Event

The company publishes its three quarterly results for 2016

The company realized revenue of 517 million yuan, an increase of 4.77% over the same period last year, and a net profit of 29.0429 million belonging to shareholders of listed companies, an increase of 159.98% over the same period last year. In the third quarter alone, revenue reached 143 million yuan, an increase of 5.73% over the same period last year, and the net profit attributed to shareholders of listed companies was 7.8412 million, a great improvement compared with 33900 in the third quarter of last year.

Brief comment

1. Steady growth in revenue and profit

The company's revenue in the first three quarters was 517 million yuan, a steady increase of 4.77% over the same period last year, mainly related to the company's active expansion of sales channels and increased promotion efforts. The company has good cost control measures. on the premise of revenue growth, operating costs have dropped slightly. At the same time, due to the decline in bank borrowing balances and lower real interest rates, the company's financial expenses have dropped by 15.9236 million, down 42.17% from the same period last year. In turn, the company's net profit increased sharply, especially in the third quarter alone. In the third quarter alone, the net profit of shareholders of listed companies was 7.8412 million, a huge increase over the same period last year, mainly due to the decline in operating costs and financial expenses this year, of which financial expenses decreased by 6.058 million in the third quarter compared with the same period last year, resulting in a sharp increase in profits.

2. the gross profit margin has increased slightly and the profitability has improved steadily.

In the first three quarters, the company's gross profit margin was 58.58%, an increase of 2.06% over the same period last year, mainly due to better operating cost control. The company's sales expense rate in the first three quarters was 41.27%, down 3.78% from the same period last year. The company's overall profitability is improving. The company's gross profit margin in the third quarter was 59.88%, up 3.77% from the same period last year, which should be caused by the increase in the proportion of sales of high-margin products. In the future, the company will further increase its investment in high-margin products such as organic wine, and the company's profitability is expected to be further improved.

3. Strengthen the channels, improve the extension layout and improve the industrial chain.

The company has a mature channel network in Zhejiang, Jiangsu and Shanghai, and plans to build 174 brand marketing outlets across the country and 100 organic wine stores in key provinces.

In addition, the company also actively improved the industrial layout through epitaxial mergers and acquisitions, acquired 484ha of Australian vineyards for US $13.4 million in the first half of the year, and announced its financing plan again shortly after listing, raising no more than 600 million yuan in a non-public offering. used for the construction of 60,000 tons of Australian high-quality wine processing project, the company's active layout and continuous actions, showing the company's management confidence in the company's future development.

4. Profit forecast

China's red wine market is expanding rapidly. after listing, the company will make full use of the listed company platform and actively expand and improve the company's business, which is expected to further expand China's "absorption" red wine market share. It is estimated that in 16-18 years, the revenue will be 7.86,8.47 and 915 million yuan respectively. Due to the uncertainty of this fixed increase, the impact of the fixed increase on equity will not be considered for the time being, and the corresponding EPS will be 0.31,0.39,0.47 yuan per share respectively.