On the evening of August 25, Yanjing Beer released its 2022 semi-annual financial report. During the reporting period, the company achieved beer sales of 2.1518 million liters. Among them, mid-to-high-end products achieved revenue of 4.058 billion yuan, a year-on-year increase of 9.38%; general products achieved revenue of 2.390 billion yuan, a year-on-year increase of 3.76%. In the first half of the year, the company achieved operating income of 6.908 billion yuan, a year-on-year increase of 9.35%, and net profit attributable to shareholders of listed companies was approximately 351 million yuan, a year-on-year increase of 21.58%. Compared with other major brands, Yanjing and Chongqing Beer lead the leading companies in terms of sales growth, revenue growth, and profit growth.

Yanjing Beer used its report card of net profit in the first half of the year to go against the market, which greatly enhanced the confidence of the industry. The deeper question is, what changes have taken place in Yanjing Beer in the past few months after the new chairman Geng Chao took office? What kind of future development path will the new management lead Yanjing Beer to build-how far has Yanjing Beer come on this road?

All answers may be found in the market.

Management changes Yanjing Beer welcomes new opportunities

Since May this year, Yanjing Beer's leadership team has been reorganized. The first to take office are the deputy director of the Policy and Regulations Department of the Beijing City Assets Supervision and Administration Commission, the director of the Municipal Office for Comprehensively Deepening the Reform of State-owned Assets and State-owned Assets, and the Party Committee Secretary of the State-owned Assets Supervision and Administration Commission of Shunyi District, Beijing City. Geng Chao, a 47-year-old Master of Laws with a background from director.

With the selection of general manager on July 4, Yanjing Beer's new leadership team was also assembled. On the same day, Yanjing Beer appointed four deputy general managers while reviewing and approving the resignation applications of five deputy general managers.

In nearly a hundred days, Yanjing Beer issued nearly 10 announcements on personnel changes, including the adjustment and appointment of key positions such as chairman and general manager.

For a time, in three months, Yanjing Beer completed the replacement of new and old senior officials from chairman to general manager.

According to insiders of Yanjing Beer, since the end of September 2020, Geng Chao became the Party Secretary and Chairman of Beijing Yanjing Beer Group Co., Ltd., and has begun to promote Yanjing Beer's market-oriented operating mechanism, production capacity layout, innovation system, etc. The series of reform work has played a positive role in strengthening incentives, stimulating motivation, enhancing vitality, and improving efficiency. Currently, various reforms are being advanced in an orderly manner.

After a comprehensive change of management, Yanjing Beer entered the "fast lane" of development and entered a new journey of development. The new chairman personally brought the goods live broadcast, joined hands with the movie channel to sing the Hundred Flowers Award, and empowered by "Having Your Culture", vigorously promoted a series of reforms in product matrix, marketing layout, brand culture and other aspects to accelerate the rejuvenation and expansion of the brand.

On July 26, at the 19th "World Brand Conference and China's 500 Most Valuable Brands Launch Conference", Yanjing Beer was re-selected with a brand value of 163.785 billion yuan, ranking 43rd on the list, and its brand strength increased. One level.

Coincidentally, at the 2022 China International Beer Challenge, Asia's largest professional beer event, Yanjing Beer's 11 products stood out among the 2616 entries, becoming the beer brand with the most awards in this competition.

On July 30, at the 36th Popular Film Hundred Flowers Awards Ceremony, Yanjing Beer made a surprise appearance as the chief sponsor. At the same time, Yanjing Beer's theme song "With You, There is the World" also appeared on the stage as one of the hot songs of the Hundred Flowers Awards Gala, demonstrating Yanjing Beer's unremitting struggle and dedication as a national enterprise. Pursuit goal.

The company pointed out in its semi-annual report that during the 14th anniversary period, the company closely followed the theme of "high-quality development" and focused on "second entrepreneurship and rejuvenation of Yanjing". It adhered to the mission of brewing a better life and pursued greener, sustainable, and more efficient and harmonious growth.

