Grace Wine Holdings Limited released its unaudited results for the six months ended 30 June 2026, showing lower topline sales but an improved cost profile that helped trim losses.

Revenue and Sales Mix • Revenue from continuing operations fell 15.4% year on year to RMB 15.86 million, reflecting softer demand for premium products. • Total wine shipments decreased to about 194,000 bottles from 208,000 bottles a year earlier. • High-end labels accounted for 61.1% of revenue and 25.2% of volume; their average selling price rose to RMB 198.5 per bottle (1H25: RMB 189.6). • Entry-level wines represented 38.9% of revenue and 74.8% of volume, with average price easing to RMB 41.9 per bottle (1H25: RMB 44.0).

Profitability • Cost of sales declined 37.1% to RMB 3.91 million, aided by lower unit costs from higher production efficiency. • Gross profit slipped 4.8% to RMB 11.95 million, yet gross margin expanded to 75.4% (1H25: 67.2%). • Loss before tax from continuing operations narrowed to RMB 2.12 million (1H25: loss of RMB 2.57 million). • Net loss attributable to shareholders was broadly stable at RMB 2.73 million, translating to a basic loss per share of 0.34 RMB cent.

Cost Control and Expenses • Selling and distribution expenses decreased 5.8% to RMB 4.86 million, while administrative costs were flat at RMB 10.09 million. • Other income and gains climbed to RMB 0.96 million, supported by rental revenue and foreign-exchange gains.

Balance Sheet and Cash Flow • Cash and cash equivalents stood at RMB 21.33 million on 30 June 2026, little changed from year-end 2025. • The group reported no interest-bearing debt, keeping its gearing ratio at zero. • Net assets totalled RMB 167.51 million (31 Dec 2025: RMB 168.80 million). • Net operating cash outflow was RMB 2.31 million; a RMB 2.90 million inflow from share-option exercises largely offset outflows, resulting in a marginal cash decrease of RMB 0.07 million.

Dividends and Capital Actions • No interim dividend was declared. • During the period, 12.4 million share options were exercised, raising approximately HK$2.90 million and increasing issued capital to 686 million shares.

Operational Highlights • Earlier divestments of the spirits business and a 30% stake in Epic Wealth Holdings, completed in March 2025, continue to shape a streamlined focus on wine production. • Grace Wine received multiple accolades, including ranking 29th in The Spirits Business’s “Top 50 Most Innovative Spirits in the World 2025” and several gold medals at regional wine competitions.

Outlook Management plans to drive growth by enhancing the sales mix toward higher-margin labels, scaling new business lines, and developing an integrated “Consumer-Business-Factory (CBF) Business Operating System.” Cost discipline and prudent capital deployment remain priorities in view of ongoing market challenges.