Investment Rating - The report assigns an "Outperform" rating to multiple companies in the consumer staples sector, including Guizhou Moutai, Wuliangye, and others, indicating a positive outlook for these stocks [1]. Core Insights - The wholesale prices of Baijiu have mostly declined, with notable decreases in prices for Guizhou Moutai and Wuliangye, while prices for most consumer goods remain stable [4][10]. - The report highlights a significant drop in the discount rates for liquid milk products, indicating a shift in consumer purchasing behavior [6][18]. - Overall, the report suggests that the impact of funds is greater, advising attention to low-position stocks and heavyweight stocks in the consumer staples sector [8]. Summary by Sections Baijiu Pricing - Guizhou Moutai's wholesale prices for Feitian (case and single bottle) are 1790 and 1770 yuan, respectively, reflecting a decrease of 55 and 70 yuan from the previous month [4][37]. - Wuliangye's eighth-generation price is 895 yuan, down 25 yuan from last month [4][37]. - Luzhou Laojiao's Guojiao 1573 price increased by 10 yuan to 850 yuan [4][37]. Consumer Goods Pricing - The average discount rate for liquid milk products decreased from 74.8% to 69.4% since the end of August [6][21]. - Discount rates for soft drinks, condiments, instant foods, and beer remained stable, with slight variations in average and median values [19][35]. - The report notes that the discount rate for infant formula products also showed a minor decrease from 89.5% to 88.7% [21][35]. Investment Strategy - The report emphasizes the importance of monitoring low-position stocks and heavyweight stocks due to the greater impact of funds on the market [8].

Core Insights - The "Love Chongqing · Autumn Consumption Season" event, featuring the 2025 Chongqing Fengjie Qingdao Beer Festival, aims to enhance regional collaboration and stimulate local consumption [1][3] Group 1: Event Overview - The festival is organized by the Fengjie County Government and supported by Qingdao Beer Co., showcasing a blend of food, culture, and entertainment [1][3] - The event includes ten themed nights, offering diverse consumer experiences and promoting local products [3][4] Group 2: Economic Impact - The beer festival aligns with the city's strategy to boost consumption, aiming to unlock the economic potential of the National Day holiday [3] - It serves as a platform to promote local agricultural products and support rural revitalization efforts [3] Group 3: Cultural and Culinary Highlights - Fengjie is positioned as a "food landmark city," promoting its culinary brand with notable dishes featured at the festival [4] - The event will include 15 gourmet food stalls and link to local tourist attractions, enhancing the overall visitor experience [4] Group 4: Brand Engagement - Qingdao Beer, as a leading brand in the Chinese beer industry, will contribute to the event with cultural exhibitions and interactive activities [4] - The festival will distribute 3,000 beer vouchers, creating a consumption loop that integrates dining and tourism [4]

Industry Dynamics - Eight liquor companies made it to the list of China's top 500 manufacturing enterprises, including Sichuan Yibin Wuliangye Group, Guizhou Moutai, and Luzhou Laojiao [2] - The grape harvest season in the Helan Mountain East region started in mid-August and is expected to last until early October, with an estimated 130,000 tons of wine grapes to be harvested this year [3] - The "Moutai Cup" Chinese (Sauce Aroma) Baijiu Body Design Competition was held, with participants from 11 provinces, and a contestant from Guizhou Moutai winning first place [3] - The first China (Qionglai) Spirits Competition was launched, aiming to enhance the international brand recognition of Qionglai liquor [3] - The 2025 China International Huangjiu Industry Expo is scheduled for November 7-12 in Shaoxing, Zhejiang, featuring six exhibition areas and multiple related events [4] Company Dynamics - Wuliangye's chairman emphasized focusing on five strategies to enhance market presence and consumer engagement during a recent market research tour [5] - Moutai reported a 20% year-on-year increase in terminal sales for September, indicating a positive market trend [5] - Langjiu launched its flagship product "Longma Lang," which combines strong and sauce aroma techniques, as part of its ongoing product strategy [5] - The eighth "Four Famous Baijiu Cup" basketball invitation tournament concluded, with the Shaanxi team winning the championship [6] - Tianyoude Liquor, the only listed company in Qinghai's liquor industry, is focusing on local特色 and has developed a tourist attraction that has become popular among visitors [6]

