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On April 27th Yanghe issued its annual report, achieving revenue of 331.5reels.2.6 billion yuan, an increase of 10.04% over the same period last year, and a net profit of 10.016 billion yuan, an increase of 6.8% over the same period last year.

In the context of last year's industry adjustment, Yanghe shares still maintained double-digit growth, gross profit margin continued to rise, as the performance target of liquor companies, the advance payment also remained high, proving that the channel payment is positive. The important engine driving the growth is the upgrading of the product structure. In 2023, the revenue of medium-and high-grade wine reached 28.539 billion yuan, an increase of 8.82% over the same period last year, accounting for 86%. There are signs that the company's deep reforms since 2019 are entering the harvest period.

In 2024, Yanghe shares once again made a big move in promoting high-quality development, formally announced the "Mianrou vintage wine strategy", relying on more than 600,000 tons of high-quality raw wine, once again enhance the company's brand strength, laying the foundation for high-quality development in the next 10 years.

Where does Yanghe sacrifice the "Mianrou vintage wine strategy"?

In 2024, Yanghe officially announced the "Mianrou vintage Liquor Strategy", which is a big move in the field of soft liquor, which means that Yanghe finally began to take advantage of its old wine and add a thousand yuan price belt.

Yanghe stock's vintage wine strategy takes Dream Blue Handicraft Class as the carrier and comprehensively launches Dream Blue Handicraft Class 10, 15, 20 series products. At present, many liquor companies have vintage products, and the common practice is to use the weighted average year as the year mark, while the 10, 15 and 20 marked by the Dream Blue manual class series represent the real base wine year. For example, manual class 10 main base wine stored for more than 10 years, supplemented by different styles of aged seasoning wine stored for 15 years, manual class 15 and 20, and so on.

For more than ten years, Yanghe has a continuous layout, with a wine storage capacity of 1 million tons, more than 600,000 tons of raw wine of different years and 230000 tons of pottery altar storage base wine. The old liquor has the characteristics of scarce base liquor, good body quality, unique taste and so on. Besides drinking, it also has collection value and appreciation potential. It is the representative of the brand strength of liquor companies. The launch of the "real year" strategy is a "show of muscle" of Yanghe shares.

Historically, every upgrade of Yanghe's product strategy has been accompanied by a substantial increase in revenue and optimization of product structure. For liquor companies, high-end products not only play a role in improving brand image, but also can promote the upgrading of the company's product structure. From the perspective of Yanghe itself, after the revenue exceeded 30 billion yuan, further promote the company's brand, with high-quality products to drive the company's high-quality development, has become the focus of development.

At present, the liquor industry has entered an era of squeezed growth, and the future growth comes from product upgrading. From the perspective of the whole industry, liquor production capacity has been saturated, but high-end capacity is still scarce, which is also the reason for liquor companies to increase the high-end market. Fundamentally, high-quality base liquor determines the output of high-end liquor, and those liquor companies with high-quality base liquor will be the last players.

High-quality growth of Yanghe River

Last year, Yanghe achieved a revenue of 33.126 billion yuan, an increase of 10.04% over the same period last year, and a net profit of 10.016 billion yuan, an increase of 6.8% over the same period last year. Under the background that the whole liquor industry has entered the adjustment stage, the double-digit growth of Yanghe shares mainly comes from the layout of the company in the channel sales end.

In 2019, Yanghe shares carried out a deep channel reform and launched a new mode of manufacturer cooperation, that is, a high-quality dealer is chosen to dominate the market in one market, so as to ensure the stability of the price system in the market. other dealers play a supplementary role. In essence, it solves the problem of profit distribution at the channel end and releases the enthusiasm of the channel. In 2023, the "1320" manufacturer integration strategy was put forward to further help the dealer team become stronger and bigger. The reform on the channel side helps to strengthen the business and help the dealers to be confident. In the period of industry adjustment, the strong channel promotes the moving sales of the company's products.

At the terminal level, Yanghe has connected the data links of manufacturers, dealers, stores and end consumers through the digital system. Thus effectively grasp the delivery rhythm, standardize the market order, and reduce counterfeiting, regional goods channeling and other behaviors that disturb the market price system.

On this basis, the company has achieved high-quality growth, and the contract debt (accounts received in advance) reached 11.105 billion yuan by 2023, which continues to maintain a high level. the contract debt is not only the performance reservoir of the liquor company, but also the weather vane of the company's operating condition. Keeping the contract debt at a high level shows that the dealers make positive payments, and also shows that the company's channel reform has achieved the desired results.

Last year, the company received 34.854 billion yuan in cash for selling goods, with a cash-to-cash ratio of 105.22%. The net cash flow of operating activities reached 6.13 billion yuan, an increase of 68% over the same period last year. Under the high performance growth, other financial indicators are more optimized. By the end of 2023, the book currency funds of Yanghe shares had reached 25.813 billion yuan. Interest income reached 766 million yuan in 2023, which played a good role in thickening profits.

In recent years, Yanghe shares have maintained a dividend payment rate of more than 60%, ranking in the forefront of liquor listed companies. In 2023, the company actively implemented the action plan of "double improvement of quality and return", proposing to increase the cash dividend to 7.02 billion yuan and the dividend payout rate to 70%, giving back to investors with practical actions.