Comments on the operation of the board of directors of Mogao Co., Ltd. 20 19

The management opinions of the board of directors of Mogao (600543)20 19 are as follows:

I. Discussion and analysis of operating conditions

During the reporting period, the company realized an operating income of 65,438+077,268,383.93 yuan, a decrease of 23.29% compared with the same period of last year, of which the revenue of wine was 65,438+020,654,730 730. 10/0 yuan, a decrease of 35.23% compared with the same period of last year; The realized income of drugs was 30,085,324.57 yuan, down 2.31%compared with the same period of last year; The revenue of degradable materials is 65,438+04,564,65,438+08+0 yuan.

The wine business is affected by the slowdown of macroeconomic growth, the impact of imported wine, the sluggish consumer market and fierce competition. The company insists on taking the market as the center, actively adjusts marketing strategy and product structure, develops new wine varieties, optimizes market layout, improves marketing channels and promotes product sales; The pharmaceutical business is mainly an agent sales model. In recent years, due to the promotion of the "two-vote system" and the restrictions on circulation, the country has maintained a stable development trend by expanding the scope of investment. Degradable materials have entered normal production and operation during the reporting period.

During the reporting period, the company realized a net profit attributable to shareholders of the parent company of 27,427,427.95 yuan, a year-on-year increase of 0.66%.

Two. Main business operations during the reporting period

(1) Do a good job in marketing. (1) Continue to promote market construction. Participate in various festival activities and attract investment accurately around the regional market. Deepen the provincial market, continuously extend the market network and broaden the sales channels. Continue to explore markets outside the province, increase market construction and build a more detailed network. (2) Strengthen the sales of e-commerce platforms. Strengthen the management and monitoring of e-commerce platforms, carry out micro-marketing, and expand community marketing and micro-circle marketing. Mogao wine store opened in Meituan. Com, the company's self-operated Mogao Mall APP was officially launched. Further increase the sales of e-commerce, enrich the products sold by e-commerce and increase the promotion. (3) Develop tourism marketing to promote sales. Using the resource advantages of Mogao International Winery, Mogao Grape Manor and Mogao Ecological Wine Castle, we will continue to carry out the activity of "visiting Mogao Manor and tasting Mogao fine wine" to spread wine culture, cultivate consumer market and promote market sales.

(2) Optimize the product structure. (1) Create a Mogao single product. Concentrate on building core products and large single products of Mogao Pinot Noir Dry Red, focus on core products in product research and development, product promotion and terminal sales, and lay out the national market. Develop Mogao overtime farmers' aged dry red wine, implement the strategy of large single product and lay out key markets. (2) Continuously optimize the product structure. Market-oriented, Mogao 1999 cellar dry red wine, Mogao organic wine field dry red wine, Mogao Manor Cabernet Sauvignon dry red wine and other 13 customized products were developed to meet the market demand in different regions.

(3) Enhance the brand image. (1) brand value continues to improve. In 20 19, the brand value of Mogao rose to1899.438+0 million yuan, ranking third in the national wine industry for seven consecutive years. The independent brand value of Mogaohei Pi Nuo rose to RMB 65,438+0,365,438+0.05 billion, ranking among the eight famous wines in the wine industry. (2) Mogaohei Pi Nuo won the honor again. Mogaohei Pi Nuo won the fine wine award in the 5th DSW International Fine Wine Challenge on 20 19. (3) Make full use of the display, tasting and evaluation functions of Mogaocheng wine castles in Beijing, Shenzhen, Xi and Lanzhou to enhance brand image and promote market sales.

(4) Strengthen innovation and development. (1) Based on the characteristics and raw material advantages of Mogao Manor, 20 18 noble wine was developed. (2) actively declare patents. During the reporting period, the patent of Mogao Jinzun's appearance has been authorized, and the patent of utility model such as sparkling wine fermenter and automatic heater and the patent of Guifei wine invention are under examination and approval.

(5) Do a good job in project construction. (1) Do a good job in the production and operation of 20,000 tons of biodegradable master batches and products processing projects. (2) Do a good job in the construction of new biodegradable polyester materials with an annual output of 20,000 tons. During the reporting period, the project has started construction.

