2023•Frontiers in Business Economics and ManagementOpen access

Analysis of Profitability of Listed Chinese Baijiu Companies

Zixi Chen, Jiayue Bao

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Abstract

In recent years, after experiencing a period of significant adjustment, the Chinese liquor industry has shown overall market improvement, accompanied by intensified competition. Within this highly competitive landscape, the analysis of profitability indicators becomes particularly crucial. This study evaluates the profitability of 18 listed Chinese liquor companies by considering key performance metrics, including Return on Equity, Operating Gross Profit Margin, Operating Profit Margin, and Cost-to-Income Ratio, in order to gain insights into the development status of these enterprises.Our research reveals that the top-ranked listed companies have exhibited relatively stable indicators in recent years, with their profitability showing limited fluctuations. In contrast, the companies ranking lower, such as Golden Seed Winery, Shunxin Agriculture, and Highland Barley Spirit, have experienced significant variations in these metrics, resulting in weaker profitability.

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In recent years, after experiencing a period of significant adjustment, the Chinese liquor industry has shown overall market improvement, accompanied by intensified competition. Within this highly competitive landscape, the analysis of profitability indicators becomes particularly crucial. This study evaluates the profitability of 18 listed Chinese liquor companies by considering key performance metrics, including Return on Equity, Operating Gross Profit Margin, Operating Profit Margin, and Cost-to-Income Ratio, in order to gain insights into the development status of these enterprises.Our research reveals that the top-ranked listed companies have exhibited relatively stable indicators in recent years, with their profitability showing limited fluctuations. In contrast, the companies ranking lower, such as Golden Seed Winery, Shunxin Agriculture, and Highland Barley Spirit, have experienced significant variations in these metrics, resulting in weaker profitability.

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Available abstract

In recent years, after experiencing a period of significant adjustment, the Chinese liquor industry has shown overall market improvement, accompanied by intensified competition. Within this highly competitive landscape, the analysis of profitability indicators becomes particularly crucial. This study evaluates the profitability of 18 listed Chinese liquor companies by considering key performance metrics, including Return on Equity, Operating Gross Profit Margin, Operating Profit Margin, and Cost-to-Income Ratio, in order to gain insights into the development status of these enterprises.Our research reveals that the top-ranked listed companies have exhibited relatively stable indicators in recent years, with their profitability showing limited fluctuations. In contrast, the companies ranking lower, such as Golden Seed Winery, Shunxin Agriculture, and Highland Barley Spirit, have experienced significant variations in these metrics, resulting in weaker profitability.

Key concepts: Profitability index, Profit margin, Gross margin, Operating margin, Business, Profit (economics), Gross profit, Earnings before interest and taxes

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