Kuaijishan ’s double-digit growth in revenue and net profit in the first half of the year failed to continue.
On October 28, Kuaijishan released its third quarter report. The company’s revenue increased by 4.14% year-on-year to 326 million yuan, and the net profit attributable to shareholders of the listed company fell by 12.15% year-on-year to 21.8504 million yuan.
In the third quarter, Kuaijishan made frequent moves on the road to rejuvenation. It not only sponsored celebrity concerts, but also established Shaoxing Kuaijishan Weixing Town Operation Co., Ltd. to operate its cultural and creative park project. However, due to heavy marketing investment, its sales expenses increased by 66% in the first three quarters. Investors have previously worried that once the company's revenue growth slows down, excessive sales expenses may erode profits.
Kuaijishan “one smoke a day” sparkling rice wine.
The sales revenue of products such as "One Smoke a Day" has increased significantly
Kuaijishan is headquartered in Shaoxing City, Zhejiang Province. Its main business activities are the research and development, production and sales of rice wine. Its main products include "Kuijishan", "Wuzhanmao" and "Xitang" Various types of rice wine under "Tang Song" and other brands.
In the third quarter, Kuaijishan's revenue increased slightly by 4.14% year-on-year to 326 million yuan; net profit declined, falling 12.15% year-on-year to 21.8504 million yuan; net cash flow generated from operating activities fell 47.91% year-on-year to 7334.88 Ten thousand yuan.
Regarding the sharp year-on-year decline in net cash flow generated from operating activities in the third quarter, Kuaijishan explained that it was mainly due to the increase in payment of acceptance bills and expenses in the current period.
However, throughout the first three quarters, Kuaijishan’s revenue and net profit still maintained growth, increasing by 13.52% and 8.94% respectively.
Specific to products, in the first three quarters, the sales revenue of high-end rice wine in Kuaiji Mountain increased by 10.65%, the sales revenue of ordinary rice wine increased by 8.15%, and the sales revenue of other wines increased by 51.09%.
The relevant person in charge of Kuaijishan told a reporter from Nanduwan Financial News that "other wines" include youthful products such as "One Smoke a Day".
In terms of channels, Kuaijishan’s revenue from three channels including direct sales (including group buying), wholesale agency and international sales has increased. Among them, direct sales (including group buying) had the highest growth rate, at 18.85%.
From a regional perspective, Kuaijishan is also working hard to get out of the "free shipping zone" in Jiangsu, Zhejiang and Shanghai. In the first three quarters, its sales revenue in Zhejiang, Jiangsu and Shanghai increased by 6.79%, 13.33% and 2.33% respectively year-on-year. Sales revenue from "other regions" outside Jiangsu, Zhejiang and Shanghai increased significantly by 77.06% year-on-year.
However, in terms of revenue share, "other regions" only accounted for 12.27% of its total sales revenue, and the share is still small, especially compared with Guyue Longshan . In the first three quarters of this year, Guyue Longshan's sales revenue from "other regions" accounted for about 40% of the total revenue. In terms of
dealers, in the first three quarters, the number of dealers in Kuaijishan increased by 370 and decreased by 143, resulting in a net increase of 227 dealers, reaching 1,775. Among them, the number of dealers in "other regions" increased by 154 and decreased by 31, with a net increase of 123 to 696.
R&D and sales expenses increased significantly
It is worth mentioning that in the first three quarters, Kuaijishan’s sales expenses increased significantly, from 130 million yuan in the same period last year, an increase of 66% to 216 million yuan; R&D expenses also increased from 14.393 million yuan in the same period last year. yuan tripled to 42.5909 million yuan. The relevant person in charge of
Kuaijishan told a reporter from Nanduwan Financial News that the significant increase in R&D expenses is mainly due to the company's continuous increase in research investment in rice wine fermentation microorganisms, brewing technology, brewing equipment, etc. since last year. The significant increase in sales expenses was due to the year-on-year increase in investment in comprehensive marketing expenses and marketing personnel.
Regarding the significant increase in sales expenses, at the semi-annual performance briefing meeting in August this year, some investors expressed concerns that the company's profits may be eroded.
The investor said, "The company's sales expenses increased significantly in the first half of the year, far exceeding the revenue growth, resulting in an increase in non-net profit of less than 5%. This makes people worry that if the revenue growth slows down or falls in the future, the company's profits will be very low." Easily eroded away."
