#精品长文创作季#
Author: Wen Yu, Editor: Xiao Shimei
On April 26, Shuijingfang released its financial report that in 2023, the company will achieve operating income of 4.953 billion yuan, a year-on-year increase of 6%, and net profit attributable to the parent company of 1.269 billion yuan, a year-on-year increase of 4.36%.
With a long-distance observation of reality from a historical perspective, 2023 is likely to be a key turning point for Shuijingfang, in the period of oscillation and adjustment of the liquor industry, the company not only maintained its strategic focus, successfully smoothed out the cyclical fluctuations, but also made full layout and preparation for further development in the future.
[Revenue growth has increased quarter by quarter, and long-term strategy has been steadily launched]
Anatomy of Shuijingfang's 2023 financial report, one of the most significant features is that the overall trend is upward.
In the first quarter of last year, the company took the initiative to adjust the inventory to stabilize the value chain, and the performance began to resume growth in the second quarter, and gradually heated up in the third and fourth quarters. The data shows that in 2023, the revenue of Shuijingfang in Q3 will grow by more than 20% year-on-year, and the revenue growth rate in Q4 will exceed 50% year-on-year, and this benign growth momentum is still continuing. In the first quarter of this year, Shuijingfang achieved operating income of 933 million yuan, a year-on-year increase of 9.38%, and net profit attributable to the parent company was 186 million yuan, a year-on-year increase of 16.82%. More importantly, Shuijingfang's net present ratio in 2023 is 136.6%, which shows that the gold content of the company's income statement repair in the past period is relatively high.
Steady growth is not easy to achieve, especially in a relatively volatile environment, Shuijingfang can achieve this hard-won results, which is directly related to the company's consistent adherence to and implementation of long-term strategy. This long-term strategy can be briefly summarized as a comprehensive grasp, focused, and simultaneously focused on both "breadth" and "depth".
At the channel level, "breadth" is reflected in multi-channel synergy, while "depth" is reflected in focusing on core markets, core scenarios, and core customers.
In 2023, while expanding stores to improve the market rate, Shuijingfang will increase the development of channels such as group buying and e-commerce, taking Jingtai as an example, group buying has covered more than 30 key cities, and thousands of traceable group buying companies have accumulated. At the same time, Shuijingfang also focuses on taking deep roots in the core cities, intensively cultivating, adopting the measures of "one customer and one policy" to further deepen the cooperation with dealers, and establishing an efficient and mutually beneficial community of interests of manufacturers by optimizing the role and division of labor of manufacturers, so as to stabilize the company's base and basic market. There are also outstanding grasps in specific scenarios, such as the company's early card position last year to focus on the banquet market segment, taking advantage of the trend of banquet consumption recovery, and directly driving dynamic sales.
At the product level, "breadth" is reflected in the continuous improvement of the product matrix to cope with the classification of the consumer market, and "depth" is reflected in the company's continuous upgrading of the product structure to depth.
In 2021 and 2022, Shuijingfang has successively launched a new collection and a new generation of wells, by upgrading the wine body, packaging and raising the value positioning, accurately positioning the high-end sub-high-end and high-end, and also launched the mass wine price band product "Tianhao Chen Di Yellow Bottle". In 2023, it will continue to improve the strategic layout of the product matrix, on the one hand, with the opportunity of the 25th anniversary of the archaeological discovery of Shuijing Street Distillery, a new ultra-high-end product "Shuijingfang First Fang" will be launched, and the brand will be raised again, on the other hand, a variety of e-commerce exclusive products such as "National Style Version of Small Water Well", "Water Well Culture" and "Kirin Water Delivery" will be launched on various e-commerce platforms such as Jingdong, Tmall, Douyin, etc., so that consumers can taste a higher-end and better quality liquor at a price of 200-300 yuan.
In addition, Shuijingfang will also launch Jingtai Yipin at the end of 2023, which will integrate the base wine of higher vintages with scarce batches of old wine to meet the needs of circle consumption. This product not only broadens the customer coverage of the well platform series, but also effectively enhances the combination potential energy of the well platform series and the leadership of the price band of 500-800 yuan.
Obviously, whether it is a channel or a product, Shuijingfang's style of play is very three-dimensional, so the company can steadily rise in the context of consumption grading and channel fission. The 2023 financial report largely confirms that the long-term strategy practiced by Shuijingfang in the past period of time is effective, and judging from the current development trend of the entire industry, as long as the company can stick to it, there may be greater gains.
