Financial Performance - For the fiscal year ending December 31, 2023, revenue was RMB 258.8 million, a decrease of 4.7% compared to RMB 271.6 million in 2022[3]. - Gross profit for the same period was RMB 74.1 million, down 0.9% from RMB 74.8 million in 2022[3]. - The net loss attributable to ordinary equity holders was RMB 524.3 million, an increase of 7.8% from RMB 486.3 million in 2022[3]. - Total comprehensive expenses for the year amounted to RMB 525.4 million, compared to RMB 490.3 million in 2022[5]. - The company reported a basic and diluted loss per share of RMB 0.91, compared to RMB 0.84 in the previous year[5]. - Other income and gains decreased significantly from RMB 20.7 million in 2022 to RMB 3.0 million in 2023[5]. - Selling and distribution expenses increased from RMB 74.7 million in 2022 to RMB 95.2 million in 2023[5]. - Administrative expenses rose from RMB 44.4 million in 2022 to RMB 47.1 million in 2023[5]. - The company did not report any income tax expenses for the year[5]. - The group reported a net loss of approximately RMB 524,316,000 for the year, compared to a net loss of RMB 486,339,000 in 2022, reflecting ongoing financial difficulties[16]. - The group reported revenue from customer contracts of RMB 258,784,000 in 2023, a decrease from RMB 271,600,000 in 2022, representing a decline of approximately 4.7%[26]. - The group incurred overdue tax penalties of RMB 37,787,000 in 2023, compared to RMB 56,206,000 in 2022, showing a reduction of about 32.8%[30]. - The group recognized sales revenue of RMB 32,736,000 from contract liabilities at the beginning of the reporting period in 2023, down from RMB 34,955,000 in 2022, a decrease of approximately 6.4%[26]. - The group reported a pre-tax loss of RMB 3,038,000 in 2023, compared to a loss of RMB 2,184,000 in 2022, reflecting ongoing challenges[33]. - The company reported a loss before tax of RMB 524,316,000 for the year 2023, compared to a loss of RMB 486,339,000 in 2022[40]. - The net loss attributable to ordinary shareholders increased by 7.8% from RMB 486.3 million in 2022 to RMB 524.3 million in 2023[100]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 3,438,026 thousand, compared to RMB 2,872,714 thousand in 2022, reflecting an increase of approximately 19.6%[6]. - Current liabilities increased from RMB 50,020 thousand in 2022 to RMB 57,268 thousand in 2023, representing a growth of about 14.5%[6]. - The company's total liabilities reached RMB 2,333,542 thousand in 2023, up from RMB 1,808,163 thousand in 2022, indicating an increase of approximately 29%[7]. - The company's total non-current assets were RMB 309,846 thousand in 2023, down from RMB 319,175 thousand in 2022, indicating a decrease of about 2.5%[6]. - The company's total equity was negative at RMB (2,335,309) thousand in 2023, compared to RMB (1,809,930) thousand in 2022, indicating a decline in equity position[7]. - The company's inventory decreased slightly from RMB 646,740 thousand in 2022 to RMB 645,899 thousand in 2023, a reduction of approximately 0.2%[6]. - Accounts receivable increased from RMB 20,484 thousand in 2022 to RMB 20,775 thousand in 2023, representing a growth of about 1.4%[6]. - The company's total borrowings reached RMB 2,808,480,000, an increase from RMB 2,211,564,000 in 2022, highlighting rising debt levels[17]. - Approximately RMB 1,863,275,000 of the borrowings were overdue, compared to RMB 1,671,025,000 in 2022, indicating worsening liquidity issues[17]. - The balance of inventories as of December 31, 2023, was RMB 487,255,000, compared to RMB 556,115,000 in 2022, indicating a decline of about 12.4%[61]. - The total amount of other receivables increased to RMB 38,345,000,000 in 2023 from RMB 26,618,000,000 in 2022, marking an increase of approximately 44%[52]. - The expected credit loss provision for other receivables was RMB 3,704,000,000 in 2023, compared to RMB 1,612,000,000 in 2022, indicating a significant increase in provisions[52]. Cash Flow and Financing - Cash and cash equivalents as of December 31, 2023, were RMB 10,124 thousand, compared to RMB 9,806 thousand in 2022, reflecting a slight increase of about 3.2%[6]. - The group's cash net amount was approximately RMB 102,215,000, a decrease from RMB 226,802,000 in 2022, indicating a significant cash flow challenge[16]. - The group has received commitments for new credit facilities of approximately RMB 150,000,000 for the next twelve months, maintaining financial support from major lenders[22]. - The group is actively negotiating the renewal of short-term loans and seeking new financing options to address upcoming financial obligations[22]. - The board believes that the group will have sufficient cash resources to meet its operational and financial obligations for the next twelve months[20]. - The company plans to further diversify its financing channels to improve its capital structure[115]. - The interest expense on overdue borrowings was approximately RMB 226,079,000 as of December 31, 2023, up from RMB 179,357,000 in 2022, representing a rise of approximately 26.0%[62]. Operational Performance - The company achieved a market share of 17.1% in the offline sales market for liquor in 2023, maintaining the top position in the industry for seven consecutive years[72]. - The liquor series products continued to be the main source of revenue, accounting for approximately 66.4% of total revenue in 2023[82]. - The company is focusing on expanding its market presence in lower-tier cities across 30 provinces, autonomous regions, and municipalities[82]. - The company plans to enhance product quality, control costs, and expand scale effects to reduce product costs[82]. - The company is actively monitoring potential risk factors that could impact financial performance, including rising production costs and changes in consumer behavior[84]. - The company aims to develop a diversified flavor product manufacturing chain centered around liquor products[83]. - The company faces risks related to increased market expansion costs, sales expenses, and potential market acceptance of new products[85]. - The group maintains a consumer-centric approach, emphasizing quality and innovation to meet diverse consumer needs for healthy and nutritious products[124]. - The group plans to strengthen the promotion of product quality, unique craftsmanship, and application scenarios to enhance market share in the liquor industry[125]. - The group has demonstrated significant competitive advantages in technology, financial strength, and market influence, positioning the "Lao Heng He" brand for broader development opportunities[126]. Corporate Governance and Future Outlook - The independent auditor's report indicates significant uncertainty regarding the company's ability to continue as a going concern[147]. - The company acknowledges the importance of good corporate governance and has adhered to the corporate governance code as of December 31, 2023[143]. - The outlook for 2024 indicates a recovery in the national economy, but the flavoring industry faces challenges such as weak demand and increased market competition[122]. - The company will suspend shareholder registration procedures from May 23, 2024, to May 28, 2024, for the upcoming annual general meeting[141]. - The annual report for the year 2023 will be sent to shareholders by April 30, 2024, or earlier[150].
老恒和酿造(02226) - 2023 - 年度业绩