Third, the discussion and analysis of the company's future development

(A) the industry pattern and trends

(1) Macro development opportunities are rare. Wine industry is a green sunrise industry, a key development direction of national wine, and a characteristic advantage industry in Gansu Province. Wine industry is an industry integrating agriculture, industry and modern service industry, and integrating with culture, tourism and other industries. On April 3rd, 20 16, China Liquor Association issued "Guiding Opinions on the Development of China Liquor Industry in the 13th Five-Year Plan", and combined with the actual situation of China Liquor Industry, put forward five development concepts: "Striving for progress while maintaining stability, accurately grasping the new normal of economic development", "Culture first, advocating rational drinking to enhance credibility" and "transformation and upgrading, relying on science and technology to highlight the driving force of innovation". 20141kloc-0/with the approval of the State Council, the national development and reform commission issued the catalogue of encouraged industries in the western region, which listed Gansu liquor industry as an encouraged industry in the western region. From 2065438 to September 2006, the leading group for the development of wine industry in Gansu Province issued "Implementation Opinions on Further Supporting the Development of Wine Industry in Hexi Corridor" to comprehensively improve the quality, brand and market share of organic wine in Hexi Corridor of Gansu Province, accelerate the industrialization, branding and diversified development of wine, and take various measures to support the development of wine industry. In June, 20 19, Gansu Provincial Department of Commerce issued the Action Plan for Promoting the Promotion of Billion Dragon Wine Industry, proposing to actively explore new sales promotion mechanisms, strive to open up domestic and foreign markets, and strive to achieve total sales of10 billion yuan by the end of the 14th Five-Year Plan, and adhere to market orientation, quality priority, brand leadership and excellent support in implementation. According to the strength, product quality, brand awareness and degree of market integration, the wine production enterprises in the whole province will implement various forms of market development, promote the continuous transformation and upgrading of enterprises in promoting sales, and promote the wine enterprises to become world-famous.

(2) The product has great market potential. China has the largest potential market for wine consumption in the world. At present, the per capita consumption of wine in the world is about 7 liters, while the per capita consumption in China is less than 1 liter. According to the survey data of IWSR, China wine consumption market is expected to become the largest wine consumption market in the world.

(3) The pressure of market competition has increased. The degree of concentration, specialization and marketization of wine industry is getting higher and higher, and the existing domestic wine production enterprises are also accelerating their expansion. The characteristics of the wine industry have also attracted many foreign capitals to enter this field. In addition, due to the continuous reduction or even zero tariff of imported wine, the influx of foreign wine into China has been accelerated, and the market competition pressure of the wine industry is increasing.

(II) Company development strategy

Adhere to the strategy of "opening to the outside world" and expand and upgrade with three major industries: "wine industry, medicine industry and environmental protection industry", in which wine industry gives priority to development, medicine industry develops steadily and environmental protection industry develops innovatively. The wine industry will build "dual-core" (Wuwei Mogao Manor and Lanzhou Mogao International Winery), "dual-engine" (Wuwei and Lanzhou Winery) and "double highland" (Wuwei producing highland and Lanzhou brand highland) to accelerate the pace of expanding the national key markets.

(3) Business plan

(1) Accelerate the construction of liquor market. (1) Intensify market investment promotion and accurately attract investment around regional markets. (2) Increase market investment, constantly expand to external markets, and expand market volume. (3) Take Beijing and Shenzhen Mogaocheng wine castles as operating platforms to accelerate the market construction in North China and South China.

(2) Innovative marketing to increase sales. (2) Continue to expand online sales, do a good job in the APP operation of Mogao Mall, and increase online sales. (2) Develop new sales channels, grasp the wedding banquet, family banquet and business banquet market, and increase sales. (3) Seize the Mid-Autumn Festival, National Day, Double 1 1 and other important nodes, increase the promotion efforts, and effectively increase sales.

(3) Continuously enhance the brand image. (1) continuously enhance the brand value of Mogao. (2) Continue to build Mogao's brand image. Strengthen brand promotion and publicity around the two fulcrums of popularity and reputation. Push brand, product promotion and other information in the official account of Mogao WeChat and Mogao Mall to accurately publicize, enhance the brand and promote sales. (3) Strengthen experiential marketing. Through tasting, exhibition, wine fair and other exhibition activities, tasting, display and sales are organically combined.