Group 1: Industry Overview - The demand for liquor, particularly white liquor, has shown slight improvement as the Mid-Autumn Festival and National Day approach, indicating a potential seasonal boost in sales [1] - The beer industry, however, has not yet shown signs of recovery after a prolonged downturn since early 2020, with production in 2024 expected to decline by 0.6% year-on-year [2][4] - The beer sector's revenue for the first half of 2025 is projected at 41.534 billion yuan, a year-on-year increase of 2.75%, while net profit is expected to rise by 11.81% to 6.512 billion yuan [4] Group 2: Company Performance - Major beer companies are experiencing varied performance, with Qingdao Beer reporting a revenue of 20.491 billion yuan, a year-on-year increase of 2.11%, while Chongqing Beer saw a slight decline in revenue [6] - Budweiser APAC, once a leader in the domestic beer market, reported a 6.1% decline in total beer sales and a 5.6% drop in revenue for the first half of 2025, with net profit down 24.4% [7][8] - The competitive landscape is shifting, with Budweiser APAC's market share falling to around 40%, indicating a significant change in the rankings among domestic beer companies [8][9] Group 3: Market Trends - The beer market has transitioned from a phase of rapid growth to one of saturation, with a notable shift towards high-end products, which now account for 72.7% of Qingdao Beer's sales [12][14] - The average price of beer in China remains relatively low compared to global standards, suggesting potential for future price increases [19] - The rise of the Z generation as a key consumer group is driving demand for craft and low-alcohol beers, with expected consumption growth rates of 17% for craft beer by 2025 [20] Group 4: Strategic Developments - Beer companies are diversifying their product lines, with some entering the yellow wine market and others focusing on beverage innovations to capture new consumer segments [22][23] - The rise of instant retail channels has become a significant sales avenue for beer, with sales penetration reaching 6.5% and expected to grow rapidly [23][24] - The beer industry is expected to recover from its current low point through new product categories and channel expansions, with a projected market size in instant retail expected to exceed 1.2 trillion yuan by 2026 [26]

Group 1 - The core viewpoint of the article is that the liquor industry, particularly the white liquor sector, is showing signs of recovery as demand improves, while the beer sector continues to struggle with declining sales and market challenges [1][2][3]. - The white liquor market is expected to see a gradual improvement in sales velocity as the peak season approaches [2]. - In contrast, the beer sector has not shown any signs of recovery, with production in 2024 expected to decline by 0.6% compared to the previous year, reaching 35.213 million kiloliters, which is only 70% of the peak production capacity seen a decade ago [6]. Group 2 - The beer industry's financial performance is under pressure, with total revenue for the beer sector in the first half of 2025 reaching 41.534 billion yuan, a year-on-year increase of 2.75%, while net profit rose by 11.81% to 6.512 billion yuan [8]. - Major beer companies are experiencing a divergence in performance, with Qingdao Beer reporting a revenue of 20.491 billion yuan, a year-on-year increase of 2.11%, while Chongqing Beer saw a slight decline in revenue [9]. - Budweiser APAC, once the leader in the domestic beer market, reported a total beer sales volume of 4.363 billion liters in the first half of 2025, a decline of 6.1%, with revenue dropping by 5.6% to 3.136 billion USD [10][11]. Group 3 - The beer market has shifted from a phase of rapid growth to one of stock competition, with the peak in beer sales occurring in 2013, leading to overcapacity issues [15]. - The high-end beer market has become increasingly competitive, with domestic brands struggling to maintain their market share against foreign brands [17][19]. - Despite the challenges, the average price of beer in China remains low compared to global standards, indicating potential for future price increases [29][31]. Group 4 - The rise of the Z generation as a key consumer group is driving demand for craft and low-alcohol beers, with expected consumption of craft beer reaching 230,000 kiloliters by 2025, growing at a compound annual growth rate of 17% [33][36]. - Beer companies are exploring new growth avenues, including diversifying into other alcoholic beverages like yellow wine and soft drinks [39][40]. - The instant retail channel is emerging as a significant sales avenue for beer, with sales in this channel expected to reach 780 billion yuan in 2024, growing at a compound annual growth rate of 23% [50][52]. Group 5 - The article concludes that after several years of valuation adjustments, some leading beer companies now present attractive investment opportunities due to their stable cash flows and generous dividends [56][58]. - The beer sector is showing signs of bottoming out, but a full recovery will depend on improvements in the overall consumption environment [59].

Core Insights - The Mid-Autumn Festival is driving an increase in consumer spending, particularly on festive products like beer gift boxes from Qingdao Beer [1][3] - Qingdao Beer has launched several themed gift boxes that are gaining popularity among consumers, with sales reportedly doubling during this period [3][9] Product Highlights - Qingdao Beer offers a variety of gift boxes, including the "Hongyun Dangtou" and "Qingdao Beer White Beer Combination," which feature distinct flavors and appealing packaging [5][7] - The "Classic 1903" gift box showcases traditional brewing techniques and has gained international recognition, being sold in over 120 countries [5][7] Consumer Behavior - Consumers are purchasing multiple gift boxes for family gatherings and as gifts for friends, with some buying four to five boxes at a time [9] - The festive atmosphere is enhanced by the attractive packaging of the gift boxes, which combines traditional cultural elements with modern design [7][9] Sales Channels - Qingdao Beer is leveraging both online and offline sales channels, with significant sales growth observed on e-commerce platforms like JD.com [9][11] - Efficient logistics, including cold chain delivery, ensure that products, especially those with short shelf lives like raw beer, reach consumers quickly and maintain freshness [11][12] Market Trends - The trend is shifting from merely consuming beer to a more nuanced experience of savoring different flavors, reflecting a growing appreciation for quality and variety among consumers [12]

