With double-digit growth in revenue and profit, Jinhui Liquor ushered in a "good start" in the first quarter.
Text | Xu Linhao
On April 19, Jinhui Liquor released its financial report for the first quarter of 2024. According to the financial report, Jinhui Liquor achieved revenue of 1.076 billion yuan in the first quarter, a year-on-year increase of 20.41%, a net profit attributable to the parent company of 221 million yuan, a year-on-year increase of 21.58%, and a net cash flow from operating activities of 343 million yuan, a year-on-year increase of 46.60%.
Jinhui Liquor said in the financial report that the main reason for the growth of performance is that the company continues to optimize its marketing strategy, gradually strengthen its brand influence, continuously optimize its product structure, expand its market area, and promote sales growth.
In 2024, the overall market of China's liquor market is still in a period of adjustment, and the industry competition has become increasingly fierce, and regional liquor companies are facing challenges from different directions in the development process. However, Jinhui Liquor will still buck the trend in fiscal year 2024 to open a "new game", achieving double-digit growth in revenue and profit, and its position as the "Northwest Wine King" is becoming more and more solid.
01
Open a "new pattern" outside the base camp
There has been a surge outside the province and online
In the first quarter of fiscal year 2024, Jinhui Liquor launched a "new pattern" in the regional market, and gradually made efforts to cooperate with markets outside the province by deeply cultivating the provincial market, and its market strategy of "laying out the whole country, deeply cultivating the northwest, and making key breakthroughs" has been effective. By the end of the reporting period, the number of Jinhui liquor distributors had expanded to 892, and the number of distributors had increased steadily.
In the first quarter, Jinhui Liquor achieved revenue of 848 million yuan in the domestic market of Gansu Province, a year-on-year increase of 22.55%. In Shaanxi, Ningxia, Qinghai, Xinjiang and other places, Jinhui Liquor's dynamic sales performance has grown steadily, consolidating its market leadership position in the northwest base camp.
At the same time, Jinhui Liquor has also made positive progress in new markets such as East China and North China, and has laid a solid foundation for long-term development by continuously promoting the cultivation of circles and the creation of models. Jinhui Liquor's revenue in the first quarter of the provincial market was 218 million yuan, a year-on-year increase of 13.23%. The joint development of markets in and outside the province is expected to achieve rapid development in a wider regional market and create greater brand value.
In the context of intensified competition in online sales of liquor, the Internet sales performance of Jinhui Liquor has sprung up, helping the brand to open up a "new pattern". In the first quarter, Jinhui Liquor achieved operating income of 32.4245 million yuan through Internet channels, a year-on-year increase of 57.72%, and in 2023, the Internet sales revenue of Jinhui Liquor was 58.593 million yuan, a year-on-year increase of 128.15%. In contrast, Jinhui Liquor is constantly achieving strong growth, and has opened up a "new way of life" in online channels.
It is reported that in April 2022, Jinhui Liquor invested 10 million yuan to establish Beijing Shengshi Company, which is responsible for the marketing of Jinhui Liquor products on the Internet platform.
The successful development of Jinhui Liquor Internet Sales Company has promoted the rapid growth of online business and helped the brand effectively reach consumers across the country. The company's marketing team continues to grow and tends to be younger, and is forming a new performance growth point with strong combat effectiveness.
02
High-end products "new breakthrough"
More than 300 yuan is greatly increased
In the first fiscal quarter, Jinhui Liquor increased investment in marketing, continuously optimized its strategy, and successfully promoted the high-end product line to achieve a "breakthrough". The company's sales expenses totaled 193 million yuan, a year-on-year increase of 21.39%. Through the implementation of the two-wheel drive strategy of "influential customer leading + in-depth operation", Jinhui Liquor has increased the sales of various series of high-end products of Jinhui 28, Jinhui 18, Soft Jinhui and Energy Jinhui, and has achieved outstanding results.
In terms of sales of high-end products, the sales revenue of Jinhui liquor products above 300 yuan reached 190 million yuan, an increase of 86.48% over the same period of last year, and the sales revenue of products of 100-300 yuan reached 551 million yuan, an increase of 24.13% over the same period of last year.
