On liquor, Sichuan wine can hold up half the sky.
Statistics show that in 2020, the Sichuan liquor industry will achieve 49.6% of the national output and 48.8% of the national liquor business revenue with 35.3% of the national liquor enterprises above designated size.
"One of the two bottles" is the goal pursued by Sichuan Wine. They hope that for every 2 bottles of liquor consumed by the people of the country, 1 bottle will come from a Sichuan liquor company. If judging from the production data, this goal may be achieved in 2021.
High revenue growth in five years, Shuijingfang takes the lead in Sichuan wine
In Sichuan Province, liquor has always been an important supporting industry.
In 2015, Sichuan Province was the first to issue 10 opinions on supporting the liquor industry, becoming the first provincial government in China to support the development of the liquor industry.
In the past five years, the revenue of the four listed liquor companies has grown rapidly. The annual reports of the four liquor companies in 2020 have been fully disclosed. Compared with 2016, Wuliangye (000858)’s revenue has increased by 133.55% in the past five years, and Luzhou Laojiao’s revenue has increased by 93.04% in the past five years. Revenue increased by 84.98%, and Shuijingfang's revenue increased by 155.51% in the past five years.
Judging from the revenue growth data in the past five years, among the 19 listed liquor companies, 4 Sichuan liquor companies ranked third, fifth, seventh and eighth, among which Shuijingfang grew the fastest.
Thanks to the continuous efforts of Sichuan wine companies, the national proportion of liquor production in Sichuan Province has increased from 29.64% in 2016 to 49.6% in 2020, an increase of nearly 20%.
Chuanjiu's performance in 2020 is dazzling, Shuijingfang digests inventory and shows pressure
Different provinces have different choices for pillar industries, and in Sichuan's "5+1" modern industrial system, the five trillion-level pillar industries are electronic information, Equipment manufacturing, food and beverages, advanced materials, energy and chemical industries, and the liquor industry is an important support for food and beverages to impact the trillion-dollar scale.
In 2020, as the final year of the "Thirteenth Five-Year Plan", Sichuan Province has strengthened its support for liquor enterprises, and on April 13 issued a list of "Key Tasks for the High-Quality Liquor Industry in 2020".
This list has seven aspects for 2020, including grasping the guidance of industrial policies, promoting the construction of major projects, supporting enterprises to become bigger and stronger, improving the quality and efficiency of Sichuan wine, holding important events, rectifying and regulating market behavior, and promoting industrial integration and development. The key tasks of the liquor industry have been sorted out and clarified.
The task lead units include the Provincial Development and Reform Commission, the Provincial Party Committee Propaganda Department, the Economic and Information Department, the Ecological Environment Department, the Science and Technology Department, the Agriculture and Rural Department, the Commerce Department, the Public Security Department, the Culture and Tourism Department, the Provincial Market Supervision Bureau, and municipalities at all levels. government etc.
With the support of the policy, Sichuan Wine's overall business performance in 2020 is improving. From the perspective of profitability indicators, Wuliangye, Luzhou Laojiao, and Shede all achieved double growth in revenue and net profit.
Among them, Wuliangye’s revenue increased by 14.37% year-on-year, and its net profit increased by 14.67% year-on-year, showing a steady and rapid growth; Luzhou Laojiao’s revenue increased by 5.28% year-on-year, and its net profit increased by 29.38% year-on-year. Outbreak; willing revenue increased by 2.02% year-on-year, net profit increased by 14.42% year-on-year, and net profit increased rapidly. In terms of income growth level, Wuliangye is the strongest, and in terms of profit growth level, Luzhou Laojiao is the strongest.
Compared with the rapid growth of revenue in 5 years, in terms of revenue growth in 2020, Shuijingfang's performance is obviously inferior to the other three wine companies. Shuijingfang's revenue fell by 15.06%, and its net profit fell by 11.49%, breaking the continuous growth of four Sichuan wine companies since 2016.
The reason is that, on the one hand, in the first half of 2020, the COVID-19 epidemic has led to a decline in the activity of social scenes, which has a greater impact on liquor with high social attributes. The main focus is on destocking, which led to a decline in the company's overall sales in the first half of the year. Although it achieved a certain improvement in the second half of the year, it still led to a decline in the annual performance. The impact of
inventory is verified in the 2021 quarterly report. Thanks to the digestion of inventory, Shuijingfang achieved a year-on-year increase of 70.17% in revenue and a 119.66% year-on-year increase in net profit in the first quarter of 2021.
For food consumption, inventory is an important indicator of business strategy and results. Inventory plays an important role in smoothing sales across years. Judging from the inventory increase of the four wine companies in 2020, Wuliangye's inventory decreased by 10.18%, Luzhou Laojiao decreased by 20.94%, Shuijingfang increased by 24.57%, and Shede increased by 78.38%.
The inventory decline of Wuliangye and Luzhou Laojiao can be predicted to a certain extent in terms of revenue, while for Shuijingfang, the increase in inventory levels is also within an acceptable range. It should be noted that compared with the other three wine companies, the inventory increase of Shede has increased significantly, which also means that Shede needs to devote more energy to destocking, which puts forward higher requirements for its management and control in 2021. requirements.
