Finance Association, January 17 (Reporter Chen Kang) Winter is a time to drink hot rice wine, but the rice wine market isn't hot. This evening, leading rice wine company Guyue Longshan (600059.SH) released a performance forecast. The deducted non-net profit was 191 million to 196 million yuan, an increase of 5% to 7.63% compared with the same period last year. The relevant person in charge of the company told the Financial Federation reporter that judging from the category, high-end alcohol is growing faster than regular alcohol, and the company will continue to stick to the middle and high-end route and gradually abolish low-end alcohol.

“The sales situation has been quite lively recently. Dealers are busy making payments and purchasing goods,” the person in charge mentioned. The company will also differentiate and adjust dealers according to product prices.

According to the announcement, Guyue Longshan expects net profit of 392 million yuan to 415 million yuan in 2023, an increase of 94.27% to 105.57% over the previous year. During the reporting period, the company carried out corresponding accounting treatment for some of the demolition compensation payments of Shen Yonghe's winery houses and accessories and the transfer of shares in Longshan Electronics. It was initially confirmed that the non-recurring profit and loss (income) was 201 million yuan to 219 million yuan.

A Financial Services Association reporter learned that nearly 200 million of the non-recurring revenue came from Shen Yonghe Distillery's demolition compensation. After the overall demolition is completed, the company will receive a total revenue of about 450 million yuan after tax, which means there is still 250 million yuan to be collected.

Currently, the price position for medium to high-end rice wine in the industry is 10 yuan or more, and 100 yuan or more is classified as high-grade wine. According to published operating data, Guyue Longshan's revenue in the first three quarters of the year increased 4.21% year on year, and the revenue of ordinary wine increased by 3.03% year on year. The revenue share of high-end wine reached nearly 72%, and it has become the main revenue force.

High-end wines promoted by the company include the “National Brewing 1959” series, the “Blue and White Drunk” series, and the core single “Only Green Jade”. The person in charge mentioned above mentioned that “only this green jade” will sell 30,000 boxes in 2023, an increase of nearly 50% over 2022.

It is worth noting that Guyue Longshan adjusted the prices of some common products aged 5 years and under on December 10, 2023, with a price increase of 2%-5%; the last price increase was in early 2022, when the price increase was 5%-20%. The company claims that price adjustments for some products are due to fierce competition in the alcohol market and rising costs, and product price adjustments will not necessarily increase the company's profits.

Judging from the price adjustments of the two products, the price adjustment in 2023 is for ordinary products (low-end wine), while in 2022 it is for medium to high-end wine. Judging from the price adjustment range, the price adjustment range for ordinary wine is far lower than that of medium to high-end wine.

Huijishan (601579.SH) and Jinfeng Liquor (600616.SH), are also advancing the high-end process. Judging from the data for the first three quarters of 2023 alone, the middle and high-end performance was not as good as Guyue Longshan. Among them, Huijishan's middle and high-end rice wine revenue increased 8.28% year-on-year, lower than the 47.83% increase of ordinary rice wine; high-end products and low-grade products in the Jinfeng Liquor industry achieved sales revenue declines of 11.84% and 17.91% respectively.