I. Discussion and analysis of operation
During the reporting period, the company realized operating income of 177,268,383.93 yuan, down by 23.29% compared with the same period of last year, of which the income from wine was 12,654,73.1 yuan. The realized income of drugs was 3,85,324.57 yuan, down 2.31% over the same period of last year; The realized income of degradable materials is 14,564,128.91 yuan.
The wine business is affected by the slowdown of macroeconomic growth, the impact of imported wine, the sluggish consumer market, fierce competition and other factors. The company insists on taking the market as the center, actively adjusts its marketing strategy and product structure, develops new wine varieties, optimizes market layout, improves marketing channels and promotes product sales; The pharmaceutical business is mainly an agent sales model. In recent years, due to the promotion of the "two-vote system" by the state and the restrictions on circulation, it has maintained a stable development trend by expanding the scope of investment. Degradable materials have entered normal production and operation during the reporting period.
during the reporting period, the company realized a net profit attributable to shareholders of the parent company of 27,427,427.95 yuan, an increase of .66% over the same period of last year.
II. Major business operations during the reporting period
(1) Do a good job in market sales. (1) Continue to promote market construction. Participate in various festivals and accurately attract investment around the regional market. Intensive cultivation of the provincial market, constantly extending the market network, broaden sales channels. Continue to explore markets outside the province, increase market construction, and build a more detailed network. (2) Strengthen the sales of e-commerce platforms. Strengthen the management and monitoring of e-commerce platforms, carry out micro-marketing, and expand community marketing and micro-circle marketing. Mogao Wine Store was opened in Meituan. com, and the company's self-operated Mogao Mall APP was officially launched. Further increase the sales of e-commerce, enrich the products sold by e-commerce and increase the promotion. (3) Developing tourism marketing to promote sales. Using the resource advantages of Mogao International Winery, Mogao Grape Manor and Mogao Ecological Wine Castle, we will continue to carry out the activity of "visiting Mogao Manor and tasting Mogao fine wine" to spread wine culture, cultivate consumer market and stimulate market sales.
(2) optimize the product structure. (1) Create a single product that is not tall. Concentrate on creating core products and large single products of Mogao Pinot Noir dry red, and focus on core products in product research and development, product promotion and terminal sales, and lay out the national market. Developed Mogao Gabbannon's aged dry red wine, implemented the strategy of large single product and laid out key markets. (2) Continuously optimize the product structure. Guided by the market, 13 customized products such as Mogao 1999 cellar dry red wine, Mogao organic wine field dry red wine and Mogao Manor Cabernet Sauvignon dry red wine were developed to meet the market demand in different regions.
(3) enhance the brand image. (1) Brand value continues to improve. In 219, the brand value of Mogao rose to 18.991 billion yuan, ranking third in the national wine industry for seven consecutive years. The independent brand value of Mogao Pinot Noir rose to 13.15 billion yuan, ranking among the eight famous wines in the wine world. (2) Mogao Pinot Noir won the honor again. At the 5 th DSW International Boutique Wine Challenge in 219, Mogao Pinot Noir dry red wine won the boutique award. (3) Make full use of the functions of exhibition, tasting and evaluation of wine castles in Beijing, Shenzhen, Xi 'an and Lanzhou Mogao cities to enhance brand image and promote market sales.
(4) Enhance innovation and development. (1) Based on the characteristics of Mogao Manor and the advantages of raw materials, noble wine in 218 was developed. (2) actively declare patents. During the reporting period, the patent for the appearance of Mogao Jinzun has been authorized, and the patents for utility models such as sparkling wine fermenter and automatic warming machine and noble wine invention patent are under examination and approval.
