SHUNXIN AGRICULTURE(SZ:000860) 2 1 Shi Ji Jing Ji Bao Dao·2025-04-23 08:10Core Insights - After two consecutive years of decline, Niulanshan has finally returned to growth, with revenue exceeding 7 billion yuan in 2024 [1][2] - The recovery is attributed to a focus on key markets and core products, particularly in the Pearl River Delta and Xinjiang regions, which saw sales growth of 50% and 23% respectively [2] - Despite revenue growth, the gross profit margins for all categories of liquor have declined, indicating a reliance on low-end liquor sales for revenue increase [3] Revenue and Sales Performance - In 2024, the white liquor business achieved revenue of 7.041 billion yuan, with sales volume of 369,400 kiloliters and production of 378,800 kiloliters, all showing growth [1] - The classic Erguotou and traditional Erguotou series saw significant sales increases, with classic Erguotou up 32% and traditional Erguotou up 37% year-on-year [2] Profitability and Cost Structure - The gross profit margins for high, medium, and low-end liquor have decreased by 4.35, 4.19, and 5.33 percentage points respectively, due to rising costs across all categories [3] - The cost of finished liquor procurement reached nearly 2 billion yuan, with a year-on-year increase of 25%, becoming the largest cost item for the white liquor business [3] Strategic Initiatives - Niulanshan has proposed a "dual-wheel drive" strategy centered on the White Bull II and Gold Label products to adapt to new national standards [3] - However, sales of these core products have continued to decline, with White Bull II sales down 2.95% year-on-year and Gold Label sales down 19.8% [4][6] Future Outlook - There is uncertainty about whether Niulanshan can maintain annual revenue of 7 billion yuan in 2025, as the first quarter of 2024 showed a revenue decline of 19.7% [8] - The company's inventory decreased by 36.5% compared to the beginning of the year, indicating reduced sales and inventory levels [8]