King's Luck(SH:603369) Sou Hu Cai Jing·2025-07-14 01:55Core Insights - The Chinese liquor industry is entering a deep adjustment period in 2024, with intensified market competition and frequent personnel changes, prompting companies to view "reform" as a key driver for exploring new growth points to meet challenges and seize opportunities [2] Company Overview - Guo Xiangyue, the chairman of Jinshiyuan Liquor, has led the company through significant strategic reforms since taking over in April 2022, focusing on enhancing organizational efficiency and brand revival [5][7] - Under Guo's leadership, Jinshiyuan achieved a revenue of 115.44 billion yuan in 2024, with a net profit of 34.12 billion yuan, although growth rates have noticeably slowed [12] Strategic Initiatives - The company has implemented a departmental reform to a business unit structure, allowing for specialized operations across multiple brands, which aims to enhance organizational speed and efficiency [8] - Jinshiyuan's national strategy has shifted from point-based breakthroughs to a focus on surrounding areas and regional integration, particularly targeting the 400-500 yuan price range in East and North China [8][10] Performance Metrics - In 2023, Jinshiyuan's revenue surpassed 100 billion yuan for the first time, reaching 100.98 billion yuan, a year-on-year increase of 28.07%, with a net profit of 31.36 billion yuan, up 25.30% [10] - For 2024, the company reported a revenue increase of 14.32% and a net profit increase of 8.80%, but did not meet its previously set annual targets [12] Market Challenges - The company faces challenges in expanding its market presence outside Jiangsu, with only 8% of total revenue coming from provincial markets, despite a 27.37% year-on-year growth in that segment [14][15] - The number of provincial distributors has fluctuated, indicating difficulties in establishing a stable sales network outside its home province [15] Future Outlook - Jinshiyuan's leadership has adopted a more cautious approach for future growth, aiming for a revenue increase of 5%-12% and a net profit growth slightly below revenue growth [19] - Experts suggest that the company needs to overcome its provincial expansion challenges and high-end market obstacles to sustain long-term growth [18][20] Innovation and New Channels - The company is exploring new retail channels and testing regional markets through self-built teams and third-party collaborations, aiming to establish a direct link to consumers and reduce intermediaries [21][22]