WLGF(603779)2024-08-28 08:32Financial Performance - The company's operating revenue for the first half of 2024 reached ¥220,756,379.74, representing a 24.40% increase compared to ¥177,458,303.67 in the same period last year[11]. - The net profit attributable to shareholders of the listed company was ¥9,448,994.55, a significant recovery from a loss of ¥13,062,223.63 in the previous year[11]. - The basic earnings per share for the first half of 2024 was ¥0.03, compared to a loss of ¥0.04 per share in the same period last year[12]. - The weighted average return on net assets increased by 3.53 percentage points to 1.67% compared to the previous year[12]. - The company reported a total comprehensive income of ¥4,775,961.65 for the first half of 2024, compared to a loss of ¥7,479,930.30 in the same period of 2023[62]. - The company reported a total revenue of 17,481.81 million RMB and a net profit of 1,493.28 million RMB from its subsidiary Longkou Haiyuan Trading Co., Ltd. for the first half of 2024[26]. - The subsidiary Zhejiang Weilong Wine Sales Co., Ltd. generated a revenue of 7,597.03 million RMB with a net profit of 235.46 million RMB[26]. Cash Flow and Assets - The net cash flow from operating activities was negative at -¥18,976,258.78, contrasting with a positive cash flow of ¥4,938,395.01 in the same period last year[11]. - The total assets of the company at the end of the reporting period were ¥1,126,758,377.96, a decrease of 1.86% from ¥1,148,165,517.63 at the end of the previous year[11]. - The cash and cash equivalents increased by 56.13% to ¥20,999,369.62 from ¥13,449,575.50 year-on-year[22]. - The company's total current assets as of June 30, 2024, amounted to CNY 536,547,028.30, slightly up from CNY 531,073,049.61 at the end of 2023, indicating a growth of approximately 1.8%[53]. - The total liabilities amounted to ¥436,833,047.40, a slight decrease from ¥448,280,201.67 in the previous year[58]. - The total equity reached ¥1,112,799,423.14, showing a marginal decline from ¥1,116,914,542.84 in the same period of 2023[58]. Operational Highlights - The company is one of China's largest wine producers, focusing on organic wine production and processing technologies, with a product range including organic, ecological, and traditional wines[14]. - The company has established a nationwide marketing network, ensuring stable business development through solid partnerships with distributors and various sales channels[16]. - In 2024, the company won multiple awards, including gold at the International Wine Marselan Competition and the Berlin Wine Awards, enhancing its brand recognition[15]. - The company has developed its own organic grape planting bases in Gansu and Australia, ensuring high-quality raw materials for wine production[15]. - The company emphasizes a multi-faceted marketing strategy, focusing on high-end products and optimizing its pricing system to meet diverse market demands[18]. - The company has integrated its operations across the entire supply chain, from grape seedling selection to wine production and sales, improving cost control and product quality[17]. Risk Management - The company faced a risk of significant fluctuations in operating performance due to potential volatility in wine consumption demand influenced by macroeconomic factors and consumer preferences[27]. - The company is addressing the risk of raw material supply and price fluctuations, particularly due to tariffs on Australian wine, which were recently lifted, easing supply challenges[28]. - The company is actively managing risks related to brand management and litigation, including a contract dispute with Yantai Bank[27][28]. Governance and Compliance - The company has appointed a new independent director, Li Xin, and a new board secretary, Liu Yulei, to ensure effective governance[32]. - The company guarantees independent financial decision-making and compliance with tax obligations[39]. - The company has a commitment to minimize related party transactions and ensure they are conducted fairly and transparently[39]. - The company adheres to environmental protection laws and has implemented a real-time monitoring system for wastewater treatment, ensuring compliance with national standards[35]. Shareholder Information - The company has not disclosed any plans for profit distribution or capital increase during this reporting period[2]. - The total number of ordinary shareholders reached 19,491 by the end of the reporting period[48]. - The company did not distribute or increase capital reserves, with no dividends or stock bonuses declared for shareholders[33]. Research and Development - Research and development expenses significantly decreased by 80.80% to ¥982,702.94 from ¥5,119,051.02 in the previous year[19]. - The company is committed to innovation in organic wine production technologies, maintaining a leading position in the domestic market[16]. Inventory and Receivables - The total inventory at the end of the period is CNY 589,251,803.96, with a provision for inventory depreciation of CNY 170,280,482.29[184]. - The ending balance of accounts receivable is CNY 21,338,284.14, down from CNY 23,732,058.91 at the beginning of the period, representing a decrease of approximately 10.12%[162]. - The total bad debt provision for accounts receivable is based on the expected credit loss model, applicable for the entire duration of the receivables[164]. Taxation - The main tax types include VAT at rates of 13%, 5%, and 3%, and corporate income tax rates ranging from 0% to 30%[152]. - The company has implemented tax incentives for agricultural production, exempting certain entities from value-added tax and corporate income tax[154].