Faced with the question of how to avoid reverse erosion of profits by sales expenses when revenue growth is weak, Kuaijishan responded, "The main factors for the increase in sales expenses are the increase in employee salaries in the current period and advertising and promotions. Business expenses increased.The company implements the dual brand strategy of "Kuijishan" and "Lanting", strengthens organizational capacity building, continuously deepens terminal sinking management, simultaneously increases online and offline publicity and promotion efforts, and strives to achieve performance growth targets. At the same time, the company will continue to optimize its expense investment in line with market performance. "
established a company to operate rice wine cultural and creative projects
Rejuvenation is becoming an important focus of Kuaiji Mountain. Since this year, its new rejuvenation product "One Smoke a Day" has attracted attention from the outside world many times. According to reports, in addition to online sales, this product Offline sales business planning has also been launched, and business expansion in offline channels such as convenience stores and restaurants will be promoted in the core cities of the Yangtze River Delta in a focused and targeted manner.
In addition to innovating in wine, Kuaiji Mountain also relies on small towns. concept to create a rice wine, cultural, creative and tourism complex. On September 24 this year, Huijishan registered and established Shaoxing Huijishan Weixing Town Operation Co., Ltd. with a registered capital of 5 million yuan. The company’s business scope includes park management services and enterprises. General projects such as management, property management, cultural venue management services, tourism development project planning and consultation, and licensed projects such as real estate development and operation, food sales, and accommodation services.
According to the news released by Kuaiji Mountain in June this year, the company’s cultural and creative park project was successfully signed. . The project aims to create a rice wine, cultural, creative and tourism complex that integrates historical memory, cultural experience, technological innovation, leisure and entertainment. “Through activation and utilization, we will also create a drunken world in the park. Guests enjoy tipsy relaxation and fun. " Kuaijishan said.
Kuaijishan sponsored Shuimu Nianhua's concert.
In addition, in terms of innovative consumption scenarios, Kuaijishan also seized the current hot concert economy and sponsored Shuimu Nianhua's "So Young People" 2024 Tour Concert this year. Nanjing Station and Hangzhou Station.
"Through the implantation of life-oriented scenes such as concerts and music festivals, the rice wine consumption scene has been extended to a wider area. "Kuijishan said that he will continue to explore more possibilities of combining music.
Kuaijishan ’s double-digit growth in revenue and net profit in the first half of the year failed to continue.
On October 28, Kuaijishan released its third quarter report. The company’s revenue increased by 4.14% year-on-year to 326 million yuan, and the net profit attributable to shareholders of the listed company fell by 12.15% year-on-year to 21.8504 million yuan.
In the third quarter, Kuaijishan made frequent moves on the road to rejuvenation. It not only sponsored celebrity concerts, but also established Shaoxing Kuaijishan Weixing Town Operation Co., Ltd. to operate its cultural and creative park project. However, due to heavy marketing investment, its sales expenses increased by 66% in the first three quarters. Investors have previously worried that once the company's revenue growth slows down, excessive sales expenses may erode profits.
Kuaijishan “one smoke a day” sparkling rice wine.
The sales revenue of products such as "One Smoke a Day" has increased significantly
Kuaijishan is headquartered in Shaoxing City, Zhejiang Province. Its main business activities are the research and development, production and sales of rice wine. Its main products include "Kuijishan", "Wuzhanmao" and "Xitang" Various types of rice wine under "Tang Song" and other brands.
In the third quarter, Kuaijishan's revenue increased slightly by 4.14% year-on-year to 326 million yuan; net profit declined, falling 12.15% year-on-year to 21.8504 million yuan; net cash flow generated from operating activities fell 47.91% year-on-year to 7334.88 Ten thousand yuan.
Regarding the sharp year-on-year decline in net cash flow generated from operating activities in the third quarter, Kuaijishan explained that it was mainly due to the increase in payment of acceptance bills and expenses in the current period.
However, throughout the first three quarters, Kuaijishan’s revenue and net profit still maintained growth, increasing by 13.52% and 8.94% respectively.
Specific to products, in the first three quarters, the sales revenue of high-end rice wine in Kuaiji Mountain increased by 10.65%, the sales revenue of ordinary rice wine increased by 8.15%, and the sales revenue of other wines increased by 51.09%.
The relevant person in charge of Kuaijishan told a reporter from Nanduwan Financial News that "other wines" include youthful products such as "One Smoke a Day".
In terms of channels, Kuaijishan’s revenue from three channels including direct sales (including group buying), wholesale agency and international sales has increased. Among them, direct sales (including group buying) had the highest growth rate, at 18.85%.
