Financial Services Association, April 11 (Reporter Xiao Lianghua) In 2023, overall demand in the Chinese wine market is still sluggish, and some wine companies are in trouble. Changyu A (000869.SZ), a leading company in the industry, relied on brand advantages, channel advantages, etc., to finally complete the annual revenue target.

According to the annual report released by Changyu A this evening, the company achieved operating income of about 4.385 billion yuan and net profit attributable to shareholders of listed companies of about 532 million yuan in 2023, up 11.89% and 24.20%, respectively.

The company admits in its annual report that in 2023, overall demand in the wine market was still sluggish. Coupled with strong alcoholic beverages such as liquor and beer being squeezed, the market competition was fierce, and some wine companies were in trouble. Through strategies such as focusing on large single products, the company finally achieved the revenue target of 4.2 billion yuan set at the beginning of the year.

A CFA reporter noticed that the increase in the company's net profit in 2023 far exceeds the increase in revenue. In response, the company stated that the restricted stock incentive plan implemented in 2023 has stimulated enterprise vitality and promoted performance improvement; at the same time, the company integrated and optimized the Yantai port production system and the Yantai self-operated grape base to make better use of the advantages of equipment production capacity, optimize staffing, strengthen profit orientation and quality orientation, and achieve cost reduction and efficiency.

The relevant person in charge of the company told the Financial Federation reporter earlier that consumption was sluggish last year, and imported wine declined quite a bit. At the same time, the domestic wine industry's profit difficulty further increased. However, Changyu's share of high-end products increased further, increasing by about 3 percentage points; at the same time, the company's tourism business has further recovered, and overseas business has also grown. 2023 is considered a good year for Changyu in the last ten years.

According to customs data, the import volume of bottled wine from January to December 2023 was about 155 million litres, and the import value was about US$1.01 billion (approximately RMB 7.268 billion). The volume decreased by 29.54% and 17.81%, respectively. In addition, according to data from the National Bureau of Statistics, in December 2023, enterprises above the national scale produced 22,000 kiloliters of wine, a year-on-year decrease of 12%.

At present, it is still difficult for the entire wine industry to break out of its trough, but Changyu A mentioned in its annual report that some positive factors in the industry are emerging.

The company said that the atmosphere of consuming wine and the perception that it is healthier to consume wine is gradually taking shape; young and trendy drinkers are on the rise, and they are beginning to influence the future development trend of wine consumption; with the rise of the national trend, it is gradually becoming a fashion to consume domestic products. In the long run, the huge development potential of domestic wine has not changed, and the industry will continue to focus on core brands.

Regarding this year's business target, the company said that in 2024, the company will strive to achieve revenue of no less than 4.7 billion yuan. This figure is an increase of about 7% compared to actual revenue in 2023. At the same time, the company said it will strive to keep its main business costs and expenses for the three periods below 3.7 billion yuan in 2023.