China Tontine Wines Group (0389) AI Stock Analysis

• Market Cap: HK$88.96M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 458.8
• Beta (1Y): -0.02
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 82
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 0.00
• Shares Outstanding: 301,561,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 1.13
• P/FCF Ratio: -1.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.41 ▼(-4.88% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is primarily pressured by severe deterioration in financial performance (sharp revenue decline, large losses, and negative operating/free cash flow) and a shrinking equity base despite zero debt. Technical signals show no sustained uptrend and an extreme RSI reading, while valuation is constrained by negative earnings and no dividend yield support.

China Tontine Wines Group Business Overview & Revenue Model

Company Description

China Tontine Wines Group Limited, an investment holding company, produces and sells grape wine products. The company provides sweet wines and dry wines under the Tongtian, Tongtian Hong, and TONTINE labels. It also produces and sells brandy, white wines, and ice wines, as well as processes grape juices. In addition, the company is involved in the grapes plantation activity; and offers administrative services. It sells its products through distributors in 20 provinces, 3 autonomous regions, and 4 municipal cities in the People's Republic of China. The company was founded in 2001 and is headquartered in Tonghua, the People's Republic of China.

How the Company Makes Money

The company primarily makes money by selling wine products. Its core revenue stream is the sale of bottled/branded wines to customers through distribution and sales channels (e.g., wholesalers, distributors and other trade customers), generating revenue when products are delivered/sold and recognized under applicable accounting policies. Earnings are influenced by sales volume and product mix (e.g., different wine labels/grades), pricing and promotional activity, and the scale/efficiency of its production and bottling operations, which affect gross margin. Information on specific major partnerships, customer concentration, or quantified segment breakdowns is null.

China Tontine Wines Group Financial Statement Overview

Summary

Income statement and cash flow are very weak: 2024 revenue fell 36.3% YoY and the company posted a very large net loss with deeply negative margins, while operating and free cash flow turned materially negative. The balance sheet has no debt, but equity dropped sharply in 2024, reducing the capital cushion.

Income Statement

Profitability has deteriorated sharply: 2024 revenue fell to 107.99M (down 36.3% YoY) and the company posted a very large net loss (-321.30M) with deeply negative margins (net margin around -297%). The business was profitable in 2021, but the past three years show sustained losses and significant compression from healthier gross margins in 2021–2022 to a low level in 2024, indicating weak pricing power and/or elevated costs.

Balance Sheet

Leverage is very low (2024 total debt is 0; debt-to-equity near 0), which reduces financial risk. However, equity has declined materially from 403.92M (2023) to 92.58M (2024), consistent with heavy losses eroding the capital base; returns on equity are strongly negative in 2024. Overall, the balance sheet is not burdened by debt, but the shrinking equity cushion is a key weakness.

Cash Flow

Cash generation is weak and volatile. Operating cash flow swung from positive in 2023 (23.67M) to materially negative in 2024 (-94.25M), and free cash flow also turned sharply negative in 2024 (-94.79M). While free cash flow tracked net income in 2024 (losses converting into cash outflow rather than being purely accounting), the lack of consistent positive operating cash flow raises funding and sustainability risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	115.97M	107.99M	189.14M	146.12M	208.37M	107.88M
Gross Profit	8.63M	7.36M	28.15M	53.19M	91.57M	-49.34M
EBITDA	-162.97M	-345.23M	-49.97M	-8.57M	25.03M	-152.18M
Net Income	-60.36M	-321.30M	-80.20M	-26.40M	11.34M	-162.16M
Balance Sheet
Total Assets	218.35M	217.43M	553.43M	607.07M	645.84M	540.20M
Cash, Cash Equivalents and Short-Term Investments	38.06M	755.00K	95.48M	70.89M	85.87M	37.45M
Total Debt	10.92M	0.00	5.01M	913.00K	1.58M	3.17M
Total Liabilities	60.56M	60.11M	56.05M	39.37M	67.10M	45.31M
Stockholders Equity	92.64M	92.58M	403.92M	483.63M	493.52M	417.35M
Cash Flow
Free Cash Flow	40.12M	-94.79M	18.30M	-30.43M	15.55M	-124.34M
Operating Cash Flow	40.24M	-94.25M	23.67M	-7.03M	21.70M	-112.20M
Investing Cash Flow	-123.53K	-477.00K	-3.13M	-21.11M	-5.91M	-12.37M
Financing Cash Flow	-46.19K	0.00	4.05M	13.17M	32.63M	-39.41M

