Big kiln beverages enhance consumer happiness with quality and price ratio

The "2024 China Beverage Industry Trends and Outlook" report released by Nielsen IQ shows that with the development of social economy, the beverage industry as a whole continues to lead the fast-moving consumer goods market. Entering 2024, the consumption scene, consumer demand, and sales channels of China’s beverage market are becoming increasingly diverse, and the future beverage market will also have the potential to "cycle through". At the same time, "quality-price ratio" replacing "cost performance" is becoming a new consumption concept recognized and pursued by a considerable number of consumers. Faced with such an obvious consumption trend, how can brands seize the opportunity and seize the market?

Under the trend of quality-to-price consumption, Big Kiln Beverages continues to gain the favor of the market and consumers by relying on an efficient and high-quality process that guides product design with demand insights.

The representative "big soda" product line of Dayao Drinks has three flavors: classic guest flavor, lychee flavor, and orange flavor. Recently, 520mL of pineapple flavor and PET series of lime flavor, pineapple flavor, and frozen pear flavor have been added, which are widely welcomed with outstanding taste. For example, Dayao frozen pear, the taste not only retains the freshness and sweetness of the frozen pear itself, but also combines the carbonated bubbles to make the taste more refreshing and rich. Return to Erbin’s Frozen, and continue to harvest a good mood.

In addition, in 2024, the big kiln beverage soda product will be upgraded to the juice version, integrating the original classic taste with the juice demand, and continuously upping the ante juice soda category on the basis of retaining the core characteristics of "refreshing atmosphere" to meet the diversified needs of consumers.

Product performance is outstanding, and quality requires strength to escort. Dayao Beverage has always attached great importance to product quality, and strictly checked from raw material procurement to production process. In terms of production, Dayao Beverage has opened up a full-link digital journey from channels, commodities, marketing, orders, payment to delivery with the help of digital technology, driving cost reduction and efficiency through digitalization. In March this year, Dayao Beverage organized various factories to hold a production mobilization meeting, and conducted a full range of process, operation, quality and other training for production front-line employees to improve the quality control awareness of operators, and ensure product quality while increasing production. Each factory carried out process standard implementation investigation and error prevention landing investigation, improved 41 control measures, strictly grasped the implementation of standards, and carefully guarded product quality.

While ensuring product quality, Dayao Beverage also reduces costs and increases efficiency, improving the competitiveness of enterprises. Since 2014, Dayao Beverage has continued to build production bases in Hohhot, Shenyang, Liaoning, Siping, Jilin, Shizuishan, Ningxia, Baoji, Shaanxi, Tai’an, Anhui, and Fuyang, covering North China, Northeast China, Northwest China, Central China, East China, and South China, narrowing the distance between the production end and the consumption end. Under the condition of ensuring product quality, it reduces transportation costs and channel distribution costs, and provides consumers with higher quality and cost-effective products, such as 520mL of large glass soda, which is comparable in price to about 330mL of conventional soda on the market. Many consumers say that Dayao soda is very enjoyable to drink when serving meals, and the price is also very reasonable.

In this way, Dayao Beverage adheres to market-oriented, consumer demand-oriented, steady innovation, and is committed to bringing consumers higher-quality products, leading the national soda into a new era of quality.

(Member contributions)

At the last minute! Wang Jianlin, there is big news

At the last moment, Wang Jianlin lifted the crisis!

According to Dalian Wanda’s official website, on December 12, 2023, PAG and Dalian Wanda Commercial Management Group jointly announced the signing of a new investment agreement. PAG will cooperate with other investors to reinvest in Zhuhai Wanda Commercial Management after its investment redemption period expires in 2021. Existing investors invested about 38 billion RMB in Zhuhai Wanda Commercial Management in August 2021, of which PAG’s investment is about 2.80 billion US dollars (about 18 billion RMB). Existing investors enjoy redemption rights in the original investment arrangement.

This means that before the deadline for Zhuhai Wanda Commercial Management to list in Hong Kong, Wanda’s listing pressure has been eliminated.

Picture source: Screenshot of Dalian Wanda’s official website

Wanda’s "urgent need" solution

Wanda said that according to the new agreement, Dalian Wanda Commercial Management holds 40% of the shares, making it the single largest shareholder. Pacific Alliance and several existing and new investors will participate in the investment, with a total of 60%. However, Wanda did not disclose which new investors will enter. Some analysts believe that the possibility of insurance capital entering cannot be ruled out, and some original investors may withdraw.

