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Why are you in such a hurry?

1

Marketing Restart

Tinghuajiu is back.

Recently, on social media platforms, many netizens said they saw posters of Tinghua Wine posted in their residential areas. Similar posters appeared in many cities including Guangzhou, Chongqing, Nanjing, Hangzhou, Chengdu, Zhengzhou, and Tianjin.

These posters surprised many people.A few months ago, on March 15, Tinghua Liquor was mentioned by CCTV in the 3.15 Gala. According to CCTV's report, the international patent of Tinghua Liquor, which sells for more than 50,000 yuan, has not been recognized, and the "high-tech" cooling agent is actually common mint extract.

After the show was broadcast, Tinghua Liquor's marketing suddenly went silent. According to media reports, Tinghua Liquor's airport billboards and experience store signs in many parts of the country were removed or covered overnight, and Tinghua Liquor and related products were ordered to stop selling by local regulatory authorities.

What surprises people is thatLess than 5 months after being named by CCTV's 315, Tinghuajiu has made a strong comeback?

In fact, Tinghua wine’s “revival” occurred earlier than everyone imagined.

According to the Xiangjiang Morning News, Tinghua Liquor's parent company ST Chuntian resumed its related business operations on a small scale at the end of April, but did not restart its publicity on a large scale.

Today's posters are undoubtedly a signal. According to media reports, the Tinghua wine brand will put up more than 150,000 elevator posters, covering high-end buildings in 32 core cities, and will soon launch advertising plans in multiple airports.

However, at present, online sales of Tinghua wine have not yet recovered. Tinghua wine products cannot be found on e-commerce platforms such as Taobao and JD.com.

Judging from the content, Tinghua Liquor’s latest promotion still focuses on its refreshing taste, old wine re-brewing techniques, cooperation with Nobel Prize winners, etc., but it no longer actively mentions “sky-high priced liquor”.

According to common sense, after being named by CCTV 315, most companies will choose to keep a low profile and quietly rectify. It is rare to see a company like Tinghua Wine eagerly restarting large-scale marketing and promotion.

What is it in such a hurry for?

2

Fifty-eight thousand bottles of "magic wine"

Before answering this question, let’s first review Tinghua Liquor’s road to fame.

The birth of Tinghua wine is full of fantasy.One day a few years ago, at 4 a.m., Zhang Xuefeng, chief designer of Tinghua Liquor, dozed off on a chair in the laboratory. In his dream, Zhang Xuefeng felt as if he was looking for something on the snowy mountain. Suddenly, an old man with a golden rope around his waist and a fluttering white beard came in front of him, waved a whisk, wrote the word "live" on his palm, and left gracefully.

After waking up, Zhang Xuefeng subconsciously covered his fingers on the palm of his hand, and a sentence emerged in his mind - water on the tongue is alive!

Inspired by a dream, under the leadership of Zhang Xuefeng, it took four years for Tinghua Wine to come into being.

In the eyes of outsiders, the image of the immortal in Zhang Xuefeng's dream is easily reminiscent of Laozi. It must be said that Zhang Xuefeng is the first person who dares to make wine by imitating Laozi's dream.

The wine that the immortals dreamed of was naturally not cheap. Let's look at two figures:

5860 yuan/bottle (750 ml)

58600 yuan/bottle (750 ml)

This is the price of the standard and premium bottles on the official website of Tinghua Liquor. What does this price mean? Let's make a comparison and convert it into:

The price of a bottle of deluxe Tinghua wine is equivalent to 39 bottles of Feitian Moutai.

My goodness, this is probably the first time that Moutai, known as the "King of Liquor", has felt such strong price pressure.

With a price that crushes Feitian Moutai, Tinghua wine is not only blessed by immortals, but also has "special functions".

According to reports from Phoenix Finance and other media, in January 2021, Tinghua Liquor Industry held an online "Traditional Chinese Medicine Theory Guiding the Healthy Development of Liquor" seminar. The "Exploratory Study on the Effects of Drinking Tinghua Liquor on the Physical Functions of Adult Men" released at the meeting showed that -

For the healthy adult male volunteers participating in the experiment, after drinking 50ml of Tinghua wine every day for 7 consecutive days, the indicators of immune function, sleep function and male function were improved to varying degrees.

What does it mean? Translated, this means——

If you insist on drinking Tinghua wine, you will be healthy, sleep well and have a strong sexual function.

Perhaps fearing that people would not believe it, in July 2022, Qinghai Spring, the parent company of Tinghua Liquor, also issued an announcement stating that two Nobel Prize winners, Professor Feride Murad and Professor Arieh Washer, will serve as the company's co-chief scientists for a period of 3 years.

Among them, Murad promoted the invention of Viagra due to his Nobel Prize-winning results and was hailed as the "Father of Viagra."

Tinghua Wine understands middle-aged men. The question is, how does this "magic wine" sell?

3

Qinghai Spring in the red

We can find the answer in the data.

The parent company of Tinghua Liquor is called Qinghai Spring. Due to three consecutive years of losses, it has now been ST.

Previously, ST Chuntian responded to the Shanghai Stock Exchange's inquiry letter, showing that in March 2024, the company's wine sales volume was 1,335 bottles and the sales amount was 5.1163 million yuan.A year-on-year decrease of 43.26%; In April, the sales volume was 156 bottles and the sales amount was 425,600 yuan.A year-on-year decrease of 90.77%.

Looking ahead, from 2020 to 2022, Qinghai Spring's sales expenses were 48 million yuan, 56 million yuan, and 123 million yuan, respectively. However, during the same period, Qinghai Spring's operating income was only 124 million yuan, 128 million yuan, and 160 million yuan, and the net profit attributable to the parent company was a loss of 320 million yuan, 249 million yuan, and 288 million yuan, respectively.

According to the latest 2024 semi-annual report, in the first half of the year, Qinghai Spring achieved a total operating income of 138 million yuan, a year-on-year increase of 28.82%; the company's liquor segment revenue was 50 million yuan, a year-on-year increase of 45.95%;However, the net loss during the period widened to RMB 59.8699 million from RMB 50.5907 million in the same period last year.

In total, Qinghai Spring’s cumulative losses have reached 1.185 billion yuan since 2020.

Let's look at the capital market. As of the close of August 6, 2024, ST Chuntian's share price was 3.22 yuan per share. This price is 84% ​​lower than its high point in 2022 and 93% lower than its historical high point.

According to data from Eastmoney.com, as of the end of June 2024, the number of ST Chuntian shareholders was 44,870, and these shareholders are still waiting for a miracle.

Seeing this, we can understand why Tinghuajiu is so eager to restart its marketing.ST Chuntian’s performance and stock price both need to be saved by Tinghuajiu.

According to Zhang Xuefeng's conception, Tinghua Liquor is expected to reach a scale of 30 billion yuan in 5 years. As the chief designer of Tinghua Liquor, Zhang Xuefeng is really bold. His history of success is like a story book.

In 2003, inspired by a living Buddha, Zhang Xuefeng started a cordyceps business, and Qinghai Spring even went public through a backdoor listing to become the "first stock of cordyceps." Later, due to issues such as product legality, Qinghai Spring's "Jicao" was ordered to stop production by the relevant authorities.

Now, under the guidance of the immortal in his dream, Zhang Xuefeng has made Tinghua wine. However, this wine, which was highly anticipated, was publicly questioned by CCTV 315.

Will Zhang Xuefeng succeed this time? Perhaps, as Einstein said:

Insanity is doing the same thing over and over again and expecting different results.