WLY(SZ:000858) Chang Jiang Shang Bao·2025-04-28 00:33Core Viewpoint - Wuliangye's annual report for 2024 shows disappointing performance, with a significant drop in production and an increase in sales expenses, indicating challenges in achieving growth targets [1][5][6]. Financial Performance - In 2024, Wuliangye achieved operating revenue of 89.175 billion yuan, a year-on-year increase of 7.09%, and a net profit of 31.853 billion yuan, up 5.44% [1][5]. - The company's net profit declined by 6.17% in Q4 2024, marking the first quarterly decline since Q3 2016 [2][8]. - The revenue growth rate for 2024 is the lowest in seven years, falling below the company's target of maintaining double-digit growth [5][6]. Production and Capacity - Wuliangye's designed production capacity for 2024 is 190,600 tons, with actual production at 118,300 tons, resulting in a capacity utilization rate of 62.07%, down from 68.09% in 2023 [3][10]. - The company reported a 20.44% decrease in production volume, producing 146,461 tons, while sales volume increased by 1.81% to 161,984 tons [10]. Sales and Expenses - Sales expenses reached 10.692 billion yuan in 2024, a year-on-year increase of 37.15%, marking the first time sales expenses exceeded 10 billion yuan [11]. - The decline in revenue from printing and glass bottle products was significant, with decreases of 42.38% and 48.45% respectively, attributed to external economic factors and a downturn in the liquor industry [10]. Industry Context - The white liquor industry is undergoing a deep adjustment period, characterized by intensified competition and structural changes, which Wuliangye acknowledges in its annual report [5][12]. - The company aims to align its growth targets with macroeconomic indicators, particularly GDP growth, which is projected at around 5% for 2025 [12]. Future Outlook - Wuliangye's future strategy includes enhancing brand value and market share while maintaining a cautious approach to growth amid industry challenges [12][13]. - The chairman emphasized the need for industry cooperation to address challenges such as low-price promotions and to promote rational drinking [13].