Content of the announcement:

In the first half of the year, the company realized operating income of 191 million yuan, an increase of 6.71% over the same period last year; net profit belonging to the owner of the parent company was 30.0118 million yuan, up 14.75% over the same period last year; and basic earnings per share was 0.0935 yuan, an increase of 14.86% over the same period last year. Analysis conclusion:

The wine business is in line with our expectations. In the first half of the year, the company's wine continued the momentum of rapid growth in the first quarter, achieving a revenue of 149 million yuan, an increase of 41.89% over the same period last year, which was in line with our expectations. The gross profit margin has declined, mainly due to the rapid expansion of the company's market outside the province and the downward movement of the product structure. The revenue of licorice business reached 22 million yuan, an increase of 22.41% over the same period last year, mainly due to price increases.

The comprehensive gross profit margin increased significantly, and the expense rate increased compared with the same period last year.

In the first half of the year, the company's gross profit margin was 54.48%, up 4.19 percentage points from the same period last year, mainly due to a significant increase in the proportion of high-margin wine and licorice tablets. At the same time, the expense rate during the company period increased by 3 points to 30.38% compared with the same period last year, mainly because the sales expense rate increased by nearly 6 percentage points compared with the same period last year. The company began to increase its advertising efforts to TV and other media this year, and sales expenses increased significantly from the first quarter. This trend will continue in the future.

The downward trend of barley malt business further aggravated the company's malt revenue of 16.78 million yuan in the first quarter, down 57.27% from the same period last year, and the growth rate was 11% lower than that in the first quarter. On the one hand, it was affected by the decline in the growth rate of sales in the industry. On the other hand, the decline in imported beer prices also had an impact in the first half of the year. The company's annual depreciation of fixed assets of malt business is more than 10 million yuan. With the continuous decline of income, the possibility of the company's malt business divestiture is also increasing.

Maintain the profit forecast, give the "recommendation" rating and maintain the company's profit forecast of EPS to 0.21,0.29,0.37 yuan respectively in 12-14 years, corresponding to the current stock price PE of 54 times, 40 times and 31 times respectively. At present, the company's wine business is in a period of rapid growth, and new dealers have entered the release period in the second half of the year. The growth of wine sales is worth looking forward to.

Risk tips: marketing expansion is not up to expectations; macroeconomic downside risks.