(5) do a good job in project construction. (1) Do a good job in the production and operation of 2, tons of biodegradable master batches and products processing projects. (2) Do a good job in the construction of new biodegradable polyester materials with an annual output of 2, tons. During the reporting period, the project has started construction.
iii. discussion and analysis of the company's future development
(I) industry structure and trend
(I) macro development opportunities are rare. Wine industry is a green sunrise industry, which is the key development direction of national wine and the characteristic advantage industry in Gansu Province. Wine industry is an industry integrating agriculture, industry and modern service industry, and integrating with culture, tourism and other industries. On April 13th, 216, china alcoholic drinks association issued the "Guiding Opinions on the Development of China Liquor Industry in the 13th Five-Year Plan", and combined with the actual situation of China's liquor industry, put forward five development concepts, including "Striving for progress steadily, accurately grasping the new normal of economic development", "Culture first, advocating rational drinking to enhance credibility", "Transformation and upgrading, relying on science and technology to highlight the driving force of innovation" and "Quality-oriented, optimizing structure to enhance comprehensive competitiveness". On October 1st, 214, with the approval of the State Council, the National Development and Reform Commission issued the Catalogue of Encouraged Industries in the Western Region No.15, which listed Gansu wine industry as an encouraged industry in the western region. In September 216, the leading group for the development of wine industry in Gansu Province issued the "Implementation Opinions on Further Supporting the Development of Wine Industry in Hexi Corridor" to comprehensively improve the quality, brand and market share of organic wine in Hexi Corridor of Gansu Province, accelerate the industrialization, branding and diversified development of wine, and take multiple measures to support the development of wine industry. In October, 219, Gansu Provincial Department of Commerce issued the Action Plan for Promoting the Promotion of Billion Long Wine Industry, proposing to actively explore new mechanisms for promoting sales, and strive to open up both domestic and international markets, and strive to make the total sales of wine production enterprises in the province exceed 1 billion yuan by the end of the 14th Five-Year Plan, and adhere to the four principles of market orientation, quality first, brand leading, supporting and strengthening.
(2) the product market potential is huge. China has the largest potential market for wine consumption in the world. At present, the per capita consumption of wine in the world is about 7 liters, while that in China is less than 1 liter. According to the survey data of IWSR, China wine consumption market is expected to become the largest wine consumption market in the world.
(3) the pressure of market competition has increased. The degree of concentration, specialization and marketization of wine industry is getting higher and higher, and the existing domestic wine production enterprises are further accelerating their expansion. The characteristics of wine industry have also attracted many foreign capitals to enter this field. In addition, due to the continuous reduction or even zero tariff on imported wine, the influx of foreign wine into China has been accelerated, and the market competition pressure of the wine industry is increasing.
(II) Development strategy of the company
Adhere to the "open strategy of Mogao and going abroad" and expand and upgrade the three major industries of "wine industry, pharmaceutical industry and environmental protection industry", in which wine industry gives priority to development, pharmaceutical industry develops steadily and environmental protection industry develops innovatively. The wine industry will build "double cores" (Wuwei Mogao Manor, Lanzhou Mogao International Winery), "double engines" (Wuwei, Lanzhou Brewery) and "double highlands" (Wuwei producing highland, Lanzhou brand highland) to accelerate the pace of expanding national key markets.
(III) Business Plan
(I) Accelerate the construction of the wine market. (1) Intensify market investment promotion and accurately attract investment around regional markets. (2) Increase market investment, continuously expand to external markets, and expand market volume. (3) Take Beijing and Shenzhen Mogao City Wine Castle as the operating platform to accelerate the market construction in North China and South China.
(2) Innovative marketing to increase sales. (2) Continue to expand online sales, do a good job in the APP operation of Mogao Mall, and increase online sales volume. (2) Open up new sales channels, grasp the wedding banquet, family banquet and business banquet market, and increase sales. (3) Seize the Mid-Autumn Festival, National Day, double 11 and other important nodes, increase sales promotion, and effectively increase sales.
(3) continuously enhance the brand image. (1) Continue to enhance the brand value of Mogao. (2) Continue to build the brand image of Mogao. Focus on the two fulcrums of popularity and reputation, and increase brand promotion and publicity. Push brand, product promotion and other information in Mogao WeChat WeChat official account and Mogao Mall to accurately publicize, enhance the brand and promote sales. (3) Strengthen experiential marketing. Through tasting, exhibitions, wine fairs and other exhibition activities, tasting, display and sales are organically combined.
