Profitability Analysis And Promotion Strategy Research Of JF Liquor Company

With the continuous development of China's economy,the consumption demand of Chinese residents for yellow rice wine is increasing day by day.Especially between2004 and 2009,the yellow rice wine industry ushered in a wave of development peak.However,in recent years,with the recovery of the liquor and beer industries,yellow rice wine seems to be forgotten.JF liquor company is an enterprise mainly engaged in the production and operation of yellow wine.However,since 2016,the company's net profit has been in negative growth for three consecutive years,the main business has suffered serious losses,and there are problems in profitability.Therefore,it is urgent for JF liquor company to analyze its profitability,find out the problems,and propose relevant countermeasures to improve its profitability.Starting from the financial statements and management financial statements of JF liquor company from 2014 to 2018,this paper firstly describes the macro environment facing the yellow rice wine industry by using qualitative analysis,and compares JF liquor company with GYLS and KJS,two other comparable companies in the industry.Secondly,the important financial index and its change degree of the company are explained by quantitative analysis.Which through the two parts of this paper to find out problems of JF liquor company profitability,specific include the following four questions,revenues are reduced year by year,the sales cost and management cost accounts for the proportion of revenue is too large,asset impairment loss increased and reduced investment income,and further an analysis of the causes for each problem,it is concluded that the causes of these problems are in the decline of the main product sales,marketing and management personnel,less effective compensation costs,the mismanagement of the subsidiary company on a large number of backlog and inventory;Finally,constructive countermeasures are put forward from four aspects: improving the sales volume of the company,perfecting the salary appraisal system of sales and management personnel,reducing the overstock and strengthening the investment management of subsidiaries.The systematic analysis of the profitability of JF liquor company in this paper not only provides a practical test for the financial analysis and management of thefinancial statement system,but also provides countermeasures for JF liquor company to improve its own profitability,improve business performance and get out of the loss dilemma.In addition,stakeholders can identify and avoid risks and maximize their own interests through the comprehensive profitability analysis results of JF liquor company.For other enterprises in the same industry,we can learn from the research and analysis methods in this paper,improve their own profitability analysis system,timely find problems,reduce unnecessary losses.