2023
On behalf of the board (the “Board”) of directors (the “Directors”) of Grace Wine Holdings Limited (the “Company”), I am pleased to present the Company’s 2023 annual report.
Throughout 2023, our revenue increased to RMB65.0 million, representing a modest growth of 4.6% from the previous year. Notably, our gross profit also saw a steady rise, reaching 73.3% in 2023, compared to 58.7% in 2022 and 35.1% in 2018, in line with our premiumization strategy. Recognizing changing consumer preferences, particularly a global decline in alcohol consumption, we remain committed to prioritizing quality over quantity. Our focus on brand development, product excellence, and team development underscores our dedication to sustainable growth.
We value transparency with our shareholders. While detailed information is available in the “Management Discussion and Analysis” section, I would like to offer some personal reflections.
In China, wine serves as a medium for social connection. Hence, you rarely see people in China drinking alone at home. Besides the flavour and quality of wine, I would argue that the brand story is even more important. If we are able to share our stories and build meaningful relationships with our end consumers, we would be able to form a solid customer base. That’s why we continue to streamline our distribution structure and increase our efforts on suitable social media platforms, such as Little Red Book and WeChat short videos.
We also endeavour to tell our story by publishing a vintage report every year, starting from our very first vintage in 2001. I encourage you to read the report (our latest report here: https://en.grace-vineyard.com/news_Detail/1.html), which not only provides insights into climatic conditions, harvest, and industry trends but also shares some of the new initiatives the team has undertaken. For example, the team has reduced sulphur dioxide (SO2 ) usage in our winemaking process. Several of our wines have even been made with zero added SO2. (SO2
has long been used in winemaking as a preservative and antimicrobial agent, playing a crucial role in maintaining wine quality and stability. However, consumers also report experiencing headaches when drinking wine with SO2.)
Finally, we have completed the trial whisky production before Chinese New Year and have started regular production. The distillery will be officially opened to the public in June this year. We welcome all of you to visit us. We appreciate your continued support as we strive for sustainable growth. Our “Tasya’s Reserve” wine is being served on Cathay Pacific’s business class starting in March 2024. We look forward to your feedback and trust that it will enhance your journey. Cheers!