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Following the 2021 annual report, Huazhi Wine Co., Ltd. submitted another bright report card.
— Editor's Note
On April 7, Huazhi Liquor Co., Ltd. released its first quarter 2022 performance forecast. According to the forecast, Huazhi Liquor Is expected to achieve operating income of 3.53 billion yuan - 3.56 billion yuan in the first quarter of this year, an increase of 50.00% - 51.28% year-on-year, of which the net profit attributable to the shareholders of the listed company is expected to be between 248 million yuan and 258 million yuan, an increase of 30.02% - 35.00% year-on-year.
Under the epidemic, many tobacco and hotel industries have long been closed, and Huazhi Liquor, the first share in the circulation of the liquor industry, achieved double-digit growth in revenue and net profit in the first three months of 2022. There is no doubt that Huazhi Wine Has achieved healthy business development, and even under the repeated impact of the epidemic, revenue and profit growth still mean that it has the same cost control ability as ever. Since its listing, Huazhi Wine Has not only maintained a four-year stable growth trend in performance, but also almost doubled its growth rate in 2022, what kind of enlightenment has been brought to the circulation of the wine industry?
Revenue has grown high in four years, and the threshold of 10 billion is close at hand
As China's first liquor company to circulate A-shares, in fact, since its official listing on the Shenzhen Stock Exchange on January 29, 2019, Huazhi Liquor has maintained a high growth trend.
According to the 2019 performance report, in 2019, huazhi liquor company's revenue reached 3.738 billion yuan, an increase of 37.38% year-on-year; the net profit attributable to the shareholders of the listed company was 319 million yuan, an increase of 42.06% year-on-year.
In 2020, Huazhi's operating income was 4.941 billion yuan, an increase of 32.20% year-on-year, and the net profit attributable to the shareholders of the listed company was 373 million yuan, an increase of 16.82% year-on-year.
In 2021, Huazhi achieved operating income of 7.460 billion yuan, an increase of 50.97% year-on-year, and net profit of 676 million yuan, an increase of 81% year-on-year.
XN Zhijiu sorted out the data of Huazhi Liquor Company from 2019 to the first quarter of 2022 and found that from 2019 to the first quarter of 2022, the revenue growth rate of Huazhi Liquor Company increased steadily in 4 years, compared with 2021, the growth rate in the first quarter of 2022 reached 48%, and the revenue in the first quarter of 2022 was approaching last half of last year. The industry generally believes that if Huazhi Liquor Maintains such a growth rate, it will exceed the 10 billion revenue mark in 2022 and will become the "first person" for liquor circulation enterprises to cross the threshold of 10 billion!
Ten billion circulation "first person", what did Huazhi do right?
Behind the amazing and steady growth of Huazhi Wine, it is inevitable that it is inseparable from the discussion of its brand effect, supply chain, terminal profitability, customer stickiness and other aspects.
XN Zhijiu believes that this is first of all due to the fact that the background color of Huazhi Liquor Is particularly touching. "Fidelity" as the first core of the birth of Huazhi Wine, whether it was founded in 2005 or today in 2022. From beginning to end, Huazhi Liquor Company puts the authenticity of liquor products in the first place and pursues the ultimate.
It is understood that the fidelity system of Huazhi Liquor Company runs through all aspects of new product development, product procurement, warehousing, distribution, store operation, customer management, market supervision, etc., so as to achieve seamless product fidelity, with the help of its information management system and anti-counterfeiting traceability technology, the whole process of covering procurement, warehousing, logistics and sales is realized within the channel. In the industry, we have created a seal label and bar code tracking to ensure that the genuine product is not replaced.
Huazhi Liquor Co., Ltd. also attaches great importance to channel construction and terminal expansion, and steadily promotes the nationwide layout of direct supply terminals and chain stores, and its quantity and quality have steadily improved. According to the relevant annual reports, in 2019, the number of Huazhi liquor stores increased by 28% year-on-year; in the first half of 2020, the number of stores increased by 47% year-on-year; as of the end of 2021, the number of retail outlets had more than 30,000 customers, and the cumulative number of new chain stores was 273. And the distribution capacity of chain stores has also been continuously improved, and sales revenue has increased significantly year-on-year.
At the same time, it cooperates closely with Many famous wine and famous sauce liquor enterprises such as Maotai, Wuliangye, Diaoyutai, Xijiu, Gujing Tribute Wine, Fenjiu, Yanghe, Jiannanchun, etc., so that Huazhi Liquor's famous wine strategy can accurately step on the development trend of the industry. Although famous wines such as Moutai and Wuliangye account for a large proportion of Huazhi Liquor's revenue and assume the role of chassis and drainage, exclusive franchise products are the main source of profit contribution. However, in 2021, in Lotus Wine, Diaoyutai and other franchised self-operated liquors ushered in a surge in volume and price, huazhi liquor's self-operated liquor revenue accounted for 20%.
Triggered speculation in the circulation of the wine industry
In the field of new retail circulation of liquor, there are three major platforms with their own characteristics and have become the troika leading the industry, they are Huazhi Liquor Company, 1919 and Jiuxian Network. There is no doubt that as a listed liquor company, Huazhi Liquor Co., Ltd., which is close to the threshold of 10 billion yuan, has become a "unicorn" in the liquor circulation industry.
To some extent, the epidemic has accelerated the development of "new retail" such as Huazhi Liquor. With "online and offline" linkage and consumer zero-distance service and interaction as an important feature, "new retail" is not only still active in the state of almost "10,000 horses" in the physical terminal, but also beyond the previous activity, "new retail" provides ideas and directions for commercial liquor business enterprises.
Since 2017, Huazhi Liquor Company has integrated the offline sales model and O2O service platform, screening high-quality retail outlet customers and upgrading them to "Huazhi Liquor Warehouse". Subsequently, in order to accelerate the optimization of industrial efficiency, Huazhi Wine Warehouse iterated into "Huazhi Famous Wine Warehouse", further realizing brand upgrade, supply chain upgrade and service upgrade. At the same time, Huazhi Liquor Also launched the "Huazhi Preferred" e-commerce platform based on online sales; based on the offline layout, in 2020, Huazhi Liquor co., Ltd. proposed and implemented the "700 Project". It can be said that in the process of "new retail", Huazhi Liquor has explored a very far direction.
The impact of the Internet era has broken the original information communication method characterized by "layer", and the advent of the era of online and offline integration has led to the marginal profits of traditional alcohol channel marketing, and the former tobacco hotel retail, channel merchants, and liquor direct supply franchises have all pointed to the same direction - channel reform. The reform of liquor channels is gradually moving from singleness and diversification in the past to systematization, maturity and capitalization, and a deep change war has been launched, and the traditional channel model is facing updating iteration or reshuffle.