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In the 2024 Fortune China 500 list released on July 25, Shanxi Xinghua Village Fenjiu Factory Co., Ltd. ranked 439th with US$4.51 billion. In 2023, Shanxi Fenjiu entered the Fortune China 500 for the first time, ranking 462nd, and continued to climb upward, conveying to the world the new era of high-quality development of Chinese liquor brands.

Among them, in the return on equity (ROE) list, Fenjiu ranked first in the liquor category with a ROE of 37.6%. In addition, Brand Finance, a leading global brand evaluation and strategic consulting agency, also released the "2024 Global Most Valuable Liquor Brands List Report". Among the 2024 global spirits top 10, Chinese liquor brands occupy 6 seats, and Fenjiu ranks among the top.

The "Fenjiu Speed" not only achieved the rapid development of the enterprise and the accelerated revival of the brand, but also promoted the "Fragrant Era" of the Chinese wine industry. The brand power and influence of Fenjiu are being seen. It not only occupies an important position in the domestic market, but also demonstrates its unique value and influence in the global market, setting a "Fenjiu model" for the high-quality development of the entire industry.

Breadth and depth go hand in hand

The 2024 Fortune China 500 list shows that Fenjiu's return on net assets will reach 37.6% in 2023, the highest among all wine companies. This data reflects Fenjiu's financial health and profitability, indicating that it has performed well in asset utilization efficiency.

In addition, Fenjiu's debt-to-asset ratio is decreasing and its current ratio is increasing, indicating that the company's short-term debt repayment pressure remains stable and improving, further proving the improvement of its financial stability.Behind the data is the breadth of Shanxi Fenjiu's developmentIn recent years, Fenjiu has maintained high growth, almost reaching a new level every year, especially in 2022 and 2023, it broke through the 20 billion yuan and 30 billion yuan mark respectively. This performance is worthy of the title of "Famous Chinese Liquor" and "Soul of Chinese Liquor".

In the first quarter of this year, Fenjiu's ROE was 21.71%, an increase of 2.14% over the same period last year. At the same time, its asset-liability ratio was 31.51%, its return on net assets was 20.22%, and its net profit margin was 40.86%. The above figures show that Fenjiu still maintains a good growth momentum, its overall operating conditions are constantly improving, and its profitability and operating efficiency have been comprehensively improved.

The nationalization process and product structure upgrade of Fenjiu are the realistic foundation for its future performance to maintain a high growth rate, and also the basis for Fenjiu to maintain a high growth rate.A concrete manifestation of the depth of wine developmentIn terms of the market, Fenjiu will achieve revenue of 19.659 billion yuan/12.084 billion yuan in the out-of-province/in-province markets respectively in 2023. Among them, the proportion of out-of-province revenue increased from 40.3% to 61.9%. It is worth mentioning that Fenjiu's 1 billion market continues to grow, and the core market south of the Yangtze River has increased by more than 30% year-on-year, which also means that Fenjiu's nationalization process has been further expanded.

In terms of channels, during the period 2017-2023, the number of Fenjiu's distributors outside the province/within the province increased from 248/1020 to 820/3120 respectively. At the same time, the number of terminals nationwide achieved rapid growth, increasing from 700,000 to 1.2 million from 2019 to 2023.

In terms of product structure, in 2023, the mid-to-high-priced liquor segment of Fenjiu will grow by 22.6% year-on-year. As the main product of the high-end line, the sales of the Qinghua series successfully exceeded the 10 billion mark in 2022, and the growth momentum in 2023 is still significant. In the first half of 2024, benefiting from the release of Fenjiu's potential and the full coverage of prices, Qinghua continued to perform strongly, and its sales and wholesale prices were better than other sub-high-end competitors. In addition, among the reserve team of 10 billion single products, Bofen is expected to become the next highly anticipated "10 billion single product", thereby releasing new growth momentum.

Since 2017, Fenjiu has maintained double-digit growth in revenue and net profit for seven consecutive years. At the same time, with the continuous optimization of markets, channels, and products, the logic of future performance growth is clear. With the continuous release of brand potential and the blossoming of the product matrix, Fenjiu's brand power and influence will reach a new level.

Fenjiu leads the way and opens the era of fresh fragrance

“I asked where the wine shop was, and the shepherd boy pointed to the apricot blossom village in the distance.” In the long history, the fragrant Fenjiu has spread all over China, laying a solid foundation and strong support for the development of Fenjiu. Fenjiu is not only a famous Chinese wine, but also the originator of the fragrance.

The Chinese liquor industry has entered the era of branding, and brand value is the core competitiveness of enterprises in the market competition. Focusing on the positioning of "the source of national liquor, the ancestor of light fragrance, and the root of culture", Fenjiu fully utilizes the potential energy of famous liquors, light fragrance, and Fenjiu, continuously promotes brand culture construction, and leads the arrival of the era of light fragrance.

In recent years, Fenjiu has continuously promoted the innovation of wine culture through the new strategy of "promoting the industry with culture, strengthening the enterprise with culture, benefiting the wine with culture, and educating people with culture". The "Beautiful Chinese New Year" and "Walking Fenjiu" 3.0 launched by Fenjiu have greatly enhanced the brand competitiveness by taking cultural integration as the breakthrough point.

