WLGF(SH:603779)2021-04-27 16:00Financial Performance - The net profit attributable to shareholders for 2020 was -219,761,772.64 RMB, a significant decline compared to -25,865,056.50 RMB in 2019[5]. - Total revenue for 2020 decreased by 41.18% to 392,499,745.83 RMB from 667,257,781.35 RMB in 2019[22]. - The company's net cash flow from operating activities was 49,134,716.34 RMB, down 67.47% from 151,037,958.00 RMB in the previous year[22]. - The total assets as of the end of 2020 were 1,890,180,065.10 RMB, reflecting an 8.10% decrease from 2,056,701,093.95 RMB in 2019[22]. - The net assets attributable to shareholders decreased by 15.33% to 1,151,355,353.92 RMB compared to 1,359,746,617.96 RMB at the end of 2019[22]. - The basic earnings per share for 2020 was -0.66 RMB, a decline from -0.08 RMB in 2019[23]. - The weighted average return on equity was -17.58%, a decrease of 15.70 percentage points from -1.88% in 2019[24]. - The company reported a significant decrease of 54.22% in retained earnings, totaling ¥185,577,558.96, due to losses incurred during the period[61]. - The company reported a net loss from asset disposal of ¥725,620.99, compared to a gain of ¥1,560,004.31 in the previous year[55]. - The company reported a net profit of -4,722.48 million RMB for the year, with total revenue of 28,484.16 million RMB[85]. Revenue and Sales - In Q1 2020, the company's operating revenue was CNY 109,969,193.34, while in Q2 it decreased to CNY 58,492,365.65, and then increased to CNY 95,288,837.05 in Q3, followed by CNY 128,749,349.79 in Q4[26]. - The revenue from organic wine was ¥211,117,361.25, reflecting a 48.00% decrease year-on-year[46]. - The total production volume decreased by 41.79% to 10,261.52 thousand liters, while total sales volume decreased by 39.15% to 10,063.14 thousand liters compared to the previous year[48]. - The online sales revenue was 909.36 million RMB, a decrease of 35.43% from 1,410.75 million RMB in the previous period[79]. - The sales revenue from the Zhejiang East sales area was 10,202.25 million RMB, representing a 30.73% share of total sales, down 39.41% year-on-year[73]. - The company’s high-end product revenue dropped by 64.73% to 1,425.17 million RMB, with a gross margin of 53.37%[81]. - The sales through supermarkets decreased by 40.84% to 2,581.56 million RMB, with a gross margin of 53.31%[81]. Costs and Expenses - The cost of raw materials decreased by 42.26% to ¥131,342,740.07, accounting for 45.89% of total costs[50]. - Sales expenses decreased by 32.69% to ¥163,469,615.69, mainly due to the adjustment of transportation and promotional costs to operating costs[54]. - The company experienced a 76.79% increase in management expenses to ¥85,925,500.14, attributed to normal inventory write-offs[54]. - The total operating costs for 2020 were CNY 598,280,322.31, down from CNY 678,783,821.86 in 2019, reflecting a reduction of 11.8%[199]. Market and Product Development - The company has established its own organic grape planting bases in Gansu Wuwei and Australia, enhancing its raw material supply chain[33]. - The company has developed key technologies in organic grape production and processing, maintaining a leading position in the domestic organic wine market[35]. - The company focused on marketing strategies centered around the "135" principle, emphasizing organic differentiation and product focus[40]. - The company launched a new product, V8 Brandy, at the end of 2020, targeting specific markets for promotion[40]. - The company plans to develop online exclusive products and expand online sales channels to increase online sales share[79]. - The company plans to optimize winemaking processes and strengthen R&D for new technologies and products in 2021[88]. Risk Management - The company faced various risks and has detailed its risk management strategies in the report[9]. - The company faces risks from fluctuating wine market demands and increasing competition from imported wines[90]. - The company is experiencing supply risks due to import restrictions on Australian wines, which may lead to increased storage costs and production shortages[91]. Corporate Governance and Compliance - The company is currently under investigation by the China Securities Regulatory Commission for potential information disclosure violations[94]. - The company has committed to transparency in capital markets, ensuring that disclosed information is accurate, complete, and timely[121]. - The company has taken measures to ensure compliance with corporate governance standards, aligning with regulatory requirements[161]. - The board of directors consists of nine members, including three independent directors, ensuring a balanced governance structure[159]. Shareholder Information - The company has a cash dividend policy that mandates a minimum of 20% of distributable profits to be distributed as cash dividends if profits are achieved[95]. - The company did not declare any cash dividends or capital reserve transfers in 2020, resulting in a net profit of -219,761,772.64 RMB[97][100]. - The cash dividend distribution ratio for 2020 was 0%, reflecting no profits available for distribution[99]. - The company has committed to not reducing its stock holdings by major shareholders during specified periods, ensuring stability in shareholding[100]. Employee and Community Engagement - The company has employed 33 disabled individuals, contributing to social responsibility and community support[122]. - The company has established a "company + farmer" model to support local farmers, providing technical guidance and guaranteed purchases of grapes[122]. - The company encourages employees to pursue further education and professional qualifications through various means, including self-study and certification exams[155]. Audit and Internal Control - The audit report confirmed that the financial statements fairly reflect the financial position and operating results of Wulong Wine for the year ended December 31, 2020[173]. - The company has implemented various internal control tests to assess the effectiveness of revenue recognition and inventory valuation processes[175][179]. - The internal control effectiveness for 2020 was evaluated and reported, with no significant deficiencies identified[167].