Revenue hits a record high, Yanjing Beer will run out of high-quality development "acceleration" in 2023

On the evening of April 15, Yanjing Beer released its 2023 annual report, which showed that Yanjing Beer achieved revenue of 14.213 billion yuan, a year-on-year increase of 7.66%, and sales volume of 3.9424 million kiloliters, a year-on-year increase of 4.57%, of which Yanjing U8 sales increased by more than 36% year-on-year, and achieved a net profit of 645 million yuan, a year-on-year increase of 83.02%, and the net profit growth rate hit the highest since 1995.

In 2013, Yanjing achieved revenue of 13.748 billion yuan, hitting a historical high and then declining. After the new management team took office, Yanjing's performance has reached a new level every year, successfully achieving a "V" reversal, and its revenue in 2023 will reach 14.213 billion yuan, becoming the best performance level since the establishment of the company and hitting a record high. What's even more eye-catching is that the net profit in 2023 will reach 645 million yuan, exceeding the total net profit of the past two years.

Strong growth due to change Net profit in 2023 exceeds the sum of the previous two years

In May 2022, Geng Chao, the new chairman of Yanjing Beer, took office and adjusted the top management, putting forward the slogan of "Second Entrepreneurship and Revival of Yanjing", saying that the transformation will be completed by 2025.

Since the new management team took office, Yanjing Beer has changed its previous decline, and its net profit has been bullish. Since 2021, Yanjing Beer's performance has gradually "picked up".

According to statistics, Yanjing's total revenue in 2020 was 10.928 billion yuan, 11.961 billion yuan in 2021, 13.202 billion yuan in 2022, and 14.213 billion yuan in 2023, and the net profit attributable to the parent increased from 197 million yuan to 645 million yuan in the same period.

Yanjing Beer's net profit has risen for four consecutive years, and it has obviously regained its growth. Especially in 2023, the consumer industry will recover weakly, and Yanjing Beer will buck the trend. According to the National Bureau of Statistics, the total retail sales of consumer goods in mainland China will 471495 billion yuan in 2023, a year-on-year increase of 7.2%. Yanjing Beer's revenue in 2023 will reach 14.213 billion yuan, a year-on-year increase of 7.66%, which is significantly better than the company's performance. In terms of profit growth, the profits of industrial enterprises above designated size in the country decreased by 2.3% year-on-year, while Yanjing Beer's annual net profit growth in 2023 was as high as 83.02%.

According to the annual report, Yanjing Beer will achieve beer sales (including custodian enterprises) of 3,942,400 kiloliters in 2023, a year-on-year increase of 4.57%. It is worth mentioning that its sales growth is much higher than the industry average. According to the National Bureau of Statistics, in 2023, the beer output of enterprises above designated size in China will be 35.555 million kiloliters, a slight increase of only 0.3% year-on-year.

Whether it is compared with domestic economic data or industry data, the growth rate of Yanjing Beer is completely in two directions, and the performance is too prominent. What's even more rare is that Yanjing Beer's regained growth is a dual growth that takes into account both scale growth and profit growth, and the quality is very high. Not to mention, the beer consumption market was already a shrinking market many years ago. But Yanjing can still break through, which is more telling.

According to the data of Ping An Securities Research Report, the production and sales of beer in mainland China peaked in 2013, and the beer industry entered an era of stock competition. The overall output of the industry showed a downward trend, and the year-on-year growth rate was negative. Until 2021, with the recovery of consumption scenarios, the output of the beer industry showed a low-single-digit growth, and in recent years, it has remained almost flat in stock.

In other words, the beer industry is an industry that has entered the mature stage of the mainland consumer industry relatively early. Studying the development trajectory of this industry and the re-emergence of Yanjing Beer also has valuable reference significance for judging other subdivided consumption tracks.

In this regard, Yanjing Beer said that the main reason for the change in performance is that in 2023, the company will focus on the "14th Five-Year Plan" development plan, actively adapt to the needs of marketization, modernization and international development, break the old situation and welcome the new opportunity, continuously strengthen the functions of the headquarters, and continuously promote the transformation of production, marketing, marketing and supply chain and other business fields, so as to achieve the simultaneous improvement of operating efficiency, operational efficiency and development quality, and enhance the core competitiveness of the enterprise.

Transformation and rejuvenation, focus on the middle and high-end, and enhance core competitiveness

In recent years, the high-end process of the beer track has been deepening, and the sales of mid-to-high-end products have gradually become one of the driving forces behind the growth of beer enterprises.

Yanjing U8 is a new large single product launched by Yanjing Beer in 2020, which undertakes the demand for consumption upgrading with a differentiated strategy. It is reported that in 2023, the sales volume of Yanjing U8 will increase by more than 36% year-on-year, becoming the fastest growing national single product in the industry in recent years.

Yanjing U8 is not alone. With the help of U8 large products, Yanjing Beer is moving towards high-end. It is understood that at present, Yanjing has two major craft beer production bases in Beijing and Guangxi, which are the production bases for the rapid incubation of the company's high-end brands and products, and has launched a series of independent brand products of Lion King Craft Beer. At the same time, the company is actively exploring new consumption scenarios, with nearly 600 "Yanjing Community Liquor Stores" across the country, and "LIONK Lion King Restaurant Bar" Sino-German Industrial Park Store and Shougang Park Store have been widely praised since their opening last year, and have quickly become new landmarks for Internet celebrity check-ins in the hearts of young consumers.

In terms of product matrix, the company continues to unify the image of the group's single products, create Yanjing V10 craft white beer, high-end lager S12 Pilsner, reshape and rejuvenate fresh beer 2022, renovate and upgrade Yanjing refreshing, launch Yanjing U8 Plus and old Yanjing 12 degrees to meet the needs of segmentation, and launch Lion King craft beer high-end brand series products.

According to the data, in 2019, Yanjing Beer's mid-to-high-end beer revenue was less than 6 billion yuan, accounting for less than 55%, and after the new management team took office, Yanjing continued to promote the high-end product management strategy to improve the company's overall profitability and market competitiveness. In 2022, the revenue of mid-to-high-end beer will exceed 7.6 billion yuan, accounting for nearly 63%, while the revenue of mid-to-high-end products will reach 8.679 billion yuan in 2023, accounting for 66.26%. The strong growth and market share increase of mid-to-high-end products show that Yanjing Beer's high-end strategy has significantly and effectively improved the company's profitability and market competitiveness.

"2024 is a critical year for Yanjing to climb the slope and pass the hurdles, and continuing to pay close attention to implementation is the key factor and the only way for us to do all our work well. Yanjing will continue to increase the depth of reform, expand the breadth of reform, improve the accuracy of reform, release the temperature of reform, take advantage of the momentum in quality, sales, motivation and management, continue to make efforts, and continuously enhance the core competitiveness, innovation, control, influence and anti-risk ability of the enterprise, and walk out of a new height of high-quality development. Geng Chao, chairman of Yanjing Beer, pointed out.