THGW(SH:600365)2019-04-12 16:00Financial Performance - In 2018, the company achieved a consolidated net profit attributable to shareholders of 4,197,836.49 CNY, a decrease of 30.77% compared to 2017[5]. - The company's operating revenue for 2018 was 1,026,650,173.88 CNY, reflecting an increase of 11.65% from 2017[21]. - Basic earnings per share for 2018 were 0.01 CNY, down 50% from 0.02 CNY in 2017[22]. - The weighted average return on net assets decreased to 0.61% in 2018, down from 0.88% in 2017[22]. - The company reported a negative retained earnings of -261,698,169.64 CNY at the end of 2018[5]. - The net profit attributable to the parent company was CNY 420,000, which is a decrease of 30.69% year-on-year[40]. - The total profit amounted to CNY 5,321,000, reflecting a significant year-on-year growth of 30.26%[40]. - The total comprehensive income attributable to the parent company was CNY 4,197,836.49, down from CNY 6,063,674.01[164]. Cash Flow - The net cash flow from operating activities was -573,225,095.85 CNY, indicating a continued negative cash flow situation[21]. - The net cash flow from investment activities was 41,750,505.63 CNY, a significant improvement from the previous year's negative cash flow[41]. - The net cash flow from financing activities was 591,611,682.46 RMB, slightly up from 570,032,585.32 RMB year-over-year[171]. - The company reported a cash flow loss of CNY 6,328,573.96 for the year, compared to a loss of CNY 937,442.30 in the previous year[167]. - Total cash inflow from operating activities was 619,180,378.74 RMB, up from 543,310,546.05 RMB year-over-year, reflecting a growth of approximately 14%[170]. Revenue Breakdown - The company's total revenue for the first quarter was approximately CNY 395.1 million, with a net profit attributable to shareholders of CNY 2.7 million[24]. - In the second quarter, revenue decreased to approximately CNY 112.8 million, while net profit attributable to shareholders increased to CNY 3.4 million[24]. - The third quarter saw a revenue increase to approximately CNY 160.5 million, but the company reported a net loss of CNY 4.0 million attributable to shareholders[24]. - For the fourth quarter, revenue rebounded to approximately CNY 358.2 million, with a net profit of CNY 2.1 million attributable to shareholders[24]. Industry Context - The wine industry in China experienced a decline in production, with national wine production down 7.4% year-on-year in 2018, totaling 629,000 kiloliters[29]. - The e-commerce platform for wine sales has seen significant growth, with projected sales reaching CNY 900 billion by 2019[31]. - The wine manufacturing industry saw a 20.8% growth in 2018, with a stable increase in industrial added value of 7.3%[58]. Operational Insights - The company operates through a combination of grape planting and procurement, utilizing both distribution and direct sales models[29]. - The company has established a robust distribution network, leveraging partnerships with major e-commerce platforms like JD.com and Tmall[30]. - The company acquired over 3,000 tons of various grape types to ensure raw material supply amidst rising grape prices[36]. - New products launched include "Rose Wine," "Tonghua Open Fermentation Mountain Grape Wine," and "Tonghua Tianchi Private Collection Dry Red" to enrich the product line[37]. Expenses and Costs - The total cost of raw materials was 2,882 million RMB, accounting for 72.67% of total costs, with a year-on-year decrease of 3.42%[78]. - The company incurred research and development expenses of ¥726,340.97, representing 0.07% of total revenue[49]. - The company’s sales expenses increased by 8.07% to ¥78,873,119.48, while management expenses rose by 6.98% to ¥30,392,736.92[46]. Shareholder Information - The company’s major shareholder has committed to increasing their stake in the company by purchasing shares worth no less than RMB 50 million within 12 months[88]. - The largest shareholder, Jilin Province Jixiang Jiade Investment Co., Ltd., holds 43,093,236 shares, representing 10.77% of the total shares, with 42,830,000 shares pledged[110]. - The company has not reported any changes in its ordinary share capital structure during the reporting period[106]. Governance and Compliance - The company has engaged Zhongzhun Accounting Firm for auditing services, with a fee of RMB 750,000 for the current year[92]. - The company has not encountered any significant accounting policy changes or errors during the reporting period[90]. - The company has established a compensation and assessment committee to discuss and determine remuneration for its directors and senior management[123]. Environmental Responsibility - The company has actively responded to environmental protection laws and has replaced coal-fired boilers with two energy-efficient gas boilers[102]. - The company has established an environmental management system to assess and prevent environmental risks[102]. - The company has maintained stable operation of pollution control facilities, passing inspections by environmental protection departments[104].