Group 1: Industry Overview - The overall revenue of the liquor industry experienced slight growth during the Spring Festival season, but the growth rate has declined compared to 2024, indicating that the industry is still in an adjustment period [1] - High-end liquor showed stable growth, while the revenue growth of mid-range liquor approached zero, leading to increased differentiation among real estate liquor and other types [1] - As of May, the liquor industry is transitioning from a traditional off-season to a small peak season during the May Day and Dragon Boat Festival, with expectations for mainstream product prices to stabilize due to recovering demand [1] Group 2: Market Insights - Dongwu Securities maintains a positive mid-term outlook for the liquor sector, emphasizing the importance of positioning over timing, and suggests monitoring indicators such as the stability of Moutai's prices and changes in channel inventory [1] - China International Capital Corporation (CICC) indicates that the liquor sector is facing a demand gap, but the risk of further decline is limited as the demand is at a historical low [2] - CICC expects that the liquor demand will gradually recover, supported by a relatively loose policy environment and low base effects from the previous year [2] Group 3: Company Specifics - Zhenjiu Lidu (06979) has been developed into a leading private liquor enterprise in China, with its main brands contributing 65.2%, 15.8%, and 17.4% to the revenue in 2023, respectively [3]

Core Viewpoint - The article discusses the contrasting employment trends in the beer and liquor industries during the current adjustment period, highlighting that while beer companies have reduced their workforce significantly, liquor companies, particularly leading brands, have increased their employee numbers despite facing revenue declines [2][11]. Employment Trends in Beer Industry - Over the past year, the beer industry has seen a reduction of over 6,000 employees across 10 listed companies, with major players like Budweiser APAC and China Resources Beer each reducing their workforce by over 1,000 [5][8]. - The overall employment in the beer sector has decreased to below 300,000, primarily due to declining sales and revenue in the industry [2][5]. - The reduction in workforce is attributed to decreased demand for production and sales roles, particularly for temporary workers during peak seasons [8][9]. Employment Trends in Liquor Industry - In contrast, the liquor industry has experienced an increase of over 3,900 employees, with only 7 out of 22 listed liquor companies reporting reductions [9][12]. - Leading liquor companies such as Kweichow Moutai and Yanghe Brewery have added over 1,000 employees each, indicating a robust demand for production roles [9][12]. - The increase in employment is partly driven by the need to meet production demands and the social responsibility of state-owned enterprises to maintain employment levels [12][13]. Salary Adjustments - While the overall employment levels in liquor companies have increased, there has been a notable reduction in executive compensation, with many high-ranking officials seeing salary cuts of hundreds of thousands [16][17]. - In contrast, the average salary for non-executive employees has remained stable or even increased in some companies, such as Water Well and Kweichow Moutai, which reported a rise in average non-executive salaries [20][21]. Future Outlook - The article suggests that the current adjustment period for the liquor industry is not yet over, and further developments in cost-cutting measures and employee compensation will need to be monitored [21].

