On August 23, Financial Association News (Reporter Zhu Wanping) In the context of insufficient demand, A-share liquor distributor vats liquor chain store management joint stock (300755.SZ) achieved a slight increase in net income in the first half of the year, but the Q2 net income was close to a halving year-on-year, and the gross margin of the company's baijiu business also fell to a single-digit level, the lowest gross margin level since its listing.

This evening, the vats liquor chain store management joint stock released its 2024 interim report, with the company achieving revenue of 5.943 billion yuan, a year-on-year increase of 1.30%; a net income attributable to the parent company of 0.155 billion yuan, a year-on-year increase of 2.77%; a non-net income attributable to the parent company of 0.138 billion yuan, a slight decrease of 3.63% year-on-year. The company's operating cash flow for the first half of the year was -60.1919 million yuan, a decrease of 114.28% year-on-year, mainly due to the increase in cash paid for purchases of commodities.

Looking at the quarter, the vats liquor chain store management joint stock achieved revenue of 1.81 billion yuan in Q2 of this year, a year-on-year decrease of 14.77%, with a net income attributable to the parent company of 25.2998 million yuan, a year-on-year decrease of 49.10%, and a non-net income of 9.8646 million yuan, a year-on-year decrease of 77.15%.

From a product perspective, the baijiu business remains the main contributor to the vats liquor chain store management joint stock's revenue. In the first half of this year, the company's baijiu products achieved revenue of 5.585 billion yuan, accounting for approximately 94% of total revenue.

However, the gross margin of the company's baijiu business further declined to 9.36%, the lowest level since its listing. In response, the vats liquor chain store management joint stock explained that due to changes in market demand, the sales proportion of famous liquors increased year-on-year, leading to a decrease in the gross margin of some famous liquors, in line with the overall market trend. On the other hand, against the backdrop of a weak consumption recovery, in accordance with the annual premium liquor marketing strategy formulated by the company, investment in the premium liquor market has continued to increase, leading to a decrease in the contribution rate of premium liquor profits.

The vats liquor chain store management joint stock mainly distributes Maotai, Wuliangye, and other famous liquors. Maotai and Wuliangye products once contributed to over 85% of the company's revenue. However, since November of last year, the ex-factory prices of Maotai and Wuliangye have successively increased, but the actual market prices have not correspondingly risen, instead showing a slight decrease. The market price of Maotai experienced a significant decline in Q2 of this year, undoubtedly squeezing the profit margin of the distribution channels.

The vats liquor chain store management joint stock is also developing its own premium liquors, but the company's premium liquor business is under pressure in the context of weak consumption. In the first half of this year, the company's subsidiary responsible for the sale of premium liquors—Hua Zhi Fine Wine Trading Co., Ltd.—had a net income of 14.05 million yuan, a year-on-year decrease of 75%.