Shanxi Fenjiu's performance continued to set new records, with revenue exceeding the 30 billion mark and net profit exceeding the 10 billion mark.
On April 25, Shanxi Fenjiu ((600809) released its 2023 financial report, which showed that in 2023, Shanxi Fenjiu achieved revenue of 31.928 billion yuan, a year-on-year increase of 21.80%, and a non-net profit of 10.445 billion yuan, a year-on-year increase of 29.15%.
At the same time, Fenjiu announced that it intends to distribute cash dividends of 43.7 yuan (tax included) to all shareholders for every 10 shares, with a total cash dividend of 5.331 billion yuan. The company's cash dividends accounted for 51.07% of the net profit attributable to shareholders of listed companies that year.
2023 is the first year of the Fenjiu Revival Program, the first year of the Fenjiu Characteristic Professional Town of Xinghua Village, and the first year of the Great Qingxiang Era. With this impressive performance, Fenjiu is moving towards "one of the three parts of the world", and in time, Fenjiu will soon rank among the top three in China's liquor industry, and the market layout of "fragrant world" has been initially formed.
2024 is the final year of the first phase of Fenjiu's revival program, and Fenjiu's goal is to exceed 38 billion.
The revenue is nearly 32 billion, which is a new speed for the top wine companies
In 2023, Shanxi Fenjiu achieved operating income of 31.928 billion yuan, a year-on-year increase of 21.8%, and net profit attributable to listed companies of 10.438 billion yuan, a year-on-year increase of 28.93%.
Under the leadership of Yuan Qingmao, chairman of Fenjiu Group, in terms of revenue, net profit and growth rate, in 2023, Fenjiu will hand over a high-quality answer sheet.
Judging from the financial report data of the liquor industry, as the top 5 liquor companies in the liquor industry, Shanxi Fenjiu is the second Fenjiu to release a report, and its growth rate is significantly higher than that of Kweichow Moutai, and the report card is excellent.
The basic earnings per share was 8.56 yuan per share, a year-on-year increase of 28.78%, and it is planned to distribute a cash dividend of 43.7 yuan to all shareholders for every 10 shares, with a total cash dividend of 5.331 billion yuan.
In 2022, Shanxi Fenjiu's revenue will achieve operating income of 26.214 billion yuan, and the net profit attributable to shareholders of listed companies will be 8.096 billion yuan. By 2023, in one year, Fenjiu's revenue will increase by 5.714 billion yuan, and its net profit will increase by 2.342 billion yuan.
The increase in Fenjiu's performance is almost equal to the annual performance of a medium-sized listed liquor company. In 2023, Shede Liquor's operating income will be 7.081 billion yuan, and the net profit attributable to shareholders of listed companies will be 1.771 billion yuan.
With the continuous increase of the overall scale of Fenjiu, the annual performance increase of a medium-sized listed liquor enterprise will become more and more obvious.
At the beginning of 2023, Yuan Qingmao set a target for Fenjiu to increase its annual revenue by 20% in 2023, that is, to reach about 31.5 billion yuan. The actual result is that the revenue is close to 32 billion yuan, the net profit exceeds 10.4 billion, and Fenjiu has exceeded the set target, showing the strong growth momentum of the big fragrance leader and the huge potential of the fragrance wine.
In terms of specific business, in 2023, Fenjiu's high-priced liquor will achieve revenue of 23.203 billion yuan in 2023, a year-on-year increase of 22.56%. Other liquors achieved operating income of 8.540 billion yuan, a year-on-year increase of 20.15%. The revenue of medium and high-priced liquor has become the absolute main force of Shanxi Fenjiu's revenue, and it is also the basic support for Fenjiu's revival, and it is the high growth of this part that has become a strong support for Fenjiu's annual revenue to cross the threshold of 30 billion yuan.