The 21st Century Business Herald reporter noticed that in the new agreement, the direct shareholding ratio of Dalian Wanda Commercial Management will drop significantly from the existing 70.15%, while the shareholding ratio of investors will rise sharply from 29.84%.

Wanda said that Wanda will work with important shareholders such as Pacific Alliance to further optimize the corporate governance of the company, maintain the stability of the management team, and jointly support the long-term development of the company. The new agreement reflects investors’ high recognition of the growth potential of Zhuhai Wanda Commercial Management and its operating capabilities.

In September 2021, Zhuhai Wanda Commercial Management, which is seeking to list in Hong Kong, signed a share transfer agreement with 22 investors including Zhuhai SASAC, Tencent, Country Garden, CITIC, Ant Financial, China Merchants Group, Warburg Pincus, and Zheng Yutong’s family. Among them, some investors signed a gambling agreement with Wanda Commercial Management. According to the agreement, Zhuhai Wanda Commercial Management needs to complete the listing by the end of 2023, otherwise it will have to pay investors an equity repurchase at an annual internal rate of return of 8%. It is reported that the repurchase payment will reach 30 billion yuan.

However, due to the weak environment in the Hong Kong stock market, the listing of Zhuhai Wanda Commercial Management has been delayed repeatedly. And as the "limit" of gambling is approaching, this new investment agreement can be described as solving Wanda’s "urgent needs".

Zhuhai Wanda Commercial Management has submitted to the Hong Kong Stock Exchange four times on October 21, 2021, April 22, 2022, October 25, 2022, and June 28, 2023. On November 10, Zhuhai Wanda Commercial Management updated its listing application form on the Hong Kong Stock Exchange. According to the latest announcement, Zhuhai Wanda Commercial Management has agreed to terminate the appointment of Credit Suisse (Hong Kong) Limited as the overall coordinator of its listing application, effective from November 9, 2023. As of now, there are two joint sponsors of the company, namely CITIC CLSA Securities Limited and J.P. Morgan Securities (Asia Pacific) Limited. Wanda has since confirmed that UBS has replaced Credit Suisse as the overall coordinator of Wanda Commercial Management.

Image source: Visual China

Zhuhai Wanda Commercial Management for three consecutive years

Exceeding performance targets

Zhuhai Wanda Commercial Management currently manages 494 large commercial centres in 227 prefecture-level and above cities across the country. The number of commercial centres managed by Zhuhai Wanda Commercial Management has grown from 417 to 494 in the past two years, an average annual growth rate of about 9%. Zhuhai Wanda Commercial Management is now the world’s largest commercial management company in terms of commercial area under management.

Dalian Wanda said that since existing investors invested in 2021, Zhuhai Wanda Business Management has exceeded its performance targets for three consecutive years. After-tax income in 2021 is 23.50 billion yuan, 2022 is 27.10 billion yuan, and 2023 (estimated) is 29.30 billion yuan, with an average annual growth rate of about 12%. After-tax profit in 2021 is 5.30 billion yuan, 2022 is 7.50 billion yuan, and 2023 (estimated) is 9.50 billion yuan, with an annual growth rate of 34%. In the past three years, the company has paid a total of about 10 billion yuan in taxes, and dividends to shareholders are 4.60 billion yuan in 2021, 6.70 billion yuan in 2022 and 8.50 billion yuan in 2023 (estimated).

Wang Jianlin previously sold off assets

In order to solve the liquidity problem, some time ago, Wang Jianlin also sold off assets.

On December 6, Wanda Film announced that the 51% stake of the company’s controlling shareholder, Beijing Wanda Investment Co., Ltd. was to be transferred to Shanghai Ruyi Investment Management Co., Ltd., a wholly-owned subsidiary of China Ruyi Holdings Co., Ltd. In other words, Wang Jianlin sold Wanda Film. If the deal is completed, plus the previous transaction, Shanghai Ruyi will hold 100% of Beijing Wanda Investment, thereby indirectly holding 20% of Wanda Film and becoming the actual controller of Wanda Film.

According to the surging news on the 7th, on December 6th, the reporter learned that during the recent communication with investors, Zhuhai Wanda Commercial Management revealed that Wanda Group plans to sell its Wanda Plaza in first- and second-tier cities in exchange for liquidity, and is currently negotiating with insurance institutions. However, Wanda did not disclose which insurance institution it contacted. At the same time, there is still no IPO timetable for Zhuhai Wanda Commercial Management’s listing in Hong Kong.

