Author who knows the meaning of wine | Brother who knows wine

On the evening of April 18, Tianyou de Liquor released its 2023 annual report. According to the annual report, the company's revenue exceeded 12.Hideousslots.1 billion yuan, with revenue and net profit growing by 23.50% and 18.36%, respectively. At the same time, the company's high-end highland barley liquor accounted for more than 50%, the gross profit margin increased, showing a strong industry competitiveness.

Behind the beautiful core data, it also exposes the drawbacks of the company's falsely high marketing investment, cost control and diversified business development. It should be noted that the regional revenue of Tianyou de Liquor mainly depends on the local consumption in Qinghai. The revenue outside the province only accounts for 1/3 of the provincial revenue, the difference in gross profit margin is 18.79%, the number of dealers increases but the contribution is low, and the market expansion outside the province is weak. The company's globalization strategy may face greater challenges.

Revenue breaks through the 1.2 billion mark

High-end products account for more than 50% of revenue.

According to the latest 2023 annual report of Tianyou de Liquor, the company achieved a total operating income of 1.21 billion yuan, an increase of 23.50% over the same period last year, and a net profit of 89.58 million yuan, an increase of 18.36% over the same period last year. Among the five liquor companies that have disclosed data, Tianyou de Liquor ranks third in terms of revenue and return net profit growth, belonging to the upper-middle level.

From the perspective of business composition, the product line of Tianyou de Liquor is mainly divided into highland barley liquor and itsHideousslotsHis highland barley wine and wine. Among them, highland barley liquor is divided into two series according to the retail price: 100 yuan / 500ml and 100 yuan / 500ml. Data show that high-end highland barley spirits (retail price more than 100 yuan) achieved business income of 577 million yuan in 2023, accounting for 53.1 percent of revenue, an increase of 6.63 percent over last year. This growth trend highlights the continuous breakthrough of highland barley liquor in the process of high-end liquor.

Source: Choice, know the meaning of wine

In terms of gross profit margin, the gross profit margin of high-end highland barley liquor is 76.61%, which is much higher than that of low-end products, which further promoted the overall gross profit margin of the company, from 62.02% to 63.01%.

In terms of financial quality, the net operating cash flow of Tianyou de Liquor was 104 million yuan at the end of 2023, reflecting the improvement of the company's profitability. At the same time, the number of inventory turnover days fell 8.77% compared with the same period last year, and the current ratio ranks first among liquor stocks and second after Guizhou Moutai, indicating that the company's operational efficiency has been improved.

From the core data of the financial report, the competitiveness of Tianyou de Liquor is constantly improving. The construction of the "four places" in Qinghai Province and the implementation of the highland barley industry revitalization plan have provided strong support for the company's brand promotion and market consolidation in the core sales areas. At the same time, Huzhu County has been awarded the title of "China Highland Barley Wine Countryside Mutual Assistance", which will further enhance the market influence of Tianyou de brand and highland barley wine category.

The net interest rate ranks at the bottom

Wine loss is uncertain.

Although the core financial data of Tianyou de Liquor shows a positive growth trend, in-depth analysis of its business situation, understand the wine brother can still find some problems.

First of all, from the growth rate of sales volume and operating income, Tianyou de Liquor achieved a total revenue of 1.21 billion yuan in 2023, an increase of 23.50% over the same period last year, while its liquor sales increased by 21.52% compared with the same period last year. To some extent, this shows that the sales prices of Tianyou de Liquor's main products have not increased significantly, which may be a factor limiting the growth of the company's net profit.

Secondly, according to the data at the end of the third quarter of 2023, Tianyou de Liquor ranks sixth in the liquor industry in terms of sales expenses as a proportion of operating income, 4.66 percentage points higher than the industry average. This shows that the company invests a lot in marketing, although it helps to improve brand awareness and market share, it may also increase the company's operating costs and put pressure on net profit.

Source: Choice, know the meaning of wine

In addition, Tianyou de Liquor has a net interest rate of only 7.67%, ranking at the bottom of the liquor industry. This shows that the company may have large non-sales expenses in the business process, such as management expenses, R & D expenses, etc., which may be important factors affecting the company's net profit.

It is worth noting that Tianyou de Liquor is not perfect in terms of diversified business. According to the financial report, although the company's wine business achieved an operating income of 15.0746 million yuan in 2023, it still lost 14.6411 million yuan, and occupied some of the company's R & D investment-- Tianyou de wine R & D expenditure of 158 million yuan in 2023, an increase of 31.85% over the same period last year. Considering the competition pattern and declining trend of the domestic wine industry, the development prospect of this business is uncertain, which may bring risks to the future operation and development of the company.

It can be seen that Tianyou de Liquor has achieved growth in revenue and sales volume, but it still faces challenges in product pricing, marketing investment, cost control and diversified business development.

The revenue outside the province is only 1/3 of that in the province.

The number of dealers has increased, but the contribution is low.

For the future development of Tianyou de Liquor, although the company has shown a positive attitude towards the national market, from its 2023 annual report, the implementation of this strategy seems to have retrogressed.

First of all, from the point of view of the regional distribution of revenue, there is an obvious difference in the performance of Tianyou de wine between inside and outside Qinghai province. In 2023, the operating income of Qinghai Province was 807 million yuan, while that of the market outside the province was only 374 million yuan, accounting for 66.65 percent of the revenue in the province, a further increase of 1.98 percent over the previous year.

However, it is worth noting that although the market size in Qinghai Province is relatively limited, its wine gross profit margin is as high as 69.43%, far exceeding the 50.64% of the market outside the province. While Beijing, Shanghai, Guangdong, Zhejiang and other areas outside Qinghai Province have higher per capita GDP and people's disposable income, and have higher ability to consume high-end liquor. Tianyou de Liquor can take this opportunity to improve the gross profit level of business outside the province. This shows that although Tianyou de Liquor has a relatively stable market position in Qinghai Province, it still faces challenges in the expansion and profitability of markets outside the province, and its popularity outside the province needs to be improved.

Source: Choice, know the meaning of wine

Secondly, judging from the number of dealers and their performance, it further verified that it is not easy for Tianyoude Liquor to expand the market outside the province. Although the number of dealers outside the province has increased by 5 in 2023, reaching 522, far exceeding the number of 77 dealers in the province, the average revenue generated by each dealer is only 717,000 yuan, far lower than the province's level of 10.474 million yuan. This reflects that Tianyoude Liquor needs to be strengthened in terms of channel expansion and dealer management capabilities in markets outside the province.

However, it is worth mentioning that Tianyoude Liquor has achieved good results in online direct sales. Through e-commerce platforms such as Jingdong, Tmall, and Douyin, the company's online direct sales revenue in 2023 will reach 39.883 million yuan, a year-on-year increase of 36.52%, which is higher than the overall revenue growth rate.

In summary, Tianyoude Liquor's revenue still shows the characteristics of being highly dependent on the provincial market, and the revenue breakthrough outside the province is weak. In the future, the company needs to strengthen the expansion of the provincial market and improve its profitability to achieve a more comprehensive market development.