Outlet financial reporter Kong Min
On April 28, the domestic wine leader Luqi Zhangyu released an annual report showing that the company's operating income in 2020 was 3.395 billion yuan, a year-on-year decrease of 33.08%; the net profit attributable to the mother was 470 million yuan, down 58.75% year-on-year, and the performance hit a new low in recent years, in fact, Zhangyu's performance is not unique, including Sino-Portuguese wine, Weilong wine and many other head players have performed sluggishly. It is worth noting that in 2020, domestic wine companies will achieve a profit of about 260 million yuan, such as deducting Zhangyu's profit of about 520 million yuan, and the large-scale loss of the whole industry is a reality. So, will the wine industry continue to be cold?
In this regard, industry insiders said that the current wine industry will be cold, but there are also spring warm blossoms. Recently, a number of wine companies released the first quarter of 2021 financial report data show that a number of wine companies have achieved revenue and profit double growth, in the face of the domestic wine industry bottomed out, domestic wine spring is coming? And what role does Shandong, which ranks first in the number of wine companies in the country, play?
■ Enterprises
Last year's revenue net profit fell twice
The head player stalls en masse
The 2020 report card of the listed wine company was officially released.
On April 23, *ST Sino-Portuguese released its 2020 annual financial report, saying that the annual revenue was 94.6149 million yuan, down 61.9% year-on-year, and the net profit fell by 56.4032 million yuan, down 478.05% year-on-year; on April 27, Zhangyu released the 2020 financial report, with annual revenue of about 3.395 billion yuan, down 33.08% year-on-year, and net profit of about 471 million yuan, down 58.75% year-on-year; on April 28, ST Weilong disclosed its annual report. The company's total operating income in 2020 was 390 million, down 41.2% year-on-year, and the net profit attributable to the mother was -220 million, which was -25.865 million yuan in the same period last year; on April 28, Mogao shares disclosed the annual report, the company's total operating income in 2020 was 130 million, down 25% year-on-year, and the net profit attributable to the mother was 1.86 million, down 93.2% year-on-year; on April 29, ST Tong portuguese disclosed the annual report, the company's total revenue in 2020 was 610 million, down 37.7% year-on-year, Net profit attributable to the mother was -67.922 million yuan, compared with -31.315 million yuan in the same period last year.
The leading enterprise Zhang Yu showed full fatigue in terms of profitability, and many other liquor companies' revenue and net profit both fell, and even faced a warning of delisting risk... The above data reflects the cruel reality of the cold survival of wine companies.
In this regard, Zhang Yu pointed out in the financial report that in 2020, affected by various factors such as China's economic slowdown and the new crown epidemic, the domestic wine market competition is very fierce, and most of the wine production and operation enterprises are in trouble, and profitability has fallen sharply.
"At present, the wine consumption of domestic consumers tends to be mature and rational, the market proportion of cost-effective products has increased, and the profit margin of many wine companies in the market has been further reduced." Sun Zikai, secretary general of the Qingdao Liquor Association, said that these factors have caused some pressure on the performance of wine companies.
It is worth noting that with the continuous improvement of the market share of imported wine, the living space of domestic wine companies has been greatly squeezed. On April 20, the International Grape and Wine Organization (OIV) released the "Global Wine Industry Report 2020", which pointed out that China, the world's sixth largest wine market, has fallen sharply by 17.4%, which is already the third consecutive decline in China's wine consumption market.
"Compared with domestic red wine, foreign red wine is more cost-effective and easier to sell, so the turnover and income of foreign red wine brands have always been good." Mr. Xue, the head of a wine distribution house in Qingdao's Jiaozhou region, told Fengkou Finance. Xiao Zhuqing, a wine marketing expert, believes that the coldness of China's wine industry lies in the fact that "imported wines are of good quality, the price difference is large, and it is very profitable to sell imported wines; domestic wine companies have developed OEM products in order to perform a large number of performance, reduced costs, dumped at low prices, and vicious competition, resulting in low prices and low profits of domestic wines, and channel providers have no incentive to sell domestic wines."
Foreign wine brands in supermarkets
The secretary general of the Wine Branch of the China Wine Industry Association once said in an interview, "At present, the most important thing for Chinese wine companies to do is to practice their internal skills. ”
■ Industry
The first quarter returned to double growth
Domestic wine spring is coming?
The wine industry ushered in a bottoming out.
Financial results of listed companies in the wine industry for the first quarter of 2021
Recently, 5 listed wine companies have announced the first quarter financial reports, and many wine companies have returned to double growth in the first quarter, with a total operating income of 1.993 billion yuan, an increase of 37.92% over the same period last year; the total net profit reached 296 million yuan, an increase of 75.67% year-on-year. Among them, Zhangyu, ST Weilong, *ST Sino-Portuguese, Mogao shares and other 4 liquor companies achieved double-digit revenue growth in the first quarter, *ST Sino-Portuguese revenue growth rate reached 434.32%, ST Tonglu occupied the first place in net profit growth with 194.85%. It is worth noting that this is 10 years, in addition to ST Weilong, other companies have shown double growth in the quarterly report.
In this regard, industry insiders said that wine companies have entered a recovery period, and 2021 may become the starting point for domestic wines to return to the growth track.
"Overall, domestic wine sales are still good, at least in shandong," a wine dealer in Dezhou, Shandong told reporters, "domestic and foreign wine I sell, in the past two years, domestic wine has become more and more popular, for example, last year we sold more than 5,000 orders." The reporter also learned in the interview that many dealers reflect that the sales of domestic red wine are less than those of foreign red wine brands, which is related to the fact that more and more people sell domestic red wine in recent years and divert passenger flow.