The scale of mid-to-high-end liquor continues to expand, which shows that the product structure of Fenjiu continues to be optimized, and the mid-to-high-end product series represented by Qinghua Fenjiu is constantly expanding its market coverage, while its high-end brand has also been recognized by the majority of consumers.
According to Fenjiu's financial report, the sales of blue and white series will account for 46% in 2023, the product structure will continue to improve, and the price band will continue to move upward. This shows that the high-end of Fenjiu is becoming more and more recognized by the market.
In the "three first years" of 2023, Fenjiu will break out in full swing
In 2023, Fenjiu will make full efforts to burst out with strong new potential energy and new kinetic energy, and achieve major breakthroughs in many aspects such as profitability, market, and the full range of blue and white products.
2023 is the year for the company to continue to practice the program of Fenjiu rejuvenation and realize the modernization of management, and the current market layout of "fragrant world" has been initially formed.
According to the financial report, through the improvement of the linkage mechanism of the three major brands of Fen, Zhuyeqing and Xinghuacun, the domestic and foreign markets have been deeply cultivated, the 1 billion yuan market has continued to increase, and the core market south of the Yangtze River has increased by more than 30% year-on-year, and the national layout has been promoted in depth.
In terms of specific sub-markets, the market revenue of Fenjiu in the province is 12.084 billion, accounting for almost half of the revenue of Shanxi's liquor market, and in 2023, the market in Fenjiu province will increase by 20.41%, which is enough to show the strong dominance of Fenjiu in the provincial market.
In addition, the performance of the market outside the province is also bright, with a revenue of nearly 20 billion, indicating that the national strength has been further improved.
In terms of brand, Shanxi Fenjiu continues to adhere to the general idea of "one body and two wings" for the development of the three major brands of Fenjiu, Zhuyeqing and Xinghuacun.
Qinghua Fenjiu series is its main single product, giving priority to blue and white 50 to be high, blue and white 40 to be solid, blue and white 30 to be strong, and blue and white 20 to be bigger, Zhuyeqing relies on the two advantageous genes of national brand and herbal health, combined with the transformation and upgrading of medicine + wine to the big health industry, Xinghua Village is positioned as the first brand of poetry and wine culture, and creates a unique brand experience in combination with the new national style.
In terms of products, Fenjiu adheres to the product strategy of "grasping the two ends and bringing the middle" to achieve a mature product matrix and a perfect price band layout.
As the core of the business, Fenjiu in the national market is mainly based on "blue and white + Bofen", it should be pointed out that in the first three quarters of the year, Qinghua Fenjiu has achieved sales of 11 billion yuan, on the basis of more than 1 billion yuan of provinces and cities exceeded 7, Fenjiu blue and white series has set a new record throughout the year, carving a profound Fenjiu brand in China's mid-to-high-end liquor market.
According to the financial report, in the entire liquor business, the sales of blue and white series accounted for 46%, the product structure continued to improve, and the price band continued to move upward. The company integrates the concept of sustainable development with the strategy of comprehensive rejuvenation of Fenjiu, and has significantly improved the quality of development and further consolidated its core competitive advantages with the general tone of seeking progress and maintaining stability in progress.
Based on this data, the revenue of Fenjiu blue and white series will exceed 14.6 billion in 2023. According to the data in 2022, the revenue of Fenjiu Tsinghua series will reach 10 billion yuan, and it is estimated that the blue and white series will increase by about 46% year-on-year in 2023.
It is worth mentioning that Fenjiu highlighted the performance of the blue and white 20 in the financial report, and made it clear for the first time that the blue and white 20 is a large single product of 10 billion yuan. In its annual report, it said: (2024) Blue and White 20, as a single product of 10 billion yuan, must make a greater breakthrough "quickly and well".
It is understood that Qinghua 20 has been among the top three brands in the sub-high-end price band of 400-500 yuan, and has become another major product starting point for Fenjiu to lead the nationalization of fragrance categories in addition to Bofen.
The blue and white series continues to make efforts, and also lays the foundation for Fenjiu to reach a higher goal.
