Sou Hu Cai Jing·2025-05-09 09:39Core Viewpoint - The cross-industry transformation of Chinese wine companies is facing severe challenges during the industry's deep adjustment period, with many companies experiencing revenue growth but profit decline, highlighting the common difficulties of diversification strategies [2] Group 1: Company Performance - Gansu Mogao's revenue surged by 65.38% to 328 million RMB in 2024, but its net loss expanded from 41.44 million RMB in 2023 to 52.08 million RMB [2] - Mogao's wine segment generated revenue of 60.56 million RMB with a gross margin of 50.50%, while its biodegradable materials segment had the highest revenue at 111 million RMB but a negative gross margin of -23.34% [3] - Tonghua Wine's revenue reached 869 million RMB in 2024, but it reported a net loss of 49.88 million RMB, marking its third consecutive year of losses [6] Group 2: Business Segmentation - Mogao's losses primarily stem from its biodegradable materials and film bag segments, which have consistently reported negative gross margins since 2021 [5] - Tonghua's wine segment generated 76.23 million RMB with a gross margin of 53.40%, while its e-commerce platform revenue was 791 million RMB with a much lower gross margin of 10.72% [6] Group 3: Industry Trends - The trend of wine companies diversifying into other industries has been common over the past decade, with many attempting to enter the liquor market during the sauce liquor boom, but many faced inventory issues or price drops as the trend faded [9] - Industry experts suggest that wine companies should ideally diversify into familiar fields to mitigate risks, as many are forced to seek alternative growth avenues due to a tightening market environment [11]