Author: Zheng Haoyuan, Liu Tiantian, Intern
Editor-in-Chief |
Recently, Jiugui Liquor Co., Ltd. announced that Wang Zhe, the former deputy general manager of Jiujiu, resigned from the position of deputy general manager of the company for personal reasons, and the resignation report took effect when it was delivered to the company's board of directors. As of his departure, Mr. Wang Zhe currently holds 9,700 shares of the company.
According to the rough calculation of Netease Finance, since its listing, Jiujiu Liquor has undergone 4 equity changes, and has experienced at least 10 chairmen, 7 general managers and more than 100 outgoing executives in 22 years, including more than 80 outgoing executives since 2019.
It is reported that since COFCO officially became the owner of Jiujiu Liquor in 2015, the performance of Jiujiu Liquor has ushered in a growth inflection point, and from 2015 to 2022, the revenue of Jiujiu Liquor has increased from 600 million yuan to 4.05 billion yuan, an increase of more than 6 times. However, the performance of "running all the way" stepped on the brakes in 2023, during which the annual revenue of alcoholic liquor fell by 30% year-on-year to 2.830 billion, and the net profit fell by 47.8% year-on-year to 550 million, until 2024Q1, its net profit fell by 75% to 73 million yuan.
Zhu Danpeng, an analyst in the food industry, once pointed out that the "trick" to the soaring performance of alcoholics is actually to press goods. As the "inversion" of market prices becomes increasingly prominent, although the scale of alcoholic liquor continues to grow, the inventory has become a "sword of Damocles" hanging over its head.
Wang Zhe stepped down from the post of deputy general manager of alcoholic liquorOn June 30, Jiugui Liquor Co., Ltd. (000799) announced that the board of directors received a written resignation report from Deputy General Manager Wang Zhe, who resigned from the position of Deputy General Manager of the company due to personal reasons. After his resignation, Mr. Wang Zhe no longer holds any position in the Company, and the resignation report shall take effect when it is delivered to the Board of Directors of the Company.
Drunkard Liquor told the media that Wang Zhe submitted a letter of resignation to the company for personal reasons, and his work was temporarily replaced by Zheng Yi, the general manager of Drunkard Liquor, and the company would promote sales work in accordance with the established strategy.
It is reported that since Wang Zhe joined the company in 2011, he has served as the manager of the northern Hebei region, the manager of the southern Hebei region, the deputy general manager of the northern marketing center, the manager of the Hebei region, and the sales director of the Beijing-Tianjin-Hebei region of the Jiugui Liquor Supply and Marketing Co., Ltd. In 2018, the joint distributor of alcoholic liquor established an internal reference wine sales company, with Wang Zhe as the general manager, and later internal reference also became the main growth point of alcoholic liquor's performance, and in 2022, the alcoholic liquor internal reference series products will achieve revenue of 1.157 billion, a year-on-year increase of 12%, accounting for 28.57% of all revenue. In 2020, Wang Zhe served as the general manager of the company's sales management center, and began to be fully responsible for the marketing of the three major brands of alcoholics, internal references, and Xiangquan, and served as the company's deputy general manager the following year. According to the announcement, after verification, Mr. Wang Zhe currently holds 9,700 shares of the company's stock.
In the secondary market, the stock price has continued to weaken since it reached a high of 59.47 yuan / share in mid-May, and as of the close of trading on June 30, the stock price has fallen to 43.87 yuan / share, a cumulative decline of more than 26%.
It is worth noting that drunkard liquor has been reduced by northbound funds many times in recent days. On June 28, a total of 1,416 stocks held a month-on-month decrease in market value, 206 of which reduced their market value of more than 10 million yuan, and 41 of which reduced their market value of more than 50 million yuan, and the largest market value was Wanhua Chemical, with a market value of 318 million yuan, followed by Wuliangye and Zhongji Innolight, with a market value of 268 million yuan and 253 million yuan respectively.
Some analysts said that the change in the performance of alcoholic liquor is related to the fact that the growth of its brand value in the past few years cannot support the rapid growth of the enterprise and the promotion of the national strategy, coupled with the intensification of competition in the domestic liquor market in the past two years, resulting in pressure on the performance of alcoholic liquor. After Wang Zhe's resignation, the impact on alcoholics remains to be seen.
