On April 22, Sichuan Swellfun Co.Ltd(600779) ( Sichuan Swellfun Co.Ltd(600779) ) officially released the annual report of 2021. The company achieved an annual operating revenue of 4.632 billion yuan, a year-on-year increase of 54.1%; The net profit was 1.199 billion yuan, a year-on-year increase of 63.96%; The net profit deducted from non profits reached 1.216 billion yuan, a year-on-year increase of 67.51%.
It is worth mentioning that from 2019 to 2021, Sichuan Swellfun Co.Ltd(600779) operating revenue grew at a compound rate of 14.4%. Since July 2020, Sichuan Swellfun Co.Ltd(600779) has maintained a double-digit growth rate for seven consecutive quarters and achieved steady growth for a long time. Therefore, Sichuan Swellfun Co.Ltd(600779) plans to distribute a cash dividend of 7.5 yuan (including tax) for every 10 shares to all shareholders, with a total of 366 million yuan (including tax).
core product upgrading and innovation
In 2021, the overall development trend of Baijiu industry was stable, and there were repeated fluctuations in the short term affected by the epidemic situation, and the growth momentum was also adversely affected by the economic slowdown.
In 2021, the output of Baijiu Enterprises above 716 reached 0.60%, compared with the same period. The sales revenue was 603.3 billion yuan, an increase of 18.60%; The total profit was 170.2 billion yuan, an increase of 33%. (data source: National Bureau of statistics, China Wine Association)
However, Sichuan Swellfun Co.Ltd(600779) in the annual report, it also said that with the continuous upgrading of consumption, the long-term development of the industry is still good Sichuan Swellfun Co.Ltd(600779) believes that the upgrading of consumption will continue to affect the long-term development of Baijiu market. Wine is a good life element. Baijiu fans have higher requirements for baijiu. Liquor companies must upgrade their products to meet consumers’ higher consumption experience demands, and the core of product upgrading is quality upgrading.
Recently, Zhu Zhenhao, CEO of Sichuan Swellfun Co.Ltd(600779) said publicly that 2021 was the “year of change” for Sichuan Swellfun Co.Ltd(600779) and was satisfied with the phased achievements made by listed companies. Last year, Sichuan Swellfun Co.Ltd(600779) formulated the vision and five year development mission of the Baijiu company, which is the leading brand of Luzhou Baijiu liquor, which has been growing healthily and respected and trusted. It has adopted a series of reform measures around the three major strategies, namely, product upgrading, brand upgrading and marketing breakthrough.
According to this idea, Sichuan Swellfun Co.Ltd(600779) upgraded the high-end Baijiu large single product collection in 2021, and achieved a comprehensive innovation in key fermentation, distillation, storage and blending.
In April 11, 2022, Sichuan Swellfun Co.Ltd(600779) held an online conference to upgrade its Baijiu well platform. This will upgrade its quality as the core. As a pioneering work, the well platform is Sichuan Swellfun Co.Ltd(600779) an important product. This new upgrade will aim at the price band with the most obvious market expansion of 500 ~ 800 yuan. From the price announced at the press conference, the recommended retail price of 52 ° new generation well platform is 808 yuan and that of 38 ° is 768 yuan Sichuan Swellfun Co.Ltd(600779) believes that the upgraded well site still has a good price performance ratio, which is one of the high-end Baijiu that consumers deserve to choose.
In the R & D section, Sichuan Swellfun Co.Ltd(600779) R & D team is mainly based on master of science and technology, with several national wine evaluation masters and national Baijiu master. According to the annual report of 2021, Sichuan Swellfun Co.Ltd(600779) R & D investment totaled 410727 million yuan, with a significant increase of 150697 million yuan in the same period of 2020.
Recently, the Institute of Microbiology of the Chinese Academy of Sciences released a phased Research Report on the flora of Sichuan Swellfun Co.Ltd(600779) No. 1, which shows that the flora of Sichuan Swellfun Co.Ltd(600779) ancient pit mud is diverse, ecologically stable, rich in Aroma Producing Microorganisms and a wide variety of unknown bacteria. The study also confirmed that the uniqueness of microorganisms in the pit mud of Sichuan Swellfun Co.Ltd(600779) ancient cellar: there are nearly 20 new bacterial species that have not been reported; Compared with Yibin and Luzhou producing areas, Sichuan Swellfun Co.Ltd(600779) ancient cellar mud has 16 unique bacterial groups and 2 unique ancient bacterial groups.
According to the annual report, based on the research results of the Chinese Academy of Sciences, Sichuan Swellfun Co.Ltd(600779) will continue to promote the first group of research projects, further explore the unique password and core competitive advantages of Sichuan Swellfun Co.Ltd(600779) Baijiu, and consolidate the high-end quality genes of Sichuan Swellfun Co.Ltd(600779) liquor. As a result, Sichuan Swellfun Co.Ltd(600779) will also re sort out the series of wines below 300 yuan and further develop ultra-high-end products above 1500 yuan.
