Liquor industry "chill" concentrated release

Following the Huangtai liquor industry, Wuliangye (000858) showed its second mid-term report in the liquor industry late yesterday. According to the mid-year report, the company's wine revenue only recorded a single-digit increase; net profit increased by 15.24%, a three percentage point slower growth rate than in the first quarter. With the loss of Huangtai’s wine industry, the “chill” of the liquor industry was finally released collectively in the mid-year report.

We launch "new wine" in succession

According to the Wuliangye mid-year report, in the first half of 2013, the company realized operating income of 15.520 billion yuan, operating profit of 8.227 billion yuan and net profit of 6.004 billion yuan, and net profit attributable to shareholders of listed companies was 5.791 billion yuan.

These data show that Wuliangye's operating income in the first six months of this year increased by 3.12% over the same period of last year, operating profit increased by 18.70% over the same period of last year, and net profit increased by 15.24% over the same period of last year. In addition, the first half of the Wuliangye liquor increased by only 2.7%, about 14.9 billion yuan, but the gross profit margin increased significantly by 7.12% to 74.11%.

In addition, the industry has always regarded the advance payment as a "cistern" for the adjustment of liquor company profits. The reporter noticed that the advance payment of Wuliangye in the initial period was 6.467 billion yuan, but it dropped to 3.386 billion yuan at the end of the period, a change of nearly 50%. In response, Wuliangye indicated that it was mainly due to the decrease in prepayments paid by dealers.

How to deal with it? Chairman of Wuliangye Group Tang Qiao said last month that restricting “Sangong consumption” has had an impact on leading white spirits. Currently, it is impossible to rely on government affairs and the consumption of high-end groups. Companies must rely on new liquor consumption groups.

This reporter learned that in order to cope with the new situation in the liquor industry, Wuliangye has recently resorted to all kinds of responses, including the introduction of three models at the end of last month, which are priced between 200 yuan and 500 yuan, called the first song, special song and special song selection. In the middle of the "pro-people's new wine," and in the beginning of this month to 250 million acquisition of Hebei Yongbufen pear wine, focused on building 30-100 yuan, 100-300 yuan and other low-priced products.

Before that, Yinji Group, a distributor of Wuliangye listed in Hong Kong, recorded a loss of HK$1.134 billion in 2013 financial year, and sales revenue also dropped by 87%. Huangtai Wine reported that the loss of 580,000 yuan in the mid-term report, highlighting the slowdown in the adjustment period of liquor.

Yesterday, the liquor sector generally fell, including alcoholic spirits, Yanghe shares fell more than 0.90%, Guizhou Maotai fell 0.70%, Wuliangye also fell 0.81%.

Interim results forecast

On July 9th, alcoholic spirits released half-year report performance forecast. The company expects the net profit attributable to shareholders of listed companies from January to June this year to be 28 million to 33 million yuan, a decrease of 87% to 89% over the same period of the previous year.

On July 10th, Qingqing Fen Wines released a pre-announcement report of earnings performance. The net profit for the first half of the year was 208,623,300 yuan to 224.6702 million yuan, an increase of 30% to 40%.

On July 10th, Haopai was willing to release a preannounced announcement of half-year results. It is expected that net profit attributable to shareholders of listed companies will decline by around 80% year-on-year in the first half of 2013.