On the evening of April 26, Shuijingfang released its 2023 annual report. During the reporting period, Shuijingfang achieved an operating income of 4.953 billion yuan, a year-on-year increase of 6%, and a net profit of 1.269 billion yuan, a year-on-year increase of 4.36%. The net cash flow from operating activities was 1.734 billion yuan, a year-on-year increase of 31.98%. For the whole year, the company achieved year-on-year growth in revenue and profit, and completed the business goals set at the beginning of the year. In addition, the quarterly report for the first quarter of 2024 disclosed at the same time shows that Shuijingfang's operating income in the first quarter was 933 million yuan, a year-on-year increase of 9.38%, and the net profit was 186 million yuan, a year-on-year increase of 16.82%.
Judging from the disclosed information, the company's strategy is effectively advancing. In recent years, the liquor industry has entered a period of deep adjustment, the influence of famous liquor brands has become prominent, and consumer demand has shown two trends: consumption grading and tilting towards advantageous production areas, high-brand power enterprises and high-value products. Benefiting from the overall trend, Shuijingfang relies on large single products such as Zhenzhuo No. 8 to undertake the dividends of consumption stratification, and at the same time integrates the first-mover advantage of being a famous wine enterprise located in the famous wine production area, and meets the strong demand of consumers for famous wine with high quality and high brand value with high-quality products, so as to take advantage of the trend and achieve growth.
Ouyang Qianli, an expert in the liquor industry and founder of Qianli Think Tank, believes that consumers are paying more and more attention to quality and personalized experience in their choice of liquor. For consumers who pursue a high quality of life, famous wine is not only a drink, but also a manifestation of life attitude. Famous liquor companies like Shuijingfang are meeting the diverse needs of consumers through continuous product innovation and channel breakthroughs, and seizing new growth opportunities in the changing market.
Zhou Yuanxin, Chief Marketing & Digital Business Officer of Shuijingfang, said: "Shuijingfang's growth is driven by three aspects – first, the irreplaceable famous wine genes, secondly, the long history that is recognized by consumers, and finally the unremitting efforts in market expansion. Looking to the future, we will continue to explore innovative marketing models and tell consumers the story and culture behind baijiu in more innovative ways. ”
Adhere to the long-term strategy, focus on key areas, and help performance through the cycle
At present, China's liquor market is in the stage of diversification and quality development, and the market demand for high-quality liquor continues to grow. In the context of increasingly fierce competition in the industry, Shuijingfang will focus its resources on the field of channel expansion and continue to tap the depth and breadth of channels.
In terms of depth, Shuijingfang has taken deep roots in core cities to stabilize its fundamentals, while expanding potential markets and looking for new market increments. In terms of breadth, Shuijingfang actively focuses on group buying, consumer cultivation and other fields, and actively strengthens e-commerce to seize traffic opportunities. Through multi-channel joint efforts, multi-dimensional grasp of business incremental opportunities. Not only that, Shuijingfang firmly believes that a stable and healthy value chain is an important guarantee for maintaining the common interests of manufacturers, and an important prerequisite for establishing stable brand value for consumers. In the first quarter of 2023, the company took the initiative to reduce social inventory and stabilize the value chain, and since the second quarter, the inventory of dealers and stores has remained at a reasonable level.
Jiang Wei, general manager of Shuijingfang's core products division, emphasized the importance of adapting to the times and focusing on resources. He said: "We have been deeply engaged with our customers, listened to their voices, and penetrated into the market to face challenges side by side with our dealer partners. Looking ahead, we plan to adopt a more detailed methodology, refine market segments, and adopt an intensive approach to ensure that steady growth can continue. ”
Secondly, in response to the diversified needs of consumers, Shuijingfang increased its investment in large single products such as well platform and No. 8, and at the same time expanded its product layout in both directions. In order to meet the consumption of the circle and further broaden the coverage of the well platform series, Shuijingfang continued to promote the classic product new well platform and launched the "Shuijingfang Jingtai Yipin". At the same time, it launched the ultra-high-end product "Shuijingfang First Fang" to enrich the company's brand matrix and bring consumers more high-quality and unique liquor experience. In addition, it has launched a variety of e-commerce exclusive products such as "Small Water Well", "Water Well Banquet" and "Treasure Series (Kirin Pixiu) Gift Box" in the e-commerce channel, aiming to allow more consumers to taste more high-end and high-quality liquor in the price range of about 200 to 300 yuan.
