Excessive reliance on the lack of competitive advantages in the wine sales in the province

As an important enterprise of Su wine, this wine industry is expected to land on the A-share market after Yanghe shares landed on the small and medium-sized board three years ago. The current IPO application of Jiangsu Jinshiyuan Wine Co., Ltd. (hereinafter referred to as “Shijiyuan Wine”) has passed the preliminary examination, and the follow-up result needs to wait. Careful analysis of sales performance We note that there are some problems in the current market that rely too much on sales and insufficient sales growth in the province.

Nowadays, the wine industry is located in Gaogou Town, Huai'an City, Jiangsu Province, and is mainly engaged in the production, processing, and sales of Luzhou-flavor liquor of the Guoyuan, present-day and high-gutter series brands. According to public information, this wine industry currently produces more than 30,000 white wines per year. Ton.

The current IPO, this time the world wine industry plans to issue no more than 51.8 million shares, raising 990.47 million yuan, for the mechanization of wine and wine quality improvement projects, marketing network construction, information technology and technology innovation projects.

The reporter noted that the growth rate of current wine industry in 2011 is 28%, and there is a big gap compared with listed liquor companies; from the point of view of sales profit margin, it is also far behind the listed companies in the same industry; 90% of the sales revenue of the industry depends on the market in the province, and sustainable development will be affected in the future. The above issues may become obstacles to its IPO.

The performance growth rate lags far behind that of listed companies in the same industry. With the high growth of liquor companies, the current wine industry has also achieved a good sales growth rate. The company achieved sales revenue of 3.5 billion yuan in 2011, an increase of 28% year-on-year; the profit was 540 million yuan. Yuan, a year-on-year increase of 31%. On its official website, Jinshi Wines commented this as "achieving a good start for the 12th Five-Year Plan."

However, the achievements of Yanghe Wine, the competitor of the wine industry in the province, are even more dazzling. As an enterprise listed on the SME Board in 2009, the annual report of Yanghe Wine Company showed that the company's liquor sales revenue in 2011 was 12.6 billion yuan, up 67% year-on-year; its profit was 7.39 billion yuan, up 72% year-on-year. No matter whether it is the amount of revenue or the growth rate, Yanghe’s shares are even better.

In fact, from the 1980s to the early 1990s, the “Sangou River and River” of Su Liquor was once known throughout the country, and one of the “ditches” was the Gaogou Winery, the predecessor of the present-day wine industry. However, with the development of the Yanghe wine industry in “Sangou and Hehe”, especially after the acquisition of Shuanggou in “Sangou and Sanhe” in 2010, Yanghe wine industry will be far ahead of the present wine industry and become Su wine's first brand, and the formation of a strong suppression of the present wine industry.

However, even compared with other listed liquor companies, the performance of today's wine industry is also somewhat thin. According to the reporter’s statistics, the average sales growth rate of liquor sales by listed liquor companies in 2011 was 54.46%, and the average growth rate of sales profits was also 58.29%. Among them, Gujing Distillery, Jinseed Wine, Qipai Shede, Jiugui Wine Companies with sales growth exceeding 70% (as shown). In this sense, the current sales performance of Jinshi Wines in 2011 is not satisfactory.

Moreover, the reporter also noticed that the current growth of the wine industry in 2011 has actually slowed down. According to local media reports and current official website data, the sales of present-day wine industry in 2008-2011 were 1.50 billion yuan, 2 billion yuan, 2.37 billion yuan, and 3.50 billion yuan respectively. From this, it can be calculated that the sales growth rate of the company from 2009 to 2011 was 33%, 37%, and 28%, respectively. Obviously, this year's wine sales growth rate fell by 9 percentage points last year.

In addition, from the point of view of liquor sales profit margins, the average value of the 12 listed liquor companies in 2011 was 69.65%, and today's wine industry is only 15.43%.

