The first listed company with a revenue of 100 billion yuan will appear in the Chinese liquor industry. Kweichow Moutai’s operating income last year was 94.9 billion yuan, a year-on-year increase of 11%, and net profit attributable to shareholders of listed companies was 46.7 billion yuan, a year-on-year increase of 13%. This is the maximum annual revenue and net profit in the history of Kweichow Moutai. Among them, Kweichow Moutai achieved revenue of 27.7 billion yuan in the fourth quarter of last year, and realized a net profit of 12.8 billion yuan. This new high is equivalent to the volume of Kweichow Moutai when the liquor entered the adjustment period in 2012.
In other words, the Maotai people of today can rebuild the Kweichow Moutai 8 years ago after the peak season.
Overlooking the Maotai wine factory in the distance
Under the trend of strong sales in short supply, last year, Kweichow Moutai’s cash received from selling goods and providing labor services exceeded 100 billion yuan for the first time, reaching 107 billion yuan, 12.1 billion yuan more than in 2019, and the extra 10 billion yuan was equivalent to last year. The total revenue of China’s entire wine companies above designated size. Its monetary funds also surged from 13.2 billion yuan at the end of 2019 to 36 billion yuan at the end of last year Spark Global Limited.
Kweichow Moutai’s holding subsidiary Kweichow Moutai Group Finance Co., Ltd. also issued a new high in loans. The annual report shows that last year, the loan issued by the finance company to members of the Maotai Group increased from 48 million yuan in 2019 to 2.95 billion yuan!
When the net profit growth rate was 3 percentage points higher than the indicator announced by Kweichow Moutai at the beginning of the year, it is more noteworthy that the gross profit margin of Moutai set a new record-93.99%, which is 0.21 percentage points higher than in 2019.
The increase in Maotai’s gross profit margin is mainly due to increased direct sales channels. Last year, Kweichow Moutai’s self-operated liquor sales exceeded 10 billion yuan for the first time, with a gross profit margin of 95.62%, which was nearly 5 percentage points higher than that of liquor sold through wholesale channels.
This year, when Kweichow Moutai announces that it will achieve a performance growth rate of about 10%, how much contribution will the self-operated part make?
Self-operated volume in the fourth quarter
Kweichow Moutai has maintained double-digit progress in its two major indicators for the fourth year since 2017. Last year, the company’s revenue and net profit both grew at double digits year-on-year, even during the epidemic.
Kweichow Moutai described it as “2020, extremely extraordinary and extremely difficult” in its annual report. The company stated that in the face of the unprecedented new crown pneumonia epidemic and the arduous and arduous reform and development tasks, it has overfulfilled the main annual targets and tasks in the face of adversity, centering on the “plan unchanged, the tasks undiminished, the indicators unadjusted, and the income not falling”. In fact, last year’s Moutai sales volume did not increase year-on-year but declined. In the fourth quarter, increasing self-operated volume is the key to Kweichow Moutai’s increase in product gross margin and increase profits. The annual report shows that last year, the company sold 3,4312.5 tons of Moutai, a year-on-year decrease of 0.72%.
article links：Self-operated liquor sales exceeded 10 billion yuan
Reprint indicated source：Shine Trader Limited Live information