We are confident that we will continue to grow strongly, and we will target more than 38 billion yuan in 2024
Entering 2024, Fenjiu, which has accumulated development potential, will usher in the final year of the first phase of the rejuvenation program and the "breakthrough year of management modernization". At the same time, the macroeconomic development and the economy of the liquor industry have entered a new stage of "seeking progress in stability, promoting stability with progress, and establishing first and then breaking through", with challenges and opportunities coexisting.
In 2024, in order to continue to promote Fenjiu, the management team of Fenjiu led by Chairman Yuan Qingmao will continue to set clear growth targets, and Shanxi Fenjiu said that it will strive to increase its operating income by about 20% compared with the previous year.
According to the performance in 2023, the conversion will reach 38.2 billion, that is, to 40 billion.
2024 is the "breakthrough year of management modernization" of Fenjiu, specifically, it will be guided by the business policy of "gathering potential energy, marketing breakthrough to increase efficiency, cultural leadership, brand upgrading to promote development, production capacity improvement, strengthening the foundation and improving quality, management upgrading, digital intelligence empowerment and cohesion" as the guide, scientifically and reasonably determine the main indicators in 2024, and strive to increase operating income by about 20% compared with the previous year.
Setting such a goal is the embodiment of Fenjiu's continuous and strong development momentum, which shows the strong desire of Fenjiu people to realize the revival of Fenjiu and return to the first camp. The strong growth in recent years has also injected strong confidence in setting new targets.
The outstanding performance in the first quarter also made Fenjiu people full of motivation.
According to the report for the first quarter of 2024 released at the same time, Fenjiu achieved revenue of 15.338 billion yuan, a year-on-year increase of 20.94%, and a net profit of 6.262 billion yuan, a year-on-year increase of 29.95%.
Shanxi Fenjiu's revenue from 20 billion yuan to 30 billion yuan, it took only one year, and the net profit from 5.3 billion to 10.4 billion yuan, Fenjiu only took two years.
Today's Fenjiu has the strength to win the top three in the industry
The word "rejuvenation" is the mission that Fenjiu has been practicing over the years. In the eyes of the market, "high-end" is an important driver for Shanxi Fenjiu to break through and attack.
This year is the final year of the first phase of the Fenjiu revival plan.
Previously, Yuan Qingmao, chairman of Fenjiu, had proposed that Fenjiu should achieve "one of three in the world", that is, to rank among the top three in the industry in 2025, including the ranking of turnover and the ranking of important management indicators. At present, Fenjiu is getting closer and closer to this goal.
At the end of last year, Yuan Qingmao, chairman of Fenjiu, used "three potential energies" to interpret the growth prospects of Fenjiu at the global distributor conference: first, the potential energy of famous liquor is unstoppable. At present, the concentration of the liquor industry continues to concentrate in famous liquor producing areas and famous liquor enterprises. Secondly, the potential energy of fragrance is increasing. At present, the fragrant liquor continues to rise, the market continues to expand, and presents a super and strong brand development echelon. Finally, the potential energy of Fenjiu continues to increase. In the context of the potential energy of famous liquor and the potential energy of fragrance, the multiplication of the two potential energies of Fenjiu determines the sustained and rapid growth of Fenjiu.
With the help of these three potential energies, Fenjiu has achieved continuous growth in performance, and there is still broad room for further improvement.
Shanxi Fenjiu said that in 2024, the company will uphold the corporate tenet of "fair manner, system management, regular management, and achievement management", and comprehensively implement new breakthroughs in management. Establish the four basic logics of "correct development, correction of defects, innovation era, and practice of excellence" in Fenjiu management, grasp the five key directions of establishing a scientific marketing system, making breakthroughs in marketing management, adjusting product structure, building a value community of manufacturers, and improving cultural marketing capabilities, so as to do a good job in continuation and development, inheritance and innovation, keep pace with the times, and achieve the highest standard of the first phalanx of China's liquor industry.