Shuijingfang’s third quarter report warms up

On the evening of October 29, Shuijingfang released the third quarter report of 2020. In the first three quarters of this year, Shuijingfang achieved revenue of 1.946 billion yuan, a year-on-year decrease of 26.58%, and a net profit of 502 million yuan, a year-on-year decrease of 21.49%. Among them, from July to September 2020, the main business income of Shuijingfang was 1.141 billion yuan, with a year-on-year increase of 18.86%; the net profit of single quarter was 399 million yuan, with a year-on-year increase of 33.09%. On October 30, Zhu Zhenhao, acting general manager of Shuijingfang, told the times weekly and other media at the third quarter of 2020 media communication meeting that the company’s revenue growth in the third quarter mainly came from two aspects, one was replenishing inventory, the other was from core dealers, “because the company didn’t press goods with dealers in the first half of the year, dealers took them from the company in the third quarter The value of the goods has increased. As the only liquor listed company controlled by foreign capital in China, Shuijingfang’s performance this year has been ups and downs, and the management has changed accordingly. Wei yongbiao, who has been the general manager of Shuijingfang for only 14 months, resigned on September 18. Three days later, the company announced that Zhu Zhenhao, vice chairman of the board, would temporarily assume the responsibilities of the general manager. This media communication meeting is also the “first show” of Zhu Zhenhao, the new leader of Shuijingfang. Zhu Zhenhao told the times weekly that after taking office, there may be more than three fires, but the three most important things in the future are to carry out more influential brand communication, sort out the value chain of Shuijingfang, and improve the efficiency of marketing expenses. “I think some of the strategies put forward by President fan Xiangfu and President Wei are right and should be continued What I have to do is extract it, and the execution of this process is the key. ” < p > < p > Shuijingfang of Tieda, general manager of Liushui. More than a month ago, Shuijingfang successively announced that Wei yongbiao resigned from his post as director, general manager and member of strategy and Executive Committee of Shuijingfang for personal reasons. Before the appointment of a new general manager, Zhu Zhenhao will perform the duties of the general manager on September 22. The board of directors of the company will complete the appointment of the general manager as soon as possible in accordance with relevant regulations. < / P > < p > this is the fifth time that Diageo has adjusted the selection of general manager since 2010. Zhu Zhenhao, 54, is the second senior executive from the Department of Diageo after his thinking. He served as general manager of the mainland China region and managing director of Greater China, and became Vice Chairman of Shuijingfang since May 2019. Zhu Xianghao had no experience in liquor industry before. It’s not too much to describe Zhu Zhenhao’s new career as being appointed in time of crisis. Affected by the epidemic situation, in the first half of 2020, Shuijingfang achieved a revenue of 804 million yuan, a year-on-year decrease of 52.41%, and a net profit of 103 million yuan, a year-on-year decrease of 69.64%. Among them, the net profit loss in the second quarter was 87.8549 million yuan, down 172.61% from 121 million yuan in the same period last year. In the first half of the year, 19 liquor companies were listed. < p > < p > a person close to Shuijingfang told the times weekly that in view of Diageo’s shareholder background and the small liquor circle, it is not easy for Shuijingfang to find a suitable general manager. It is expected that Zhu Zhenhao will act as the general manager for a long time in the future. According to Zhu Zhenhao, it is not known when the new general manager will be in place. At present, Shuijingfang is looking for suitable candidates, hoping that the new general manager can lead the long-term development of the company in the next 5-10 years. < p > < p > on the day of the third quarter report of 2020, Shuijingfang announced that the company’s legal representative had been changed from Wei yongbiao to Zhu Zhenhao. In addition to the permanent danger standard, other high-rise buildings of Shuijingfang have also been adjusted accordingly. On October 14, Shuijingfang announced that preeti Arora, a director of the company, resigned from his post as director, member of strategy committee, member of audit committee and member of Remuneration Committee of Shuijingfang from October 30, 2020. On October 30, Shuijingfang held the first extraordinary general meeting of shareholders in 2020 to deliberate on the election of directors and independent directors of the 9th board of directors. Jiang Leifeng, financial director of Shuijingfang and Sanjeev, Asia Pacific chief financial officer of Diageo Singapore Pte Co., Ltd., were deliberated and approved Churiwala served as the director of Shuijingfang, Chen daili, financial director of Greater China region of Diya Jiou Wine Trading (Shanghai) Co., Ltd., served as the supervisor of the 9th board of supervisors, and Zhang Peng served as the independent director of the 9th board of directors. Despite the obvious recovery of overall performance, China Merchants Securities pointed out in its recent research report that the year-on-year growth of 19% and 33% of Shuijingfang’s revenue and net profit in the third quarter was slightly lower than the market expectation. At the same time, the company’s sales revenue in the third quarter was 1.493 billion yuan, up 33.64% year-on-year, and the operating net cash flow increased by 345% to 957 million yuan, indicating that the dealers paid more actively in the third quarter. According to product grade, in the first three quarters of 2020, the operating revenue of high-grade and medium-grade liquor products of Shuijingfang were 1.898 billion yuan and 47.1017 million yuan respectively, with a year-on-year decrease of 25.31% and 27.53%. Among them, in the third quarter, the revenue of high-end liquor and middle-grade liquor of Shuijingfang were RMB 1.118 billion and RMB 24 million respectively, which were 17 times and 0.85 times higher than that of RMB 62 million and RMB 13 million in the second quarter. < / P > < p > “frankly speaking, our development in the high-end sector is not ideal. From the data, we can see that the development of the high-end sector lags behind the development trend of the whole company.” Zhu Zhenhao said that the company launched the collection series in 2017 and launched jingcui Series in 2018, and has done a lot of influential activities, but the follow-up channel and brand follow-up efforts are not enough. In terms of brand communication, channel playing method and group buying operation, the playing methods of secondary high-end liquor and high-end liquor are still different. “Shuijingfang should go out of its own style in the high-end market through its own exploration”. Shuijingfang insists on high-end development and is bound to face more fierce market competition. On November 1, liquor analyst Cai Xuefei told the times weekly that as a secondary high-end regional liquor enterprise, Shuijingfang’s performance fluctuated under the pressure of first-line liquor enterprises and strong regional liquor enterprises in recent years, which is in line with the trend of liquor brand and quality. Compared with other similar regional liquor companies, Shuijingfang has a single product structure, and due to the lack of product matrix protection, in the case of policy and environmental deterioration, the overall anti risk ability is weak. < / P > < p > “under the situation that the first-line liquor companies are constantly plundering market resources, Shuijingfang should speed up the nationwide promotion of super large single products, seek a safer business environment, make efforts to experience the economy, and break through from the perspective of winery and new retail may be a new path.” Cai Xuefei said. < p > < p > ZHU Zhenhao believes that Shuijingfang is gradually getting rid of the adverse effects of the epidemic. From the current point of view, the social inventory of Shuijingfang in the third quarter has returned to a healthy level, and it is believed that the performance of the fourth quarter will continue to grow. “But the revenue in the first three quarters still decreased by more than 20 percentage points, and the fourth quarter is a big challenge.” Zhu Zhenhao said frankly. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. 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