文丨酒业家团队（ID：jiuyejia360）
Planning丨Saitama Editor丨Yunheng Editor丨Yunding
On the evening of April 26, Shuijingfang released its 2023 annual report and 2024 first quarter report.
In 2023, Shuijingfang achieved operating income of 4.953 billion yuan, a year-on-year increase of 6%, a net profit of 1.269 billion yuan, a year-on-year increase of 4.36%, and cash flow from operating activities of 1.734 billion yuan, a year-on-year increase of 31.98%. In the first quarter of 2024, Shuijingfang achieved an operating income of 930 million yuan, a year-on-year increase of 9.38%, and a net profit of 190 million yuan, a year-on-year increase of 16.82%.
Shuijingfang said in the financial report that the company's business goal in 2024 is to maintain growth in both main business income and net profit.
In the deep adjustment cycle of the liquor industry, Shuijingfang focused on key measures and achieved breakthroughs in channels, products, and high-end, once again interpreting the value of "long-termism" with performance.
01
The business indicators are improving
Shuijingfang will have double-digit growth in the third and fourth quarters of 2023
The wine industry carefully split the financial data of Shuijingfang in 2023 and found that in the past year, Shuijingfang's various operating indicators have improved, demonstrating strong development resilience.
In terms of revenue and net profit, 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%.
In terms of quarterly performance, Shuijingfang's revenue in the first, second, third and fourth quarters was 853 million yuan, 673 million yuan, 2.061 billion yuan and 1.364 billion yuan respectively. After the adjustment in the first quarter, Shuijingfang returned to the growth runway in the second quarter and returned to double-digit growth in the third and fourth quarters.
From the perspective of product performance, the revenue of Shuijingfang high-end liquor was 4.670 billion yuan, a year-on-year increase of 3.73%, and the revenue of mid-range liquor was 204 million yuan, a year-on-year increase of 64.80%. This also means that Shuijingfang's full line of products has achieved growth.
From the perspective of cash flow, the cash flow generated by Shuijingfang's operating activities was 1.734 billion yuan, a year-on-year increase of 31.98%, indicating that the current operating capacity is excellent and the profit quality is high.
Regarding the growth of performance, Zhou Yuanxin, Chief Marketing and Digital Business Officer of Shuijingfang, said: "The driving force for Shuijingfang's growth comes from three aspects: first, the irreplaceable famous wine genes, secondly, the long history 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. ”
2023 is the year when the liquor industry and the liquor market enter a new round of adjustment cycle, and it is also a year for Shuijingfang to take the initiative to change. In this year, Shuijingfang undoubtedly delivered a good result.
02
Revenue and net profit both increased
What did Shuijingfang do right?
Judging from the data of the economic operation of the entire liquor industry in 2023, the trend of the industry concentrating on advantageous production areas and famous liquor brands is becoming more and more obvious, and the consumption side is also showing a trend of consumption stratification.
Under this trend, Shuijingfang strengthens the brand and quality expression in the production area, and at the same time relies on large single products such as Zhenzhuo No. 8 to undertake the dividends of consumption stratification, which undoubtedly occupies a first-mover advantage. In addition, Shuijingfang has also made continuous breakthroughs in channels, products, and high-end, laying a solid foundation for the high-quality development of the brand.
At the channel level, in the context of increasingly fierce competition in the industry, Shuijingfang continues to expand the depth and breadth of channels. On the one hand, Shuijingfang digs deep into the core cities, expands the potential market, and focuses on the store expansion in the developing market; on the other hand, it makes efforts in group buying, consumer cultivation, strengthens e-commerce, and makes joint efforts through multiple channels. In addition, Shuijingfang insisted on safeguarding the common interests of manufacturers, took the initiative to reduce social inventory and stabilize the value chain in the first quarter, and maintained the inventory of dealers and stores at a reasonable level in the second quarter.
In this regard, Jiang Wei, general manager of Shuijingfang's core products division, mentioned that Shuijingfang plans to adopt a more detailed methodology in the future, refine the market segmentation, and ensure the continuation of steady growth with an intensive attitude.
