Recently, Yibin Wuliangye Co., Ltd. (hereinafter referred to as “Wuliangye”) released the 2021 semi-annual report. In the first half of the year, Wuliangye achieved operating income of 36.752 billion yuan, a year-on-year increase of 19.45%; net profit attributable to shareholders of listed companies was 13.2 billion yuan, a year-on-year increase of 21.60%; basic earnings per share were 3.4 yuan.
As of the end of the reporting period, the company’s net assets were 90.744 billion yuan, an increase of 3.40% compared with the same period last year, and the asset-liability ratio was 27.17%. The net cash flows from operating activities, investment activities, and financing activities were 8.707 billion yuan, -56 billion yuan, and -232 million yuan, representing a year-on-year increase of 645.41%, a decrease of 112.16%, and an increase of 97.27%.
Regarding performance growth, Wuliangye said that during the reporting period, the company continued to consolidate distribution channels and stepped up efforts to expand group buying channels. The sales of the eighth generation Wuliangye in the first half of the year exceeded expectations. Classic Wuliangye completed the introduction as planned, focused on building a highland market, and comprehensively carried out a series of consumer tasting and cultivation activities, which won the recognition of core consumer groups.
The Bohai Securities Research Report pointed out that since Wuliangye’s second venture, it has made overall plans to overcome the problems that have occurred in its products, brands, and marketing channels in the past. At present, Wuliangye’s product structure, product prices, and sales channels have been straightened out. Under the premise of the right direction, positive feedback will continue to strengthen to ensure that the company fully benefits from the expansion of the high-end liquor market and achieves high-quality sustainable development.
As of the close of A shares on August 30, Wuliangye’s stock price was 207.00 yuan per share, with a total market value of 803.5 billion yuan.
Revenue and net profit have double-digit growth for six consecutive years
According to data from Oriental Fortune.com, since the first half of 2016, Wuliangye’s revenue and net profit have maintained double-digit growth for six consecutive years. Among them, from the first half of 2016 to the first half of 2021, the company’s revenue increased by 18.19%, 17.85%, 37.13%, 26.75%, 13.32%, and 19.45% year-on-year; net profit increased by 17.87%, 27.91%, 43.02%, and 31.30%, 16.28%, 21.60%.
Source: Oriental Fortune Network
The financial report shows that in the first half of this year, from the perspective of products, Wuliangye products and series of wine products achieved operating income of 27.138 billion yuan and 6.964 billion yuan, respectively, an increase of 17.27% and 38.57% year-on-year.
The gross profit margins of Wuliangye products and series of wine products were 86.16% and 58%, respectively, and the gross profit margins increased by 0.62 and 2.02 percentage points respectively over the same period of the previous year. In terms of wine series, in the first half of the year, the development momentum of the four national strategic brands of Wuliangchun, Wuliangol, Wuliang Special Qu, and Jianzhuang continued to improve, and the revenue of series wine products increased by 38.57% year-on-year.
In terms of brand operation, in the first half of the year, Wuliangye further strengthened the core single product status of the eighth generation Wuliangye intergenerational series, went all out to create the Wuliangye classic series, and built the two core pillars of the company’s high-quality market share; insisted on being represented by 501 Wuliangye The ancient cellar series of Wuliangye continues to enhance the brand value of Wuliangye, and meets the diverse needs of consumers with high-quality personalized series of new consumption and new cultural and creative products. Wuliangye’s product matrix is clearer, positioning is more accurate, and the brand management requirements of “three characteristics and one degree” Get further practice.
With the improvement of the channel system, Wuliangye’s overall product sales have achieved good growth year-on-month. In the first half of the year, Wuliangye further strengthened the “three managements” of process management, supply chain management, and planning management to promote cost reduction and efficiency enhancement in production. The production volume of Wuliangye was 15,600 tons, and the production volume of series wine was 107,200 tons. The production volume increased steadily. The sales volume of Wuliangye products was 16,200 tons and the sales volume of series wine products was 101,900 tons, achieving good year-on-year growth.
The relevant person in charge of Wuliangye said that the company further promoted production cost reduction and efficiency enhancement in the first half of the year. The increase in sales is due to the company’s efforts to promote the transformation of channel operations, vigorously promote high-quality mobile sales of various channels, and vigorously improve and improve the group buying system. At the same time, the company actively increased the investment in the construction of sub-warehouses to increase the speed of market distribution to ensure market supply.
Focus on “Classic Wuliangye”
Important products of Wuliangye include the eighth generation Wuliangye (hereinafter referred to as “General Five”) and the classic Wuliangye. Among them, the classic Wuliangye is a weapon against the benchmark Feitian Moutai, with a price band of 2,000 yuan.
In September 2020, Wuliangye launched the classic Wuliangye as the company’s strategic high-end large single product. On June 18 this year, Zhu Zhongyu, deputy general manager of Wuliangye Co., Ltd. stated that the marketing development of Classic Wuliangye is mainly reflected in three aspects. The first aspect is channel development. From this month, a comprehensive channel layout of Classic Wuliangye will be carried out. Including merchant network system, terminal system, and group buying system. The second is strong tasting, and the third is atmosphere creation. At the same time, the company’s development of “Classic 30/50” is nearly complete.
In order to reshape the price benchmark of Wuliangye, Wuliangye has recently begun to focus on “Classic Wuliangye”. The suggested retail price of this product is 2899 yuan/bottle, and the group purchase transaction price is 2600 yuan/bottle, which will establish a high-end image during the introduction period.
At present, “Classic Wuliangye” focuses on ensuring prices and cultivating core consumer awareness. After increasing consumer acceptance, “Classic Wuliangye” is expected to expand the circle with the help of channel thrust, and gradually increase the volume.
Everbright Securities pointed out that “Classic Wuliangye” occupied a price band of 2,000 yuan ahead of schedule, which would form a strong first-mover advantage for other brands in the long run. In the future, “Classic Wuliangye” and “General Five” are expected to complement each other and jointly promote the value revival of Wuliangye brand.
Huaan Securities also issued a research report saying that it maintains Wuliangye’s buy rating. Huaan Securities predicts that Wuliangye’s net profit attributable to its parent will be 23.638 billion yuan in 2021, a year-on-year increase of 18.46%. (Beijing Time Finance Xiang Yu)Return to Sohu to see more
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