Core Viewpoint - Zhenjiu Lidu has demonstrated resilience and adaptability in a challenging market, achieving steady growth in revenue and profit while transitioning from scale expansion to value cultivation in the face of industry-wide downturns [3][10]. Financial Performance - In 2024, Zhenjiu Lidu achieved revenue of 7.07 billion yuan, a year-on-year increase of 0.5%, and an adjusted net profit of 1.68 billion yuan, up 3.3% [1]. - The gross margin improved to 58.6%, and the adjusted net profit margin rose to 23.7%, both up by 0.6 percentage points year-on-year [1][5]. - Operating cash flow reached 780 million yuan, reflecting a significant growth of 116.3% [1]. Market Position - Zhenjiu Lidu has maintained its position as the ninth largest listed liquor company in China for two consecutive years and is recognized as the first listed liquor company in Hong Kong [1][3]. - The company has successfully navigated the challenges of the 2024 liquor market, which has seen a decline in consumption demand across various price segments [3][10]. Strategic Shift - The company has shifted its focus from "scale expansion" to "value cultivation," emphasizing high-quality development and optimizing its product, capacity, and market strategies [3][10]. - Zhenjiu Lidu has implemented a major product strategy, concentrating on core products like Zhen 15 and Zhen 30, while reducing low-margin products [5][6]. Product and Brand Development - The flagship brand Zhenjiu generated revenue of 4.48 billion yuan, accounting for 63.4% of total revenue, while Lidu contributed 1.31 billion yuan, representing 18.6% [5]. - The revenue share of mid-to-high-end products has increased to 67% [5]. Channel Strategy - Zhenjiu Lidu employs a dual strategy of deepening domestic market penetration while expanding internationally, with significant growth in high-end liquor sales [6][10]. - The company has entered markets in Malaysia, Singapore, and Australia, enhancing its international presence [6]. Industry Recognition - Zhenjiu Lidu has been recognized as one of the top three private liquor companies in China and the fourth largest sauce liquor brand, following Moutai, Xijiu, and Langjiu [8][10]. - The company has been listed among the "Top 500 Most Valuable Brands in China," ranking third among sauce liquor brands [12].

近日，珍酒李渡集团有限公司（以下简称"珍酒李渡"，06979.HK）发布2024年度业绩公告，全年实现营业收入70.67亿元，同比增长0.5%；归属净利润为 13.24亿元，同比下跌43.1%；经调整净利润16.76亿元，同比增长3.3%。 去年营收创历史新高 资料显示，2001年至2009年间，"白酒教父"吴向东收购了包括湖南湘窖酒业、江西李渡酒业和贵州珍酒酿酒在内的13家酒业公司。2021年，他将这些资产 并入贵州珍酒酿酒，并在开曼群岛注册成立了珍酒李渡。 2023年4月，珍酒李渡在香港交易所主板挂牌上市，成为 "港股白酒第一股" 。 从近几年数据看，珍酒李渡2024年营收创下历史新高。2021年至2024年，珍酒李渡营收分别为51.02亿元、58.56亿元、70.30亿元、70.67亿元，增速分别为 112.66%、14.79%、20.06%、0.52%，虽营收不断增长，但增速整体呈下降趋势。 除珍酒外，李渡2024年收入为13.13亿元，收入增加18.3%，占营收比例从2023年的15.8%提升至18.6%；而湘窖、开口笑分别实现收入8.02亿元、3.37亿 元，收入均有所下滑，占营收比例分别为11. ...

Investment Rating - The report maintains a "Recommendation" rating for the liquor industry, indicating a positive outlook for the sector in the coming months [1]. Core Insights - The report highlights that the pricing floor is solid, and the value proposition remains attractive for investors. Despite short-term pressures, the market is expected to stabilize, with a clear support level at 2000 yuan for major brands like Moutai [6][13]. - The report emphasizes the importance of balancing volume and price in the second quarter, with a focus on improving cash flow for distributors and maintaining stable pricing [6]. Industry Overview - The liquor industry consists of 20 listed companies with a total market capitalization of approximately 338.49 billion yuan [3]. - Recent performance metrics show a 4.7% decline over the past month and a 6.3% decline over the past year, indicating some volatility in the market [4]. Company-Specific Analysis - Moutai's recent price has dropped to around 2100 yuan, reflecting a 20 yuan decrease from the previous week and a 120 yuan decrease from the previous month. This decline is attributed to increased supply and seasonal demand fluctuations [6]. - The report notes that Moutai is actively implementing measures to stabilize prices, including adjusting supply and enhancing market supervision to prevent price disruptions [6]. - Other key players like Wuliangye and Luzhou Laojiao are also experiencing slight price adjustments, with Wuliangye's price at approximately 925 yuan [7]. Investment Recommendations - The report suggests a focus on leading companies such as Moutai and Wuliangye for short-term gains, while also recommending secondary brands like Fenjiu and Gujing for their growth potential [6][13]. - The anticipated dividend yield for major liquor companies is around 4%, making them attractive for long-term investors [6].

