Three core strategies of Shuijingfang seek breakthroughs

News from this website (Reporter Wang Jinchen) On July 27, Shuijingfang disclosed its semi-annual report

In addition to the company's performance, Shuijingfang's share price also experienced twists and turns

The situation of poor performance and weak stock price also attracted the attention of investors.

Regarding the recent changes in performance data in the semi-annual report, the reporter contacted Shuijingfang and sent an interview letter

The official website information shows that Sichuan Shuijingfang Co.

As a well-known Luzhou-flavor liquor brand, Shuijingfang's performance has fluctuated greatly in the past two years

In the first half of this year, Shuijingfang's revenue growth rate remained at double digits, but its net profit declined

In the first quarter of this year, Shuijingfang achieved revenue of 1.

In this regard, Shuijingfang replied that in the first half of this year, the epidemic repeatedly affected the consumption scene of liquor, and the terminal sales of liquor were generally under pressure

The reporter noticed that the 2022 semi-annual report released by Shuijingfang is also the first 2022 semi-annual report of a liquor company

In terms of products, Shuijingfang achieved revenue of 1.

Judging from the performance of the currently disclosed interim report, under the general trend of the industry further concentrating on advantageous enterprises, advantageous brands, and advantageous production areas, high-end liquor has contributed more performance growth to wine companies, and the performance of the liquor industry continues to diverge

　　Regarding the above situation of Shuijingfang, industry analysts pointed out that this is mainly because although Shuijingfang mainly focuses on high-end products, the brand is not strong

　　Zhu Zhenhao, CEO and vice chairman of Shuijingfang, also said frankly, "Although we are a national famous wine brand, because of our business model, we are still a small brand compared to other competing products

　　Zhu Zhenhao put forward the company's mission for the next five years, including: win more market share in the sub-high-end and high-end markets; build stronger brand value, create a better and more cost-effective consumer experience; optimize the distribution system, actively and high-quality Partners expand the market in multiple dimensions and share more growth dividends

　　In order to increase its own size, on May 10 this year, Shuijingfang announced that it plans to build the "Second Phase of the Shuijingfang Qionglai Whole Industry Chain Base Project" in the Green Food Industrial Park of Qionglai City, Sichuan, including the brewing base and bottled wine packaging.

　　In addition, Shuijingfang also invested heavily in brand marketing
.
The 2021 semi-annual report shows that during the reporting period, Shuijingfang invested 583 million yuan in sales expenses
.
In this regard, Shuijingfang said that this was mainly due to the large amount of pre-investment in the second quarter to build brands and cultivate markets and consumers
.

　　The 2021 annual report shows that for the whole year of last year, Shuijingfang's sales expenses increased by about 45% year-on-year to 1.
227 billion yuan, of which advertising and promotion expenses reached 1 billion yuan
.
In order to get more shares in the expansion of the high-end market, in August 2021, Chengdu Shuijingfang High-end Liquor Sales Company was established
.

　　Judging from the newly disclosed interim report data, in the first half of this year, Shuijingfang’s sales expenses were 695 million yuan, a year-on-year increase of 19.
27%
.

　　In order to build itself into a high-end brand, Shuijingfang has paid a lot of money
.
In this regard, Zhu Zhenhao also said that the establishment of brand power requires long-term and continuous investment in the company's marketing.
"The company will adjust the rhythm of future marketing investment according to the development of the epidemic
.
"

　　In this context, how does Shuijingfang plan to achieve the annual goal of increasing both revenue and net profit by 15%? In this regard, Shuijingfang responded that the company will continue to focus on three core strategies (product upgrade innovation, brand high-end and marketing breakthroughs), and strengthen resource investment, including supply chain improvement, brand, channel building and consumer cultivation.
Healthy growth provides sufficient motivation
.

　　Responsible editor: Huang Xin Review: Zheng Ying