THGW(SH:600365)2021-04-29 16:00Financial Performance - The company reported a net profit attributable to shareholders of -67,921,863.02 CNY for 2020, a decrease of 116.9% compared to -31,314,713.87 CNY in 2019[5]. - Total operating revenue for 2020 was 608,243,677.36 CNY, down 37.68% from 976,001,921.75 CNY in 2019[23]. - Basic earnings per share for 2020 were -0.17 CNY, a decline of 112.5% from -0.08 CNY in 2019[24]. - The weighted average return on equity was -10.81% for 2020, a decrease of 5.84 percentage points from -4.97% in 2019[24]. - The net profit attributable to the parent company was CNY -67.92 million, a decline of 116.91% year-on-year[44]. - The net loss for 2020 was CNY 60,612,785.27, compared to a net loss of CNY 11,399,636.91 in 2019, indicating a significant increase in losses[196]. - The company reported a significant increase in research and development expenses, totaling CNY 704,207.89 in 2020, compared to CNY 738,920.99 in 2019[196]. - The company experienced a substantial increase in asset impairment losses, which amounted to CNY -33,053,729.14 in 2020, compared to CNY -20,721,800.74 in 2019[196]. Cash Flow and Assets - The company's net cash flow from operating activities was -176,912,459.85 CNY, showing an improvement of 78% compared to -804,237,539.78 CNY in the previous year[23]. - The total assets at the end of 2020 were 1,080,158,333.87 CNY, a decrease of 5.51% from 1,143,133,601.57 CNY in 2019[23]. - The company's net assets attributable to shareholders decreased by 10.26% to 594,126,018.72 CNY from 662,047,881.74 CNY in 2019[23]. - Current assets totaled RMB 742,160,094.84 as of December 31, 2020, a decrease of 6.6% from RMB 794,335,203.35 in 2019[187]. - Cash and cash equivalents increased to RMB 150,808,862.64, up from RMB 97,920,688.20, representing a growth of 53.9%[187]. - Total liabilities decreased to RMB 406,488,205.01 from RMB 408,850,687.44, a reduction of 0.6%[188]. - The company's total assets were RMB 1,080,158,333.87, down from RMB 1,143,133,601.57, reflecting a decline of 5.5%[188]. Operational Highlights - The company faced no significant operational risks during the reporting period[10]. - The company recorded non-operating income of CNY 3,350,159.40 in 2020, a decrease from CNY 10,280,732.48 in 2019[27]. - The company launched a new high-end liquor product, 58° grape liquor, which won the highest platinum award at the 2020 International Leader Region Grape Liquor Quality Competition[39]. - The company signed new online and offline distributors, showing a slight increase compared to 2019, to enhance channel management[36]. - The company implemented a "5S visual management project" to improve production quality and management efficiency, achieving over a hundred management optimizations[40]. - The company developed and launched several new products, including "Tianchi Fenghui Tonghua Aged Dry Red Wine" and "Xiaoque Xing Rose Wine," enhancing product diversity[41]. - The company focused on digital marketing strategies to improve distributor profitability and consumer experience in response to the pandemic's impact[37]. Market and Industry Trends - The wine industry in China saw a production increase of 15.6% year-on-year in October 2020, with total production for the first ten months reaching 320,000 kiloliters, a 4.6% increase[31]. - The company reported a significant decline in wine imports in China, with a 28.8% drop in volume and a 19.9% decrease in import value for the year 2020[31]. - The company has focused on a mixed business model of grape cultivation and procurement to ensure a steady supply of raw materials for wine production[31]. - The company aims to enhance its brand presence as a leader in sweet wines, leveraging its historical significance and product quality to capture market share[35]. Governance and Compliance - The company has established an internal control improvement team to address regulatory concerns and enhance governance[110]. - The company is focused on maintaining transparency and accuracy in its financial reporting and disclosures to regulatory bodies[109]. - The company has committed to strict compliance with laws and regulations to ensure accurate and timely disclosure of significant information[113]. - The company has acknowledged the need for improved internal controls and has initiated a comprehensive review of its governance practices[110]. - The company received regulatory work letters from the Shanghai Stock Exchange regarding debt and litigation matters, emphasizing the need for accurate information disclosure[109]. Shareholder and Management Information - The total number of ordinary shareholders at the end of the reporting period was 26,009, an increase from 23,602 at the end of the previous month[130]. - The total remuneration for the board members and senior management during the reporting period amounted to 174.69 million RMB[141]. - The company has a total of 246 production personnel, 118 sales personnel, 25 technical personnel, 18 financial personnel, and 93 administrative personnel[149]. - The actual remuneration paid to directors, supervisors, and senior management during the reporting period was 1.7469 million yuan[148]. - The company has a diverse board with members holding various positions in other organizations, enhancing its governance structure[145]. Legal and Regulatory Matters - The company is currently involved in significant litigation, including a case where it is being sued for ¥100 million plus interest by Jiangsu Dadong Industrial Co., Ltd.[104]. - The company received a lawsuit notification from Jiangsu Huanxin Communication Technology Co., Ltd. regarding a loan contract dispute[104]. - The company has not faced any risks of suspension or termination of its listing status[104]. - The company has resolved the illegal guarantees related to Yiyuan Copper Industry, with a settlement reached and the guarantee obligations lifted[120].