CITIC Wine(SH:600084)2023-04-25 16:00Financial Performance - In 2022, the company reported a net profit attributable to shareholders of -880,863,965.98 RMB, a decrease of 5,310% compared to the previous year[5]. - The operating revenue for 2022 was 146,393,655.05 RMB, down 32.61% from 217,230,395.17 RMB in 2021[20]. - The net assets attributable to shareholders decreased by 40.81%, totaling 1,277,644,682.11 RMB at the end of 2022[20]. - The total assets of the company decreased by 41.06%, amounting to 1,379,909,517.63 RMB at the end of 2022[20]. - The basic earnings per share for 2022 was -0.78 RMB, a decline of 4,000% compared to 0.02 RMB in 2021[21]. - The cash flow from operating activities showed a net outflow of -33,975,015.39 RMB, compared to -4,926,851.99 RMB in the previous year[20]. - The weighted average return on equity was -51.27%, a decrease of 52.05 percentage points from the previous year[21]. - The company reported a cumulative undistributed profit of -2,611,076,430.74 RMB as of the end of 2022[5]. - The company reported a significant increase in non-operating losses, totaling -5.92 million yuan in 2022, impacting overall profitability[26]. - The company reported a net cash flow from operating activities of CNY -33.98 million, indicating a significant cash outflow[48]. Revenue and Sales - The company achieved operating revenue of 146.39 million yuan in 2022, a decrease of 32.61% compared to the previous year[30]. - The company's main business revenue was CNY 141.29 million, with a net profit attributable to shareholders of CNY -88.09 million[47]. - Domestic wine production in China fell from 268,000 hectoliters in 2021 to 214,000 hectoliters in 2022, a year-on-year decrease of 20.15%[37]. - The import volume of wine decreased from 427,000 hectoliters in 2021 to 337,000 hectoliters in 2022, a decline of 21.8%[38]. - Sales revenue in Xinjiang region decreased by 45.49% to 45,230,693.65, while sales volume decreased by 37.69% to 1,091.46 thousand liters[110]. - Total sales revenue decreased by 30.16% to 131,435,393.90, with total sales volume decreasing by 45.40% to 2,549.89 thousand liters[110]. - High-end product sales revenue decreased by 29.19% to 66,295,455.95, with a sales volume decrease of 14.75%[98]. - High-end liquor revenue fell by 29.19%, with a gross margin decrease of 7.40 percentage points, mainly due to reduced sales volume[69]. - The direct sales channel saw a revenue drop of 58.45%, with costs decreasing by 55.73%[72]. - Revenue from Xinjiang decreased by 45.49% to ¥45,230,693.65, with a gross margin decline of 25.22% due to increased promotional expenses[119]. Costs and Expenses - Operating costs were 73.19 million yuan, down 26.17% from 99.13 million yuan year-on-year, primarily due to the corresponding decrease in revenue[65]. - The gross margin for the liquor segment decreased by 5.03 percentage points to 49.61%, attributed to rising unit costs[68]. - The raw material cost for the liquor segment decreased by 25.08% year-on-year, primarily due to a significant drop in sales volume[76]. - Depreciation costs for the liquor segment decreased by 47.12% year-on-year, attributed to the reduced sales volume leading to lower allocated depreciation[77]. - Other costs in the liquor segment decreased by 25.76% year-on-year, mainly due to a reduction in utility and miscellaneous expenses corresponding to lower sales[77]. - The freight cost for high-end liquor increased by 20.26% year-on-year, indicating a slight rise in shipping expenses[79]. - The raw material cost for mid-range liquor decreased by 27.37% year-on-year, reflecting a substantial decline in revenue for this category[79]. Government Support and Awards - The company received government subsidies amounting to 9.29 million yuan, contributing positively to its financial performance despite losses[26]. - The company won multiple awards at international wine competitions, including 3 gold medals at the 29th Brussels International Wine Competition[34]. - The company received 19 gold awards and 10 silver awards for its products during the reporting period, highlighting its quality advantages[45]. Strategic Initiatives and Future Plans - The company is focusing on expanding its marketing network, particularly in East and South China, to enhance brand presence[35]. - The company is exploring new media marketing strategies to integrate online and offline sales channels[35]. - The company aims to strengthen online media sales and expand its OEM business to enhance sales scale in 2023[36]. - The company plans to enhance market expansion strategies and improve product quality to address declining sales[99]. - Future strategies include expanding market presence and enhancing product promotion to counteract declining sales[125]. - The company plans to strengthen its online business and digital marketing, including new media live streaming and e-commerce initiatives[132]. Research and Development - Research and development expenses were CNY 865,543, a slight decrease of 1.92% compared to the previous year[48]. - The total R&D expenditure was 865,543.15, accounting for 0.59% of total revenue[84]. - The number of R&D personnel was 30, representing 6.5% of the total workforce[85]. - The company has established several national and regional research platforms to enhance its technological innovation capabilities[44]. - The company is investing 200 million RMB in R&D for new technologies aimed at improving production efficiency[150]. - The company is committed to technological innovation, utilizing membrane permeation technology to explore new winemaking processes and develop new products[134]. Governance and Management - The company has established a governance structure that complies with the requirements of the Company Law and Securities Law, ensuring equal rights for all shareholders, especially minority shareholders[140]. - The board of directors consists of four independent directors, accounting for over one-third of the total board members, ensuring objective decision-making[142]. - The company held two shareholder meetings in 2022, with all resolutions passed, utilizing both on-site and online voting to protect minority shareholder rights[144]. - The company has implemented a robust internal control system, continuously improving it in line with regulatory requirements and integrating it with quality management systems[143]. - The company’s major decisions are made by the general manager's office, ensuring effective control over daily operations[142]. - The company has a strategic committee, audit committee, compensation and assessment committee, and nomination committee, all of which fulfilled their responsibilities during the reporting period[142]. - The company has maintained independence from its controlling shareholder in terms of personnel, assets, finance, and operations[143]. - The company’s independent directors are committed to safeguarding the rights of all shareholders, particularly minority shareholders, by providing impartial opinions on significant matters[142]. - The company has enhanced its information disclosure practices, ensuring timely and accurate communication with all shareholders[143]. Environmental Responsibility - The company invested 75,000 RMB in environmental protection during the reporting period[181]. - The wastewater treatment capacity for the year was 42,000 tons, with COD emissions of 2.52 tons and ammonia nitrogen emissions of 0.252 tons[187]. - The company reported no instances of exceeding pollution discharge standards throughout the year[188]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[197]. Commitments and Compliance - The company has commitments related to avoiding competition in major asset restructuring, which are ongoing and have been fulfilled in a timely manner[200]. - The commitments are made by the actual controller, shareholders, and related parties, ensuring compliance with the agreed terms[200]. - There are no reported failures in fulfilling the commitments during the reporting period[200]. - The commitments are aimed at preventing competition and ensuring smooth operations within the company[200]. - The company remains committed to transparency regarding its obligations and performance in this area[200].