Financial Associated Press, June 28 (Reporter Huang Lufanglu) Unlike last year's meeting in the factory area, or due to epidemic prevention and control, Jiuguijiu (000799.SZ) 2021 Annual General Meeting of Shareholders was held on June 27 in a hotel in Jishou City .Wang Hao, Secretary of the Party Committee, Chairman and General Manager of COFCO Wine Industry and Secretary of the Party Committee and Chairman of Jiuguijiu, said at the meeting that Jiuguijiu has experienced many things before, and its business has been tested throughout the cycle. Based on the background of COFCO Group and the increasingly mature team of Jiuguijiu , as long as we adhere to the brand strategy and take a differentiated route, we will have 200% confidence in the realization of the long-term goal of 10 billion yuan.
There will be nearly 100 people attending this time, including securities brokerage researchers, private equity institutions, and many years of "iron fans" of alcoholic liquor.During the meeting, the company's executives responded to a series of questions about Jiuguijiu's business strategy this year, future strategy, and the creation of large items.The reporter noticed that after nearly two years of rapid growth, Jiuguijiu ranked third among Hunan stocks with a market value of about 60 billion. Can such a growth rate be maintained?We may be able to find some answers from the question-and-answer room at the scene of Jiuguijiu executives.
"COFCO's appetite is not so small"
"This is the largest shareholder meeting I have attended. The business development of Jiuguijiu has attracted the love and attention of more investors and customers. We are sincerely happy," Wang Hao, secretary of the party committee and chairman of Jiuguijiu, said frankly at the beginning, " Jiuguijiu has experienced many things, and it is not easy to get to this day, but I believe in one sentence, after a business that has been tested throughout the cycle, there will be pain at low points and glory at high points, and then you will finally win."
After COFCO Group took over in 2015, Jiuguijiu has undergone many changes."For state-owned enterprises, although Jiuguijiu is very small in the group's territory, the company does not think it is small, and has always attached importance to the development of its brand business from its genes." Wang Hao said bluntly at the meeting.
In 2015, Jiuguijiu’s revenue was only 600 million yuan, and it achieved a loss-making growth, and then started running all the way.During this period, there are two years worth paying attention to.First, in 2018, the company's revenue officially entered the 1 billion threshold.Second, in 2021, the company will achieve revenue of 3.4 billion yuan, an increase of 86.97% year-on-year; the net profit attributable to shareholders of listed companies is 890 million yuan, an increase of 81.75% year-on-year.Revenue exceeded 3 billion mark.
In 2018, Wang Hao proposed the three-step goal of the 10 billion journey of Jiuguijiu: the short-term goal is 3 billion, the medium-term goal is 5 billion, and the long-term goal is 10 billion.Shareholders at the scene asked questions accordingly, how the company can achieve its long-term goals in the future.
"If the wine has no brand, it is a bottle of stale water," Wang Hao said. "With the blessing of COFCO, the internal reference wine and Jiugui wine can be quickly lifted from the trough, and the nationalization (layout) can be achieved. I won’t mention (long-term goals). COFCO’s positioning of Jiuguijiu is to go national, and it is unlikely that it will only be positioned as a business in Hunan. COFCO’s appetite is not so small, and its vision is not so narrow.”
"The company will insist on quality and brand. Based on the background of COFCO Group and the increasingly mature team of Jiuguijiu, as long as we adhere to the brand strategy and take a differentiated route, our goals will be achieved, and individuals are 200% confident." Wang Hao express.
Product "price band" upgrade strategy
In the first quarter of this year, under the background of repeated epidemics and intensified industry competition, Jiuguijiu achieved operating income of 1.688 billion yuan, an increase of 86.04% year-on-year; net profit attributable to shareholders of listed companies was 521 million yuan, a year-on-year increase of 94.46%.
Judging from the trend of the secondary market, the high growth in Q1 did not drive the stock price of Jiuguijiu to continue to rise.Some investors also expressed concern about whether the company's business objectives can be achieved as scheduled this year.Wang Zhe, deputy general manager of Jiuguijiu, said that the presentation of Q1 performance is an objective expression of customer satisfaction, market satisfaction and the real situation.In the second quarter of this year, the impact of the epidemic was far greater than last year and the year before, especially in areas with severe epidemics, sales were affected to a certain extent.
He said that according to the statistics of the market in April and May, the impact on the actual sales is about 10%.Since mid-to-late May, dynamic sales began to recover, and in early June, it has been close to the level of the same period of the previous year.At this stage, the company does not adjust the target for the whole year, but only adjusts the strategy.One of the company's core tasks this year is to improve sales, consumer education and customer satisfaction, which will continue to be promoted in the second half of the year.
"The company will promote the reform of expenses in the second half of the year. In the past, Jiuguijiu mainly invested its expenses in channels and distributors. Starting from this year, Jiuguijiu will adjust the direction of expenses and invest in consumer cultivation and cultural construction." Wang Zhe further said , the company will upgrade the entire dynamic sales of internal reference to a relatively high level, and insist on making high-end cultural wines.The goal at this stage is not just to increase sales, but to grasp sales and prices.
Regarding the marketing strategy of Jiuguijiu sub-high-end brand, Wang Zhe revealed that from May to June, the company's overall customer development and marketing of products with a price of more than 700 yuan were relatively well done. For example, the company cooperated with Youshang. , is a product attempt by the company to increase the price of alcoholic beverages.In the next stage, the company will further improve the entire sub-high-end value chain, and strive to increase the prices of some products upward in 2022.Products of around 700 yuan or even more than 700 yuan form a new price band, laying a good foundation for the upward extension of the price of the sub-high-end products of Jiuguijiu.
Base wine inventory and capacity expansion
"The company will complete the expansion of production capacity of about 12,000 tons in 2023. How much (proportion) of the new production capacity can be used to produce internal reference wine?" A shareholder from Hangzhou, Zhejiang asked on-site.
"Whether the company's base wine production capacity can be supplied and maintain stable quality is a very professional question. This is one of the most important questions for a liquor company to establish its own life. It is a fudge to say anything else." Wang Hao responded on the spot. , Jiuguijiu's development speed is beyond expectations, so the company's current base wine production capacity construction has to speed up, but quality will always be the premise.
Zheng Yi, vice chairman of Jiuguijiu, said that the company's excellent wine rate is 50% externally, but the actual situation will be higher.Most of the company's new production capacity can be used to make products above Jiuguijiu. Jiuguijiu will be stored for about 1-2 years; the internal reference will take 8-9 years; the internal reference master will take longer.Although it is difficult for me to directly answer how much of the new production capacity can be used as an internal reference, the current base wine reserves and new production capacity can support the company's development needs and product quality in the 14th Five-Year Plan and beyond.
Public information shows that in 2021, the production capacity of Jiuguijiu base wine will be fully released, and the packaging production capacity will be greatly increased, achieving a base wine output of 10,216 tons and a packaging output of 15,980 tons.
In addition, the company's investment of 2.3 billion yuan in the construction of the three-zone production project has officially started, covering an area of about 328 acres. It is expected to be completed and put into production by the end of 2023, with an annual output of 10,800 tons of fragrant base wine and 17,800 tons of base wine storage. ability.By then, the total production capacity of Jiugui Jijiu will reach 22,800 tons per year.
Wang Hao revealed that judging from the current construction progress of Jiuguijiu, it is estimated that there will be great changes when visiting Jishou factory around 2024, including the construction of a large investment in cultural tourism projects, the reconstruction of the second phase, and the third phase. 's new.The company will differentiate itself from other wineries with cultural wines, just like creating company brand differentiation.