In addition, on October 26, there was a market news that "Zhuhai Wanda Commercial Management intends to delay its listing on the Hong Kong Stock Exchange and is discussing providing compensation to investors to avoid triggering a repurchase." In response, people close to Wanda Group told the "Daily Economic News" reporter, "The current listing work is advancing normally. Whether it is contacting investors or applying for an IPO normally, it is a daily work, and there are no new changes."

———————

● According to Daily Economic News, Dalian Wanda official website, The Paper, 21st Century Business Herald, Securities Times, China Fund News, etc

Original title: "Last minute! Wang Jianlin, there is big news"

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Andy Lau lamented to Big S in public that the two met too late

Andy Lau "kissed" with Big S in public, claiming to yearn for "polygamy"

        Andy Lau was Big S’s idol for many years. When he learned that he was going to cooperate with Andy Lau, Big S was very nervous, and it happened that the first scene between the two was a kiss scene. Looking back on the scene at that time, Big S still remembered it vividly, "My sister and my mother knew that I was going to shoot a kiss scene with Andy Lau, and they all excitedly asked to watch it.

        In the interactive game at the scene, Andy Lau had to satisfy the fan’s request to "offer a kiss". When Xu Jiao and Shi Yunpeng, two young actors, kissed him instead of the fan, Andy Lau took the initiative to ask Big S to kiss him, "Don’t Big S come up? I want to kiss her." Facing the invitation of the idol, Big S was a little shy, but he didn’t expect Lau Dehua to "anxiously" go forward and kiss Big S, but, cunning, he used his hat to block both of their faces and offered a fake kiss by borrowing. In the film, Andy Lau from the future and Big S have only been in a relationship for 30 days, and he has never forgotten his dead "wife" Fan Bingbing. The affectionate Liu Tianwang wants to have two "lovers" at the same time, "I can’t choose between them. The future world I envision has resumed’polygamy ‘."

        On the same day, Andy Lau brought the ambiguous part of the film with Big S to the scene, not only acting very gentleman, but also often humorously showing "love" to Big S. When asked about the type of girl he likes the most, Andy Lau confessed that it is a girl with long hair, "Big S now has long hair, but it used to be short hair, like a boy. It’s just that we met too late. This is all fate." When Big S revealed his penchant for eating peanuts, Andy Lau said, "Because of my high cholesterol, I have quit for a year." Then he did not forget to add a sentence, "Alas, I quit after I separated from Big S. It’s pointless to do anything without her." A humorous "confession" amused the audience with laughter and screams.
 

Alternative to "old man music": new energy vehicles leverage the rural market

  How big is the market for new energy vehicles going to the countryside? Recently, the China Association of Automobile Manufacturers (hereinafter referred to as the China Automobile Association) issued the "Notice on the Application of New Energy Vehicles Going to the Countryside in 2022" (hereinafter referred to as the "Notice"). According to this document, in order to continuously eliminate old and discontinued models and promote more new energy models that adapt to rural consumption characteristics into the model catalog for going to the countryside, car companies need to make a unified declaration for the models participating in the going to the countryside. The deadline for declaration is March 10, 2022.

  Fu Bingfeng, vice-chairperson and secretary-general of the China Automobile Association, said: "This is a critical period for the promotion of new energy vehicles. It is very important to sink into the fourth and fifth tier markets and help rural consumption upgrade. This is an incremental market."

  According to the data of the China Automobile Association, the cumulative sales volume of new energy vehicles to the countryside in 2021 was 1.068 million, an increase of 169.2% year-on-year. In addition, among the 66 models of new energy vehicles to the countryside in 2021, the vehicles were mainly small and mini vehicles with a price of less than 100,000 yuan and a cruising range of less than 300 kilometers. It is generally believed in the industry that the small and micro models of new energy vehicles to the countryside will replace low-speed electric vehicles such as "Laotou Le" and have good prospects in the rural market.

  Sinking or normalization, replacing rural "old man music"

  In recent years, the income growth and consumption expenditure growth of rural residents in China are faster than those of urban residents, and their motorized travel needs are urgent, but the overall vehicle penetration rate is low. The electric vehicle utilization rate of rural residents is less than 1%, which is only 1/3 of that of urban residents, and has sufficient room for growth.

  In the industry’s view, the current auto growth area in our country has begun to expand and transfer from the east to the central and western regions, from first- and second-tier cities to third- and fourth-tier cities, and from cities to rural areas. According to the "China Rural Electric Vehicle Travel Research" released by the China Electric Vehicle 100 People’s Association, by 2030, the number of cars per thousand people in rural areas in our country will reach 159, and the total number of cars will be 70.01 million; this figure also includes the rigid demand of consumers in rural areas for the first purchase, and also includes the replacement demand for low-speed electric vehicles. The industry believes that the electrification of the rural market has great potential.

