THGW(SH:600365)2021-08-09 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately CNY 346.93 million, representing an increase of 11.75% compared to CNY 310.44 million in the same period last year [21]. - The net profit attributable to shareholders for the first half of 2021 was a loss of approximately CNY 2.35 million, an improvement of 80.54% from a loss of CNY 12.09 million in the previous year [21]. - The basic earnings per share for the first half of 2021 was -CNY 0.01, improving from -CNY 0.03 in the same period last year, reflecting a 66.67% increase [21]. - The weighted average return on net assets increased to -0.49% from -1.84% in the previous year, showing an improvement of 1.35 percentage points [21]. - Operating profit reached 8.07 million yuan, up 153.93% compared to the previous year [33]. - Total profit amounted to 7.81 million yuan, reflecting a year-on-year increase of 159.42% [33]. - The company reported a significant reduction in sales expenses, which decreased to ¥28,770,028.66 from ¥81,008,817.48 in the first half of 2020, indicating improved cost management [97]. Assets and Liabilities - The company's total assets decreased by 31.66% to approximately CNY 738.16 million from CNY 1.08 billion at the end of the previous year [21]. - The company's net assets attributable to shareholders decreased by 39.61% to approximately CNY 358.80 million from CNY 594.13 million at the end of the previous year [21]. - The total amount of guarantees provided by the company to subsidiaries during the reporting period was CNY 20 million [68]. - The total amount of guarantees, including those to subsidiaries, at the end of the reporting period was CNY 20 million, representing 5.59% of the company's net assets [68]. - Total liabilities reached CNY 379,432,113.33, down from CNY 406,488,205.01, indicating a decrease of about 6.3% [92]. - Owner's equity totaled CNY 358,723,634.47, a significant decline from CNY 673,670,128.86, reflecting a decrease of approximately 46.8% [92]. Cash Flow - The net cash flow from operating activities for the first half of 2021 was -CNY 134.97 million, compared to a positive cash flow of CNY 127.03 million in the same period last year [21]. - The company's operating cash inflow for the first half of 2021 was CNY 385,593,036.38, a decrease of 50.05% compared to CNY 771,933,175.21 in the same period of 2020 [104]. - The total cash outflow from operating activities was CNY 520,558,087.34, down 19.31% from CNY 644,901,556.96 year-on-year [104]. - The cash and cash equivalents at the end of the period were CNY 19,443,845.74, down 45.00% from CNY 35,376,079.42 at the end of the first half of 2020 [105]. Business Operations - The company aims to enhance its e-commerce and O2O channel strategies, achieving full platform coverage for its products [28]. - The company emphasizes its "Red National Wine" branding, aiming to position itself as a representative of Chinese wine [29]. - The company has established a strong brand presence in the sweet wine market, recognized as a leader in China’s sweet wine production [27]. - The company focuses on product innovation and development to adapt to changing market conditions [29]. - The company’s operational model combines direct sales and distributor partnerships to enhance market reach [25]. Corporate Governance - The company has elected a new board of directors, including Wang Jun as Chairman and several other directors, with a term of three years starting from the approval date of the shareholders' meeting [48]. - The eighth supervisory board has been nominated, including Ro Ke as the chairman, with a term of three years starting from the approval date of the shareholders' meeting [49]. - There were significant changes in the board and supervisory personnel, with multiple resignations and new appointments, indicating a restructuring effort [50]. - The company has committed to reducing related party transactions and avoiding competition with its major shareholder, as per commitments made in 2012 [56]. Legal Matters - The company is involved in a lawsuit with Dadong Industrial, with a claim amount of RMB 85 million, and the Nanjing Intermediate People's Court has frozen RMB 3.3465 million of the company's bank deposits [60]. - The company is also involved in a lawsuit with Nanjing Huaxun, with a claim amount of RMB 50 million, and the Tonghua Intermediate People's Court has frozen RMB 2.377 million of the company's deposits and a property valued at RMB 58.158 million [60]. - The company has reached a settlement with Jiangsu Huanxin, clarifying that the company is not responsible for the related loan guarantees, and the court has allowed the plaintiff to withdraw the lawsuit [60]. Strategic Initiatives - The company plans to enhance product quality and develop new products, focusing on unique styles and high-quality raw materials [30]. - The company is implementing a five-year technical upgrade plan to improve production processes and quality management [31]. - The company aims to enhance market focus and marketing precision by leveraging "Internet+" strategies and new product development to drive consumer demand [42]. Risk Management - There were no significant risks that materially affected the company's production and operation during the reporting period [7]. - The company’s financial risks are influenced by market conditions and regulatory changes, leading to potential pressures on fundraising and investment activities [42]. Compliance and Reporting - The company has maintained its commitment to information disclosure obligations as per regulatory requirements [56]. - The company ensures complete operational independence from its controlling shareholders, maintaining a separate governance structure and organizational integrity [57]. - The company has established an independent financial accounting department and a separate financial management system to ensure financial autonomy [57].