Although the goal of state-owned enterprise reform has been achieved, the performance growth of Shanxi Fenjiu (600809) has not stopped.
Net profit in the first half of the year doubled year-on-year
On the evening of August 26, Shanxi Fenjiu disclosed the 2021 semi-annual report that during the period, the company achieved operating income of 12.119 billion yuan, an increase of 75.51% year-on-year, and the net profit attributable to shareholders of listed companies was 3.544 billion yuan, an increase of 117.54% year-on-year.
Shanxi Fenjiu’s business scope is mainly the production and sales of Fenjiu, Zhuye Qingjiu and series of wines. As one of the setters of national standards for fragrant liquor, Fenjiu, the main product of Shanxi Fenjiu, is a typical representative of Chinese fragrant liquor. Zhuye Qingjiu is a well-known health-care liquor, which is well-known at home and abroad.
In February 2017, Shanxi Fenjiu’s controlling shareholder Fenjiu Group Co. and Shanxi Provincial State-owned Assets Supervision and Administration Commission signed a three-year operating target responsibility letter, becoming the first provincial state-owned enterprise to reform the target responsibility letter. Since then, Shanxi Fenjiu has embarked on a path of deepening reform and accelerating development.
In December 2019, the overall listing of Fenjiu’s main business was successfully completed. After the overall listing of the group’s main business assets through reforms, the problems of horizontal competition and related transactions that have been haunting Shanxi Fenjiu and Fenjiu Groups have also been solved. Shanxi Fenjiu also gradually integrated internal resources, further improving the overall operating efficiency of the Fenjiu brand.
While practicing the reform of state-owned enterprises, the performance of Shanxi Fenjiu continued to improve.
From 2017 to 2019, the company’s annual net profit has maintained a steady growth trend, with year-on-year growth rates of 56.02%, 54.01%, and 28.63% respectively. In the first half of 2020, the company achieved operating income of 6.899 billion yuan, a year-on-year increase of 7.8%, and net profit attributable to shareholders of the listed company was 1.605 billion yuan, a year-on-year increase of 33.05%, which set a new high for mid-term revenue and net profit since listing 26 years ago.
After achieving a net profit of 3.079 billion yuan attributable to the parent in 2020, an increase of 56.39% year-on-year, Shanxi Fenjiu’s performance in the first half of 2021 has again doubled year-on-year, further highlighting the company’s continued reform and entry into the fast lane of development. momentum.
The number of controllable terminal outlets nationwide exceeded 1 million
The continued growth of Shanxi Fenjiu’s performance is attributable to the company’s continuous improvement of management level, improvement of product system, and optimization of channel management.
According to the company, in the first half of 2021, Shanxi Fenjiu will deepen its “1357+10” market layout and expand its markets in the Yangtze River Delta and Pearl River Delta Economic Zones. The growth rate of the southern core market is much higher than the average growth rate of the national market. 60%. The number of controllable terminal outlets in the national market exceeded 1 million, and the dealer structure and channels continued to be optimized.
At the same time, Zhuyeqing’s health industry has developed rapidly, with a year-on-year growth of nearly 150% in the first half of the year. Key markets in the Yangtze River Delta such as Shanghai, Jiangsu, and Zhejiang have increased significantly. E-commerce channels have grown steadily. During the “6.18” period, Jingdong Fenjiu’s official flagship store ranked first in sales, and Tmall’s official Fenjiu flagship store ranked third in sales.
In addition, in the Chinese liquor industry, Shanxi Fenjiu has leading manufacturing capabilities, and has taken the lead in the industry to propose and implement food internal control standards that are in line with international standards. At present, the company has more than 1.1 million mu of raw grain planting bases in Shanxi, Northeast, Inner Mongolia, Gansu, Hebei and other places. It purchases high-quality sorghum, barley, peas and other brewing raw materials from the raw grain bases to ensure the green and healthy brewing raw materials. At the same time, focusing on the three “living” carriers of water sources, earth tanks, and old Fenjiu workshops, the value of intangible cultural heritage is brought into play, and through measures such as excavation and improvement, value reshaping, and authoritative endorsement, it has formed a “appreciable” and “audible” for consumers. The “Five Ke” brand experience of “feeling”, “touchable” and “good”.
Shanxi Fenjiu stated that in the first half of 2021, the company adhered to the strategic positioning of “the spirit of Chinese wine is the soul”, comprehensively promoted the benchmarking of world-class management improvement actions, and achieved remarkable results in modern corporate governance, industrial chain construction, and smart Fenjiu. At the same time, the company adheres to the product strategy of “grasping blue and white, strengthening waist, and stabilizing glass fen”, continues to consolidate and enhance the advantages of blue and white fen wine, adheres to the high-end brand positioning of “endorsement for high-quality life”, and effectively improves profitability.
In the second half of the year, Shanxi Fenjiu will accelerate the “two-wheel drive”, continue to strengthen the expansion of Fenjiu’s domestic and foreign markets, and realize the integrated operation of “production, supply, marketing and research” in the bamboo leaf green industry; benchmarking world-class enterprises, further strengthening and improving the company’s management level; We will continue to develop and optimize the construction of raw grain bases, packaging and color printing bases, and Xinghuacun restaurants; ensure industrial support, promote capacity expansion, and consolidate the foundation for high-quality development; continue to promote digital and intelligent transformation work to build “Wisdom Fenjiu” ensures the smooth realization of the annual mission and goals.
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