  From the demand of third- and fourth-tier cities and rural markets, consumers travel radius is small, more than 80% of households overall average daily travel mileage of less than 50 kilometers, short and medium range new energy models will be able to meet the needs of mainstream consumer groups; from the product and price span, the mileage of 120 kilometers to 400 kilometers, the price of the model between 30,000 – 80,000 yuan is more in line with market demand; from the rural market as a whole, due to the driving license, driver’s license and other restrictions, commonly known as "old man Le" low-speed electric vehicles in the rural market more popular.

  Therefore, among the 66 models of new energy vehicles to the countryside in 2021, the vehicles are mainly small and mini cars with a price of less than 100,000 yuan and a cruising range of less than 300 kilometers, and the car companies make profits ranging from 3,000 yuan to 8,000 yuan.

  Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, believes that new energy vehicles have done better in terms of quality, handling, etc., with higher comfort and safety. The low cost of the A00 class, which focuses on the rural market, has also been highlighted to the greatest extent.

  The industry generally believes that A00-level new energy passenger vehicles are a substitute for low-speed electric vehicles such as "Old Man Le", and have a good development prospect in the rural market. Cui Dongshu, secretary general of the National Passenger Car Market Information Association, also has the same view. He believes that A00-level new energy passenger vehicles have a good market prospect in the rural market and can also help improve the travel environment in rural areas.

  Li Jinyong, president of the New Energy Vehicle Branch of the Automobile Chamber of Commerce of the All-China Federation of Industry and Commerce, once said, "In 2021, unrestricted cities contributed 70% of the sales of new energy vehicles, of which 58% of users purchased A00-class electric vehicles. A00-class electric vehicles will take the lead in replacing fuel vehicles of the same level based on the advantages of more than half the travel cost of fuel vehicles. If the lack of core is not serious, the production and sales will reach 1.50 million to 2 million vehicles in 2022."

  The industry believes that, although there are fewer A00-class models currently available, due to the fact that they have attracted more attention under the impetus of new energy going to the countryside, car companies are also harvesting sales performance in new energy vehicles going to the countryside, so there may be more products developed for third- and fourth-tier and township rural areas.

  The industry expects that in the next few years, if the motorized travel needs of rural residents can be met, it is expected that a 500 billion-scale super car market will be successfully leveraged, among which small economical electric vehicles will become the main new products in the rural market, or will be formed in third- and fourth-tier cities and rural areas.

  Sales of new energy vehicles to the countryside are growing faster than the overall market

  2022 is already the third year for new energy vehicles to enter the countryside.

  In July 2020, MIIT, the Ministry of Agriculture and Rural Affairs, and the Ministry of Commerce jointly issued the "Notice on Launching Activities of New Energy Vehicles to the Countryside", which proposed to carry out activities of new energy vehicles to the countryside in China; thus also opened the curtain of new energy vehicles to the countryside. In March 2021, MIIT, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and the Comprehensive Department of the National Energy Administration jointly issued the "Notice on Launching Activities of New Energy Vehicles to the Countryside in 2021", which made it clear that activities of new energy vehicles to the countryside would be carried out from March to December. In 2021, the area of new energy vehicles to the countryside will be further expanded, from 5 provinces in 2020 to 11 provinces.

  From the recommended list of two batches of new energy vehicles going to the countryside in 2021, the main enterprises and models are independent brands and new car-making forces, including SAIC Motor Group, Dongfeng Motor, Great Wall Motor, BYD, Jianghuai Automobile, Chery Automobile, Weimar Automobile, and Zero Run Automobile.

  According to the data of the China Automobile Association, the cumulative sales volume of new energy vehicles to the countryside in 2021 was 1.068 million, an increase of 169.2% year-on-year, and the growth rate was about 10 percentage points higher than that of the overall new energy vehicle market.

  From the beginning of 2022, new energy vehicles going to the countryside will once again be included in the key tasks of various ministries and commissions.

  In early January, the "Opinions" jointly issued by the National Energy Administration, the Ministry of Agriculture and Rural Affairs, and the National Rural Revitalization Bureau mentioned that it is necessary to guide charging business operators and new energy automobile enterprises to build charging and swapping power stations in large villages and towns, tourist attractions, and public parking lots. Priority is given to promoting the use of electric vehicles in official vehicles, buses, and taxis in counties, and promoting the application of new energy vehicles in tourist attractions and characteristic towns. Promote new energy vehicles to become an important part of rural microgrids, and vigorously support local development of new energy vehicles and home appliances to the countryside.

