After the performance of Kweichow Moutai Co.Ltd(600519) 2021 exceeded 100 billion, the performance of its parent company Maotai Group also maintained stable growth in 2021, and the performance growth rate in the first quarter hit a new high in recent three years. As the second “10 billion enterprise” of Maotai Group, Xijiu also performed well, with a revenue of 15.6 billion yuan last year, a year-on-year increase of more than 70%. In addition, Maotai Group, which continued to overweight wine, ushered in the first decline in net profit of the business in nearly four years.
Recently, Maotai Group released its annual report and first quarterly report of 2021. In 2021, it achieved a revenue of 132624 billion yuan, a year-on-year increase of 16.08%, and a net profit of 63.384 billion yuan, a year-on-year increase of 15%, slightly lower than the growth rate of last year; In the first quarter, the net revenue was 42.98 billion yuan, a year-on-year increase of 2.68 billion yuan, a year-on-year increase of 2.62%.
The growth rate of performance in the first quarter improved significantly
The reporter of daily economic news noted that the performance growth rate of Maotai Group in the first quarter of 2022 was significantly improved compared with the same period of previous years. In 2021, the revenue reached 132624 billion yuan, a year-on-year increase of 16.08%; The year-on-year growth rate was 638.4 billion yuan, slightly lower than that of last year. In the first quarter of 2022, the revenue was 42.17 billion yuan, a year-on-year increase of 26.8%; The net profit was 20.934 billion yuan, a year-on-year increase of 28.18%.
Maotai Group mainly focuses on the three main businesses of “liquor manufacturing and sales and related supporting product manufacturing and services, comprehensive financial services (Industrial Financial direction) and liquor tourism integration industry”, with Kweichow Moutai Co.Ltd(600519) as the core subsidiary. It has 36 wholly-owned, holding and joint-stock companies, and its industries include Baijiu, health wine, wine, securities, insurance, banking, cultural tourism, education, real estate, ecological agriculture and Baijiu upstream and downstream industries.
In terms of business segments, in 2021, the liquor sales business achieved a revenue of 128277 billion yuan, a year-on-year increase of 16.21%, a gross profit margin of 89.24% and a revenue share of 96.72%; The revenue of wine bottles, bottle caps and other upstream and downstream businesses was 168 million yuan, a year-on-year decrease of 6.67%, the gross profit margin was 24.4%, and the revenue accounted for 0.13%; Property leasing and real estate sales achieved a revenue of 232 million yuan, a year-on-year increase of 82.68%, a gross profit margin of 47.84%, and revenue accounted for 0.17%; Financial leasing achieved a revenue of 377 million yuan, a year-on-year increase of 52.02%, a gross profit margin of 51.99%, and revenue accounted for 0.28%; The airport business was 103 million yuan, a year-on-year increase of 27.16%, the gross profit margin was – 305.83%, and the revenue accounted for 0.08%; Other businesses amounted to 3.468 billion yuan, with a year-on-year increase of 7.37%, a gross profit margin of 93.02%, and revenue accounting for 2.62%P align = “center” source: 2021 annual report of Maotai Group
The revenue of wine bottles, bottle caps and other upstream and downstream businesses declined, and the revenue of financial leasing business increased significantly. The change proportion of gross profit margin of the two businesses was – 53.27% and – 5.2% respectively. The company said that the wine bottle, bottle cap and other upstream and downstream businesses were due to the substantial increase in the cost of consumables and raw materials of Zhuhai Special Economic Zone Longshi bottle cap Co., Ltd., and the decrease in the proportion of gross profit; In 2021, the investment scale of Maotai financial leasing project increased, resulting in the increase of income and cost, and the change proportion of gross profit decreased slightly.
In addition, the R & D expenses of Maotai Group increased significantly in 2021. The product technology development expenses in 2021 were 208 million yuan, an increase of 122 million yuan over the same period last year, an increase of 141.58%P align = “center” picture of financial status of important subsidiaries of Maotai Group source: audit report of Maotai Group in 2021
The net profit of wine business fell for the first time in nearly four years
It is worth noting that the wine business of Maotai Group has grown rapidly in recent years. From 2018 to 2021, the wine revenue was 130 million yuan, 177 million yuan, 218 million yuan and 372 million yuan respectively; The total asset scale also increased from 394 million yuan in 2018 to 898 million yuan in 2021.
You know, under the tide of “sauce and wine fever” in recent years, many Luzhou flavor, yellow rice wine and even foreign capital have joined the army of sauce and wine. However, Maotai overweight wine industry, as the leader of sauce wine.