As the originator of light fragrance, Fenjiu actively promotes the revival of the category and drives the "light fragrance craze" through strategic measures such as cultural revitalization, flavor leadership, state-owned enterprise reform pilot and digital transformation.From industrial boom, to investment boom, to consumption boom.Under the outstanding leadership of Fenjiu, the revival of light fragrance has developed from a single leader to a new stage of overall revival.

According to the "2023-2024 China Light Fragrance Liquor Industry Development Report", after nearly ten years of development, the "five major camps" of light fragrance liquor production have basically taken shape, and light fragrance liquor has taken root in at least more than 19 provinces, forming rich and diverse regional characteristics. In 2023, the sales volume of light fragrance liquor exceeded 90 billion yuan. The growth trend of the category from a large base has shown that Fenjiu is unstoppable in the market, and has greatly enhanced the market's confidence in the development of the light fragrance category, providing a realistic basis for the realization of the light fragrance revival.

In June 2022, Fenjiu and 15 other light-fragrance liquor companies jointly signed the "Proposal to Jointly Open the "Great Light-fragrance Era" of Chinese Liquor", which established standard cognition for the quality of light-fragrance liquor and jointly created a more influential light-fragrance liquor brand atmosphere. A larger light-fragrance development picture is unfolding with Fenjiu as the center.

In March this year, the 2nd China Light Fragrance Conference and Liquor Digital Development Summit was held in Chengdu. Fenjiu called on light-fragrance liquor companies to seize the opportunities of the era of great light fragrance, exert joint efforts, use digital transformation to help upgrade quality, promote organizational change, promote marketing change, enhance consumer experience, and achieve coordinated development.

The potential of the light-fragrance category driven by Fenjiu has not only formed a core light-fragrance liquor production area in the Xinghua Village area, but also promoted the emergence of a number of powerful light-fragrance liquor companies, jointly promoting the development of advantageous core products. According to industry forecasts, by the end of the 14th Five-Year Plan, the sales scale of light-fragrance liquor is likely to exceed 120 billion yuan.

As Song Shuyu, chairman of the China Alcoholic Drinks Association, said, the development of light-fragrance liquor is rising against the trend with "reform", leading the industry upgrade with "Fenjiu speed", and carrying the banner of light-fragrance liquor development with responsibility. Obviously, the era of light-fragrance liquor led by Fenjiu is becoming a reality.

Fenjiu goes abroad and toasts to the world

Fenjiu’s “wealth” is still being seen by the world.

Fenjiu has always been the "pioneer" of Chinese liquor going overseas. As early as 1915, Fenjiu became internationally famous, winning the highest honor, the first-class gold medal, at the Panama World Exposition, and enjoying a high reputation worldwide. Today, Fenjiu, which has a century-old history as an international famous liquor, is connecting with the international community in more diverse ways, witnessing the gorgeous transformation of Fenjiu from a treasure of ancient civilization to a shining star on the modern international stage, and extending its tentacles to the world.

In 2014, China proposed the "Belt and Road" initiative, which set off a climax of internationalization. This national brand with a profound historical heritage and ingenuity has embarked on a more magnificent new journey overseas. With this "east wind", Fenjiu has also established the strategic positioning of "International Fen". Following the route of "differentiation, pilot and scenario", it has successively expanded its sales network in 17 new markets such as Portugal, South Africa and Brazil, and its brand influence has continued to rise.

When liquor is exported, culture comes first. Fenjiu has a deep understanding of this. It not only actively promotes the "Belt and Road" series of international new products, but also carries out Chinese traditional festival theme activities according to local conditions to tell the story of Chinese liquor to global consumers. With Chinese liquor as the medium and Chinese culture with great humanistic style as the support, Fenjiu actively promotes the exchange of Chinese liquor with people from all over the world, shows Chinese aesthetic emotions to the world, and promotes Chinese traditional culture.

In the "2023 Silk Road Thousand Miles Tour·Win-Win Road" event, "Qinghua Fenjiu" as the exclusive partner of the liquor industry, passed through 21 cities in Kazakhstan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan and other countries, spreading the seeds of Chinese liquor culture to every stop of the Silk Road.

In addition to cultural exports, Fenjiu has pushed Chinese liquor to a higher stage. On November 6, 2023, during the 6th China International Import Expo, the 2023 Qinghua Fenjiu Development Forum was held at the Shanghai International Convention Center, allowing guests attending the Import Expo to appreciate the charm of Chinese liquor. In addition, at many international high-end conferences, Chinese liquors such as Shanxi Fenjiu have taken the center stage, further promoting the brand of Chinese liquor.

In 2023, Fenjiu, together with seven other Chinese liquor companies including Moutai, Wuliangye, and Luzhou Laojiao, jointly applied to be included in the "World Cultural Heritage Tentative List", hoping to establish a "Chinese Liquor" discourse system on a global scale, thereby accelerating the establishment of a linkage mechanism for Chinese liquor to go global.

Fenjiu's internationalization is a vivid manifestation of China's cultural confidence and open and inclusive spirit. Through the above efforts, Fenjiu has successfully established a good reputation and gained recognition among consumers in various countries. The fact that it has been listed on the Fortune China 500 and Global Spirits TOP10 lists is proof of this.

In the general program of Fenjiu's revival, 2022-2024 is the first stage of Fenjiu's revival. Therefore, 2024 is an extremely important key year. Today, Fenjiu has entered the first camp of the liquor industry and is opening a new stage of development with a brand new attitude.