From a regional perspective, Kuaijishan is also working hard to get out of the "free shipping zone" in Jiangsu, Zhejiang and Shanghai. In the first three quarters, its sales revenue in Zhejiang, Jiangsu and Shanghai increased by 6.79%, 13.33% and 2.33% respectively year-on-year. Sales revenue from "other regions" outside Jiangsu, Zhejiang and Shanghai increased significantly by 77.06% year-on-year.
However, in terms of revenue share, "other regions" only accounted for 12.27% of its total sales revenue, and the share is still small, especially compared with Guyue Longshan . In the first three quarters of this year, Guyue Longshan's sales revenue from "other regions" accounted for about 40% of the total revenue. In terms of
dealers, in the first three quarters, the number of dealers in Kuaijishan increased by 370 and decreased by 143, resulting in a net increase of 227 dealers, reaching 1,775. Among them, the number of dealers in "other regions" increased by 154 and decreased by 31, with a net increase of 123 to 696.
R&D and sales expenses increased significantly
It is worth mentioning that in the first three quarters, Kuaijishan’s sales expenses increased significantly, from 130 million yuan in the same period last year, an increase of 66% to 216 million yuan; R&D expenses also increased from 14.393 million yuan in the same period last year. yuan tripled to 42.5909 million yuan. The relevant person in charge of
Kuaijishan told a reporter from Nanduwan Financial News that the significant increase in R&D expenses is mainly due to the company's continuous increase in research investment in rice wine fermentation microorganisms, brewing technology, brewing equipment, etc. since last year. The significant increase in sales expenses was due to the year-on-year increase in investment in comprehensive marketing expenses and marketing personnel.
Regarding the significant increase in sales expenses, at the semi-annual performance briefing meeting in August this year, some investors expressed concerns that the company's profits may be eroded.
The investor said, "The company's sales expenses increased significantly in the first half of the year, far exceeding the revenue growth, resulting in an increase in non-net profit of less than 5%. This makes people worry that if the revenue growth slows down or falls in the future, the company's profits will be very low." Easily eroded away."
Faced with the question of how to avoid reverse erosion of profits by sales expenses when revenue growth is weak, Kuaijishan responded, "The main factors for the increase in sales expenses are the increase in employee salaries in the current period and advertising and promotions. Business expenses increased.The company implements the dual brand strategy of "Kuijishan" and "Lanting", strengthens organizational capacity building, continuously deepens terminal sinking management, simultaneously increases online and offline publicity and promotion efforts, and strives to achieve performance growth targets. At the same time, the company will continue to optimize its expense investment in line with market performance. "
established a company to operate rice wine cultural and creative projects
Rejuvenation is becoming an important focus of Kuaiji Mountain. Since this year, its new rejuvenation product "One Smoke a Day" has attracted attention from the outside world many times. According to reports, in addition to online sales, this product Offline sales business planning has also been launched, and business expansion in offline channels such as convenience stores and restaurants will be promoted in the core cities of the Yangtze River Delta in a focused and targeted manner.
In addition to innovating in wine, Kuaiji Mountain also relies on small towns. concept to create a rice wine, cultural, creative and tourism complex. On September 24 this year, Huijishan registered and established Shaoxing Huijishan Weixing Town Operation Co., Ltd. with a registered capital of 5 million yuan. The company’s business scope includes park management services and enterprises. General projects such as management, property management, cultural venue management services, tourism development project planning and consultation, and licensed projects such as real estate development and operation, food sales, and accommodation services.
According to the news released by Kuaiji Mountain in June this year, the company’s cultural and creative park project was successfully signed. . The project aims to create a rice wine, cultural, creative and tourism complex that integrates historical memory, cultural experience, technological innovation, leisure and entertainment. “Through activation and utilization, we will also create a drunken world in the park. Guests enjoy tipsy relaxation and fun. " Kuaijishan said.
Kuaijishan sponsored Shuimu Nianhua's concert.
In addition, in terms of innovative consumption scenarios, Kuaijishan also seized the current hot concert economy and sponsored Shuimu Nianhua's "So Young People" 2024 Tour Concert this year. Nanjing Station and Hangzhou Station.
"Through the implantation of life-oriented scenes such as concerts and music festivals, the rice wine consumption scene has been extended to a wider area. "Kuijishan said that he will continue to explore more possibilities of combining music.
Reported by Nanduwan Financial News reporter Liu Lanlan
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