Yangtze River Business Daily News ● Yangtze River Business Daily reporter Huang Cong
Guyue Longshan, which enjoys the reputation of "quintessential rice wine", once again failed to meet the standard.
Recently, Guyue Longshan (600059. SH) released its 2023 annual report, which showed that the company achieved operating income of 1.784 billion yuan, a year-on-year increase of 10.11%, and a net profit of 397 million yuan, a year-on-year increase of 96.47%.
However, Guyue Longshan previously proposed that in 2023, it will strive to increase alcohol sales by more than 12% and profits by more than 12%.
A reporter from the Yangtze River Business Daily found that in 2023, the operating income of Guyue Longshan liquor will reach 1.725 billion yuan, a year-on-year increase of 10.52%, which is still a certain distance from the growth plan of more than 12%.
Not only that, from 2018 to 2023, Guyue Longshan has not completed its sales target for 5 of the past 6 years, and it has failed to meet the target for two consecutive years.
In this case, in 2023, the total salary of directors, supervisors and senior executives of Guyue Longshan will increase by 14.63%, which is higher than the increase in operating income in the same period. Among them, the company's chairman Sun Aibao's salary reached 800,100 yuan, an increase of 23.84% from 646,100 yuan in the previous year.
Alcohol revenue increased by 10.52%, which is still far from the target
The main business of Guyue Longshan is the manufacturing, sales and research and development of rice wine, and the main products are Guyue Longshan, Daughter Hong, Zhuangyuan Hong, Shen Yonghe, Jianhu and other Shaoxing rice wine products are the first batch of national geographical indication products in China.
At the beginning of 2023, at the internal meeting of Guyue Longshan, Sun Aibao, chairman of the company, shouted that it is necessary to establish the concept of "if you don't advance, you will retreat, and if you advance a little, you will retreat".
Recently, the 2023 annual report released by Guyue Longshan shows that the company achieved operating income of 1.784 billion yuan, a year-on-year increase of 10.11%, and a net profit of 397 million yuan, a year-on-year increase of 96.47%.
However, in the face of both revenue and net profit, Guyue Longshan did not complete the set goal.
In the 2022 annual report, Guyue Longshan said in its business plan that it will strive to increase alcohol sales by more than 12% and profits by more than 12% in 2023.
In 2023, the operating income of Guyue Longshan liquor will reach 1.725 billion yuan, a year-on-year increase of 10.52%, and there is still a certain distance from the target.
The relevant person in charge of Guyue Longshan said that based on the extreme optimism about the economic and consumption recovery, the sales target for 2023 has been formulated. There are many uncertainties in the market, and the current total amount of alcohol continues to decline, the overall terminal demand of the industry is weak, and the strength of other alcoholic beverages such as liquor and beer has caused a certain squeeze on the rice wine category, and the company's alcohol revenue will increase by 10.52% in 2023, although the scheduled target has not been achieved, but it is not easy to come by.
In the past 6 years, 5 of the sales targets have not been achieved
In fact, Guyue Longshan has not completed its business plan for many years.
In the 2016 annual report, Guyue Longshan proposed that in 2017, it would strive to increase alcohol sales by 5%-10% and profits by 6%-11%.
In 2017, Guyue Longshan achieved operating income of 1.637 billion yuan, a year-on-year increase of 6.65%, and net profit of 164 million yuan, a year-on-year increase of 34.57%. Among them, the company's liquor operating income reached 1.605 billion yuan, a year-on-year increase of 6.68%, and the set target was completed.
However, in 2018 and 2019, Guyue Longshan proposed to strive for a 10% increase in alcohol sales and a 10% increase in profits.
The fact is that in 2018 and 2019, Guyue Longshan's operating income was 1.717 billion yuan and 1.759 billion yuan respectively, an increase of 4.87% and 2.47% year-on-year, respectively, and the net profit was 172 million yuan and 210 million yuan respectively, an increase of 4.69% and 21.85% year-on-year respectively. Among them, the company's liquor operating income was 1.682 billion yuan and 1.73 billion yuan respectively, an increase of 4.79% and 2.86% year-on-year respectively.
In 2020, Guyue Longshan proposed to strive for a 5% increase in alcohol sales and a 5% increase in profits. But in fact, this year, the company achieved operating income of 1.301 billion yuan, down 26.06% year-on-year, and net profit of 150 million yuan, down 28.22% year-on-year. Among them, the operating income of liquor was 1.264 billion yuan, a year-on-year decrease of 26.95%.
In 2021 and 2022, Guyue Longshan proposed to strive for a 12% increase in alcohol sales and a 12% increase in profits.
In 2021 and 2022, Guyue Longshan's operating income will be 1.577 billion yuan and 1.620 billion yuan, an increase of 21.19% and 2.75% year-on-year, respectively, and its net profit will be 200 million yuan and 202 million yuan, an increase of 33.21% and 0.70% year-on-year, respectively.
In the same period, the revenue of Guyue Longshan liquor was 1.509 billion yuan and 1.561 billion yuan respectively, an increase of 19.42% and 3.41% year-on-year respectively, and the target was only completed in 2021.
On the whole, from 2018 to 2023, Guyue Longshan has not completed its sales target for 5 of the past 6 years, and it has failed to meet the target for two consecutive years.
At the same time, it should be noted that Guyue Longshan's operating income in 2023 is comparable to that in 2019, and the company has been "standing still" for 5 years.
More than 20% of the production capacity is idle
Sun Aibao once said that taking the road of high-end requires exquisite marketing.
Guyue Longshan's performance did not meet the standard, but the exquisite marketing did "meet the standard".
In 2023, Guyue Longshan's sales expenses will reach 247 million yuan, a year-on-year increase of 37.37%, far exceeding the revenue growth.
According to Guyue Longshan, the company will add 263 new dealers in 2023 to fill the blank market in 24 prefecture-level cities in the north. E-commerce channels focus on developing live broadcast business, and in 2023, the sales of "Double 11" will increase by 64% year-on-year.
It should be mentioned that Guyue Longshan's net profit in 2023 will almost double, not relying on revenue growth, but from the compensation for the demolition of Shen Yonghe's distillery and the transfer of 49% of the equity of Longshan Electronics, which totals 205 million yuan.
Therefore, Guyue Longshan's non-net profit will reach 191 million yuan in 2023, an increase of only 5.15% year-on-year.
At present, Guyue Longshan has three major factories, "Guyue Longshan", "Daughter Red Company" and "Jianhu Company", with a design capacity of 191,500 kiloliters, 107,000 kiloliters and 12,000 kiloliters in 2023, totaling 310,500 kiloliters, and an actual production capacity of 151,400 kiloliters, 88,200 kiloliters and 4,561 kiloliters, totaling 244,200 kiloliters. As a result, the company's overall capacity utilization rate is about 79%, and more than half of the production capacity is idle.
While the actual increase in profitability is not large, the executives of Guyue Longshan have collectively increased their salaries.
In 2022 and 2023, the total remuneration of directors, supervisors and senior executives of Guyue Longshan will reach 5.7763 million yuan and 6.6211 million yuan respectively, with an increase of 14.63% in 2023, which is higher than the increase in operating income in the same period.
Among them, Sun Aibao, chairman of Guyue Longshan, will receive a salary of 800,100 yuan in 2023, an increase of 23.84% from 646,100 yuan in the previous year, and Xu Dongliang, vice chairman and general manager, will receive a salary of 805,400 yuan in 2023, an increase of 37.68% from 585,000 yuan in the previous year.