Financial Association News on November 8 (Reporter Chen Kang) Shanghai Jinfeng Wine (600616.SH) continued to incur losses in the first three quarters, with a significant year-on-year decline in net income. The company's management stated at the 2024 third-quarter earnings conference today that the fourth quarter has entered the peak season sprint stage. While undergoing marketing reforms, the company has strengthened cooperation with Guangming Group's Haibo Supply Chain, Jieqiang Company, Guangming Commercial, and strictly controlled expenses.

Since the beginning of this year, Shanghai Jinfeng Wine has issued several announcements regarding changes in senior management. In March, the former Chairman and General Manager of the company, Tang Wenjie, resigned. Zhu Yong, who previously held positions such as General Manager of Sichuan Quanxing Liquor Co., Ltd., was elected as the Chairman of the company. Some investors raised the question again at the earnings conference whether there is a plan to inject Quanxing Liquor into the listed company, to which Zhu Yong responded, 'Quanxing and Shanghai Jinfeng are both key subsidiaries of Guangming's liquor sector. Currently, the company is still focusing on the development of the main business of huangjiu(chinese liquor).'

When Zhu Yong took office, it triggered speculation about cooperation between Shanghai Jinfeng Wine and Quanxing Liquor, with expectations that it would bring incremental baijiu(chinese liquor) business to Shanghai Jinfeng. At the company's 2023 annual earnings conference, investors posed the same question, and Zhu Yong's response was similar to today's, stating, 'The company continues to focus on the main huangjiu(chinese liquor) business, strengthening the foundation, expanding the core market, refining high-end products, and activating the young market.'

Shanghai Jinfeng Wine is a listed company under Guangming Food Group's liquor platform, with brands such as 'Shikumen,' 'Golden Years,' and 'Jinfeng' in huangjiu(chinese liquor). In the first three quarters, the sales revenue of Shanghai Jinfeng Wine's medium-to-high-grade huangjiu(chinese liquor) and low-grade huangjiu(chinese liquor) decreased by 0.17% and 4.30% year-on-year, respectively, with a larger decline in sales of low-grade baijiu(chinese liquor). Zhu Yong mentioned that currently, huangjiu(chinese liquor) still mainly consists of mid-to-low-range products, with family consumption as the main focus. Several leading huangjiu(chinese liquor) companies are actively promoting the development of medium-to-high-end products, and the future industry development will revolve around stock competition and structural upgrades.

Facing the overall small scale and intense competitive landscape of the huangjiu(chinese liquor) industry, the three listed huangjiu(chinese liquor) companies have shifted their focus to a younger demographic: Kuaijishan(601579.SH) launched sparkling huangjiu(chinese liquor), Zhejiang Guyuelongshan(600059.SH) introduced coffee huangjiu(chinese liquor) and lime huangjiu(chinese liquor), and Shanghai Jinfeng Wine also mentioned its new product 'Shanghai Me Tong' multiple times at the earnings conference, stating that this is the industry's first innovative sugar-free huangjiu(chinese liquor). According to publicly available data, this product has not yet generated substantial revenue.

During the earnings conference, the company emphasized its focus on live streaming sales this year, with 232 live broadcasts held so far this year and overall sales on Douyin platform reaching about 4 million. At the same time, it has increased cooperation with major platforms on QEM products to increase sales nationwide and capture market share. Shanghai Jinfeng Wine's sales channels include direct sales (including group purchases) and wholesale agents. Direct sales encompass retail channels (large stores, chain supermarkets, convenience stores), group purchases, and some online e-commerce channels, with revenue in the first three quarters reaching 70.7525 million yuan, a 23.21% year-on-year decrease.