It is not only dealers who have thrown their sights into the wine industry, but also investment institutions that have shaken their heads when they talk about domestic wines. A wine company practitioner said that this year, we have received dozens of calls from investors and investment institutions, many of which have expressed their intention to invest.
The reporter found that the domestic liquor overlord Moutai, in the long-term equity investment changes, last year's additional investment of 89.503 million yuan, all increased in Moutai wine; according to Tianyancha, the wine brand Alan Wine (Shanghai) Co., Ltd. obtained 130 million yuan of A round of financing, led by Hillhouse Venture Capital and Black Ant Capital...
In this regard, industry insiders said that the trend of capital to the industry should be the most sensitive, intensive research and contact and capital injection, indicating that the opportunity for domestic wine has really come. However, it is worth thinking that in addition to domestic wine leaders such as Zhangyu in the Chinese market, the rest are small and medium-sized enterprises, the number of high-quality dragons is too small, and compared with beer and liquor, the market share of wine is still small.
The research report written by BOC Securities said that the performance of wine in the past few years has been inferior to that of liquor, not because the wine is defective, but because the leading liquor companies have not made full efforts. Considering the positive changes in the environment of the wine industry, the internal adjustment of the previous period is superimposed, and the confidence of the leading enterprises is significantly enhanced, and it is expected to enter the upward inflection point period. And when the user's red wine consumption habits are cultivated to a certain extent, there will naturally be enterprises to follow the trend to do large-scale, which is the stage of industry concentration outbreak.
■Focus
The "key battle" for the wine industry
What role does Shandong play?
On April 29, industry leader Zhang Yu released the first quarter of 2021 financial report, its performance led the industry, the first quarter revenue reached 1.134 billion yuan, an increase of 40.75% year-on-year, net profit reached 287 million yuan, an increase of 22.28% year-on-year, revenue and profit accounted for 70% and 95% of the total respectively, to support the net profit of wine listed companies with their own strength.
"Shandong, as a strong province in the wine industry, will attract more capital attention." Sun Zikai said.
According to the data of the National Bureau of Statistics, the cumulative output of the national wine scale enterprises in 2019 was 451,500 kiloliters, and the cumulative output of the wine scale enterprises in Shandong Province was 114,000 kiloliters, accounting for 25.25% of the country, ranking first in the country. According to the professional version of Tianyancha, the number of enterprises with "wine" in China's enterprise names or business scopes in 2020 totaled 20,219. From the perspective of geographical distribution, among them, there are 2,851 in Shandong Province, accounting for 14.14%, ranking first, followed by 2,117 in Guangdong Province and 1,307 in Guizhou Province. Among them, public information shows that Yantai is the birthplace and largest producer of China's modern wine industry, with a total of 1,192 wine-related enterprises in Yantai, accounting for 41.88% of the province, and includes a number of well-known wine listed enterprises, such as Zhangyu.
"In addition to Zhangyu, Shandong has also produced larger enterprises in several industries such as COFCO Great Wall (Yantai), Weilong, and East China," Sun Zikai believes, Shandong Province is lined with wine companies and wineries, so it has taken the lead in cultivating regional and wine brand consumption history, and the situation is much better in the provinces where a large number of imported wines have swept the market.
A supermarket in Shinan District, East China wine display cabinet
The reporter learned that Shandong Province, located in the golden latitude line of grape planting, has nearly 20,000 hm² grape planting base, is one of the main wine grape cultivation areas in China, more than 3,000 kilometers of coastline so that Shandong initially formed a coastal wine culture, Yantai City is known as one of the world's seven major wine coasts. Wang Jin, general manager of Yantai Nanshan Estate Wine Co., Ltd., once said that in the long run, domestic wine still has a lot of room for development, and domestic wine will show a slow and sustained growth trend.
Li Baoguo, secretary general of the Shandong Grape and Wine Association, said that the cultural revival of Chinese wine and the Chinese characteristics of wine are unfolding, and he suggested that Shandong wine companies need to further study the technology and safety factors of wine production technology. In his view, the advantage of Shandong wine also lies in the rapid development of the industry, there are about 40 wineries built in Yantai alone, and the brand influence of domestic wines in the world will become more and more large.
The China Wine Industry Association predicts that in 2021, China's wine production will reach 500,000 hectolitres, sales will reach 15 billion yuan, and profits will reach 1 billion yuan. By the end of the "14th Five-Year Plan", the output of the wine industry could reach 700,000 kiloliters, an increase of 69.4% over the end of the "13th Five-Year Plan", an average annual increase of 11.1%; sales revenue reached 20 billion yuan, an increase of 99.6% year-on-year, an average annual increase of 14.8%; the profit was 3 billion yuan, an increase of 1058.3% year-on-year, and an average annual increase of 63.2%. In addition, as early as March 26, the Ministry of Commerce announced that from March 28 this year, anti-dumping duties will be imposed on import-related wines originating in Australia. Stimulated by the news, after the opening of the market on March 29, wine concept stocks performed strongly, as of the close of the day, ZhangYu rose and stopped, that is, with the decline in foreign wine imports, the domestic wine consumption market share is facing redistribution, and domestic wines usher in development opportunities to seize more markets.
However, it should be noted that in the current situation of fierce competition in the wine market, other wines are likely to continue to crowd the wine market. But in any case, the current positive for domestic wine, is still a once-in-a-lifetime opportunity, and it is even likely to be the last opportunity for some domestic wine companies to reverse the situation.
This "key battle" will start in 2021 and also start from Shandong.