company has completed upgrades to its small-capacity filling lines and aims to improve supply chain competitiveness by focusing on customer needs and resource integration[144]. Market Strategy - The company has reduced the number of traditional small distributors from 219 to 194, focusing on partnerships with larger distributors and enhancing online retail efforts, including nearly 100 live broadcasts throughout the year[45]. - The company launched innovative products such as the blended wine "Niya Legend" and the membrane permeation technology product "Tianfang Night Talk" to differentiate from competitors and avoid product homogenization[44]. - The company plans to explore new retail channels such as live streaming sales in the future[109]. - The company aims to strengthen online sales and integrate online and offline development to expand its consumer base and improve sales efficiency[142]. Risk Management - The company has outlined various risks and countermeasures in its management discussion and analysis section[8]. - The company faces a risk of delisting due to a net loss and revenue below 100 million yuan in 2020, with ongoing monitoring of its financial performance[145]. - The company is exposed to macroeconomic fluctuations that could impact consumer income and confidence, potentially affecting sales[148]. - The company remains vigilant about the ongoing risks of COVID-19, which could disrupt production, transportation, and sales if outbreaks occur[155]. Governance and Compliance - The company has established a comprehensive internal control system, integrating internal control and quality management systems[160]. - The company ensures equal rights for all shareholders, particularly minority shareholders, in exercising their voting rights[158]. - The company has implemented measures to maintain independence from its controlling shareholders in terms of assets, personnel, and operations[162]. - The company strictly adheres to legal and regulatory requirements for information disclosure, ensuring timely and accurate information for all shareholders[160]. - The company held six shareholder meetings in 2021, all resolutions were passed after review[163]. Human Resources - The company employed a total of 464 staff members, with 422 in major subsidiaries and 42 in the parent company[194]. - The company completed over 1,100 training sessions during the reporting period, aimed at enhancing employee skills and corporate culture[196]. - The company has a remuneration policy that links employee compensation to their contributions and market conditions, ensuring fairness and motivation[195]. - The company’s workforce includes 155 production personnel, 104 sales personnel, 74 technical staff, 37 financial staff, and 94 administrative staff[194].