More than 80 senior executives have left in the past five yearsIn recent years, there have been frequent news of executive changes in alcoholics. Since 2015, when COFCO became the owner of Alcoholic Liquor, it began to send management to Alcoholic Liquor, and successively appointed Jiang Guojin, the former general manager of COFCO, as the chairman of Alcoholic Liquor, Dong Shungang, the former general manager of the beer raw materials department of COFCO, as the general manager, and Li Ming, the former general manager of East China Region of China Foods Co., Ltd., as the deputy general manager.
In 2019, the original distributor Shi Lei reported the addition of cyclamate to its liquor products, and after verification, the Hunan Provincial Market Supervision and Administration Bureau announced the results of the special sampling inspection, showing that according to the statistics of the National Food Safety Sampling Monitoring Information System, the market supervision departments at all levels across the country (including the original food and drug supervision departments) sampled and monitored a total of 64 batches of liquor produced by the Alcoholic Liquor Co., Ltd. from 2017 to 2019, all of which were qualified.
After the "cyclamate" turmoil, the former general manager Dong Shun resigned in 2020 due to job changes, and the company hired Cheng Jun as the deputy general manager, so that he acted as the general manager, and the latter also resigned from the alcoholic liquor a year later, and Zheng Yi, the former vice president of COFCO Wine Investment Co., Ltd. and concurrently the general counsel, took over the position of general manager and has served until now.
In February this year, Drunkard Liquor issued an announcement saying that it would elect Gao Feng, a veteran of COFCO, to succeed Wang Hao as the chairman of Drunkard Liquor. Its former chairman, Wang Hao, who is also a veteran of the "COFCO Department", became the chairman of COFCO Wine at the end of 2017, and succeeded Jiang Guojin as the chairman of Jiuguijiu in March 2018. During his tenure from 2018 to 2022, Wang Hao led the sales of alcoholic liquor to double from 1.187 billion yuan to 4.05 billion yuan, and the stock price also rose more than tenfold.
In the 9 years since COFCO took over, the alcoholic liquor has changed three commanders, and the management is also turbulent, according to the rough calculation of Netease Finance, since the listing, the alcoholic liquor has changed at least 10 chairmen and 7 general managers in 22 years, and there are more than 100 outgoing executives, including more than 80 outgoing executives since 2019.
Behind the frequent changes in management is the intricate change of ownership of alcoholics.
The share turnover of Jiujiu Liquor has roughly gone through four periods: the era of Xiangquan Group, the era of Chenggong Group, the era of Zhonghuang, and the era of COFCO.
According to public information, the development of alcoholic liquor originated in 1956 in Xiangxi Prefecture's first workshop distillery - Jishou Distillery. At that time, Jiujiujiu mainly used traditional techniques to make liquor, providing high-quality liquor products for the local market. In 1977, the establishment of the "Xiangquan" brand marked the beginning of the brand development of alcoholic liquor. In 1997, Jiujiu Liquor was listed on the Shenzhen Stock Exchange, becoming one of the first liquor companies to be listed in mainland China.
In 2000, with the resignation of Wang Xibing, the founder of "Xiangquan Group", drunkard liquor began to decline. Due to poor management and market changes, it once fell into operational difficulties, and its controlling shareholders and management have also changed many times, and its performance has fluctuated.
In 2002, Chenggong Group signed an agreement with Hunan Xiangquan to become the controlling shareholder of Jiujiu Liquor. The introduction of new shareholders this time has driven the drunkard directly into the abyss. From 2005 to 2006, the alcoholic liquor fell to the bottom, with a total net profit loss of 514 million yuan in two years. In 2007, Zhonghuang Co., Ltd. became the largest shareholder of alcoholic liquor, and under its management, the initial operation of alcoholic liquor has improved to a certain extent, but the plasticizer incident occurred, and alcoholic liquor was once again hit to the bottom.
In 2014, COFCO officially became the owner of Alcoholic Spirits, which brought a new inflection point and development opportunities for it. With its strong influence and market resources, COFCO has provided strong support for alcoholic liquor. Under the leadership of COFCO, Jiujiu Liquor has carried out comprehensive reform and upgrading, launched new products and marketing strategies, and its development momentum is unparalleled.
