Financial Performance - Revenue for the year ended December 31, 2023, was RMB 189,139,000, an increase of 29.5% compared to RMB 146,118,000 in 2022[5]. - Gross profit for 2023 was RMB 28,149,000, resulting in a gross profit margin of 14.88%, down from 24.55% in 2022[5][7]. - Total comprehensive loss attributable to owners of the Company for 2023 was RMB (80,199,000), compared to a loss of RMB (26,403,000) in 2022[5]. - Basic loss per share for 2023 was RMB (26.59 cents), compared to RMB (0.90 cents) in 2022[5]. - The Group's total revenue increased by nearly 30% year-on-year, reflecting successful strategic implementation[30]. - The Group's gross profit decreased to RMB 28,149,000, with a gross profit margin of 14.9%, down from 24.6% the previous year, reflecting a year-on-year decline of 21.5%[54][57]. - The total cost of sales increased by 46.0% year-on-year to RMB 160,990,000, primarily due to increased revenue and the write-off of obsolete inventories[59]. - The cost of raw materials rose by approximately 47.7% to RMB 130,824,000, accounting for about 81.3% of the total cost of sales[59]. Assets and Liabilities - Non-current assets decreased to RMB 199,743,000 in 2023 from RMB 223,517,000 in 2022[10]. - Current assets decreased to RMB 353,691,000 in 2023 from RMB 385,557,000 in 2022[10]. - Current liabilities increased to RMB 52,666,000 in 2023 from RMB 39,209,000 in 2022[10]. - Shareholders' equity decreased to RMB 403,920,000 in 2023 from RMB 483,634,000 in 2022[10]. - The Group's trade receivables at year-end were RMB 117,247,000, with turnover days decreasing from 314 days to 241 days[77][81]. - The Group's inventory turnover days improved significantly from 748 days to approximately 408 days, attributed to effective inventory management strategies[76][80]. Market Conditions - In 2023, China's GDP grew by 5.2%, but many sectors have not returned to pre-pandemic levels, impacting consumer sentiment[24]. - Imported wines in China experienced double-digit declines in both sales volume and value in 2023, indicating weak market demand[25]. - The Group anticipates continued pressure on the wine industry in China due to weak consumption and low per capita consumption levels, which may hinder market growth[91]. - The domestic wine industry is expected to remain under pressure due to weak consumer spending, with per capita consumption still low compared to other alcoholic beverages[94]. Strategic Initiatives - The Group increased sales of affordable wine products with lower gross margins while reducing investment in higher-priced premium wines and ginseng wine due to insufficient consumer confidence[28]. - The Group has adapted its marketing strategy by enhancing online sales and influencer marketing, as well as strengthening platform cooperation with brands in different industries[28]. - The Group is focusing on controlling expenditures and enhancing operational efficiency to maintain profitability amid market downturns[35]. - The Group is actively managing outstanding trade receivables and strengthening financial risk management[36]. - The Group plans to adjust its marketing strategy by reducing traditional promotions and enhancing cooperation with retail and food and beverage platforms to boost brand awareness[92]. - The Group will adopt a prudent operating strategy to broaden income sources and reduce expenses amid economic uncertainties and a sluggish wine market[93]. Regional Performance - Sales revenue from the Eastern Region more than doubled year-on-year, making it the Group's largest market[32]. - Revenue from the South-West Region saw nearly 90% year-on-year growth, indicating strong consumer demand[32]. - Revenue from the Eastern Region market amounted to RMB 81,555,000, representing a year-on-year increase of approximately 106.0%, making it the largest contributor to the Group's total revenue at 43.1%[74][79]. - Revenue from the South-West Region increased by approximately 88.9% year-on-year to RMB 46,877,000, accounting for 24.8% of total revenue[75]. Management and Governance - Mr. Zhu Minghui was appointed as a non-executive Director on 31 August 2022, holding a Bachelor degree in Finance and Economics from Bryant University[106]. - Dr. Cheng Vincent, appointed as an independent non-executive Director on 17 November 2018, has extensive experience in finance and accountancy, including roles in various companies listed on the Stock Exchange[112]. - The board comprises three independent non-executive directors, ensuring high standards of corporate governance[168]. - All independent non-executive directors were confirmed as independent during the year[168]. - The company has a substantial shareholder, Up Mount International Limited, which is 49% owned by Sky Source International Investments Limited[107]. Employee and Shareholder Information - As of December 31, 2023, the Group employed a workforce of 249, a decrease from 263 in 2022[200]. - The total salaries and related costs for the year amounted to approximately RMB 17,980,000, compared to RMB 18,059,000 in 2022[200]. - The Company has adopted a share option scheme to motivate employees and reward their performance[199]. - The 2023 Share Option Scheme allows the company to grant a maximum of 29,405,480 share options to eligible participants[145]. - The Company's reserves available for distribution as of December 31, 2023, amounted to approximately RMB 123,446,000, a decrease from RMB 127,594,000 in 2022[162].
通天酒业(00389) - 2023 - 年度财报