Shanxi Xinghuacun Fen Wine Factory (SH:600809) Sou Hu Cai Jing·2025-08-13 01:44Core Viewpoint - The article highlights the strategic establishment of the "First Workshop" by Fenjiu in Qitai County, Xinjiang, focusing on high-quality barley cultivation to enhance the quality of Chinese liquor production, amidst a transforming liquor industry where the demand for quality exceeds supply [4][6][15]. Group 1: Industry Overview - The Chinese liquor industry is undergoing significant changes, with a consensus that there is a long-term shortage of quality liquor despite an overall production of 4.145 million kiloliters in 2024, a 1.8% decrease year-on-year, while sales revenue reached 796.4 billion yuan, a 5.3% increase [4]. - The focus on securing quality raw materials has become a critical challenge for leading liquor companies [4]. Group 2: Fenjiu's Strategic Move - Fenjiu's decision to establish its "First Workshop" in Qitai is a response to the need for quality assurance in liquor production [6]. - Qitai County is recognized for its agricultural heritage and is a certified "Barley Town," with 2.2 million acres of arable land, making it an ideal location for barley cultivation [6][8]. - The region's climate, characterized by approximately 3,000 hours of sunlight annually and a frost-free period of about 160 days, provides optimal conditions for barley growth [6]. Group 3: Barley Cultivation and Technology - The "Fenjiu Barley No. 1" variety has been introduced in Qitai, demonstrating strong performance even under extreme weather conditions, and is expected to be widely cultivated in the region [12][14]. - The barley variety is specifically bred for liquor production, ensuring high yield and strong resistance, which aligns with the quality requirements for brewing [14]. Group 4: Economic Impact and Community Engagement - In 2024, Fenjiu reported revenues of 36.011 billion yuan and a net profit exceeding 12.243 billion yuan, with a 14.35% increase in revenue from mid-to-high-end products [15]. - The company's order-based agricultural model supports local farmers by providing stable prices and encouraging barley cultivation, thus contributing to rural revitalization [18][21]. - The initiative aims to create a symbiotic relationship between the company and local farmers, enhancing both agricultural productivity and community prosperity [21].