According to the financial report, from 2015 to 2022, the revenue of alcoholic liquor increased from 600 million yuan to 4.05 billion yuan, and the net profit attributable to the parent company increased from 89 million yuan to 1.049 billion yuan. In 2018, the revenue of alcoholic liquor officially exceeded the 1 billion mark, and in 2021, the company's revenue exceeded 3 billion. The good performance has also greatly increased the confidence of the capital market, and the stock price of Jiujiu Liquor has climbed rapidly from 2015 to 2021, and its stock price has increased by nearly 20 times.
didn't think about it, just after Wang Hao said that "the next 10 billion is not a dream", the high growth of alcoholic liquor performance came to an abrupt end. In 2021, the revenue of alcoholic liquor will be 3.4 billion, with a year-on-year growth rate of 87%; The net profit was 890 million yuan, a year-on-year increase of 82%, but the contract liability of the alcoholic liquor has reached 1.38 billion yuan. Since then, the performance growth of alcoholic liquor has slowed down significantly, and the growth rate of revenue and profit has declined. The revenue growth rate in 2022 will only be 18.8%, and even turn negative in 2023, with the growth rate plummeting by 30%, which can be described as a "cliff-like" decline, which is also the first time that the performance of alcoholic liquor has declined since COFCO became a shareholder for 9 years.
Performance took a sharp turn for the worse, and Q1 profits plummeted by 75%In April this year, Jiujiu Liquor (000799) disclosed its 2024 first quarter report, during which its revenue and net profit continued to decline. According to the financial report, in 2024Q1, Alcoholic Liquor achieved revenue of 493 million yuan, a year-on-year decrease of 48.80%; The net profit was 73 million yuan, down 75.56% from the same period last year. In 2023, its annual revenue will be 2.830 billion, a year-on-year decrease of 30%; the net profit was 550 million, down 47.8% year-on-year; The net profit after deduction was 540 million, a year-on-year decrease of 48.9%. The internal reference series, the drunkard series and the Xiangquan series of alcoholic liquor achieved revenue of 720 million, 1.65 billion and 70 million yuan respectively, down 38.2%, 27.4% and 68.0% respectively compared with the same period last year
In this regard, the drunkard said, "In 2023, in the face of the severe and complex environment of the industry's weak cycle, squeezing development period, and the company's reform and transformation period, the company's performance will be under great pressure, especially the company's performance in the first quarter of 2024 will decline significantly." ”
While revenues are declining, marketing expenses are increasing. In terms of expenses, the sales expense ratio and management expense rate of alcoholic liquor in 2023 will be 32.2% and 5.9% respectively, an increase of 6.9% and 1.5% year-on-year, respectively. In Q1 2024, the sales expense ratio of alcoholic spirits will continue to increase by 7.9% to 33.9%, and the management expense ratio will increase by 4.3% to 8.0%.
From the perspective of sales channels, the revenue of online channels in 2023 will be 280 million yuan, a year-on-year increase of 4.1%, while the offline channels will be 2.52 billion yuan, a decrease of 33.2%.
Zhu Danpeng, an analyst in the food industry, once pointed out that the "trick" to the soaring performance of alcoholic liquor is actually to press goods.
"Pressing goods" is an open secret in the liquor industry. Pressing goods refers to the manufacturer's preferential policies to stimulate dealers to cooperate with more goods. However, many of the phenomena of overdraft are at the expense of overdraft market demand, overdraft inventory capacity and even overdraft dealers. At the end of 2019, there were only 528 liquor distributors; In 2023, the number of dealers soared to 1,774, an increase of more than three times.
The expansion of the scale of dealers has brought more distribution channels for alcoholic liquor, but with the increasing prominence of market price "inversion", some dealers have high inventories, and it is difficult to bear the heavy financial pressure brought by warehousing and payment tasks, and they urgently need to return funds, resulting in reduced sales and "channeling" chaos. From 2019 to 2022, the inventory of the alcoholic liquor company climbed from 3,460 tons to 7,375 tons.
Industry analysts believe that under the market pattern of stock competition, drunkard liquor does not have a national advantage, and it is difficult to support the outward expansion of products; On the other hand, the company's blindfolded run in the past few years has led to high inventories and unstable prices after encountering pressure from the industry, which has seriously affected the channel and consumer confidence.