AGSW(SH:600199) Zhong Guo Jing Ying Bao·2025-06-23 12:31Core Viewpoint - Jinzhongzi Liquor clarified market rumors regarding its business scope adjustment, stating that the change from "production of liquor and other alcoholic beverages" to "production of alcoholic products" was a regulatory requirement and not an indication of exiting the liquor industry [2][3] Financial Performance - Jinzhongzi Liquor has faced continuous losses over the past four years, with total losses exceeding 600 million yuan from 2021 to 2024, reporting losses of 166 million yuan, 187 million yuan, 22 million yuan, and 258 million yuan respectively [2][3] - In 2012, the company achieved a revenue of 2.294 billion yuan and a net profit of 561 million yuan, but has since experienced a decline in performance, with net profits dropping significantly from 133 million yuan in 2013 to just 8.19 million yuan in 2017, reflecting a decline of up to 76.22% [3] Market Position and Strategy - As of 2024, Jinzhongzi's revenue of 925 million yuan is significantly lower compared to its peers, such as Gujing Gongjiu with 23.578 billion yuan, Yingjia Gongjiu with 7.344 billion yuan, and Kouzi Jiu with 6.015 billion yuan [4] - The company has identified its main issues as not reaching the breakeven point due to suboptimal product structure and low brand image, with a focus on promoting its "Fuhuo Xiang" series [4][5] Brand and Product Development - The high-end liquor represented by "Fuhuo Xiang" has a gross margin of 57.78%, but its revenue is only 50.84 million yuan, while mid-range and low-end liquors have lower gross margins and higher revenues [5] - Experts suggest that Jinzhongzi's long-term focus on the low-end market has weakened its brand image and pricing power, making it difficult to transition to higher-end products [5] Operational Adjustments - In response to operational pressures, Jinzhongzi is pursuing a "slimming" strategy, including the transfer of 92% of its stake in Anhui Jintaiyang Biochemical Pharmaceutical Co., Ltd. and selling off non-core assets [6] - The company is also increasing its marketing efforts, with a sales expense of 295 million yuan in 2024, a 25.58% increase year-on-year, and a significant rise in advertising expenditure [6][7] Management and Future Outlook - Jinzhongzi's management has been adjusted under the influence of China Resources, with new executives appointed to enhance operational efficiency [7] - Despite increased marketing investments, the company has not seen a corresponding improvement in performance, indicating challenges in establishing a strong brand presence in a highly competitive market [7]