[The wave of high-end expansion is rolling, and brand upgrading is in the ascendant]
From 2019 to 2023, the domestic liquor production will drop from 7.86 million kiloliters to 6.29 million kiloliters, but at the same time, the sales revenue of the liquor industry will increase from 561.782 billion yuan in 2019 to 756.3 billion yuan in 2023, an increase of 35%, and the profit will increase from 140.409 billion yuan to 232.8 billion yuan, an increase of 65.8%.
With the continuous improvement of living standards, the pursuit of quality of life and life and health of Chinese people is increasing day by day, and "drinking less alcohol, drinking better wine" has gradually become a social consensus. In the foreseeable future, high-end expansion will most likely remain the main theme of the liquor industry, and the competitive environment in which Shuijingfang is located is also relatively favorable.
On the one hand, the price band of 500-800 yuan is considered to be a market segment with great potential for expansion, due to the high price and special scene, the track has significantly higher requirements for brand power than the 300-500 yuan price band.
On the other hand, compared with the ultra-high-end market, the competition pattern of the price range below 800 yuan is relatively scattered, and the stickiness of consumers' brand awareness is weak, and consumer behavior is easily affected by channels. The unstable pattern means that latecomers have the possibility of taking advantage of the situation at any time, and the market share of Shuijingfang's Zhenzhuo No. 8 and Jingtai in this track is not high, as long as it is operated properly, there is a chance to catch up in the later stage.
As we all know, the key to strong aromatic liquor is the cellar pool, as the so-called "thousand-year-old cellar pond is ten thousand years old, and the cellar pond must be old if the wine is good", and the microbial community with rich types and reasonable structure in the old cellar mud is the core condition for the brewing of high-quality aromatic liquor. To a large extent, history and heritage will ultimately determine the ceiling and potential of a wine company, and Shuijingfang's advantage lies precisely in this.
Started at the end of the Yuan Dynasty and the beginning of the Ming Dynasty, with a history of more than 600 years, the "Shuijing Street Distillery Ruins" is the unique production resources and brand cornerstone of Shuijingfang, and it is also the innate resource endowment that is difficult for other strong fragrance brands to achieve. In 1998, the rare strain "No. 1 Flora" was discovered in the ancient cellar pond of Shuijing Street, and the Shuijingfang brand was established on this basis. According to the latest phased research results of the "No. 1 Flora", nearly 4,000 kinds of microorganisms have been found in the Shuijingfang cellar pool, including heat-loving bacteria, caproic acid bacteria, butyric acid bacteria, acetic acid bacteria, etc., which are very important for the quality and aroma of the wine, and 103 potential new microorganisms have also been discovered, containing 37 unique aroma metabolism pathways. The aromatic substances formed by these strains constitute the sweet and moist taste and rich aroma level of Shuijingfang liquor, which is the innate and irreproducible moat of Shuijingfang.
Because of this, Shuijingfang has been very strong since its birth. Many people may not know that Shuijingfang was once priced as high as 600 yuan when it was launched in the millennium, and in the 2010s, it was also the second echelon alongside Guojiao, second only to Moutai and Wuliangye. In other words, the company has high-end genes.
In the past few years, Shuijingfang has always maintained a high brand voice to the outside world, and the company has carried out circle marketing with sports and culture as the entry point for publicity. In terms of breadth, it vigorously supports ice and snow sports, tennis matches, and national table tennis events, and at the same time titles "National Treasure"; in terms of depth, it actively lays out cultural and aesthetic museums and liquor workshops to strengthen consumers' sensory experience and cultural communication. All these efforts are not fleeting, but will accumulate into brand power after a certain period of precipitation and fermentation, and then pass on to the end market.
In the past few years, the soy sauce wine boom has led to the emergence of a number of cutting-edge brands, which has directly stirred up the competition pattern and development rhythm of the entire industry. However, with the continuous cooling of soy sauce wine, the industry has shown signs of returning to the original development center line, on the one hand, the strong fragrance has gradually begun to pick up, on the other hand, the industry channel merchants are more and more inclined to choose wine companies with brand heritage.
These two trends are obviously good for Shuijingfang, and it is expected that the company's value will be reawakened and the brand can reach a higher level.
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The content of this article related to listed companies is the author's personal analysis and judgment based on the information publicly disclosed by listed companies in accordance with their legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.), and the information or opinions in this article do not constitute any investment or other business advice, and Market Value Watch does not assume any responsibility for any actions arising from the adoption of this article.
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