Kweichow Moutai’s 2021 Annual Shareholders’ Meeting Reporter’s Notes: A glimpse of the “new” Moutai from “selling ice cream”
Financial Associated Press, June 16 (Reporter Xu Xuecheng) We drove about 39 kilometers from Zunyi Maotai Airport to Maotai Town. The Chishui River meanders by, and the local buildings on both sides of the river seem to come into view from the painting. The 2021 Annual General Meeting of Kweichow Moutai (600519.SH) kicked off in such a mood.
In addition to the Moutai ice cream that can only be bought in Guizhou, the first appearance of Ding Xiongjun, chairman of Guizhou Moutai, at the annual shareholders meeting was also one of the hot topics of this shareholders meeting. During the meeting, Ding Xiongjun continued his unscripted speech style and gave a new interpretation of the “five-line” development path proposed by Kweichow Moutai last year. We might as well start with this shareholders meeting to see what “new” signals Kweichow Moutai will release.
Kweichow Moutai’s 2021 Annual Shareholders’ Meeting Venue
The shareholders meeting of Moutai in Kweichow has always been lively, and this time is no different from the past, but all the capital bosses such as Bin and Lin Yuan also attended. According to the latest closing price, it would cost more than 180,000 yuan to buy a hand of Kweichow Moutai. Media peers joked: Kweichow Moutai can unite a group of high-net-worth clients closely around itself without any circle marketing. This is also appropriate.
According to the participants, after the outbreak of the new crown epidemic, Kweichow Moutai has controlled the number of participants, basically maintaining it within 300 people, and the number of people who came to the meeting this time was about 260. Nonetheless, when the reporter arrived at the Maotai International Hotel, where the shareholders’ meeting was held on the afternoon of June 15, he was told that the room was full, and the waiting time was more than half an hour just to check in.
While waiting, the reporter’s eyes fell on the Maotai ice cream store located in the corner of the hotel lobby. According to the previous information, Moutai ice cream can already be purchased online, but the cold chain distribution is limited to Guizhou Province. This also means: without entering Guizhou, the taste of Moutai ice cream can only stay in the imagination.
According to the reporter’s understanding, although the “treatment” of buying wine at the original price was canceled this time, Kweichow Moutai also gave ice cream coupons to the participants this time, which was a little make up for the regret.
As soon as it went on sale in May this year, Moutai Ice Cream earned enough attention. It is not difficult to see from the situation of queuing up for purchase on the spot, it is also one of the most concerned objects of this shareholders’ meeting. An “old” wine company actually sold ice cream, and the signal it released was obviously unusual. Just like the cartoon image of “Xiao Mao” that can be seen everywhere in the shareholders’ meeting venue, all of this reflects the attitude of Kweichow Moutai to seek innovation and change.
A new interpretation of the “five-line” development by reporter Xu Xuecheng of the Maotai ice cream store located in the Maotai International Hotel
There are many more “new” things. Ding Xiongjun, chairman of Kweichow Moutai, who took office in September last year, appeared at the annual general meeting for the first time. Since taking office, Kweichow Moutai has formulated the development goal of “Benchmarking Enterprise of Ecological and Environmental Protection in Liquor Industry”, built the “365” quality management system, and successfully launched the “i Moutai” digital marketing platform, which can be described as frequent new actions.
At the shareholders meeting, Ding Xiongjun continued his unscripted speech style. On the basis of the “five-line” development path proposed by Kweichow Moutai last year, Ding Xiongjun brought new thinking and interpretation, namely: the “blue line” should be more beautiful, the “green line” should be more beautiful, and the “white line” should be more beautiful. “To be more beautiful, “Purple Line” should be more beautiful, and “Red Line” should be more beautiful. Ding Xiongjun used “five mores, five beauties” to describe Maotai’s future blueprint.
Ding Xiongjun pointed out that building a world-class listed company is the goal of the “14th Five-Year Plan” of the joint-stock company. Last year, Kweichow Moutai achieved a total operating income of 109.464 billion yuan, a year-on-year increase of 11.71%; net profit attributable to shareholders of listed companies was 52.460 billion yuan, a year-on-year increase of 12.34%. This year, Kweichow Moutai set a target of 125.9 billion yuan in revenue, a 15% increase over the previous year.
In terms of digital marketing construction, Ding Xiongjun revealed that iMoutai has achieved “very good results” in just a few months after its launch, with nearly 17 million registrations.
Regarding the “Purple Line” to be more beautiful, Ding Xiongjun pointed out that Kweichow Moutai mainly promotes the development of “Purple Line” in four areas: building a cultural system, developing cultural products, enriching cultural activities and creating cultural scenes. A reporter from the Financial Association learned that, focusing on traditional Chinese cultural elements such as blessing culture, zodiac culture, and family culture, Kweichow Moutai has developed treasures Moutai, Tiger Year Moutai, 43-degree Moutai, Moutai 1935, Zi Yingbin, Feitian 100 and Moutai Companion Cultural products such as hand gifts; around traditional Chinese culture and Maotai cultural tradition, Kweichow Moutai also held cultural ceremonies such as Qingming Thanksgiving Ceremony, Maotai Dragon Boat Festival, and new product launches, which attracted wide attention from the outside world.
“Whether it is strong wind or no wind, down or up, our goal is to satisfy the people’s yearning for a better life. Therefore, I call the era in which this road is located the ‘Beauty Era’. Ding Xiongjun also said at the scene , “Today is June 16th, which is the midfield of the year, let’s go a little further, from the listing of Maotai to the middle of this century, these years belong to the midfield. When the boat reaches the middle, the wandering is more urgent, and the road for people to the mid-level is steeper. In my opinion, a midfielder should have a posture, a posture of ‘desiring beauty’. “
But Bin’s participation in the meeting was taken by reporter Xu Xuecheng of the Financial Associated Press. An episode: Some shareholders demanded to increase the dividend ratio to 70%
Ding Xiongjun’s speech was naturally the “highlight” at the shareholders’ meeting, which lasted for about two hours. In the last communication session, there was a more interesting scene.
There is a private equity person who claims to be a “firm long-term holder of Kweichow Moutai” who is quite “remarkable” about the dividend ratio of Kweichow Moutai. The person said that he hopes that Kweichow Moutai will follow the example of foreign companies and gradually adjust the dividend from once a year to every Quarterly or even monthly, and hope to gradually increase the dividend ratio to 70%.
According to the profit distribution plan previously formulated by Kweichow Moutai, the company plans to distribute a cash dividend of 216.75 yuan (tax included) to all shareholders of the company for every 10 shares based on the total share capital of 1,256,197,800 shares at the end of 2021, with a total profit of 27,228,087,315.00 yuan.
Relevant statistics also show that as of June 25, 2021, Moutai has accumulated cash dividends of 121.355 billion yuan, accounting for 47.46% of the company’s total net profit since its listing.
In response to the demands of the above-mentioned people, Jiang Yan, deputy general manager and secretary of the Board of Directors of Moutai in Kweichow, responded that the data on the accumulated dividends of Moutai since its establishment is one of the few in A-shares. Although the company’s dividend ratio is not the highest in the A-share market, it is very stable and the absolute amount is increasing. I hope shareholders will have a “more peaceful mentality”.