Looking back at the whole year of 2023, Jinhui Liquor achieved sales revenue of 401 million yuan for products above 300 yuan, an increase of 37.13% over the same period of the previous year, and sales revenue for products of 100-300 yuan reached 1.288 billion yuan, an increase of 32.28% over the same period of the previous year.
The company continued to achieve remarkable results in the upgrading and optimization of its product structure in the first quarter, and the sales of high-end products maintained a strong growth momentum, and Jinhui Liquor is expected to achieve new breakthroughs in fiscal year 2024.
Regarding the product sales performance of Jinhui Liquor, Minsheng Securities believes that Jinhui Liquor continues to optimize its product structure, and its sales performance during the Spring Festival is good, among which the sales revenue growth of products such as those with more than 300 yuan and Jinhui Laojiao is better, which promotes the further upgrading of the product structure.
In the first quarter, the gross profit margin and net profit of sales of Jinhui Liquor increased steadily, with the gross profit margin of sales reaching 65.4%, a year-on-year increase of 0.43%, and the net profit margin of sales reaching 20.39%, a year-on-year increase of 0.11%. The optimization of Jinhui Liquor's product structure has continued to significantly enhance its operating efficiency and enhance its position in the industrial chain, and its profitability ranks among the top in the entire liquor industry.
03
Seek internal and external repair
"New Layout" of Internal Governance and Operating Model
Jinhui Liquor has entered a new governance cycle, and is fully implementing the "81456" lean management and digital transformation in the way of "seeking internally" and "repairing externally", and comprehensively shaping the "new layout" of internal governance and operation mode.
In terms of corporate governance, the "Resolution of the First Meeting of the Fifth Board of Directors" issued by Jinhui Liquor on April 20 disclosed that the board of directors and the board of supervisors have successfully completed the re-election. With their rich industry experience and forward-looking strategic vision, the new directors and supervisors will provide a solid guarantee for the company's continuous innovation and steady growth, and will also lead the company to a new stage of development.
At the same time, Jinhui Liquor always adheres to the business philosophy of "market-oriented, customer-centric, and quality-based", and strives to provide consumers with better products and services.
In-depth exploration of quality building, Jinhui Liquor continues to strengthen the construction of the cascade training mechanism of the team of koji-making, wine-making, packaging, tasting, and quality inspection technicians, and unswervingly takes the development path of "rejuvenating the enterprise with talents". The company attaches great importance to the cultivation and development of talents, actively establishes school-enterprise scientific research and training bases with many institutions of higher learning, and takes the lead in cooperating with national industry associations, Sichuan Brewing Research Institute and other scientific research institutions to hold vocational skills competitions, technical training, observation and exchange activities to promote talent training and technological innovation.
In terms of product innovation, Jinhui Liquor continues to invest in research and development, and launches a variety of new products that meet market trends and consumer tastes to enrich its product line and enhance market competitiveness.
Weijiu learned that Jinhui Liquor took the lead in setting up a research and development project team for liqueur and health liquor in May last year, committed to the development of new products and filling the company's gap. During the 2024 Cherry Blossom Spring Brewing Festival, the company simultaneously launched a series of Cherry Blossom Spring Brewing products, so that "fine wine from the depths of the Qinling Mountains" will be recognized by more consumers.
In recent years, Jinhui Liquor has also actively promoted the two-wheel drive of digital transformation and innovative operation model, improved the efficiency of marketing channels, realized BC linkage, and strengthened the efficiency of the e-commerce supply chain.
Deeply cultivating digital transformation, Jinhui Liquor adheres to the industrial Internet innovation operation model with "C-end top, user engineering + market depth control under the leadership of the brand = driving the big ecology with a small ecology, and finally realizing member operation and serving 100 million consumers", so as to enhance the interaction between brands and consumers and enhance brand influence.
Jinhui Liquor's performance target for 2024 is to achieve an operating income of 3 billion yuan and a net profit of 400 million yuan. Jinhui Liquor's performance in the first fiscal quarter has shown strong growth momentum, laying a solid foundation for the company's leapfrog growth throughout the year. Insisting on deep cultivation in the national liquor market and providing investors with continuous returns, the brand value of Jinhui Liquor is constantly rising, and the development prospects of Longshang Liquor are highly anticipated by the industry.
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