In 2023, the Group's increase in revenue was primarily due to the recovery of sales, especially in the medium-end wine products, resulting from the normalisation of consumption scenes and resumption of consumer sentiment in the PRC after the dismantlement of pandemic control measures at the end of 2022. The Group's operating activities continue to maintain a growth in sales during the year. During the Year, the revenue of the Group increased by 9% year-on-year to
Benefited from resumption of consumption scenario such as banquets and gatherings nationwide, sales of red wines products grew well over the year and served as the Group's primary revenue contributor. Sales of red and white wines products accounted for approximately 52% and 44% for the year (2022: red and white wines: approximately 47% and 50%). The gross margin of red wine products and white wine products in 2023 were 32% and 38% respectively (2022 - 32% and 44% respectively). The overall gross profit margin decreased to 34% in 2023 (2022: 38%), mainly as due to increase in reimbursement of marketing expenses under sales arrangement and delivery charge (especially e-commerce sales) during the year.
The Group has been actively pursuing innovation, embracing the "5+4+N" product strategy. The Group produced a wide range of more than 100 wine products under the "Dynasty" brand to meet the demands and preferences of different consumer groups mainly in the mass-market segments in the PRC wine market. During the year, the Group launched a new high-end product, i.e. Dynasty Chinese Zodiac Commemorative Dry Red Wine for the Gui Mao Year of Rabbit, integrating the high quality with the Chinese zodiac culture and the leading rise of Chinese-style fashionable products. The Group also launched new products, including the NIANHUA series and Constellation series, FU series, via an improved business model, which is safeguarding channel profit while also meeting consumers' demand for fine wines. Meanwhile, the Group has, heeding market and consumer demands, upgraded Golden Dynasty products and adopted new strategies to improve its existing product system. During the year, with leading and well-proven technologies it prides, the Group carried out comprehensive upgrade of its production techniques, packaging design, etc. With
Moreover, the Group sold chateau wine imported from
Regarding online sales, the Group continues putting resources for improvement of the online sales channels and optimisation of online stores interface so as to capture the change of customer consumption behavior in the PRC. During the year, apart from the existing exclusive products for e-commerce platforms, the Group had also been developing emerging marketing channels, such as live broadcasting. To strengthen brand awareness, the Group has launched a "Chinese style" edition showing its name in Chinese, to bring home its position as a domestic grape wine brand and also to attract mainstream e-commerce consumers who love domestic made products. The Group actively promoted the exclusive products series for e-commerce platforms via e-commerce channels. In addition to mainstream e-commerce platforms, efforts have been made to exploit new retail channels using such supplementary promotional means as live streaming or videos, with progress. The e-commerce sales grew significantly over the year, sales of which has doubled that of the last year 2022 and became another new growth point for the Group's revenue. The Group believes that the online platform not only serves as a business-to-customer trading platform between the Group and the consumers, but also an additional marketing and promotion channel for the brand. Thus, the platform should enhance the overall business potential of the Group.
The Group has a sufficient supply of quality grapes or grape juice. Currently, the Group has more than 10 major grape juice suppliers with whom the Group has enjoyed long-term relationships, mainly located in
In the future, the Group will further strengthen presence in
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