On the evening of July 9, Weilong released a performance forecast that the net profit attributable to the owner of the parent company was expected to be 6.78 million yuan to 10.65 million yuan in the first half of the year, turning a loss into a profit last year. Although the performance has improved, but in the second quarter, Weilong shares are still losing money.

Last year, Weilong launched its high-end sub-brand Longque, and set up a business division, related products sold at a single price of thousands of yuan. However, in the downturn of the domestic wine market, industry analysis said that its high-end road is blocked and long.

Weilong's performance forecast shows that the net profit attributable to the owner of the parent company is expected to be 6.78 million yuan to 10.65 million yuan in the first half of the year, and the net profit attributable to the owner of the parent company after deducting non-recurring gains and losses is 6.49 million yuan to 10.2 million yuan.

In the first half of last year, Weilong lost 13,062,200 yuan, withholding non-net profit of -19,220,700 yuan. This also means that compared with the same period last year, Weilong shares turned a loss into a profit in the first half of this year. Weilong shares summarized the reasons into two aspects: the company's operating income increased year-on-year, with an increase of about 24%; The management team has effectively reduced operating costs and expenses through a series of cost-reduction and efficiency measures such as reducing costs and expenses, thus achieving a turnaround.

One of China's largest wine producers, Veyron went public in 2016 and was once second only to Changyu and Great Wall in terms of revenue.

Combing through the financial report of Veilong after listing, it was found that it turned from profit to loss in 2019, and from 2019 to 2021, it achieved operating income of 667 million yuan, 392 million yuan and 474 million yuan respectively. Net profit - 25.8651 million yuan, - 220 million yuan, - 414 million yuan.

In 2022, Weilong shares turned a loss into a profit, with a net profit of 11,789,500 yuan. But by 2023, its profitability had fallen again. According to the financial report, the revenue of Weilong shares last year was 385 million yuan, down 22.85% year-on-year; Net profit attributable to shareholders of listed companies was -155 million yuan.

In the view of Guo Hongli, founding partner of Beijing Zhuopeng Brand Marketing Consulting Co., LTD., under the pressure of imported wine and liquor, as well as the influence of the entire consumer market, the downturn in the domestic wine market has not changed. In this case, it is not easy for domestic wine to take the high-end route, on the one hand, the lack of foundation, on the other hand, compared with imported wine, the lack of brand advantages, quality advantages and cost advantages.

In its annual report, Veyron also acknowledged that building a high-end wine brand in the Chinese market and gaining consumer recognition is a long and challenging process. The next step is to improve consumers' knowledge of wine and cultivate their ability to appreciate it, followed by a good brand story, cultural connotation and marketing activities.