  On January 21, the National Development and Reform Commission and other seven departments issued the "Implementation Plan for Promoting Green Consumption", which proposes to carry out in-depth activities of new energy vehicles to the countryside, encourage automobile companies to develop and promote new energy vehicles that are suitable for the travel needs of rural residents, of high quality and low price, advanced and applicable, and promote the improvement of the rural operation and maintenance service system. Reasonably guide consumers to purchase lightweight, miniaturized, and low-emission passenger vehicles.

  According to the latest "Notice" issued by the China Automobile Association, the declared models of new energy vehicles going to the countryside still need to meet four conditions. First, the product quality is stable and suitable for rural consumption scenarios. Second, the price range of the model is basically the same as that of rural consumers. Third, there will be no suspension of production or sales of models in the next six months. Fourth, there is a suitable after-sales and sales network.

  The shortcomings need to be made up, and the supporting measures should also be submerged into the countryside

  It is generally believed that there are independent courtyards in rural areas, and the charging demand of new energy vehicles is relatively easy to meet. Consumers in rural areas can charge at home through slow charging. However, with the increase of vehicle mileage and driving radius, public charging piles also have an addressable market demand in rural areas.

  At present, domestic charging piles are mainly concentrated in first- and second-tier cities, while the proportion of public charging piles in rural areas has been hovering at a low level; at the same time, the power grid infrastructure in rural areas is relatively weak. Cui Dongshu said that the entire infrastructure and supporting services in the rural market are still lacking, and a large number of charging equipment needs to be built.

  In addition, the "Rural Electrification Survey Report" released by the China Electric Vehicle 100 People’s Association pointed out that although there are many models and versions of new energy passenger vehicles on sale in the domestic market, the sales of new energy vehicles to rural areas are still very limited. Existing models are greatly misaligned with the expectations of rural residents, and at the same time cannot meet the demand for light cargo in rural areas.

  Not only that, after-sales is also a major problem. From the perspective of after-sales network installation, fuel vehicles are more complete, while the after-sales network of pure electric vehicles is more complete in first- and second-tier cities, while rural areas are still relatively lacking.

  Xu Haidong said, "Car companies should further understand the needs of rural consumers, do a good job in cost control and quality control; in the current situation with a small number of outlets, do a good job in after-sales services and build infrastructure in rural areas."

  In addition, the level of subsidies will also become a factor affecting the deployment of new energy vehicles to the countryside. Xu Haidong analyzed that there is currently a lack of directly quantified state subsidies; while local government subsidies vary, and many fuel vehicles and new energy subsidies are not separated, and the time is not uniform. All of the above will reduce the degree of incentive for consumers.

  Although there are many shortcomings in new energy vehicles that need to be filled, it is undeniable that the third- and fourth-tier markets and rural markets are small in size but have great potential. They are one of the future incremental markets for new energy vehicles and will become a "booster" for the growth of the new energy vehicle market.

  Memorabilia of new energy vehicles going to the countryside

  ● July 15, 2020

  MIIT, the Ministry of Agriculture and Rural Affairs, and the Ministry of Commerce jointly issued the "Notice on Launching New Energy Vehicles to the Countryside", proposing to launch new energy vehicles to the countryside in China.

  ● March 26, 2021

  MIIT, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and the General Department of the National Energy Administration jointly issued the "Notice on Launching New Energy Vehicles to the Countryside in 2021", specifying that new energy vehicles will be launched from March to December.

  ● January 7, 2022

  The National Energy Administration, the Ministry of Agriculture and Rural Affairs, and the National Rural Revitalization Bureau jointly issued the "Implementation Opinions on Accelerating the Transformation and Development of Rural Energy to Help Rural Revitalization", which mentioned strong support for local development of new energy vehicles to the countryside.

  ● January 21, 2022

  The "Implementation Plan for Promoting Green Consumption" issued by the National Development and Reform Commission and seven other departments proposes to carry out in-depth activities of new energy vehicles to the countryside, and encourage automobile companies to develop and promote new energy vehicles suitable for the needs of rural residents.

  February 17, 2022

  The China Association of Automobile Manufacturers released the "2022 New Energy Vehicle to the Countryside Model Declaration Notice", launching a new round of new energy vehicles to the countryside in 2022.

  Wang Linlin, Shell Financial Reporter of Beijing News

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