On the evening of March 5th, Tsingtao Brewery announced the announcement of the 2020 annual results bulletin:
In 2020, Tsingtao Brewery will achieve a total of 7.823 million kiloliters of product sales, an operating income of RMB 27.76 billion, and a net profit attributable to shareholders of listed companies of RMB 2.2 billion, setting a new record. In 2020, Tsingtao Brewery’s profit growth rate was impressive, with net profit attributable to shareholders of listed companies increasing by 18.86%, and net profit attributable to shareholders of listed companies deducting non-recurring gains and losses increased by 34.79%.
The new crown pneumonia epidemic in 2020 has had a great impact on the domestic consumer market. Beer sales are facing huge difficulties and severe challenges. Under the leadership of the board of directors, the company has not waited and faced difficulties, and unswervingly promoted the implementation of high Quality development strategy, coordinated efforts to prevent and control the epidemic and business development. Give full play to the brand and quality advantages of Tsingtao Brewery, take multiple measures to actively explore the domestic product market, accelerate the development of high value-added products such as canned wine and craft products, and continue to promote innovation-driven and product structure optimization and upgrades, and achieve profit reverse Momentum growth.
In recent years, Tsingtao Brewery has given full play to its national key laboratory’s innovative R&D capabilities, and has taken”basic quality + characteristic quality” to”charming quality” as a breakthrough point, and exerted its efforts in the ultra-high-end market. In July 2020, the”Hundred Years Journey” and”Amber Lager” series of new art brewing products were launched to further refresh the quality consumption experience. As the official sponsor of the Beijing 2022 Winter Olympics, in December 2020, it launched the”Beijing 2022 Winter Olympics Ice and Snow Cans” series of products, and”moved” 15 ice sports into the products, winning consumer praise.
During the continuous release of new products, Tsingtao Brewery has realized that the future competition is not only the competition of products, but also the competition of consumption scenes. Aiming at the community scene under the night economy, more than 200 Tsingtao 1903 Tsingtao beer bars will be opened nationwide in 2020 to interact with consumers with high-end, personalized and precise products. The Tsingtao Beer Festival in more than 50 cities including Xi’an, Lanzhou, Chengdu, etc. not only identifies consumer needs from the scene, but also becomes the”traffic engine” and fashionable IP of the city’s night economy.
Through the immersive all-round brand promotion model, we continue to enhance the brand influence. Tsingtao Brewery continues to focus on consumer experience, creating new channels and new scenarios, promoting high-quality development, and achieving steady growth in operating performance.
In a recent research report, Essence Securities believes that Tsingtao Brewery’s larger dominant single product, continued structural upgrades, and a stable base market will all contribute to the continued profit growth momentum.