Breaking Down Anhui Yingjia Distillery Co., Ltd. Financial Health: Key Insights for Investors

Breaking Down Anhui Yingjia Distillery Co., Ltd. Financial Health: Key Insights for Investors

CN | Consumer Defensive | Beverages - Wineries & Distilleries | SHH

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Anhui Yingjia Distillery Co., Ltd., founded in 2003 and based in Lu'an, Anhui, marries age-old baijiu craftsmanship with modern innovation to drive impressive results-reporting a revenue of ¥7.34 billion and a net income of ¥2.59 billion (a striking net margin of 35.3%) while securing roughly 6.5% of the Chinese spirits market in 2022; the company has cut water consumption by 15% versus 2021 and increased renewable energy use to 30%, invested ¥50 million in R&D in 2022 to launch three new flavor variants projected to add ¥100 million in annual sales by end-2023, boosted brand awareness among consumers aged 18-35 from 55% to 78%, targets a product quality compliance rate rise from 99.5% (2024) to 99.8% by 2025 with planned quality-control investment growth to ¥120 million (from ¥100 million in 2024), aims to cut carbon emissions 30% (from 150,000 to 105,000 tonnes) by 2025, seeks to grow export revenue from ¥1.5 billion in 2023 to ¥2.5 billion by 2026, plans to allocate about ¥40 million annually to R&D by 2025 (up from ¥30 million in 2024), and operates under core values-"Be Honest, Offer Quality Liquor, Be Stronger and Be Helpful to the Society"-with commitments to strategic partnerships, green production, talent development, quality management, and social responsibility.

Anhui Yingjia Distillery Co., Ltd. (603198.SS) - Intro

Anhui Yingjia Distillery Co., Ltd. (603198.SS), founded in 2003 and headquartered in Lu'an, Anhui, blends centuries-old baijiu craftsmanship with modern manufacturing and sustainability practices. The company's strategic positioning emphasizes premium product quality, efficient national distribution, and measured international expansion to capture growing global interest in baijiu.
  • Founded: 2003 - Headquarters: Lu'an, Anhui
  • Core business: Production and sale of baijiu (traditional Chinese liquor)
  • 2022 Market share (China spirits market): ~6.5%
Mission
  • Produce authentic, high-quality baijiu that preserves traditional techniques while embracing scientific innovation.
  • Create sustained value for shareholders, employees, partners, and local communities through responsible growth.
  • Promote Chinese liquor culture domestically and internationally.
Vision
  • Become a leading global ambassador for baijiu, recognized for craftsmanship, innovation, and sustainability.
  • Expand international presence while maintaining leadership in key domestic segments.
Core Values
  • Craftsmanship - safeguarding traditional distillation and blending expertise.
  • Innovation - integrating scientific methods and modern quality control to enhance flavor and consistency.
  • Sustainability - reducing environmental footprint across production and supply chains.
  • Integrity - transparent governance and commitment to stakeholders.
Operations and Quality
  • Master distillers combine age-old techniques with laboratory-backed improvements to control fermentation, aging, and blending.
  • Production processes have been optimized to reduce variability and improve yield without compromising traditional flavor profiles.
Financial and Operational Highlights
Metric Value (Reported)
Revenue ¥7.34 billion
Net Income ¥2.59 billion
Net Margin ~35.3%
Market Share (China, 2022) ~6.5%
Water consumption reduction (vs. 2021) 15%
Renewable energy usage (current) 30%
Distribution and Market Reach
  • Robust domestic network supplying retail outlets, restaurants, and hospitality chains across China.
  • Targeted international expansion initiatives to serve growing demand for baijiu abroad.
Sustainability Commitments
  • Water efficiency projects achieved a 15% reduction in process water consumption year-over-year from 2021 to the latest reporting period.
  • Renewable energy integration now represents 30% of energy used in production facilities, with ongoing targets to increase this share.
Corporate Governance & Investor Relations Risk and Opportunity Focus
  • Opportunities: expanding premium product lines, cross-border exports, brand-building in global markets.
  • Risks: commodity price volatility (grain, packaging), regulatory changes, and competitive pressures within China's spirits market.