海报新闻记者 孙佃潇 报道 近日，珍酒李渡集团有限公司（以下简称"珍酒李渡"）2024年度业绩公告显示，该公司全年实现营业收 入70.67亿元，同比增长0.5%；经调整净利润16.76亿元，同比增长3.3%。不过，海报新闻记者注意到， 其旗舰品牌珍酒收入有所下滑。 4月18日，海报新闻记者针对相关情况致电了贵州珍酒方面，其工作人员称，公司业务、产品业绩等相 关信息均以官方通告为准。 | 财務编要 | | | | | --- | --- | --- | --- | | 下表粮列截至2024年12月31日止年度我們的關鍵財務教婆 · 連同截至2023年12 月31日止年度的比較數字及變動(以自分比表示)。 | | | | | | 鞋至12月31日止年度 | | | | | 2024年 | 2023 年 | 學動 | | | (人民幣于元) | (人民爵于元) | (8) | | 收入 | 7,066,784 | 7.030.467 | :0.5 | | 毛利 | 4.143.040 | 4.079.948 | 1.5 | | 年内本公司幢益股東感佔利润 | 1,323,622 | 2.327.083 | (43. ...

每经记者 熊嘉楠 每经编辑 彭水萍 吴向东之子吴其融正逐步走向台前。 4月17日，珍酒李渡发布公告称，公司董事会已提名吴其融为执行董事。 1996年出生的吴其融为珍酒李渡集团董事会主席、华致酒行董事长吴向东之子。记者注意到，吴其融去年已担任华致酒行董事，若此次成功通过珍酒李渡股 东大会选举，这位"酒二代"有可能在其父掌舵的两家上市公司担任董事。 此外，公司还提到，吴其融亦积极参与社会公益事业，除持续优化员工福利及办公环境外，还长期参与金东集团爱心基金及福利助学项目"我的大学梦"。凭 借其出色的经营业绩及社会贡献，吴其融于2024年当选为长沙市第十六届人民代表大会代表。 值得一提的是，公司在公告中表示，吴其融已与公司订立服务协议。根据服务协议，吴其融有权收取年薪及酌情花红合共125万元/年，该酬金乃由董事会参 考其于本公司的职责及责任以及现行市况而厘定。 图片来源：每日经济新闻 资料图 封面图片来源：每日经济新闻 资料图 吴其融2018年毕业于伯明翰大学，主修计算机系统工程及工商管理。于2019年10月加入珍酒李渡，先后在酒厂及销售部门担任职位，管理数字营销部。自 2023年1月起，担任云南融睿高新技术投资管理 ...

