Grace Wine Holdings (Grace Wine) reported a substantial turnaround for the year ended 31 December 2025 (FY2025), driven by stronger wine sales, cost control and the disposal of its loss-making distillery unit.

Revenue and margins • Revenue from continuing operations rose 9.4% year on year to RMB34.88 million, underpinned by a 11.5% increase in sales volume to 407,000 bottles. • Gross profit expanded to RMB25.09 million (FY2024: RMB23.67 million), though gross margin eased to 71.9% from 74.2% on higher consumption tax and a lower average selling price (RMB85.70 vs RMB87.40 per bottle).

Earnings performance • Loss from continuing operations narrowed to RMB3.19 million (FY2024: RMB9.63 million). • Including a RMB0.57 million profit from the discontinued distillery operation—boosted by a RMB2.46 million disposal gain—total net loss contracted to RMB2.62 million (FY2024: loss of RMB41.02 million). • Basic and diluted loss per share improved to RMB0.33 cents (FY2024: RMB5.12 cents).

Cost structure • Selling and distribution expenses fell 20.0% to RMB9.57 million following marketing rationalisation. • Administrative expenses declined 4.8% to RMB17.69 million. • Finance costs reduced to RMB0.04 million after the repayment of bank borrowings.

Portfolio reshaping and shareholder returns • On 28 March 2025, Grace Wine sold its entire distillery business (Pacific Surplus Group) for HK$71.28 million and divested a 30% stake in Epic Wealth Group for HK$38.88 million. • Proceeds funded special dividends totalling RMB89.29 million (HK7.802 cents and HK4.256 cents per share respectively). • The transactions eliminated RMB62.39 million of long-term debt, bringing the gearing ratio to zero (31 December 2024: 27.6%).

Balance sheet and liquidity • Total assets contracted to RMB189.11 million (31 December 2024: RMB318.56 million) after disposals. • Cash and cash equivalents stood at RMB21.75 million, down from RMB34.49 million a year earlier. • Net assets amounted to RMB168.80 million, with non-controlling interests of RMB80.29 million following the partial sale of Epic Wealth.

Ownership change • On 12 December 2025, Hill Valley Investment acquired a 51.38% stake from Macmillan Equity, making Mr. Yang Lingjiang the new controlling shareholder of Grace Wine.

Management outlook The board expects China’s wine market to remain challenging but sees opportunities in premiumisation and omni-channel expansion. The company plans to focus on enhancing product quality, brand positioning and operational efficiency while exploring new partnerships and growth initiatives.