Ouyang, a liquor expert, said that the purchasing power and consumption intention of high-end Baijiu consumers fluctuated relatively low. Sichuan Swellfun Co.Ltd(600779) ‘s strategy in high-end areas was not a short-term performance measure, and it could enable enterprises to have strong strength to pass through the cycle.
2022 revenue net profit growth target 15
Overall, the Baijiu industry has undergone structural changes. Among them, the product growth of more than 800 yuan price segment is relatively slow, the growth momentum of high-end Baijiu 300 yuan ~800 yuan will be strengthened, and will enter the stage of relative high growth trend, but the brand competition of this price segment will be extremely fierce.
In the face of such changes, the secondary high-end is naturally the market that Sichuan Swellfun Co.Ltd(600779) focuses on seizing, and the product upgrading also needs to match the brand’s high-end marketing strategy.
In 2021, Sichuan Swellfun Co.Ltd(600779) carried out various marketing reforms, and promoted 25 distributors to set up high-end Baijiu sales companies, focusing on the collection and above products. In recent years, Sichuan Swellfun Co.Ltd(600779) has cooperated with China ice and snow, Shanghai Rolex masters, China Central Television national treasure and other famous IP, and established a consumer cultivation department in order to achieve stronger penetration and wider coverage in the target customer group.
At the same time, Sichuan Swellfun Co.Ltd(600779) reconstruct and strengthen the business management system of core products, actively cultivate the potential market of No. 8 and expand the group purchase business of well platform. With the blessing of high-quality brand IP, product upgrading and brand high-end strategy are also transmitted to the business level. The terminal prices of Sichuan Swellfun Co.Ltd(600779) collection, Jingtai, zhenniang No. 8 and other major products have increased by 30 ~ 60 yuan.
In 2021, Sichuan Swellfun Co.Ltd(600779) produced 1287553 kiloliters of wine, a year-on-year increase of 57.77%; 1103251 kiloliters of wine were sold, with a year-on-year increase of 40.34%. From the perspective of products, in 2021, Sichuan Swellfun Co.Ltd(600779) high-grade liquor and medium-grade liquor achieved operating revenue of 4.519 billion yuan and 102 million yuan respectively, with a year-on-year increase of 54.33% and 34.4%. According to the product grade, the main representative brands of “high-grade” are Sichuan Swellfun Co.Ltd(600779) brand series, and the main representative brands of “medium-grade” are tianhaochen and series liquor sales.
In the annual report of 2021, Sichuan Swellfun Co.Ltd(600779) set the business goal of “realizing the growth of main business income by about 15% and net profit by about 15% in 2022”. On April 22, Sichuan Swellfun Co.Ltd(600779) also released the first quarterly report of 2022, which showed that the revenue in the first quarter of this year was 1.415 billion yuan, a year-on-year increase of 14.1%; The net profit was 363 million yuan, a year-on-year decrease of 13.54%.
Zhu Zhenhao said that the Baijiu industry was affected by the epidemic in the short term, and the growth momentum was limited. Sichuan Swellfun Co.Ltd(600779) was no exception, but Sichuan Swellfun Co.Ltd(600779) remained cautious and optimistic about the market. In the following six months, the epidemic situation has improved and the consumption scene has returned to normal, Sichuan Swellfun Co.Ltd(600779) is confident to achieve the business goal of 2022. In 2022, Sichuan Swellfun Co.Ltd(600779) will continue to implement various measures of the ‘three strategies’, continue to invest in talent, brand, product, innovation, channel, supply chain, etc., and maintain the driving force for the healthy and steady growth of the company; We are confident to maintain double-digit growth in the future and expand market share year by year.
It should be noted that Sichuan Swellfun Co.Ltd(600779) is also actively arranging the future production capacity and continuing to build Qionglai whole industry chain base project.
According to the data, the Qionglai whole industry chain base project invested 458 million yuan in 2021, with a cumulative investment of 725 million yuan and a planned investment of 2.419 billion yuan. At present, Sichuan Swellfun Co.Ltd(600779) Qionglai project is under construction as planned and is expected to be completed and put into operation in 2023. The construction of the project will reserve long-term supply capacity for Sichuan Swellfun Co.Ltd(600779) and the upgrading of technical equipment will further optimize the production efficiency of the supply chain and enhance the strength of the enterprise. Qionglai base belongs to Sichuan Swellfun Co.Ltd(600779) the production and storage base of liquor. After the completion of the project, it is expected to form a production capacity of 20000kl / a raw liquor and create more than 500 new jobs.