(4) Continuously optimize the product structure. (1) Focus on improving the market competitiveness of core products, namely black Pi Nuo and ice wine. (2) Market-oriented, continuously optimize and upgrade product structure, and improve product diversification and cost performance. (3) Increase investment in scientific and technological innovation, promote the introduction, research and application of new varieties, products and technologies, develop new products and enrich product lines. (4) The environmental protection industry promotes the iteration of product renewal and extends to products and fully degradable products.

(5) Do a good job in project construction and operation. (1) biodegradable masterbatch and products processing project, and do a good job in raw material procurement, production and sales. (2) Do a good job in the construction of new biodegradable polyester materials.

(4) Possible risks

1. Macro environmental risk. Due to the slowdown of domestic economic growth and sluggish consumption in the wine market, the domestic wine industry has entered an adjustment period, and the output has been declining for many years. The company faces the risk of economic situation and industry slowdown.

2. Market competition risk. Wine is a sunrise industry and the key development direction of national wine, which has great development potential and attracts many capitals to invest in the wine industry. At the same time, the continuous reduction of imported wine tariffs and even the implementation of zero tariffs have accelerated the influx of foreign brands into China, and the impact on domestic wines has increased sharply, and the company is facing more intense market competition.

3. The risk of rising costs. Due to the sharp increase in wine packaging materials, transportation costs and planting costs, the company is facing the pressure of rising costs.

4. Market input risk. With the promotion of the company's national development strategy, the investment in market construction and development will continue to increase. Due to the uncertainty of the market, the company faces the risk of market investment.

Four. Analysis of core competitiveness during the reporting period

(1) industrial advantages. The company started to build vineyards in Liangzhou District, Wuwei City, Gansu Province on 198 1, and the first Mogao wine was born on 1985. In 2004 and 2008, the company completed the initial public offering and additional financing respectively, which provided strong support for the leap-forward development of Mogao wine industry. At present, the company has built Mogao Grape Manor and Mogao Ecological Wine Castle in Wuwei, Gansu Province, Mogao International Winery in Lanzhou, and urban wine castles integrating tasting, consumption and cultural functions in Beijing, Shenzhen, Xi 'an and Lanzhou. Strong industrial foundation and advantages provide a reliable guarantee for the wine industry to become bigger and stronger. (2) Brand advantage. The characteristics of the wine industry determine the importance of brand building, and the company actively implements the famous brand strategy and becomes an American brand. In 2009, "Mogao" brand wine was recognized as "China well-known trademark" by the State Administration for Industry and Commerce; 20 10 1 1, "Mogao" brand and "Sir Mogaojin" brand were appraised by China Brand Value Appraisal Center, and all of them were awarded "China Famous Trademarks". In 20 19, Mogao wine won the third place in China wine brand value for seven consecutive years in the 11th China wine brand value appraisal activity of "Huazun Cup", and the brand value rose to 189.380+000 billion yuan. Mogaohei Pi Nuo's independent brand value is RMB 65,438+0,365,438+0.05 billion, and it has been awarded the title of "Eight Famous Wine Brands in the World".

(3) Quality advantage. The company's wine products are produced in strict accordance with the "4S+5P" brewing mode, and a complete and strict quality assurance system has been established from raw material planting, production to product sales. It has passed the "China Green Food Certification" and "China Organic Product Certification", and established a product quality traceability system. More than 200 products in seven series, including dry red wine, dry white wine, sweet wine, special wine, ice wine, brandy and sparkling wine, were developed, and black Pi Nuo dry red wine and ice wine were produced, all of which were rated as excellent new products. In 2008, "Sir Mogaojin" dry red wine won the "Golden Oak Barrel" award in the 3rd World Wine Festival in 2008. 20 1 1 In August, Mogao Mazzaro, XO and Bingjiu won the "Gold Medal of China Light Industry Exhibition" respectively. In 20 16, in the 2065438+06 "BRWSC" international wine competition sponsored by the organizing committee of Brussels Liquor Grand Prix and Beijing International Liquor Exchange, Sir Mo's dry red wine and Qian's Bai Shuangrong won the gold medal in the competition. On 20 17, Mogao Ecological Wine Castle was selected as the governing unit of China Winery Tourism Alliance. Mogaohei Pi Nuo won the fine wine award in the 5th DSW International Fine Wine Challenge on 20 19.