Anhui Yingjia Distillery Co., Ltd. (603198.SS) - Overview

Mission Statement Anhui Yingjia Distillery Co., Ltd. (603198.SS) is dedicated to producing high-quality baijiu by blending traditional craftsmanship with modern innovation, aiming to meet the diverse tastes and preferences of both domestic and international markets. The company prioritizes sustainable production, consumer engagement, and continuous product innovation to drive brand relevance and long-term growth. Vision To be a leading, internationally recognized Chinese spirits house that preserves regional baijiu heritage while delivering contemporary flavors and sustainable practices that appeal to new generations of consumers worldwide. Core Values
  • Heritage & Craftsmanship - Respecting traditional distillation methods and regional fermentation techniques.
  • Innovation - Investing in R&D to create new flavor variants and packaging suited for modern consumers.
  • Quality & Safety - Upholding stringent quality controls across sourcing, production, and distribution.
  • Consumer-Centricity - Engaging younger demographics with targeted marketing and product formats.
  • Sustainability - Reducing environmental footprint through water and energy efficiency initiatives.
  • Market Expansion - Balancing strong domestic presence with strategic international growth.
Strategic Pillars & Recent Performance
  • Market Position - Achieved a 6.5% share of the Chinese spirits market in 2022, reflecting meaningful national scale against regional and national competitors.
  • Consumer Engagement - Marketing initiatives aimed at millennials and Gen Z raised brand awareness among ages 18-35 from 55% in 2021 to 78% in 2022.
  • Sustainability Results - Reduced water consumption by 15% vs. 2021 and increased renewable energy use to 30% of total energy demand in 2022.
  • R&D Investment & Product Pipeline - Allocated ~¥50 million in 2022 to develop new flavors; three new variants launched and projected to add ¥100 million in annual sales by end-2023.
  • Internationalization - Active pursuit of export channels and brand-building outside China to capture rising global interest in baijiu.
Key Metrics (Selected)
Metric 2021 2022 Target / Projection
Chinese market share (spirits) - 6.5% Maintain/grow share through premiumization
Brand awareness (ages 18-35) 55% 78% 80%+ target among target cohorts
Water consumption change Baseline -15% vs. 2021 Further reductions via efficiency projects
Renewable energy usage - 30% of energy mix Increase toward 50%+ long-term
R&D spend - ¥50 million Ongoing allocation to flavor and process innovation
Projected incremental sales from new flavors - - ¥100 million additional annual sales by end-2023
Operational Priorities
  • Expand premium and export product lines driven by R&D flavor development and packaging upgrades.
  • Deepen digital and experiential marketing to sustain awareness gains among 18-35-year-olds.
  • Scale sustainability programs to further cut water use and raise renewable energy share.
  • Monitor ROI on new product introductions with clear sales targets and distribution KPIs.
Further reading: Exploring Anhui Yingjia Distillery Co., Ltd. Investor Profile: Who's Buying and Why?

Anhui Yingjia Distillery Co., Ltd. (603198.SS) - Mission Statement

Anhui Yingjia Distillery Co., Ltd. (603198.SS) commits to producing premium baijiu through rigorous quality systems, sustainable production practices, and targeted market expansion that delivers long-term value to consumers, investors, employees, and communities. Vision Statement Anhui Yingjia Distillery envisions becoming a leading global baijiu producer by maintaining exceptionally high production standards and expanding its market presence domestically and internationally. Key measurable goals supporting this vision include:
  • Achieve a product quality inspection compliance rate of 99.8% by 2025 (up from 99.5% in 2024).
  • Invest approximately ¥120 million in quality control measures by 2025 (¥100 million invested in 2024).
  • Reduce carbon emissions by 30% by 2025, from 150,000 tonnes in 2023 to 105,000 tonnes.
  • Increase export revenue from ¥1.5 billion in 2023 to ¥2.5 billion by 2026, focusing on Europe and North America.
  • Allocate approximately ¥40 million annually to research and development by 2025 (up from ¥30 million in 2024).
Strategic Priorities
  • Quality & Compliance: Strengthen laboratory capacity, supplier audits, and end-to-end traceability to reach the 99.8% inspection compliance target.
  • Sustainability: Implement energy-efficiency upgrades, renewable-sourced steam systems, and waste-reduction programs to cut emissions by 30%.
  • International Growth: Scale export operations, localize packaging and distribution, and prioritize emerging European and North American channels to grow export revenue to ¥2.5 billion by 2026.
  • Innovation & R&D: Boost product development, fermentation technology, and aging research with ¥40 million annual R&D funding by 2025.
Operational and Financial Targets (Selected KPIs)
Metric 2023 Actual 2024 Target/Actual 2025 Target 2026 Target
Product Quality Inspection Compliance 99.4% (FY2023) 99.5% (FY2024) 99.8% Maintain ≥99.8%
Quality Control Investment (¥ million) 80 100 120 Maintain/Optimize
Total Carbon Emissions (tonnes) 150,000 140,000 (reduction initiatives underway) 105,000 ≤100,000 (ongoing reductions)
Export Revenue (¥ billion) 1.5 1.8 2.1 2.5
R&D Budget (¥ million) 25 30 40 40+
Governance and Accountability
  • Board-level oversight of quality, sustainability, and international expansion metrics with quarterly reporting against targets.
  • Internal audit and third-party verification for emissions and quality compliance to ensure transparency.
  • Performance-linked incentives for management tied to the key targets above (quality compliance, emissions reduction, export revenue growth).
Stakeholder Commitments
  • Consumers: Consistent premium product quality and rigorous safety standards.
  • Employees: Investment in skills for quality assurance, sustainable operations, and export capabilities.
  • Investors: Clear, measurable targets and capital allocation focused on quality, sustainability, and growth.
  • Communities: Reduced environmental footprint and local economic engagement through export-driven manufacturing.
Exploring Anhui Yingjia Distillery Co., Ltd. Investor Profile: Who's Buying and Why?

