Yang Menghan, chief reporter of "Huaxia Wine News".
In April 2023, Zhenjiu Li Du (6979. HK) successfully landed on the Hong Kong Stock Exchange and became the "first liquor stock in Hong Kong", which attracted widespread attention from the industry. Recently, Zhenjiu Li Du released its first annual report since its listing, which once again sparked heated discussions.
According to the annual report, Zhenjiu Lidu will achieve revenue of 7.030 billion yuan in 2023, a year-on-year increase of 20.1%, gross profit of 4.080 billion yuan, a year-on-year increase of 26.0%, and adjusted net profit of 1.623 billion yuan, a year-on-year increase of 35.5%. Among them, Zhenjiu Liquor contributed 65.2% of revenue.
As a flagship brand, Zhenjiu achieved revenue of 4.58 billion yuan, a year-on-year increase of 19.9%, becoming the fourth largest soy sauce liquor enterprise in China, and ranking first in the growth rate of Zhenjiu among the top five soy sauce liquor manufacturers in China.
It can be said that with the spirit of "daring to be the first in the world", Zhenjiu Li Du has not only achieved the goal of listing on the Hong Kong stock market, but also achieved growth that far exceeds market expectations and the industry average level in the new cycle of the industry.
The four major brands have grown synergistically and are among the top students
As the only company successfully listed in the liquor industry in the past eight years, Zhenjiu Lidu has achieved both revenue and profit growth in the first year of its listing.
"The annual revenue of 7 billion yuan is the first echelon in China's liquor industry, and from the perspective of the results of A-share listed companies in 2022, the annual growth of more than 15% in revenue is a high level of growth. Industry insiders said that in horizontal comparison, whether it is revenue or net profit growth, Zhenjiu Li Du is first-class.
What is particularly valuable is that it is currently in a period of deep adjustment of the industry, and many enterprises are facing pressure such as high inventory and low turnover.
Guizhou Zhenjiu Shizipu old factory
Behind the high growth of Zhenjiu Lidu is its strong growth potential and brand integration capabilities. Zhenjiu Lidu's three major enterprises, Zhenjiu, Lidu, and Xiangjiao, have different origins, categories and histories, but under the integration of Chairman Wu Xiangdong, the four major brands have achieved synergistic growth, which undoubtedly shows the growth logic that is different from other enterprises.
Among the four major brands, the lowest revenue growth rate is also more than 13%, looking around the entire industry, in the current trend of differentiation and concentration is quite obvious, they are undoubtedly top students.
Wu Xiangdong, the helmsman of Zhenjiu Li Du, has more than 20 years of industry experience, rich experience, veteran and capable, and has the ability and will to command the enterprise through the cycle. Its rich industry experience and advanced strategic vision, as well as its ability to tap the value of the brand itself, continue to escort the performance of the enterprise. Whether it is Huazhi Liquor Company, which is the first A-share liquor circulation enterprise, or Zhenjiu Lidu, the first Hong Kong-listed liquor company, it has opened up a new road for the industry and set a new benchmark. Some industry insiders commented.
High-end brings high profits, and Zhenjiu Li Du is a sample of the industry
According to the data, in 2023, the sales revenue of the national liquor industry will increase by 9.7% year-on-year, and the profit will increase by 7.5%. In the same period, the revenue and net profit growth rate of Zhenjiu Lidu exceeded 20%, far exceeding the industry average.
Zhen Jiu Zhen 30
Zhenjiu Lidu's products cover high-end, sub-high-end, mid-range and below price bands, and the products in the three price bands have grown across the board. Among them, the revenue of high-end products increased by 33.20% year-on-year, and the proportion of revenue increased by nearly 3 percentage points to 27.3%, and the high-end effect was remarkable. At the same time, Zhenjiu Li Du's high-end, mid-range and below products increased by 15.3% and 16.3% year-on-year respectively.
Zhenjiu Lidu's gross profit margin increased from 55.3% in 2022 to 58% in 2023. From the perspective of brands, the gross profit margins of Zhenjiu and Lidu increased by more than 3 percentage points, and from the perspective of price bands, the gross profit margins of high-end, mid-range and below increased by more than 3 percentage points.
In 2023, with the dual support of the overall improvement of gross profit margin and the improvement of sales efficiency, the overall adjusted net profit margin of Zhenjiu Lidu will increase to 23.1%.
According to statistics, the average tonnage price of Zhenjiu Liquor has increased from 297,000 yuan/ton in 2022 to 363,000 yuan/ton in 2023, an average increase of 66,000 yuan per ton, which has strongly promoted Zhenjiu Lidu to create a higher unit value in 2023.
Some of Li Du's wine products
"High-end is the only way for famous wines, and it is also the inevitable direction for the transformation of the industry. Some industry experts believe that with the decline of China's liquor production capacity year by year and the advent of the era of squeezing growth, more profits can be won by increasing the unit price, and the company's position in the industry can be stabilized and its competitiveness can be enhanced.
In today's declining overall production capacity and diversified consumer demand, the transition to high-end is the only way for famous wine companies to ensure their profitability and brand competitiveness in the new cycle of the industry.
Multiple elements support brand power, and high-end comes from thick accumulation
For Zhenjiu Li Du, high-end brings high profits, but high-end is not a tree without roots, but needs to be based on quality and supported by brand power, among which, brand power comes from multiple dimensions such as history, culture, production capacity, and quality.
Relying on the profound brand accumulation of its subsidiaries, Zhenjiu Lidu accurately reaches the core target consumer groups and further expands its brand influence through high-frequency and wide-coverage marketing activities.
Hunan Xiangjiao factory
According to statistics, Zhenjiu Lidu will hold a total of more than 120,000 tasting sessions in 2023, and more than 170,000 people will be welcomed back to the factory. The new brand film of Zhenjiu Liquor was broadcast in the prime column and prime time of CCTV, and the visual image of the intangible cultural heritage Diancui craft was unveiled across the country, and it was continuously selected into the list of "China's 500 Most Valuable Brands" and ranked in the forefront of the list of soy sauce wines.
For established brewing enterprises, production capacity and energy storage of high-quality old wine are the key to ensuring quality.
In his speech in the annual report, Wu Xiangdong mentioned: "From 2021 to the present, we have achieved leapfrog growth in production capacity with the funds raised from pre-IPO private placement and Hong Kong listing. ”
Taking Zhenjiu Liquor as an example, in 2023, 65,000 tons of high-quality base liquor will be stored and 40,000 tons will be put into production, ranking among the top three soy sauce liquor enterprises in Guizhou in terms of production capacity, which provides a solid guarantee for the expansion of sales scale and the improvement of product strength. It is expected that during the "15th Five-Year Plan" period, the production capacity and storage of Zhenjiu will reach 100,000 tons and 400,000 tons respectively.
Li Du Yuan Dynasty cellar pool
In addition, channel innovation and management improvement have also provided strong support for the rapid development of Zhenjiu Lidu.
The results in the first year of listing are amazing, and from the perspective of the extended cycle, Zhenjiu Lidu's operating income has increased by 193% and net profit has increased by 212% compared with 2020, with strong growth potential.
The industry believes that Zhenjiu Li Du's dazzling annual report performance is the crystallization of its adherence to long-termism, and it has also become a typical sample through the industry cycle.