| In the recent years, the rising of Chinese liquor price has been taking a lot of concern about the already tense price in the society, which has made people more worrying about the commodity price. Kweichow Mao-tai Co., Ltd. and Wuliangye Group, as the two leading enterprises in liquor-processing industries, have been pushed too hard by the situation of price rising.Kweichow Mao-tai Co., Ltd. and Wuliangye Group, as the outstanding representatives of’Sauce-fragranced’and’Aroma’liquor, well known both at home and aboard, have developed dramatically and been the large enterprises. Now, their values of stocks are over RMB100billion, taking up half markets share of domestic high-class liquor, which are also expected to increase overwhelmingly in retail price in the coming years. Every single activity of the two enterprises has a profound impact on Chinese liquor brewing industries and beverage-manufacturing industries.In order to get the two enterprises researched accurately, this paper collects their financial reports from2006to2010, as well as the financial data of other10listed companies engaged in liquor business and liquor-processing including Luzhou Laojiao Co. Ltd. and Yanghe Co. Ltd. from2006to2010and established basic financial data base of liquor industry. First, by using related theories and charts of financial analysis, this paper compares and analyses the capacities of profitability, cash-creative, value-creative and development, and the capacity of risk control. Then this paper dissects the changes of two enterprises’ROE by using the theory of Du Pong Analysis System in the comparative year. Finally, by using the matrix picture of financial strategy, this paper locates their particular financial strategic positions in the matrix picture in the comparing annual years. By comparing and analyzing, it is hoped to find the advantages and disadvantages in the financial ratios of two enterprises, and the average level of this industry. All of the above, the purpose of this research is to offer valuable suggestions to management authorities of the two companies, stakeholder, report users or potential investors and researchers of liquor-processing industry. At the same time, it may offer the useful experiences on financial analysis to other companies, and a valuable source of reference for traditional financial analysis improvement.Through the comparative analysis, it concludes that Kweichow Mao-tai Co., Ltd is superior to Wuliangye Group Co., Ltd and the level of liquor-processing industry in the capacity of profitability, cash-creative, value-creative, the capacity of risk control. But its rate of net profit to the sales, profit rate of asset, ROE, and growth financial ratios (including the growth rate of sales, profit growth rate and net asset growth rate) and so on are falling in the comparing annual years in various degrees. Some of the finance indicators are even lower than that of Wuliangye Group Co., Ltd and the average level of this industry, and it has the bigger fluctuating range of the cash flow from operation in the comparative years. It is proved that the cash control capacity should be improved. For Wuliangye Group Co., Ltd, although the capacities of profitability, cash-creative, value-creative are inferior to Kweichow Mao-tai Co., Ltd, but the growth financial ratios is better. Furthermore, the growth rate of cash flow from operation is more balanced and stabled, and nearly all financial indicators have been increasing year after year in the comparative years. It takes on a fine development tendency. What’s more, the profit capacity and cash-creative capacity of Wuliangye Group Co., Ltd had been greatly improved through solving the problem of connected transaction in2009. From the financial data and indicators, the liquor brewing industry has strong capacity of profitability, cash-creative capacity, and capacity of dividend on shares. It also has abundant cash, and stable capital structure and low financial risk. But the value of stocks of the whole industry is generally on the high side and the capacity of development is deficient. It should be improved in the future. |
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