On March 16, Jinhui Liquor Co.Ltd(603919) ( Jinhui Liquor Co.Ltd(603919) ) issued the annual report for 2021. During the reporting period, in the face of the complex and changeable external environment and the severe impact of the epidemic on core sales areas such as Lanzhou and Xi’an in the peak sales season in the fourth quarter, Jinhui Liquor Co.Ltd(603919) achieved positive growth in revenue. In 2021, the operating revenue was 1.788 billion yuan, the net profit was 320 million yuan, and the operating revenue of medium and high-grade products exceeded 1 billion yuan. The company optimized the product structure and achieved good results in seeking transformation and development.
volume and price rise together and product structure continues to be optimized
With the increase of consumption level, the consumption structure of Baijiu market has undergone significant changes. It is at a critical stage of upgrading the consumption of Baijiu in the northwest. Jinhui Liquor Co.Ltd(603919) since 2017, the company has comprehensively optimized the product structure and always maintained a stable and upward development trend. The market area, product structure and other indicators have been continuously optimized. Through product structure adjustment and cost control, the gross profit margin of the company’s main business has increased to 64.00%, an increase of 1.11 percentage points over the same period of last year. Minsheng Securities pointed out in the Research Report: Jinhui Liquor Co.Ltd(603919) adopts the strategy of improving the quality and price of old products and launching new products at the same time. The sales volume of high-grade wine has increased steadily. With the active optimization of the company, the sales volume of medium and low-grade wine has driven the ton price of the company’s products to increase. In recent years, Jinhui Liquor Co.Ltd(603919) has made great efforts to build a product series matrix with Jinhui 28 and Jinhui 18 as the core. According to the 2021 annual report, Jinhui Liquor Co.Ltd(603919) high-end product sales revenue reached 1.095 billion yuan, an increase of 26.24% over the same period of last year, accounting for 62.11% and 11.25% over the same period of last year.
accumulate and make little progress, and maintain high growth in markets outside the province
In the face of the “double round marketing” and the deepening of market competition outside the province, we will actively promote the “double round marketing + steady growth” in 2029 and maintain the market competition outside the province. According to the data, Jinhui Liquor Co.Ltd(603919) in 2021, there were 158 dealers outside the province and in other markets, realizing an operating revenue of 392 million yuan, an increase of 35.71% year-on-year, which fully shows Jinhui Liquor Co.Ltd(603919) the strength of market development and channel recognition. It is understood that after years of accumulation, Jinhui Liquor Co.Ltd(603919) Xi’an Sales Company has completed organizational evolution. In the newly established year, the business department, energy business department and gold medal business department have opened a comprehensive layout of medium and high-end prices in Shaanxi market, with more refined product, customer and service design and more focused resources. Through the campaign mechanism, competitive and cooperative development promotes multiplier growth.
actively move eastward and make breakthroughs in East China
For a long time, Jinhui Liquor Co.Ltd(603919) has been developing in Gansu, and Gansu is a dominant Baijiu brand in Northwest China. After Fosun holdings in 2020, Jinhui Liquor Co.Ltd(603919) put forward the development path of “national layout, deep cultivation in the northwest and key breakthroughs”. With the support of Fosun, build two core development areas of “Northwest + East China”, consolidate the base market through BC linkage, product and brand matrix, customer equity operation and channel refined management, and build a good brand guidance and resource foundation for national layout and key breakthroughs. In 2021, Jinhui Liquor Co.Ltd(603919) successively set up sales companies in Shanghai and Jiangsu. Among them, Shanghai company is mainly responsible for the sales in Fosun ecosystem, and successively developed customized products for Nanjing Iron and steel, Wanbang pharmaceutical, real estate development and other enterprises. High-end products such as Jinhui 28 years and Jinhui 18 years have won the recognition of Fosun ecosystem; Jiangsu company is mainly responsible for channel sales in East China markets such as Jiangsu, Zhejiang, Henan, Shandong and Jiangxi. At present, it has completed team formation, listing of exclusive product Jinhui Laojiao and preliminary investment promotion, which is expected to become a Jinhui Liquor Co.Ltd(603919) new performance growth point.
devise strategies and increase investment in new market development
While disclosing the annual report of 2021, the two foreign investment announcements issued by Jinhui Liquor Co.Ltd(603919) are also worthy of attention. First, Qinghai Jinhui Liquor Co.Ltd(603919) Lanzhou sales company controls Qinghai Jinhui Liquor Co.Ltd(603919) sales company through capital increase to further increase market investment in Qinghai and take advantage of Gansu’s geographical advantages to seize the development opportunities of Qinghai market. Public information shows that Jinhui Liquor Co.Ltd(603919) established Qinghai sales company with its partners in 2020, but the development of Qinghai sales company is limited by the epidemic and resource investment. This capital increase and holding provides a strong guarantee for strengthening the development of Jinhui Liquor Co.Ltd(603919) in Qinghai market. Second, it is planned to set up an Internet sales company in Beijing, introduce outstanding talents in the industry, innovate the business mechanism, further expand the product sales scope and platform, and realize Wuxi Online Offline Communication Information Technology Co.Ltd(300959) all-round development. Looking to the future, Jinhui Liquor Co.Ltd(603919) has opened the comprehensive development pattern of “Northwest + East China” dual base channel construction and online multi platform layout.
2022 is the key year for Jinhui Liquor Co.Ltd(603919) realizing transformation and development Jinhui Liquor Co.Ltd(603919) will accelerate the implementation of various reform measures for “secondary entrepreneurship”, adhere to the strategic policy of national layout, deep cultivation in the northwest and key breakthroughs, introduce leading international consulting companies such as Boston (BCG) and Mercer to carry out strategic, marketing, management and human resources changes, promote the transformation and development of the company’s organization, talents and performance, vigorously carry out scientific and technological research and technological innovation, create a science and innovation ecology and share development achievements. (Qin Wen)