90% of sales revenue depends on the development of the province's domestic market In recent years, although the current wine industry's sales revenue continues to grow, but the vast majority come from the province. Zhou Shiming, Chairman and General Manager of Shijiyuan Wine Group, admitted in the media interview that 90% of the revenue of this wine industry is actually from the provincial sales in Jiangsu Province. In addition, according to media reports, the wine industry in Shanghai today accounted for more than 95% of sales in the province.

In contrast to the present-day wine industry, the sales of Yanghe wine inside and outside the province must be much more balanced. Yanghe Wine's 2012 mid-year report showed that its sales revenue in the first half of the year was 5.98 billion yuan, accounting for 64%, while sales revenue outside the province was 3.24 billion yuan, accounting for 35%.

The current sales market of the wine industry is too concentrated, which greatly increases sales risks and poses severe challenges to its sustainable profitability. In this regard, Zhou Suming also admitted that the current full bloom in the national market, there are indeed some resources can not keep up, but the present wine industry has a comprehensive plan for the national market.

However, in the intra-provincial market, the competition faced by the wine industry today is also extremely fierce. At present, Jinshi Wine has established a product structure that uses the Guoyuan series, the present-day series, and the Gaogou series as high, medium, and low grades, but it is still difficult to compete with the Yanghe wine industry. Guotai Junan stated in its liquor industry research report released in August this year that following the acquisition of Shuanggou by Yanghe, the two companies together had a market share of over 50% in the Jiangsu market. The same data from Guotai Junan shows that in 2011, the liquor revenue of Jiangsu Province was 22.7 billion yuan. Based on the current sales revenue of 3.5 billion yuan in the same year, the current wine industry in the province accounts for only about 15% of the market in the province. Therefore, the Yanghe wine industry also has a great challenge to the present wine industry in the provincial market.

In addition, present-day wine industry's products are still mainly concentrated in the low-end, not only seriously restrict their economic benefits, but also face serious competition from foreign brands. It is understood that in the northern Jiangsu region, the consumption of medium and low-end liquor is dominated by real estate wines, but in southern Jiangsu, the brands are mainly from other provinces. Among them, Huihui Yingjiang Distillery, Chuanjiu Wuliang Alcohol and Luzhou Laojiao have Nice performance.

In the report period, due to the fact that the excessive discharge of waste water was severely reported, in addition to the unsatisfactory performance of the business performance, the present wine industry has also received complaints from the public for suspected environmental pollution.

In June of this year, some citizens complained on the official website of the Jiangsu Environmental Protection Agency, claiming that today's 25-ton Brewery does not have desulphurization equipment installed, leading to environmental pollution.

However, the reply given by the Environmental Protection Agency later indicated that the current 3,400 tons/year liquor production project for the second phase of the liquor industry at the Shihshang Winery indeed has 25 tons of boiler facilities, but the project implements a “three simultaneous” system with water film dust removal and desulfurization equipment and smoke. The gas on-line monitoring device was normally used during the on-site inspection, and no high-level exhaust emission was found.

Although the local environmental protection agency in the inspection of the current wine industry for complaints, claimed that no problems were found. However, the reporter found from a report released by the Jiangsu provincial government in 2010 that the current wine industry had excessive discharge of pollutants during the reporting period.

According to a report from the Jiangsu Provincial Government, from late October to November 2009, environmental protection special inspections conducted by seven departments such as the Environmental Protection Agency of Jiangsu Province found that some industrial enterprises had serious discharge of waste water that exceeded their standards. Among them, “Jiangsu Jinshiyuan Wine Industry Co., Ltd. total discharge of waste water total phosphorus 12.8mg/L, exceeding the standard 24.6 times."

In this regard, the report said in the evaluation: “Some enterprises are driven by economic interests, weak awareness of environmental protection, lack of social responsibility, excessive discharge of waste water, and some even privately owned underground pipes, slopping inline production wastewater, a serious threat to the surrounding water environment security” .