Not only that, Shuijingfang continues to strengthen high-end attributes, and makes joint efforts in channels and brands to meet the market's demand for high-quality products. Chen Quan, general manager of Shuijingfang High-end Products Division, said: "On the basis of stable fundamentals, the company's adherence to the high-end strategy, as well as the continuous cultivation and investment in brands and high-end flagship products, is an important help for the company to steadily promote the implementation of its long-term strategy and realize the cycle crossing." "The company started from the optimization of the sales strategy of the high-end products division, focused on the core cities for business expansion, and enhanced the brand awareness and reputation among the target consumer groups. At the same time, through a wealth of brand and circle activities such as aesthetic festivals and liquor workshops, as well as the construction of offline networks such as aesthetic halls and experience halls, consumer reach will be more widely promoted. It is worth mentioning that Shuijingfang is committed to telling the brand story of "more than 600 years of uninterrupted brewing and inheritance" and deepening the rare quality label of "Double National Insurance". Last year, Shuijingfang cooperated with Professor Bai Fengyan, deputy director of the State Key Laboratory of Mycology, Institute of Microbiology, Chinese Academy of Sciences, and his team to jointly carry out the second phase of scientific research on Shuijingfang's unique "No. 1 microflora", and released the latest phased research results at the 25th anniversary event conference of Shuijingfang scientific archaeology in September 2023, further strengthening the quality and brand value of Shuijingfang's "living inheritance".
Adhere to long-term investment in the future and promote the sustainable development of the enterprise
Shuijingfang not only grasps the current development, but also based on the long-term and long-term investment for the future. Based in the Chengdu production area, the company works closely with the government, industry organizations and upstream and downstream enterprises in the industrial chain, and joins hands with all parties to deeply explore and make full use of the unique geographical, ecological, historical and cultural advantages of the Chengdu (Qionglai) production area, and actively advocates and practices the innovative and diversified development model of the whole industrial chain. The construction of Shuijingfang Qionglai whole industry chain base enables Shuijingfang to realize the integrated operation of the whole industrial chain from raw material procurement to brewing and packaging, and provides important support for Shuijingfang to reduce costs and optimize efficiency. This not only ensures the quality and stability of the product supply, but also provides a solid material foundation for the company's long-term development.
At the same time, Shuijingfang continues to promote the implementation of the "Shuijingfang 2035 Sustainable Development Goals", and integrates the ESG strategy of "Shuijingfang, Respect for the Future" into the overall development strategy of the company, demonstrating the company's commitment to social responsibility and far-reaching consideration for future development. In the 2022 ESG report, Shuijingfang announced the "Shuijingfang 2035 Sustainable Development Goals", as a guide for future medium and long-term sustainable development, Shuijingfang took the lead in announcing the "ESG work KPI" in the liquor industry. Through these measures, Shuijingfang is gradually building a sustainable business model to create greater value for shareholders and society.
In the past year, Shuijingfang has not only made remarkable achievements in product innovation and brand inheritance by sticking to its long-term strategy, but also demonstrated its keen market insight and execution in marketing strategy and market expansion. Looking forward to the future, Shuijingfang will continue to adhere to its long-term strategy, continuously optimize product structure, strengthen brand building, expand market influence, and continue to promote the sustainable development of the enterprise to bring consumers a more excellent product experience.
Jiang Leifeng, acting general manager of Shuijingfang, said that steady and healthy growth is the product of sticking to a long-term strategy and focusing on key areas. Growth doesn't happen in isolation, it's about the environment, partners, consumers, and stakeholders. In the future, on the basis of sticking to the long-term strategy, Shuijingfang will adapt to market dynamics and constantly review strategies and tactics in order to create more value with stakeholders.