Red Star capital Bureau reported on April 23 that Weilong Grape Wine Co.Ltd(603779) ( Weilong Grape Wine Co.Ltd(603779) . SH) released its annual report for 2021. During the reporting period, it realized an operating revenue of 474 million yuan, a year-on-year increase of 20.76%; Net profit loss of 414 million yuan this is also the third consecutive year of loss for Weilong Grape Wine Co.Ltd(603779) and the range of loss has expanded
Regarding the decline in performance, Weilong Grape Wine Co.Ltd(603779) said that in 2021, affected by the epidemic and many other factors, the company’s main business income fell sharply and its net profit fell significantly, resulting in increased financing channels and costs and tight cash flow.
Weilong Grape Wine Co.Ltd(603779) loss increase is also related to huge asset impairment. In 2021, the company’s asset impairment loss reached 335 million yuan, accounting for 80.92% of the net loss
For Weilong Grape Wine Co.Ltd(603779) huge asset impairment, Lixin Certified Public Accountants issued a qualified opinion on the audit report , which believes that the asset impairment loss of Weilong Grape Wine Co.Ltd(603779) in 2021 was RMB 335 million, of which the asset impairment loss of Weilong Grape Wine Co.Ltd(603779) Australia subsidiary was RMB 202 million. As of the date of the audit report, it failed to obtain sufficient and appropriate audit evidence for the asset impairment loss recognized by the above subsidiaries in 2021 and the closing book value of relevant assets on December 31, 2021, and could not determine whether it is necessary to adjust the items and disclosures of relevant financial statements
Weilong Grape Wine Co.Ltd(603779) is one of China’s large-scale wine producers. Its organic wine has a high market share, but it has fallen into continuous losses in recent years. The losses in 2019 and 2020 were 258651 million yuan and 220 million yuan respectively. 2021 was the third consecutive year of losses, and the amount of losses increased significantly.
In the previous performance forecast, Weilong Grape Wine Co.Ltd(603779) disclosed the main reasons for the performance loss: first, the planted apple trees, pear trees, Australian vines and the scrapping of some fixed assets with long service life, unable to repair or high repair value, damaged, idle and old; Second, the estimated impairment of raw wine, inventories, finished products and productive assets; Third, provision for bad debts was made for 24 accounts receivable and 3 other accounts receivable. In addition, due to policy reasons, Australia’s export of original grape wine is not smooth, resulting in the backlog of original wine, market downturn and price decline, resulting in the impairment of original wine. As a result, the operation efficiency of the winery of the Australian subsidiary is reduced and can not reach the full production state.
because the accounting firm issued a qualified opinion audit report on the financial report, it means that it does not agree with its financial statements, but it is not as serious as “unable to issue an audit opinion”
Meanwhile, cyclamate was detected in Weilong Grape Wine Co.Ltd(603779) dry red wine. According to the announcement of food safety supervision and sampling inspection information recently released by Suzhou market supervision and administration, the nominal Weilong Grape Wine Co.Ltd(603779) produced Weilong dry red wine (750ml / bottle, alcohol content: 11.5% vol) sold by baijialong supermarket in Wuzhong Economic and Technological Development Zone is honey, and the standard value is not allowed to be used. At present, the market supervision department has carried out verification and disposal according to law.
