Parent equity financial report released today has some...

Parent equity financial report released today has some interesting information, here are a few snippets:

"Since the turn of the century, as the living standard in China has drastically improved, the demand for diversified consumer products has risen every year. Specialty goods, which reflect local cultures, history, and tradition, have become increasingly popular gifts for families and friends. However, due to factors such as limited business investment, incomplete infrastructure in certain rural areas, low brand awareness, lack of sales channels and ineffective marketing, the local specialty product business is still at its early stage. In addition, with the goal to promote local cultures, China’s State Council has been actively working to stimulate domestic demand for local specialty goods.

Our business was founded to meet the demand for local specialty goods, both fresh and manufactured. We rely on direct suppliers across the country to supply products to us. We have established supply relationship with 21 direct suppliers across 15 provinces of China. In addition, during the summer of 2016 we leased 1,209 acres of land and purchased equipment used in orchards growing 41 varieties of fruit in various areas of China, as well as ten greenhouses. During fiscal year 2017, therefore, 1.18% of the products sold by Winha were grown by Winha."

"As the table indicates, our sales in our early years were dominated by fresh produce, most of which we sold to the hotel industry. However, in fiscal 2017 six of the ten products that generated the most sales were wine, two were packaged goods, and two were medicinal mushrooms, which shows the effect of our retail and franchise stores selling from inventory."

"The franchisees pay us a start-up fee and monthly management fee for the right to participate in our franchise program."

"Our franchise program was initiated in the summer of 2015. During the year ended March 31, 2017, we recorded $4,322,366 in franchise and management fees. We intend to increase the number of franchised stores during fiscal 2018, and expect revenue from our franchise operations to represent an increasing portion of our total revenue."