On August 23, China Securities News (Reporter Zhu Wanping) In the context of insufficient demand, A-share liquor distributor Vats Liquor Chain Store Management Joint Stock (300755.SZ) achieved a slight increase of 2.77% in net profit in the first half of the year, but the Q2 net profit decreased by nearly half compared to the same period last year, and the gross margin of the company's baijiu business also fell to a single digit, the lowest level since its listing.

This evening, Vats Liquor Chain Store Management Joint Stock released its 2024 interim report, with revenue of 5.943 billion yuan, a year-on-year increase of 1.30%; net income attributable to shareholders was 0.155 billion yuan, a year-on-year increase of 2.77%; non-GAAP net income after tax was 0.138 billion yuan, a slight decrease of 3.63% year-on-year. The company's net operating cash flow in the first half of the year was -60.1919 million yuan, a year-on-year decrease of 114.28%, which the company attributed mainly to the increase in cash paid for the purchase of goods.

Looking at the quarters, Vats Liquor Chain Store Management Joint Stock achieved revenue of 1.81 billion yuan in Q2 of this year, a year-on-year decrease of 14.77%, and its net income attributable to shareholders was 25.2998 million yuan, a year-on-year decrease of 49.10%. Its non-GAAP net income was 9.8646 million yuan, a year-on-year decrease of 77.15%.

In terms of products, the baijiu business remains the main contributor to Vats Liquor Chain Store Management Joint Stock's revenue. In the first half of this year, the company's baijiu products achieved revenue of 5.585 billion yuan, accounting for about 94% of the total revenue.

However, the gross margin of Vats Liquor Chain Store Management Joint Stock's baijiu business further declined to 9.36%, the lowest level since its listing. The company explained that due to changes in market demand, the sales proportion of well-known liquors has increased compared to the same period last year, and the gross margin of some well-known liquors has decreased, which is in line with the overall market trend. On the other hand, against the backdrop of weak consumer demand recovery, the company has continued to increase investment in the annual marketing strategy for its boutique wines, leading to a decline in the contribution rate of boutique wines to profits.

Vats Liquor Chain Store Management Joint Stock mainly distributes well-known liquors such as Maotai and Wuliangye. Maotai and Wuliangye products used to contribute more than 85% of the company's revenue. However, since November last year, the ex-factory prices of Maotai and Wuliangye have been raised one after another, but the actual market prices have not correspondingly increased, but have instead decreased. Among them, the market price of Maotai experienced a significant decline in Q2 of this year, which undoubtedly squeezed the profit margin of the distribution channels.

Vats Liquor Chain Store Management Joint Stock is also developing its own boutique wines, but in the weak consumption environment, the company's boutique wine business is under pressure. In the first half of this year, the company's subsidiary responsible for the sales of boutique wines, Vats Boutique Wine Trading Co., Ltd., achieved a net profit of 14.05 million yuan, a year-on-year decrease of 75%.