Brand Development and Market Position - In 2024, ZJLD Group achieved significant progress in brand building, quality enhancement, channel innovation, and social responsibility despite a challenging economic environment[16]. - The baijiu industry is currently in an adjustment period, but ZJLD Group remains confident in the future growth potential of its brands, Zhen Jiu and Li Du[18]. - The chairman highlighted that the challenges in the industry present opportunities for differentiation and competition in branding, quality, and consumer experience[18]. - Zhen Jiu was recognized as one of China's 500 Most Valuable Brands for 2024 with a brand value of approximately RMB 24.8 billion[49]. - Li Du maintained its position as the fifth largest mixed-aroma baijiu brand in China, achieving the highest year-on-year growth rate among the top five brands[53]. - Li Du was awarded the title of "Chinese Time-Honored Brand" by the Ministry of Commerce of the People's Republic of China in 2024[56]. Financial Performance - For the year ended December 31, 2024, the company's revenue reached RMB 7,066,784, a slight increase from RMB 7,030,467 in 2023, representing a year-over-year growth of 0.5%[35]. - Profit attributable to equity shareholders decreased to RMB 1,323,622 from RMB 2,327,083 in 2023, reflecting a decline of 43.2%[35]. - Adjusted net profit increased to RMB 1,676,275, with an adjusted net profit margin of 23.7%, compared to 23.1% in 2023[35]. - Revenue from Zhen Jiu decreased by 2.3% to RMB 4,479.7 million for the year ended December 31, 2024, compared to RMB 4,583.2 million in FY2023[123]. - Revenue from Li Du increased by 18.3% to RMB 1,312.9 million for the year ended December 31, 2024, compared to RMB 1,109.6 million in FY2023[123]. - Net profit decreased by 43.1% to RMB 1,323.6 million for the year ended December 31, 2024, down from RMB 2,327.1 million in FY2023[167]. Strategic Initiatives and Growth Plans - The company emphasizes a focus on four key elements: brand, base liquor, distribution channels, and team capabilities to drive sustainable development[20]. - ZJLD Group aims to capitalize on new growth opportunities by continuously innovating and adapting to emerging industry trends[20]. - The company plans to expand its sales channels and enhance brand recognition, particularly for the Li Du brand, which focuses on mixed aroma baijiu products[44]. - The company aims to optimize resource allocation across production costs and marketing expenses to improve profitability[44]. - The company aims to gradually replace third-party base liquor supplies with its own to improve gross profit margins[73]. - The company plans to enhance brand influence significantly in 2025, marking the 50th anniversary of Zhen Jiu[115]. Product Development and Innovation - Zhen Jiu launched new products in 2024, including the 2013 Real Vintage Baijiu and The One Among A Thousand, expanding its package-free product line in the deluxe price range[54]. - Zhen Jiu plans to launch the Zhen 50 Series in 2025 to commemorate its 50th anniversary, honoring its legacy of craftsmanship and innovation[54]. - Li Du's production techniques are recognized as a non-material cultural heritage of Jiangxi Province, enhancing its brand image rooted in historical culture[56]. - In February 2024, Li Du launched the second generation of Sorghum 1955 and Sorghum 1975 to enhance consumer experience[59]. - The product development team consists of 252 employees, with most holding a bachelor's degree or higher, and is led by a technical committee of 78 industry experts[64]. Operational Efficiency and Technology - The company has implemented a multi-channel sales network, including partnerships with distributors, store partners, and direct sales to end consumers, to expand consumer reach[76]. - The company developed a Base Liquor Management System that allows for inventory measurement of each jar in about 20 seconds, enabling daily inventory of 600-700 jars with an accuracy error of less than 0.3%[81][83]. - A comprehensive Quality Management System was established in 2024, covering all production stages and facilitating precise batch quality management and efficient traceability[87]. - The Intelligent Weighing Monitoring System was completed by the end of 2024, improving weighing efficiency and ensuring data accuracy through automated processes[87]. - Digital tools are being leveraged to strengthen monitoring of transaction flows within distribution channels, enhancing channel management[94]. Social Responsibility and ESG Initiatives - Zhen Jiu is committed to social responsibility, planning charitable activities and local poverty alleviation efforts in 2025 to mark its 50th anniversary[24]. - Zhen Jiu's ESG rating improved to "AA" in 2024, ranking it among the top listed baijiu companies[24]. - The company received an ESG "AA" rating from Wind for the second consecutive year and was included in the Wind China Listed Companies ESG Top 100 list[111]. - The company was awarded the title of "National Green Factory" by the Ministry of Industry and Information Technology of China in 2024[111]. - The proportion of green electricity consumed by the company reached over 50% in 2024, reflecting its commitment to renewable energy[110]. Human Resources and Management - The company had 11,380 full-time employees as of December 31, 2024, an increase from 10,956 employees as of June 30, 2024[192]. - The Post-IPO Equity Incentive Plan was approved on April 11, 2023, and aims to align the interests of eligible participants with the Company’s goals[197]. - The Company’s overall strategy is overseen by Mr. Wu Xiangdong, who has over 20 years of experience in the liquor industry[199]. - Mr. Yan Tao has been with the Company since December 2009 and serves as the CEO, responsible for overall management and operations[200].
珍酒李渡(06979) - 2024 - 年度财报