Core Insights - The upcoming Mid-Autumn and National Day festivals are driving a surge in consumer spending, with gift boxes becoming a prominent category due to their essential role in festive celebrations [1][2] - Consumers are shifting towards rational purchasing decisions, prioritizing "reliable quality, cost-effectiveness, and value alignment" in their buying choices [1][10] - The integration of national trends and traditional brands' innovation is enhancing the appeal of classic products, reflecting consumers' dual pursuit of quality and cultural significance [2][7] Company Strategies - Qingdao Beer and Beijing Daoxiangcun are leading the festive market with their strategic product offerings, showcasing a blend of quality and cultural elements [2][9] - Qingdao Beer has introduced various gift box combinations, such as the "8+2" mix, catering to diverse consumer preferences for family gatherings and social visits [4][6] - Beijing Daoxiangcun has launched themed gift boxes like "Jingyun Zhongxian" and "Jinya Yiyue," which incorporate cultural artistry and practical value, aligning with consumer expectations for meaningful gifts [6][7] Market Trends - The trend towards rational consumption is evident, with 72% of consumers preferring established brands or classic products, and 68% emphasizing the importance of quality matching price [10] - The focus on product quality and emotional value over luxury packaging is reshaping the festive consumption landscape, promoting healthier and more meaningful purchasing behaviors [9][10] - The market is transitioning from "concept marketing" to "value competition," indicating a return to the essence of product quality and consumer satisfaction [10]

TSINGTAO BREWERY COMPANY LIMITED 青島啤酒股份有限公司 (a Sino-foreign joint stock limited company established in the People's Republic of China) Should you have any queries relating to this letter, please contact the H Share Registrar at (852)2862 8688 during business hours from 9:00 a.m. to 6:00 p.m. (Hong Kong time), Mondays to Fridays, excluding Hong Kong public holidays. （於中華人民共和國註冊成立之中外合資股份有限公司） (Stock Code 股份代號: 168) 26 September 2025 Dear non-registered shareholder(s), Reminder letter regarding the Arrangement ...

TSINGTAO BREWERY COMPANY LIMITED 青島啤酒股份有限公司 (a Sino-foreign joint stock limited company established in the People's Republic of China) （於中華人民共和國註冊成立之中外合資股份有限公司） (Stock Code 股份代號: 168) 26 September 2025 With reference to the notification letter dated 5 September 2024 titled "Arrangement of Electronic Dissemination of Corporate Communications", Tsingtao Brewery Company Limited (the "Company") is writing to remind you that the Company has adopted electronic dissemination of corporate communications (the "Corpo ...

Core Viewpoint - Xinhua Jin (600735.SH) is facing significant financial challenges, including a large amount of non-operating fund occupation by its controlling shareholder, Xinhua Jin Group, totaling 406 million yuan [2][3]. Financial Situation - As of the latest report, Xinhua Jin's revenue for 2024 was 1.637 billion yuan, a decrease of 30.97% year-on-year, with a net profit of -134 million yuan, down 354.59% [7]. - In the first half of 2025, the company reported revenue of 669 million yuan, a decline of 24.92% year-on-year, and a net profit of 12.87 million yuan, down 39.45% [7]. Fund Occupation and Regulatory Actions - Xinhua Jin Group and its affiliates have not returned the occupied funds, leading to regulatory scrutiny and potential administrative measures, including stock suspension and delisting warnings if the funds are not recovered within six months [3][4]. - The company is actively pursuing the recovery of these funds and is urging Xinhua Jin Group to expedite the disposal of other assets to raise the necessary capital [4]. Shareholder Actions and Agreements - Qingdao Beer announced a share transfer agreement with Xinhua Jin Group and Lu Jin Group for 100% equity of Jimo Yellow Wine, with a total consideration of 665 million yuan [2][6]. - However, four months after the announcement, there has been no update on the progress of the share transfer [2][6]. Business Operations - Xinhua Jin's business primarily focuses on "new trade and new materials," including the export of hair products and textiles, as well as graphite processing [7]. - The company has faced challenges in its operations, particularly in the second-hand car segment, which was divested in late 2024, impacting revenue [7].