&On March 30, Dynasty Wine Group Co., Ltd. (hereinafter referred to as “dynasty wine”) announced its annual performance in 2020, saying that the profit attributable to the owner of the company for the 12 months ended December 31, 2020 was HK $116 million, with a loss of HK $72.943 million in the same period of last year, turning losses into profits.
Dynasty wine said in the announcement that the group will complete the sale of its winery and related facilities in January 2020 and is expected to recognize the proceeds from the sale. The group has recorded a one-time sale proceeds of about HK $184 million (net of tax). Through the data, it is not difficult to find that if the profit from the sale of Chateau is subtracted, the performance of dynasty liquor industry in 2020 will still be a loss.
According to the announcement, Dynasty’s revenue from customer contracts was HK $239 million, down 21.06% year on year. As for the decline in income, dynasty wine said that the decrease in income was mainly affected by the epidemic, which led to the stagnation of the terminal consumer market and affected the group’s income. With the epidemic under control, the group’s revenue in the second half of 2020 has improved compared with the first half. The group is paying close attention to the market situation and adjusting its business strategy. At the same time, it has strengthened the control of other operating costs and cash flow management.
Industry insiders said that the suspension of business for many years, coupled with the loss of performance, had damaged the corporate image. At present, the overall performance of domestic wine market is sluggish, and dynasty wine industry has missed the golden age of development. There are still great difficulties in re establishing the corporate image.
Beijing Business News (reporter Zhao Fengrui)
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