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% compared to -0.08 CNY in 2019[24]. - The weighted average return on net assets 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, reflecting a year-on-year decrease of 116.91%[44]. - The company reported a significant revenue drop in direct sales, which fell by 46.53% year-on-year[79]. - 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 negative retained earnings of 67.92 million RMB for 2020, resulting in no profit distribution for that year[93]. 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]. - Cash and cash equivalents increased to 150.81 million yuan, accounting for 13.96% of total assets, up from 8.57% in the previous period, representing a growth of 54.01%[60]. - 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 total liabilities to total assets ratio stood at approximately 37.6%, indicating a stable leverage position[188]. - The company's current assets totaled CNY 742,160,094.84, a decline of 6.6% compared to CNY 794,335,203.35 in 2019[187]. - Inventory decreased significantly to CNY 240,597,763.06, down 23.4% from CNY 314,316,397.99 in 2019[187]. Operational Highlights - The company implemented a "5S visual management project" to enhance production quality and efficiency, resulting in over a hundred management optimizations[40]. - The company focused on digital marketing strategies to improve distributor profitability and consumer experience in response to the pandemic's impact on sales[37]. - The company aims to leverage its brand advantages to promote high-quality wines that reflect the unique terroir of China[35]. - The company has expanded its e-commerce presence, covering major platforms like Taobao, Tmall, JD.com, and Pinduoduo[37]. - 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]. Market and Industry Trends - The total wine import volume in China for 2020 was 47,136,000 liters, a decrease of 28.8% compared to the previous year[31]. - The wine production in China increased by 15.6% year-on-year in October 2020, reaching 37,000 kiloliters[31]. - The wine industry generated revenue of ¥51,603,963.21 with a gross margin of 40.97%, a decrease of 14.77% year-over-year[49]. - The e-commerce platform reported revenue of ¥556,251,494.30, with a gross margin of 17.71%, down 39.12% compared to the previous year[49]. Governance and Compliance - The company has established an internal audit team to improve internal control systems and ensure compliance with regulatory requirements[110]. - The company has not reported any major accounting errors that would require correction[102]. - The company has not faced any risks of suspension or termination of its listing[104]. - The company has committed to strict compliance with laws and regulations to ensure accurate information disclosure[113]. - The company has emphasized the importance of diligent governance and internal controls among its directors and management[112]. Legal 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 resolved a dispute with Yiyuan Copper Industry, leading to the release of related regulatory penalties, with a total amount of 0.50 million RMB involved[107]. - The company has taken legal measures to recover losses from the actual controller, ensuring protection of its interests[123]. Employee and Management Structure - The total number of employees in the company and its main subsidiaries is 500, with 403 in the parent company and 97 in subsidiaries[149]. - The company has a total of 246 production staff, 118 sales staff, 25 technical staff, 18 financial staff, and 93 administrative staff[149]. - The actual remuneration paid to directors, supervisors, and senior management during the reporting period was 1.7469 million yuan[148]. - The company has appointed new directors and a secretary during the reporting period, including the appointment of Yin Hong as chairman[147]. Environmental and Safety Measures - The company has implemented environmental protection measures, including replacing coal-fired boilers with two energy-efficient gas boilers[125]. - The company has established a comprehensive environmental management system to address pollution risks and ensure compliance with environmental regulations[125]. - The company has conducted safety production education training for all employees in batches[154].