Source: Beijing Business Daily
"some consumers, driven by curiosity, may have a demand for flower wine, which may be one of the reasons why they choose to issue a notice of price increase and goods control at this time."
Reporter Liu Yibo Feng Ruonan
After hearing that Qinghai Spring Medicinal Resources Science and Technology Co., Ltd. (hereinafter referred to as "ST Spring"), the parent company of flower wine, was fined 1.8 million yuan by the market supervision department of Wuhou District of Chengdu for "improper publicity", the 315 incident seemed to come to an end. Two months after 315, the Flower and Wine Tasting Restaurant resumed business. On May 15, a reporter from the Beijing Business Daily visited the Beijing Guanhua wine tasting shop and learned that the store opened in early May and is currently selling only standard packages at a price of 5860 yuan per bottle.
If it is "lucky" to listen to Huajiu to resume business after the 315 evening roll call, then it is not so lucky to listen to Huajiu's performance in the capital market. In the 37 trading days since March 15, ST Spring has not only changed from "wearing a hat" to "ST Spring", but its share price has also fallen to 3.Camstrippoker.58 yuan per share. It is worth noting that since May 6, ST has harvested six consecutive falling limit boards in spring. Today, when listening to Hua Jiu gradually comes out of the 315 exposure, there is still room for its high-end market in the future.Camstrippoker?
"quietly" resume external business
Unlike the doors closed after the 315 exposure, the tasting hall of Ling Hua Liquor, located in the World Trade Center, has resumed business. In the course of the visit, a reporter from the Beijing Business Daily learned during an undercover visit as a consumer that the Ling Hua Wine tasting Restaurant resumed business in early May. "We have been working normally, but we are not open to the outside world," the clerk said. "We have been working normally in cooperation with the investigation." It is worth noting that when introducing the products, the shop assistant has avoided talking about the efficacy of health care.
During a secret visit in the store, the reporter found that at present, the products on display are mainly filled with standard wine, and the price is 5860 yuan per bottle, while the group purchase price is about 4688 yuan per bottle. In addition, for the boutique products with a price of 58600 yuan per bottle, the shop assistant said that the boutique products have been exclusively for the international market, are no longer sold at home and are out of stock.
In view of the current store sales situation, listening to the relevant departments of flower wine said in an interview with the Beijing Business Daily that the current sales situation of flower wine has basically recovered. As for the specific sales performance and dealers, the department did not respond.
Quietly resume external business at the same time, listen to Hua Jiu also issued a low-key price increase and control notice. A reporter from the Beijing Business Daily learned from the ST Spring official website that Huajiu issued three notices: "notice on adjusting the Standard package Price of Ling Hua Liquor", "notice on the implementation of Limited quota supply of Ling Hua Liquor" and "notice on the export sale of Ling Hua boutique series products only", which made a series of adjustments to the product strategy of Ling Hua Liquor. It is reported that the three "notices" respectively involve three major strategies: price adjustment, limited quantity and export.
According to the notice on adjusting the Standard package Price of Lanhua Wine, the company has decided to adjust the settlement price from the original settlement price to 3989 yuan per bottle from May 9 onwards. For the distributors contracted before the issuance of this notice, within the scope of the annual purchase quota stipulated in the agreement, the settlement price of the standard package of flower wine shall still be carried out in accordance with the pre-adjustment price.
In view of the current price increase, a reporter from Beijing Business Daily found during an interview that the increase in settlement price has not affected the transaction price in the terminal market. In Beijing Suanhua Wine tasting Hall, the standard price of Tanhua Wine is 5860 yuan per bottle.
In the price adjustment at the same time, listen to the flower wine also offer a limited number of cards. According to the notice on the implementation of a limited quota for the supply of listening flower wine, the Yibin listening flower plan will be able to ensure a total of 30,000 tons of its products will be delivered to the mainland market from 2025 to 2035. In order to ensure the production plan and integrate the marketing rhythm and sales planning of the brand, it was decided to implement the quota supply system for Linghua wine from May 9. It is reported that the total amount of flower products put on the market each year does not exceed 3000 tons (including sales wine, promotion wine and tasting wine), of which the planned quota does not exceed 1000 tons and the unplanned quota does not exceed 2000 tons.
Shen Meng, director of Xiangsong Capital, told Beijing Business Daily that some consumers may have a demand for listening to flower wine because of 315 curiosity, which may also be one of the reasons for listening to flower wine to issue a notice of price increase and goods control at this time.
The market capitalization lost 1.755 billion in 37 trading days.
Unlike tasting shops that regain their strength and reopen to the outside world, listening to Hua Jiu is not so "lucky" at the capital market level.