At the product level, Shuijingfang has increased its investment in large single products such as well platform and No. 8, conformed to the hierarchical demand of consumption, and expanded the product layout in both directions. Specifically, on the one hand, the company continued to promote the new well platform, and on the other hand, it launched the "Shuijingfang Well Platform Yipin" to enrich the well platform product matrix. At the same time, on the occasion of the 25th anniversary of the archaeological discovery of the Shuijing Street Distillery Site in 2023, the company also launched a new ultra-high-end product "Shuijingfang First Fang" to enrich the company's brand matrix. In addition, a variety of e-commerce exclusive products such as "Small Water Well", "Water Well Banquet" and "Treasure Series (Kirin Pixiu) Gift Box" have been launched 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, and strengthen the attention to the middle and low price bands.
In terms of high-end, Shuijingfang continues to strengthen the high-end attributes of Shuijingfang, and the channel and the brand side work together. In this regard, Shuijingfang optimizes the sales strategy of the high-end products division, focuses on business expansion in 20 core cities, accurately reaches the high-end consumer circle, enhances the brand awareness and reputation among the target consumer groups, builds a wider range of consumer reach points through rich brand promotion activities, tells the brand story of "more than 600 years of uninterrupted brewing and inheritance" around the "double national insurance", and continues to cooperate with the State Key Laboratory of Mycology, Institute of Microbiology, Chinese Academy of Sciences to carry out the "No. 1 microbiota" The second phase of scientific research and the release of the latest phased research results further strengthened the quality and brand value of Shuijingfang's "living inheritance......
In the view of Chen Quan, general manager of Shuijingfang's high-end products division, Shuijingfang'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 long-term strategies and realize the cycle crossing.
03
The first quarter of 2024 will be stable and improving
Shuijingfang continues to move higher
In the context of double growth in 2023, Shuijingfang will continue to grow in the first quarter of 2024, showing deep potential and heritage, and the strong momentum of both volume and profit growth will continue unabated.
According to the analysis of Founder Securities, the overall performance of Shuijingfang in 2023 is good, and it is optimistic about the medium and long-term development. "Shuijingfang has made great efforts to upgrade and innovate products, high-end brands, and marketing breakthroughs, and the recent sales channel reform and circle-breaking marketing results are obvious to all. With the implementation of the Qionglai project in the future and the continuous reconstruction of the product structure, the company is expected to rise in both volume and price. Founder Securities pointed out in the research report.
The wine industry learned that as early as 2018, Shuijingfang signed an investment agreement with the Qionglai municipal government. At present, the first phase of the construction of the Qionglai whole industry chain production base has been completed, and has been officially put into operation. The company will continue to solidly promote the construction of the second phase of the project, further improve the company's supply chain production capacity and long-term wine storage scale, and continuously consolidate the foundation for the company's long-term and healthy development.
In addition to expanding long-term supply capacity, Shuijingfang has many actions in 2024. For example, we will continue to enhance our brand power, adhere to brand inheritance and innovation, base ourselves on the Chengdu production area, deeply explore the living value of inheritance, deepen the living cultural connotation of the Shuijingfang brand and the Chengdu production area, continue to explore the group purchase channel business to help business growth, increase support for banquet products, and increase circle marketing.
It is particularly noteworthy that in order to further strengthen corporate governance, compliance culture, corporate social responsibility, and ESG-related work, Shuijingfang will continue to promote the implementation of the "Shuijingfang 2035 Sustainable Development Goals", integrate the ESG strategy of "Shuijingfang, Respect for the Future" into the overall development strategy of the enterprise, give full play to the company's ESG governance capabilities, and make significant contributions to business ethics and compliance, product quality and safety, supply chain management, occupational health and safety, community development, water resources management, We will continue to invest in and strengthen management on major ESG issues such as energy and carbon emission management. The company will drive customers, employees, supply chains and other stakeholders to create sustainable shared value while practicing sustainable development.
Under all kinds of measures, we can see a continuous upward water well workshop, a sustainable development of the water well workshop, and a water well workshop with a strong sense of social responsibility.
"Solid and healthy growth is the result 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. Jiang Leifeng, acting general manager of Shuijingfang, said.