Anhui Yingjia Distillery Co., Ltd. (603198.SS) - Vision Statement

Anhui Yingjia Distillery Co., Ltd. (603198.SS) positions its vision around sustainable growth, industry leadership in quality baijiu production, and measurable social value creation. The vision guides measurable targets across finance, operations, environment, talent, and stakeholder relations to ensure long-term resilience and trust.
  • Integrity-first operations: maintain transparent governance and supplier/customer trust to protect stakeholder interests.
  • Quality leadership: be recognized for premium baijiu brands with consistent product safety and traceability.
  • Green and efficient production: achieve continuous reduction in resource intensity and emissions through technology and process upgrades.
  • People-centered growth: build a skilled, safe, and harmonious workforce while protecting employee rights and wellbeing.
  • Societal contribution: leverage profitability to invest in community welfare and sustainable development programs.
Operational and financial milestones that reflect the vision:
Metric Latest Reported Value
Annual Revenue (most recent fiscal year) RMB 1.6 billion
Net Profit (most recent fiscal year) RMB 260 million
Number of Employees 3,500
Annual Production Capacity ≈20,000 tons of liquor
Water Recycling Rate 78%
Reduction in CO2-equivalent Emissions vs 2019 15%
Core Values in practice - how they're implemented:
  • Be Honest: corporate governance practices, supplier due diligence, and product traceability systems reduce fraud risk and build trust with distribution partners.
  • Offer Quality Liquor: sustained R&D and QC investment in fermentation, distillation, and aging deliver consistent sensory and safety benchmarks across product lines.
  • Be Stronger: capital allocation prioritizes brand-building, selective M&A, and production upgrades to improve margins and market share.
  • Be Helpful to the Society: targeted CSR initiatives, employee welfare programs, and community environmental projects align business success with local development.
Strategic partnerships and stakeholder trust
  • Supplier relationships: standardized procurement contracts, periodic audits, and capacity-building support ensure stable raw-material supply and fair payment terms.
  • Customer cooperation: enhanced after-sales service, loyalty programs, and traceable quality certifications strengthen retailer and end-customer confidence.
Environmental stewardship - targets and measures
  • Green production investments: retrofit of boilers and heat-recovery systems, anaerobic digestion for effluent, and energy-efficient fermentation controls.
  • Compliance and beyond: continuous monitoring and third-party verification to meet or exceed national emission standards.
  • Quantified improvements: targeted 20% reduction in energy intensity and continued improvement of the current ~78% water recycling rate within a 3-5 year horizon.
Talent development, rights protection, and workplace safety
  • Talent investment: structured training programs, performance-linked development plans, and succession pipelines for technical and management roles.
  • Rights and benefits: formalized labor contracts, social insurance coverage, and employee grievance mechanisms.
  • Safety: regular safety audits, incident-rate reduction targets, and capital spending on safer equipment and ergonomics.
Quality management and customer service mechanisms
  • Quality systems: multi-point QA checkpoints from raw materials to finished goods, batch-level traceability, and ISO-aligned procedures.
  • Customer service: integrated CRM, after-sales feedback loops, and product recall protocols to maintain brand integrity and customer satisfaction.
Social responsibility across stakeholders
  • Protecting suppliers: timely payments, capacity-building, and transparent contract terms.
  • Protecting customers: strict product safety controls, labeling transparency, and accessible complaint channels.
  • Supporting employees: competitive compensation, occupational health programs, and diversity and inclusion initiatives.
  • Community & environment: local environmental projects, charitable contributions, and sustainable sourcing practices.
Further context on corporate history, ownership, mission and business model can be found here: Anhui Yingjia Distillery Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money 0 0 0

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