On May 15, ST, the parent company of Linghua Wine, closed at 3.58 yuan per share in the spring, up 1.99%, with a market capitalization of 2.102 billion yuan. In the 37 trading days since March 15, the share price of ST Spring has fallen from 6.57 yuan per share on March 15 to 3.58 yuan per share at present, a decrease of about 45.51%. The market capitalization has dropped from 3.857 billion yuan on March 15 to 2.102 billion yuan on May 15, with a loss of about 1.755 billion yuan.
It is worth noting that ST spring in nearly 37 trading days, harvested 8 falling limit board. A reporter from the Beijing Business Daily combed and found that the limit of ST fell by about 10% in the two trading days of March 18 and April 16. Not only that, since May 6, ST spring harvest 6 consecutive falling limit.
Spirit practitioners pointed out that the fall in ST's spring share price began not only after the 315th party was exposed. Looking at the stock price throughout the year, the capital market lacks confidence in the future trend of ST in the spring, and the market capitalization continues to fall.
Since the beginning of 2024, the spring of ST has dropped from 7.78 yuan per share on the first trading day to 3.58 yuan per share today, a decline of 53.98 percent. The market capitalization also dropped from 4.567 billion yuan at the beginning of the year to 2.102 billion yuan, a loss of 2.465 billion yuan.
While the share price has fallen sharply, ST Spring has also implemented other risk warnings in stock trading since May 6, and the stock abbreviation has been changed from "Qinghai Spring" to "ST Spring".
Hidden behind other risk warnings of stock trading is the plight of ST plunging into losses for years in the spring. Beijing Business Daily reporter combed the financial report and found that the net profits attributed to shareholders of listed companies in ST Spring 2020-2023 were-320 million yuan,-249 million yuan,-288 million yuan and-268 million yuan respectively. After rough calculation, ST accumulated a net loss of 1.125 billion yuan in the four years of spring.
Since the beginning of 2024, ST has been losing money in the spring. According to the quarterly data, ST made a net profit loss of 27 million yuan from January to March, which belongs to shareholders of listed companies.
As to whether ST can reverse its losses and take off its cap in spring, liquor practitioners point out that there are still some challenges for ST to reverse losses in spring. However, from the perspective of capital market performance, there are many factors that affect the stock price and market value of enterprises, including the development of the enterprise itself and the overall investment environment. At the moment, ST needs to boost investor confidence in the spring if it is to boost capital market performance.
What is the space for the high-end market?
On the one hand, external business is quietly restored, on the other hand, the capital market is not as expected, ST spring under the influence of the market and capital, the living space has also been squeezed.
In recent years, the layout of high-end products has gradually become one of the important indicators to measure the future development momentum of wine enterprises. Whether it is the head enterprise Guizhou Moutai, Wuliangye, Yanghe shares, or the regional leading enterprise Gujing tribute wine, this world margin and so on are constantly laying out the high-end market. As the liquor industry enters the stage of structural adjustment, the high-end layout logic of liquor enterprises is also gradually changing, and the racing track has changed from the "barbaric cut-in" of the horse racing enclosure to the "intensive ploughing" of the channel market.
From the price point of view, the standard price is 5860 yuan, the boutique price is as high as 58600 yuan, listen to flower wine continue to pick the ceiling of high-end products market. Not to mention the current terminal market transaction price of 2700 yuan per bottle of Guizhou Moutai's Feitian Moutai, compared with other industries, the high-end core products of Wuliangye, Luzhou laojiao, Yanghe shares and Luzhou laojiao are all located in the price belt above 1000 yuan.
Xiao Zhuqing, an expert in wine marketing, believes that listening to flower wine can not change consumers' demand for explicit consumption in the current era of rational consumption. Listening flower wine with such a high price does not represent the social attribute and lacks the psychological price expectation based on consumers' cognition. Therefore, listening to the high price of flower wine is only the wishful thinking of ST in spring, which lacks public awareness and psychological price expectation.
Although product pricing continues to challenge the nerves of the consumer market, but from the performance point of view, it has not produced the same harvest. Under such fierce competition, as a high-end liquor devoted to the high-end market, the market space is constantly squeezed under the strength of famous and high-quality spirits. According to the financial report, ST, the parent company of Linghua Wine, achieved revenue of 82.9476 million yuan in spring 2023, down 11.42 percent from 936.432 billion yuan in 2022.
For the current situation of listening to flower wine in the high-end market, Xiao Zhuqing pointed out that ST Spring's listening flower wine is currently competing with China's leading liquor companies for a voice in the high-end market. If the brand logic of listening to flower wine supported by "dreams" can be established, then the brand logic followed by many Chinese spirits to establish empathy with consumers and let consumers spend clearly will be subverted.