(4) continuously optimize the product structure. (1) Concentrate on improving the market competitiveness of core products Pinot Noir and ice wine. (2) Market-oriented, continue to optimize and upgrade the product structure, and enhance product diversification and cost performance. (3) Increase investment in scientific and technological innovation, promote the introduction, research and application of new varieties, products and technologies, develop new products and enrich product lines. (4) The environmental protection industry promotes the iteration of product renewal and expands to products and fully degradable products.
(5) do a good job in project construction and operation. (1) Biodegradable masterbatch and products processing projects, and do a good job in raw material procurement, production and sales. (2) Do a good job in the construction of new biodegradable polyester materials.
(4) Possible risks
1. Macro environmental risks. Due to the slowdown of domestic economic growth and sluggish consumption in the wine market, the domestic wine industry has entered an adjustment period, and the output has been declining for many years. The company is facing the risk of slowing down the economic situation and industry development.
2. Market competition risk. Wine is a sunrise industry, which is the key development direction of national wine, with great development potential, attracting many capitals to invest in the wine industry. At the same time, the continuous reduction of imported wine tariffs or even the implementation of zero tariffs has accelerated the influx of foreign brands into China, and the impact on domestic wines has increased dramatically, and the company is facing more intense market competition.
3. Risk of rising costs. Due to the dramatic increase in wine packaging materials, transportation costs and planting costs, the company is facing the pressure of rising costs.
4. Market input risk. With the promotion of the company's national development strategy, the investment in market construction and development will continue to increase. Due to the uncertain factors in the market, the company faces the risk of market investment.
iv. analysis of core competitiveness during the reporting period
(1) industrial advantages. The company began to build vineyards in Liangzhou District, Wuwei City, Gansu Province in 1981, and the first Mogao wine was born in 1985. In 24 and 28, the company completed the initial public offering and additional financing respectively, which provided strong support for the leap-forward development of Mogao wine. At present, the company has built Mogao Grape Manor and Mogao Ecological Wine Castle in Wuwei, Gansu Province, Mogao International Winery in Lanzhou, and urban wine castles in Beijing, Shenzhen, Xi 'an and Lanzhou, which are integrated with tasting, consumption and cultural functions. The solid industrial foundation and advantages provide a reliable guarantee for the wine industry to become bigger and stronger. (2) Brand advantage. The characteristics of the wine industry determine the importance of brand building, and the company actively implements the famous brand strategy to become an American brand. In 29, "Mogao" brand wine was recognized as "China well-known trademark" by the State Administration for Industry and Commerce; In November, 21, "Mogao" brand and "Sir Mogaojin" brand were appraised by China Brand Value Appraisal Center, and both were awarded as "China Famous Brands". In 219, in the 11th China Wine Brand Value Appraisal of "Huazun Cup", Mogao Wine won the "Third Brand Value of China Wine" for seven consecutive years, and its brand value rose to 18.991 billion yuan. Mogao Pinot Noir's independent brand is worth 13.15 billion yuan, and it has won the title of "Top Eight Global Wine Brands".
(3) quality advantage. The company's wine products are produced in strict accordance with the "4S+5P" brewing mode, and a complete and strict quality assurance system has been established from raw material planting, production to product sales. It has passed the "China Green Food Certification" and "China Organic Product Certification" and established a product quality traceability system. More than 2 products in seven series, such as dry red wine, dry white wine, sweet wine, special wine, ice wine, brandy and sparkling wine, were developed, and Pinot Noir dry red wine and ice wine were produced, both of which were rated as excellent new products. In 28, "Sir Mogaojin" dry red wine won the "Golden Oak Barrel" award in the third world wine festival in 28. In August, 211, Mogao Mazzaro, XO and Iced Wine won the "Gold Medal of China Light Industry Exhibition" respectively. In 216, in the 216“BRWSC "international wine competition hosted by the organizing committee of the Brussels Liquor Grand Prix and the Beijing International Liquor Exchange, Sir Mo Gaojin's dry red wine and Mo Gao Qian's white double won the gold medal in the competition. In 217, Mogao Ecological Wine Castle was selected as the governing unit of China Winery Tourism Alliance. At the 5 th DSW International Boutique Wine Challenge in 219, Mogao Pinot Noir dry red wine won the boutique award.