Tonghua Tongtian Liquor Co., Ltd., a subsidiary of China Tongtian Liquor Group Co., Ltd., has successfully developed more than 20 varieties of professional liquor suppliers under the two major brand series of "Tongtian" and "Tongtianhong".
First, the basic situation of the enterprise
Founded in 2001, Tonghua Tongtian Wine Co., Ltd. is a subsidiary of China Tongtian Wine Group Co., Ltd., a company listed on the main board of Hong Kong (listed company code HK00389), and is currently a well-known professional wine manufacturer in China. The company covers an area of 58,000 square meters, with a first-class wine production line, an annual production capacity of 39,000 tons, a grape base of more than 10,000 acres, a raw juice storage capacity of more than 20,000 tons, more than 300 employees, and strong technical force. Over the past few years, we have taken reform as the main line, centered on improving economic efficiency and improving the core competitiveness of enterprises, and constantly accelerated the pace of institutional innovation and scientific and technological innovation, significantly enhanced the development stamina, significantly improved economic strength, and realized the development model of government organization, market-driven, enterprise-led, farmer participation, high-speed, fast-paced and high-efficiency, and quickly became a leading enterprise in the development of green products in Tonghua area, and the economic and social benefits have been significantly improved.
At present, the company has two major brands of "Tongtian" and "Tongtianhong", and the raw materials for winemaking mainly come from the mountain grapes in Ji'an production area of Jilin Province, and have successfully developed two series of more than 20 varieties, which have been recognized and favored by consumers since they were put on the market. Among them: four varieties of Tongtian red wine, Tongtian ice wine, and Tongtian wild rose wine were rated as "China's famous wines" by China Food Industry Association in August 2001; The "Tongtian" series of wines was recognized as "National Public Recommended Famous Brand" by the China Social and Economic Decision-making Center and the Market Protection Survey of Famous Brand Products; Rated as a consumer satisfaction brand in the Asia-Pacific region; In September 2004, "Tongtian Red Whole Juice Wine, Tongtian Dry Red Wine, Tongtian Ice Wine, Tongtian Mountain Wine, Tongtian Wild Original Juice Mountain Wine" was recognized as green food by China Green Food Development Center; In December 2005, "Tongtian Dry Red Mountain Wine and Tongtian Mountain Wine" was rated as a famous brand product in Jilin Province, and in December 2006, Tongtian Mountain wine series products were listed as geographical indication products. In June 2001, the company passed the ISO9001 international quality system certification; In January 2002, Tongtian Liquor was officially rated as "Total Quality Management Standard Enterprise" by the Ministry of Agriculture; In December 2005, the company passed the QS certification; In November 2006, the company was rated as a key leading enterprise of agricultural industrialization in Tonghua City.
In order to meet the requirements of modern enterprise development for management, we have mainly adopted "four measures" in the development of the sales market. Second, pay attention to terminal sales, and adopt the basic marketing strategy of "two combinations" of combining market and publicity, publicity and promotion; Third, the adoption of the company, dealers, consumers of the interests of the three marketing conditions and marketing policies, not only to mobilize the enthusiasm of dealers, but also to greatly stimulate and mobilize the enthusiasm of the majority of consumers; Fourth, the development of first-class packaging, first-class internal quality, first-class marketing measures, first-class price, first-class service internal control standards, to create a marketing environment, smooth marketing channels, expand market share, in order to expand market share, at present, the company has established a marketing network throughout more than 20 provinces and cities across the country, more than 10,000 sales outlets. In terms of enterprise management, the management team introduces advanced management concepts and technologies, is professionally guided by national winemakers, strictly attaches importance to product quality, realizes management informatization, technology and equipment modernization, team specialization, and production scale, and passed the ISO9001:2000 international quality management system certification in 2005.
Second, the development plan
On the basis of the successful listing on the Main Board of the Hong Kong Stock Exchange on 19 November 2009, the Group plans to implement the following projects to achieve rapid development.
(1) Enhance the company's production capacity
As at the Latest Practicable Date, the Company's annual winemaking capacity (based on the Company's maximum bottling capacity) totaled approximately 19,000 tonnes. In order to meet the expected increase in market demand for wine products, the company intends to expand its annual production capacity from 19,000 tons to 39,000 tons. The Company plans to achieve this through the construction of additional brewing facilities and the purchase and installation of additional brewing machinery and equipment.
(2) Development of the company's Tongtian Wine Estate
The Company intends to develop a wine estate in Ji'an City, Jilin Province, China, to produce a series of premium estate bottled wines from high-quality grapes. Wines made at the company's Topian wine estate will be labeled "estate bottling" and will be made from high-quality grapes grown in the company's own vineyards on the company's wine estates. The Company intends to acquire vineyards for the construction of wine estates, but the Company has not identified any specific locations as of the Latest Practicable Date. The company's Topian Wine Estate will have winemaking facilities and cellaring facilities. The company intends to produce high-quality and representative Topten wines by optimizing harvest control in terms of yield and quality, and using advanced winemaking facilities.
(3) Develop wine cellaring capacity
The Company intends to develop wine cellaring capacity to complement its production facility in Tonghua County, Jilin Province, China. A wine cellar is a place where wine can be stored properly, aged in a controlled environment, and a wide range of wine products can be produced. The Company intends to construct a wine cellar at its production facility in Tonghua.
(4) Continue to expand and develop the company's domestic sales and distribution network and enhance the company's brand awareness
The company plans to upgrade its existing sales and distribution capabilities and network across the country. In view of this, the Company intends to recruit and train new sales staff in the next four years to expand the Company's sales force, increase the number of distributors and open up to 20 branded retail stores of Lotten Wine Estate in certain selected markets in China. As at the Latest Practicable Date, the Company has not yet identified any specific location. These retail outlets will serve as direct sales and marketing platforms for the Tongtian brand, not only providing customers with Tongtian wine experience, but also providing marketing support to designated local markets in major cities (such as Beijing, Chengdu and Shenyang) to promote the company's wine products (such as Tongtian Ice Wine and Rose Wine). In addition, the company's "Tongtian" and "Tongtianhong" brands are becoming well-known to consumers in China. The company has won a number of national and provincial awards and certificates in the past year, and the company intends to continue to actively promote the "Tongtian" and "Tongtianhong" brands in China. To this end, the Company intends to strengthen its marketing and branding activities, including advertising through mass media such as television, outdoor billboards and newspapers.
(5) Look for business opportunities to further expand market share
The Company will also identify other business opportunities to expand the Company's business, in particular its production capacity, through acquisitions, joint ventures or strategic alliances with domestic and/or multinational corporations to bring synergies to the Company's existing businesses. The Company believes that appropriate acquisitions or joint ventures or strategic alliances with other wine manufacturers will increase the Company's production capacity, benefit from synergies, and enable the Company to gain access to new markets and customer bases, as well as economies of scale.
Looking forward to the future, the cruel market competition is inevitable, the challenge is realistic, the opportunity is also unavoidable, Tongtian people will never stop the pursuit of the spirit to explore a more perfect, more advanced, more competitive management mechanism, with "technology, quality, reputation is the foundation of our business; Pioneering, development and efficiency are the soul of our entrepreneurship", and we will create a better tomorrow for Tongtian Liquor Industry with the spirit of hard work.