Withstood the pressure of the epidemic, Yanjing Beer achieved counter-trend growth

In May this year, Beijing's catering industry suspended dine-in meals. The affected industries are far beyond restaurants, and the beer market is also affected. In contrast, brands that persist and grow in difficult environments tend to be more resilient.

The Beijing market is Yanjing Beer's base camp. In order to win this "defense battle", Yanjing Beer decided to give priority to satisfying the Beijing market in terms of market resource investment and product research and development.

"Beijing's sales companies start from retail channels and use various methods to bring more Yanjing product portfolios to commissaries and convenience stores. In particular, they have increased the product portfolios mainly based on U8, special listening, and V10 products to put them into terminals to meet the needs of consumers. The need to consume nearby and diversify consumption during the epidemic." Geng Chao, chairman of Yanjing Beer, said.

It is understood that Yanjing Beer has also reached cooperation with a number of people's livelihood protection units (mostly chain supermarkets and retail KA customers), using its product supply channels and online purchase platforms (such as multi-point, box horse and other APP) to reach the community. Delivery services realize the supply of goods to home-controlled communities, allowing residents to purchase Yanjing products without leaving home.

Today, Yanjing Beer has achieved growth against the trend, and Geng Chao has also shared a lot of experience. "In order to regain the production delayed by the epidemic and ensure the supply of products during the peak season, the Beijing factory's filling production line is at full power, and four shifts are in operation on three days. The average daily production capacity of a 50,000 bottles/hour production line can reach about 500 kiloliters. The output in May increased year-on-year by 10%, and the output in June increased by 12.1% year-on-year." North China, East China, Central China, and Northwest China, including the Beijing market, all achieved positive growth.

Chairman of the Board of Directors Live Broadcast with Goods Yanjing continues to make efforts in the high-end battlefield

On June 17, the Jingdong platform Yanjing Beer Live Broadcast Room welcomed a special "anchor", who talked about the pattern, products, technology, and feelings, including a variety of products sold at discounts. Among them, craft brewing products were as low as 2 pieces. 20% off. The popularity of live broadcasts has suddenly increased, with more than 1.45 million viewers. The GMV, the peak of one-hour live broadcasts, has increased by 175 times year-on-year.

The protagonist who talked eloquently was Geng Chao, the newly appointed chairman of Yanjing Beer. This move also made Geng Chao the first high-level executive in Yanjing Beer's history to broadcast live.

"Yanjing U8 is not a laboratory product. It is the result of listening to consumer feedback and exploring the market. Consumer opinions have important reference value for companies 'decisions to build product matrices." In the live broadcast room, Geng Chao interacted frequently with netizens: "Beer is an international competition within the country. We just want to spread it to young people and listen to the opinions of young brothers and sisters."

It is reported that Yanjing Beer's self-operated flagship store ranked first in e-commerce sales in the beer industry that day.

"The chairman of Yanjing Beer personally participated in the live broadcast. It can be seen that the new management attaches great importance to the rejuvenation strategy and continues to promote targeted promotion through key channels for young consumer audiences." In this regard, He Yong, secretary-general of the China Liquor Industry Association, believes so.

On July 21, Yanjing Beer and Jingdong reached a strategic cooperation. Through cooperation such as brand co-construction, channel co-construction, product co-construction, and technical foundation co-construction, Yanjing Beer will continue to make efforts in e-commerce, O2O, and new retail. Emerging sales channels will further promote the innovative development of digital intelligence in the beer industry.

In the next step, Yanjing will use the concept of "innovative space consumption scenarios" to deploy experiential Lion King Craft Yanjing No. 9 flagship store in major business districts, paired with immersive high-quality catering and entertainment, allowing consumers to experience authentic Beijing-style craft brewing culture.

As Geng Chao said, Yanjing Beer insists on building a younger and high-end brand, meets the consumer needs of young people, and successively launches trend products and innovative products to adapt to and lead new trends and trends in beer consumption. At the same time, it will continue to carry out series Marketing communication, IP cooperation, and three-dimensional full-link marketing to create a new benchmark in the industry.