In an interview with the financial associated press last May, Zhu danpeng, an analyst of China’s food industry, believed that the vigorous development of wine in Maotai is a part of the grand Maotai strategy. “Maotai needs multiple brands, categories, scenes, channels and consumers to continue to grow. The production capacity of Maotai will not be released until five years later. This waiting time needs to be more comprehensive in order to maintain expansion.”
From the performance of Chinese wine listed companies, the overall profitability of the industry is under pressure. According to the annual report of listed wine companies, in 2021, Yantai Changyu Pioneer Wine Company Limited(000869) ( Yantai Changyu Pioneer Wine Company Limited(000869) . SZ) achieved a total revenue of 3.953 billion yuan, a year-on-year increase of 16.42%, and a net profit of 507 million yuan, a year-on-year increase of 7.11% Tonghua Grape Wine Co.Ltd(600365) ( Tonghua Grape Wine Co.Ltd(600365) . SH) had a total revenue of 678 million yuan, an increase of 11.53% year-on-year, and a net profit of 9.2671 million yuan, turning losses into profits Weilong Grape Wine Co.Ltd(603779) ( Weilong Grape Wine Co.Ltd(603779) . SH) had a total revenue of 484 million yuan, a year-on-year increase of 20.76%, and a net profit of – 414 million yuan, a year-on-year decrease of 88.4% Citic Guoan Wine Co.Ltd(600084) ( Citic Guoan Wine Co.Ltd(600084) . SH) had a total revenue of 217 million yuan, a year-on-year increase of 129.59%, and a net profit of 167712 million yuan, a year-on-year increase of 129.43% Gansu Mogao Industrial Development Co.Ltd(600543) ( Gansu Mogao Industrial Development Co.Ltd(600543) . SH) had a total revenue of 140 million yuan, a year-on-year increase of 5.53%, and a net profit of – 103 million yuan, a year-on-year decrease of 327662%.
In 2021, the net profit of Maotai Group’s wine business also fell for the first time in nearly four years. The net profits from 2018 to 2021 were 3.9888 million yuan, 14.29 million yuan, 326514 million yuan and 203511 million yuan respectively.
On May 1, xiaozhuqing, a Baijiu expert, pointed out to Meijing through wechat: “the overall competition environment in the wine market is very complex. On the one hand, imported wine is good in quality and price, has a large margin, and has a good brand image and good consumption experience. However, domestic wine has lost its trust in quality because of the vicious price competition in previous years, and low prices have brought low quality and bad consumption experience.”
He further said that in this context, Maotai wine is difficult to be alone. Domestic wine needs a long process to restore consumer trust. It requires the joint efforts of major leading enterprises in the industry, with the help of tasting experience and the guidance of leading enterprises, so that more channel merchants can make money selling domestic wine, so that more consumers and domestic wine can have face, especially good quality consumption experience, which is the foundation of domestic wine’s turnaround.
Xi Jiu’s revenue increased by about 70% last year
According to the 2021 annual report of Maotai Group, Xijiu achieved an operating revenue of 15.58 billion yuan, a year-on-year increase of 71.4% and a gross profit margin of 79.75%.
p align = “center” source: 2021 annual report of Maotai Group
Xiao Zhuqing said that Xijiu is currently the second largest Maotai flavor operating enterprise group in the country. It has a complete sales service system and a stable agent team in the country. The supply and demand of Xijiu market is booming. It is the second largest Maotai flavor variety with the highest drinking frequency, the highest cost performance and the highest production and sales volume in China under Maotai.
It is worth noting that, while the practice of drinking became bigger, its competition with Kweichow Moutai Co.Ltd(600519) or the formation of horizontal competition has been questioned by shareholders.
At the Kweichow Moutai Co.Ltd(600519) performance presentation meeting on May 19 last year, Gao Weidong, former chairman of Kweichow Moutai Co.Ltd(600519) responded that the joint stock company was strictly separated from Maotai Group and other subsidiaries and operated independently. Xijiu company is independent in terms of raw material procurement, production process, production line, sales channel, product design and business nature. After years of operation, the joint stock company has formed a unique brand image, brand positioning and reputation, which is significantly different from Maotai Group and Xijiu company. From the historical data, the output and sales volume of the joint-stock company’s products have been rising steadily.
At the beginning of this year, there were more market rumors that Xijiu wanted to spin off Maotai Group, which attracted the attention of all parties.
Xiao Zhuqing told reporters: “Xijiu has received the support of Zunyi municipal government and Guizhou provincial government in Xishui. The volume of Xijiu, especially the independence of people, property, production, supply and marketing, makes it have some conditions for longer-term and more rapid development if it is separated from Maotai”.
