In 2020, Chongqing Beer’s sales volume increased by about 3%compared to last year. In other words, Chongqing Beer’s “both volume and price rises” approach promoted performance growth.
First of all, Chongqing Beer continued to implement the high-end product strategy, the sales structure of high-end and above products continued to increase, and the main business revenue per hectoliter increased by 4%.
Secondly, Chongqing Beer actively carried out production excellence projects and operating cost management projects, saving costs. At the same time, Chongqing Beer has adopted active cost control measures, including reducing advertising and marketing expenses.
Finally, under the influence of the epidemic, Chongqing Beer has reduced labor costs due to the national policy of reducing and exempting corporate social insurance premiums.
For example, according to the requirements of the relevant documents of the Xinjiang Department of Human Resources and Social Security, employers no longer pay basic medical insurance premiums for retired employees who have reached the minimum payment period.
For this reason, in 2020, Chongqing Beer’s plan changes to the basic medical insurance in the defined benefit plan are confirmed as past service costs, which is expected to increase the company’s total profit for 2020 by approximately 196 million yuan.
In addition, in 2020, Chongqing Beer will also dispose of Xinjiang Beer Group Huocheng Beer Co., Ltd., Xinjiang Wusu Beer (Kashgar) Co., Ltd., Xinjiang Wusu Beer (Qitai) Co., Ltd. and Xinjiang Wusu Beer Huocheng Manufacturing Co., Ltd. Mai Co., Ltd. 4 subsidiaries without actual business operations are expected to increase the company’s total profit for 2020 by approximately 121 million yuan. In addition, other non-operating gains and losses are mainly government subsidy gains and structured deposit gains.
It’s worth noting that in the near future, Chongqing Beer’s share price has continued to be”sunshine”, mainly after the major asset reorganization, Chongqing Beer has grown from a regional beer company to a national beer company, which can be described as a”carp”. Leap over the Dragon Gate”.