Brand Development and Market Position - In 2024, ZJLD Group achieved significant progress in brand building, quality enhancement, channel innovation, and social responsibility despite a challenging economic environment[16]. - The baijiu industry is currently in an adjustment period, but ZJLD Group remains confident in the future growth potential of its brands, Zhen Jiu and Li Du[18]. - The chairman highlighted that the challenges in the industry present opportunities for differentiation and competition in branding, quality, and consumer experience[18]. - Zhen Jiu was recognized as one of China's 500 Most Valuable Brands for 2024 with a brand value of approximately RMB 24.8 billion[49]. - Li Du maintained its position as the fifth largest mixed-aroma baijiu brand in China, achieving the highest year-on-year growth rate among the top five brands[53]. - Li Du was awarded the title of "Chinese Time-Honored Brand" by the Ministry of Commerce of the People's Republic of China in 2024[56]. Financial Performance - For the year ended December 31, 2024, the company's revenue reached RMB 7,066,784, a slight increase from RMB 7,030,467 in 2023, representing a year-over-year growth of 0.5%[35]. - Profit attributable to equity shareholders decreased to RMB 1,323,622 from RMB 2,327,083 in 2023, reflecting a decline of 43.2%[35]. - Adjusted net profit increased to RMB 1,676,275, with an adjusted net profit margin of 23.7%, compared to 23.1% in 2023[35]. - Revenue from Zhen Jiu decreased by 2.3% to RMB 4,479.7 million for the year ended December 31, 2024, compared to RMB 4,583.2 million in FY2023[123]. - Revenue from Li Du increased by 18.3% to RMB 1,312.9 million for the year ended December 31, 2024, compared to RMB 1,109.6 million in FY2023[123]. - Net profit decreased by 43.1% to RMB 1,323.6 million for the year ended December 31, 2024, down from RMB 2,327.1 million in FY2023[167]. Strategic Initiatives and Growth Plans - The company emphasizes a focus on four key elements: brand, base liquor, distribution channels, and team capabilities to drive sustainable development[20]. - ZJLD Group aims to capitalize on new growth opportunities by continuously innovating and adapting to emerging industry trends[20]. - The company plans to expand its sales channels and enhance brand recognition, particularly for the Li Du brand, which focuses on mixed aroma baijiu products[44]. - The company aims to optimize resource allocation across production costs and marketing expenses to improve profitability[44]. - The company aims to gradually replace third-party base liquor supplies with its own to improve gross profit margins[73]. - The company plans to enhance brand influence significantly in 2025, marking the 50th anniversary of Zhen Jiu[115]. Product Development and Innovation - Zhen Jiu launched new products in 2024, including the 2013 Real Vintage Baijiu and The One Among A Thousand, expanding its package-free product line in the deluxe price range[54]. - Zhen Jiu plans to launch the Zhen 50 Series in 2025 to commemorate its 50th anniversary, honoring its legacy of craftsmanship and innovation[54]. - Li Du's production techniques are recognized as a non-material cultural heritage of Jiangxi Province, enhancing its brand image rooted in historical culture[56]. - In February 2024, Li Du launched the second generation of Sorghum 1955 and Sorghum 1975 to enhance consumer experience[59]. - The product development team consists of 252 employees, with most holding a bachelor's degree or higher, and is led by a technical committee of 78 industry experts[64]. Operational Efficiency and Technology - The company has implemented a multi-channel sales network, including partnerships with distributors, store partners, and direct sales to end consumers, to expand consumer reach[76]. - The company developed a Base Liquor Management System that allows for inventory measurement of each jar in about 20 seconds, enabling daily inventory of 600-700 jars with an accuracy error of less than 0.3%[81][83]. - A comprehensive Quality Management System was established in 2024, covering all production stages and facilitating precise batch quality management and efficient traceability[87]. - The Intelligent Weighing Monitoring System was completed by the end of 2024, improving weighing efficiency and ensuring data accuracy through automated processes[87]. - Digital tools are being leveraged to strengthen monitoring of transaction flows within distribution channels, enhancing channel management[94]. Social Responsibility and ESG Initiatives - Zhen Jiu is committed to social responsibility, planning charitable activities and local poverty alleviation efforts in 2025 to mark its 50th anniversary[24]. - Zhen Jiu's ESG rating improved to "AA" in 2024, ranking it among the top listed baijiu companies[24]. - The company received an ESG "AA" rating from Wind for the second consecutive year and was included in the Wind China Listed Companies ESG Top 100 list[111]. - The company was awarded the title of "National Green Factory" by the Ministry of Industry and Information Technology of China in 2024[111]. - The proportion of green electricity consumed by the company reached over 50% in 2024, reflecting its commitment to renewable energy[110]. Human Resources and Management - The company had 11,380 full-time employees as of December 31, 2024, an increase from 10,956 employees as of June 30, 2024[192]. - The Post-IPO Equity Incentive Plan was approved on April 11, 2023, and aims to align the interests of eligible participants with the Company’s goals[197]. - The Company’s overall strategy is overseen by Mr. Wu Xiangdong, who has over 20 years of experience in the liquor industry[199]. - Mr. Yan Tao has been with the Company since December 2009 and serves as the CEO, responsible for overall management and operations[200].

Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company reported a revenue of 7.067 billion yuan for 2024, representing a year-on-year increase of 0.52%. However, the profit attributable to shareholders decreased by 43.12% to 1.324 billion yuan, while the adjusted net profit increased by 3.31% to 1.676 billion yuan. In the second half of 2024, revenue dropped by 16.46% to 2.934 billion yuan, and profit attributable to shareholders fell by 22.94% to 572 million yuan [2][7][10]. Summary by Sections Revenue and Profit Performance - The company achieved a total revenue of 7.067 billion yuan in 2024, with a slight increase of 0.52% year-on-year. The profit attributable to shareholders was 1.324 billion yuan, down 43.12% year-on-year. The adjusted net profit was 1.676 billion yuan, reflecting a year-on-year increase of 3.31%. In the second half of 2024, revenue was 2.934 billion yuan, a decrease of 16.46% year-on-year, and profit attributable to shareholders was 572 million yuan, down 22.94% year-on-year [2][10]. Brand Performance - Revenue from the brand "Zhenjiu" was 4.48 billion yuan in 2024, a decrease of 2.26% year-on-year, with sales volume at 12,284 tons, down 2.74%. The average price per ton was 3.65 million yuan, up 0.55% year-on-year. For the second half of 2024, revenue from "Zhenjiu" was 1.777 billion yuan, down 21.95% year-on-year. The "Lidu" brand generated 1.313 billion yuan in revenue, an increase of 18.33% year-on-year, with sales volume at 3,033 tons, up 24.87%. The average price per ton was 4.33 million yuan, down 5.25% year-on-year [10]. Margin and Cost Structure - The company's gross margin increased to 58.63%, up 0.59 percentage points year-on-year. The sales expense ratio decreased to 22.8%, down 0.34 percentage points year-on-year. The overall price per ton for the company was 2.85 million yuan, reflecting a year-on-year increase of 5.56% [10]. Future Outlook - The company is expected to benefit from external recovery and internal optimization, with a projected EPS of 0.49 yuan for 2025 and 0.55 yuan for 2026, corresponding to PE ratios of 12 and 11 times, respectively. The long-term outlook suggests potential benefits from a multi-brand strategy and improvements in the competitive landscape of the liquor industry [10].

Core Viewpoint - Goldman Sachs has given a "buy" rating to Zhenjiu Lidu (06979), with a target price of HKD 8.08 based on a projected P/E ratio of 14.5 times for 2026, applying a 25% discount relative to the average A-share P/E ratio [1] Recent Developments - In March, management noted an increase in orders from distributors due to replenishment demand post-Spring Festival, but no significant retail demand recovery has been observed year-to-date. The sales base during the Spring Festival was also high. The management aims for flat year-on-year revenue and expects a modest improvement in net profit margin [2] - For the first half of 2025, management anticipates sales not to be lower than the second half of 2024, with potential improvements in the second half of 2025. Sales in Guizhou are expected to grow by double digits in 2024, while Henan remains stable, Hunan progresses well, and Shandong lags behind [2] Retail Demand and Operational Dynamics - Since June 2024, demand has remained weak, and management believes distributor confidence in the industry is low. The company plans to avoid putting excessive pressure on channels and will strictly control channel rebates to maintain stable wholesale prices. The company has also suspended consumer red envelope activities since last year and will gradually explore the banquet market, potentially leveraging the Zhen10 product [3] 2025 Outlook - Management expects a quarter-on-quarter improvement in the first half of 2025, with sales targets remaining flat year-on-year. The high-end liquor segment aims for double-digit sales growth, with the Lidu brand continuing to drive growth. If local government debt issues improve, there could be greater growth opportunities. The employee stock ownership plan for 2025 is yet to be determined [4] Production Capacity and Capital Expenditure - By the end of 2025, the company's base liquor inventory is projected to reach approximately 120,000 to 130,000 tons, with a potential sales value of RMB 40-50 billion based on the average selling price of approximately RMB 365,000 per ton in 2024. Management expects capital expenditures to gradually decrease starting in 2027 [5]