China Tontine Wines Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8509	75 Outperform	HK$268.00M	7.57	13.15%	―	15.66%	-1.25%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0236	56 Neutral	HK$478.17M	6.04	10.82%	4.07%	2.77%	-110.76%
0828	54 Neutral	HK$326.75M	13.36	7.35%	1.30%	-4.14%	-21.15%
8146	45 Neutral	HK$544.71M	-14.99	-25.48%	―	-18.68%	-3305.88%
0389	40 Underperform	HK$88.96M	458.76	-65.18%	―	―	―
2226	39 Underperform	HK$222.82M	-0.34	―	―	-0.28%	1.40%

China Tontine Wines Group Corporate Events

China Tontine Wines Sets Board Meeting to Approve 2025 Annual Results

China Tontine Wines Group Limited has scheduled a board meeting for 31 March 2026 to review and approve the annual results for the year ended 31 December 2025 and to authorize their publication. The board will also consider whether to recommend a dividend, a decision that could affect shareholder returns and signal management’s outlook on the company’s financial performance.

The announcement also reconfirms the current composition of the board, listing the executive, non-executive and independent non-executive directors overseeing the company’s governance. This underscores the group’s adherence to corporate governance requirements as it approaches the release of its full-year financial results, a key event for investors monitoring its operational and financial trajectory.

The most recent analyst rating on (HK:0389) stock is a Sell with a HK$0.40 price target. To see the full list of analyst forecasts on China Tontine Wines Group stock, see the HK:0389 Stock Forecast page.

China Tontine Wines Clears HKEX Hurdles to Resume Trading After Audit Fixes

China Tontine Wines Group Limited announced that it has fulfilled the resumption guidance set by the Hong Kong Stock Exchange following a prolonged suspension linked to delayed financial reporting. The company has now published all outstanding interim and annual results and reports for 2024 and 2025, and expects to release its audited 2025 financial statements by the 31 March 2026 deadline.

The auditor issued a qualified opinion on the 2024 financial statements, prompting the company to undertake remedial measures including an internal control review and legal action against former directors to mitigate losses. Based on completed audit procedures and internal control enhancements, the company expects no modified opinion on its 2025 annual report, paving the way for the resumption of trading in its shares and signalling improved governance and financial transparency for investors.

The most recent analyst rating on (HK:0389) stock is a Sell with a HK$0.40 price target. To see the full list of analyst forecasts on China Tontine Wines Group stock, see the HK:0389 Stock Forecast page.

China Tontine Wines Outlines Board Structure and Committee Membership

China Tontine Wines Group Limited has announced the current composition of its board of directors and detailed the roles and functions of each member, including three executive directors, three non-executive directors and three independent non-executive directors. The company has also confirmed the membership of its audit, nomination and remuneration committees, all chaired by independent or senior board members, underscoring its emphasis on corporate governance and regulatory compliance as it seeks to maintain oversight and accountability to shareholders and other stakeholders.

China Tontine Wines Discloses High-Risk Internal Control Gaps and Tightens Oversight of Subsidiaries

China Tontine Wines Group has disclosed key findings from an independent internal control review conducted by Cheng & Cheng Risk Advisory Services as part of resumption guidance from the Hong Kong Stock Exchange, following trading suspension of its shares. The review identified serious deficiencies in the parent company’s control over certain subsidiaries, including management at out-of-control subsidiaries failing to provide financial information to the board, refusing to cooperate with annual audits, and some affiliated subsidiaries not being effectively controlled by the Group, all assessed as high risk. In response, the company has begun implementing remedial measures, notably formulating and adopting new “Control over Subsidiaries” rules and regulations in January 2025 to strengthen governance, oversight of operations and finance, and appointment of directors and senior management, in an effort to demonstrate adequate internal controls and move toward meeting regulatory requirements for potential trading resumption.

China Tontine Wines Group Provides Updates on Resumption Progress and Compliance

China Tontine Wines Group Limited has successfully addressed its compliance and publication obligations under the Stock Exchange listing rules, including publishing outstanding financial results and submitting qualitative analyses demonstrating adherence to Rule 13.24. Despite challenges, such as losing control of certain subsidiaries and auditors’ qualified opinions, the company has demonstrated adequate operational scale and asset values, ensuring the basis for its continued listing.