The domestic wine industry, which has been questioned about the troubled development, seemed stepping into a turning point in the first quarter of 2021.
 
The 2021 quarterly report released by listed companies with main business in wine shows that many companies have changed their previous dilemma of "keep falling " and reversed their continuous losses situation.
 
As a leader in the domestic wine industry, Changyu's performance rebounded. In the first quarter, it achieved operating income of 1.134 billion yuan, a year-on-year increase of 40.75%; net profit attributable to shareholders of listed companies was 287 million yuan, a year-on-year increase of 22.28%. Even in the first quarter of 2019 before the outbreak of the Covid-19, Changyu's operating income and net profit fell by 7.57% and 4.81%, respectively.
 
Besides Changyu, ST Weilong, ST Tongpu, Grace Vineyard, and Mogao also achieved positive performance growth.
 
This has made many who were once pessimistic about domestic wines to renew their confidence. It also made the domestic wine companies who have just experienced the decline in the performance of the 2020 annual report feel relieved.
 
When explaining the decline in performance in 2020, the lack of consumption venues and poor product sales caused by the epidemic became the most cited reasons for each company; With the epidemic effectively controlled and the market recovered, each company performed well in the first quarter
 
The strong support of the local government also makes the industry believe that domestic wine will have new opportunity for development. On the other hand, as consumers tend to diversify and rationalize their consumption choices, the strong presence of imported wines has gradually weakened, and more and more development space has been released for domestic wines.
 
According to data released by Customs of the People’s Republic of China, in March 2021, a total of 29.12 million liters of wine was imported, a year-on-year decrease of 37.4%, and the value was 78.05 million yuan, a year-on-year decrease of 16.6%; the cumulative imports from January to March were 107.98 million liters, a year-on-year decrease of 13.8 %, the amount was 283.059 million yuan, down 15.6% year-on-year.
 
The decline in wine imports may be able to reduce the pressure of domestic wines to a certain extent, but for domestic wines, whether they can seize the opportunity to enhance brand awareness and pick up confidence among consumers may be the issues of producers need to focus on.