Anhui Gujing Distillery Company Limited – Risk Profile
- As per GlobalData's proprietary risk methodology, Anhui Gujing's overall risk score is 3.48, signifying a solid risk profile
- The country, industry, and financial risk pillars have boosted the overall risk profile of the company
- A smaller scale of operations negatively impacted the operational risk scores
Anhui Gujing Distillery Company Limited (Anhui Gujing) has a solid risk profile and is one of the leading companies based on our proprietary risk assessment of the alcoholic beverages sector in the consumer industry. The company's country, industry, and financial scores are at par with the sector's. A smaller scale of operation with a geographic concentration in China remains a cause for concern for the company.
About the Company
Anhui Gujing, a subsidiary of Anhui Gujing Group Company Limited, is a manufacturer of grain-based distilled spirits. It offers liquor, brewing equipment, packaging materials, glass bottles, alcohol, and grease. The company markets its products under the Gujinggong brand. It is also involved in the management of hotels and rental of self-owned house properties, operation of departmental stores, and provision of transportation,
Anhui Gujing is one of the leaders in the alcoholic beverage industry, with reported revenue of $1.5billion in 2021, which declined 1.06% over 2020. Net income decreased 11.51% in 2021 in comparison to 2020.
Risk Pillars
Our proprietary risk assessment uses a combination of four risk pillars – Country, Industry, Operational, and Financial. Scores are based on a scale of 1 to 5, 1 being the lowest risk and 5 being the highest.
Anhui Gujing's overall risk score is better than the sector's average. Companies like WuliangyeYibin Co Ltd, Kweichow Moutai Co Ltd, and Lu Zhou Lao Jiao Co Ltd are the leaders in the sector.
Country Risk:
Anhui Gujing operates in China and generates most of the revenue from the region, which has resulted in a country risk score of 4.00. However, geographical concentration is a cause for concern for the company increasing its business risks by exposing it to the economic and geopolitical risks associated with the country. This could affect the demand for its products or disrupt the supply chain and restrict its market share and growth opportunities in the future.
Industry Risk:
The company generates 98% of its revenues from the alcoholic beverages sector, characterized by higher profit margins and high growth projections compared to other sectors. Remaining 1.2% of revenues is from the lodging sector. This has resulted in a high industry score of 3.99 for the company.
Operational Risk:
The company has a low operational score of 2.91, primarily attributed to its scale. A smaller scale of operations and marketing its product only under a single brand of Gujinggong have affected the scale and business positioning pillars. However, healthy mid-20s profitability margins and returns on equity have boosted the profitability and operational efficiency pillars.
Financial Risk:
Anhui Gujing's financial score of 3.72 is higher than the industry's average. A healthy liquidity position and a low proportion of debt on the balance sheet have positively impacted the overall financial risk score.
About our Methodology:
GlobalData risk scorecard for a sector provides the analysis of various risks a company is vulnerable to. Our risk framework comprises four pillars – country, industry, operational and financial. The country risk for an entity signifies the risk of operating in a particular country. GlobalData's proprietary country risk assessment framework is used to calculate the risk for individual countries. Industry risk is an integral part of risk analysis, and it implies the riskiness and stability of the industries in which a company operates. The operational and financial risk profile comprises a company's risk and returns potential based on its key operational and financial metrics. Our scores are based on an average of the latest three fiscal year data.
Related Companies
France
Belgium
France
Netherlands
Netherlands
China
United Kingdom
Japan
Japan
Still looking?
Don’t wait - discover a universe of connected data & insights with your next search. Browse over 28M data points across 22 industries.
Explorer
Access more premium companies when you subscribe to Explorer