jiugui liquor: the current stage of operating pressure will not lead to large-scale personnel changes
2024-09-21
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according to the red star capital bureau on september 21, yesterday, jiugui liquor (000799.sz) released the minutes of its semi-annual online performance briefing. vice chairman and general manager zheng yi, financial director zhao chunlei and other senior executives attended the meeting and answered questions such as the reduction in the number of distributors and whether the company can reverse the decline in revenue.
jiugui liquor's 2024 semi-annual report shows that its revenue is 994 million yuan, a year-on-year decrease of 35.5%; its net profit attributable to the parent company is 121 million yuan, a year-on-year decrease of 71.32%. before 2023, jiugui liquor was once regarded as a "dark horse" in the liquor industry because its performance maintained high growth for 8 consecutive years. the red star capital bureau noted that jiugui liquor's performance had already "slipped" last year. judging from the 2024 semi-annual report, jiugui liquor still saw a decline in both revenue and net profit.
in response to questions about whether the company can reverse the decline in revenue in the second half of the year, jiugui liquor explained that the liquor industry has entered a downward cycle since 2024, and the overall market performance has been sluggish from the second half of the year to the present. the market performance during the mid-autumn festival was relatively flat, and customers and terminals were not willing to purchase goods. against this background, the company will continue to adhere to the bc linkage marketing model, with terminal construction and consumer sales as the core. at the same time, by strengthening the layout of all channels such as group buying, e-commerce, and catering, and strengthening the layout of mass-priced products, we will cope with the difficult situation in the industry.
the red star capital bureau noted that in the first half of this year, the number of jiugui liquor distributors decreased by 473 compared to 2023. as for the main reason for these distributors to leave the team, jiugui liquor explained that one of the company's key tasks in 2024 is to improve the quality of distributors, and some inefficient distributors will no longer renew their contracts. in addition, the overall sales of the liquor industry this year are sluggish, competition has intensified, and it has become more difficult for distributors to make profits, which has also led to the withdrawal of some distributors. regarding the distributors' inventory of wine, jiugui liquor stated that the company will count the inventory before the distributors close their accounts, assist in digestion or transfer to new customers for sales, and ensure that there are no products that affect the market price system before the customers close their accounts.
screenshot from jiugui liquor's 2024 semi-annual report
in the context of the above-mentioned changes in the industry and distributors, an investor asked whether jiugui liquor would have large-scale layoffs or major personnel changes. jiugui liquor replied that the current stage of operating pressure will not lead to large-scale personnel changes. although the current market environment is relatively sluggish and the company's operations face many challenges, the overall production and operation activities are proceeding smoothly and orderly. at the same time, the company will also make appropriate adjustments to the internal organizational structure and staffing according to market changes to better implement the differentiation and focus strategy.
red star capital bureau has noticed that jiugui liquor has had frequent personnel changes at the top in recent years. in february this year, the company changed its helmsman. wang hao, who had served as chairman for six years, left the company and was replaced by gao feng, a senior executive from cofco.
on the evening of june 30, jiugui liquor issued an announcement stating that wang zhe applied to resign from the position of deputy general manager of the company for personal reasons. wang zhe joined jiugui liquor company in july 2011. from december 2018 to april 2020, he served as the general manager of hunan neican liquor sales co., ltd. in april 2020, he served as the general manager of jiugui liquor sales management center, and later served as the deputy general manager of jiugui liquor and the general manager of the sales management center.
red star news reporter cheng luyang
editor: deng lingyao
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