General Provisions - The company aims to protect the legal rights of the company, shareholders, employees, and creditors, and to regulate its organization and behavior according to relevant laws [1][3] - The company was established as a joint-stock company in accordance with national regulations and has undergone name changes from "Sichuan Pharmaceutical Co., Ltd." to "Sichuan Quanjing Co., Ltd." and finally to "Sichuan Shuijingfang Co., Ltd." [1][2] - The company was approved for its initial public offering of 26.6 million shares in 1996 and is listed on the Shanghai Stock Exchange [1][3] Company Structure - The registered capital of the company is RMB 487,503,198 [2] - The company is a permanent joint-stock company, and the general manager serves as the legal representative [2][3] - The company’s assets are divided into equal shares, and shareholders are liable for the company’s debts only to the extent of their subscribed shares [2][3] Business Objectives and Scope - The company's business objective is to establish a dynamic operating system, improve technology and management levels, and develop its core business centered on Chinese liquor while also engaging in diversified operations [5] - The main business scope includes food production and sales, with additional activities in biobased materials technology research and development, manufacturing, and sales [5] Share Issuance and Management - The company issues shares in the form of stocks, adhering to principles of openness, fairness, and justice [6][7] - The total number of shares issued by the company is 487,503,198, all of which are ordinary shares [6][7] - The company can increase its capital through various methods, including issuing shares to unspecified or specific objects, distributing bonus shares, or converting reserves into capital [7][8] Shareholder Rights and Responsibilities - Shareholders have rights to dividends, voting, supervision of company operations, and access to company documents [10][11] - Shareholders must comply with laws and the company’s articles of association, and they cannot withdraw their capital except as legally permitted [14][39] - Shareholders holding more than 5% of voting shares must report any pledges of their shares to the company [14] Shareholder Meetings - The company holds annual and temporary shareholder meetings, with the annual meeting required to be held within six months after the end of the previous fiscal year [47] - Shareholder meetings are the company's decision-making body, with powers including electing directors, approving profit distribution plans, and making decisions on major company changes [45][46] - The company must provide legal opinions on the legality of the meeting procedures and the qualifications of attendees [50] Voting and Resolutions - Resolutions can be ordinary or special, with ordinary resolutions requiring a simple majority and special resolutions requiring a two-thirds majority [79][80] - Shareholders can exercise their voting rights based on the number of shares they hold, with each share granting one vote [82] - The company must ensure that the voting process is transparent and that results are disclosed promptly [30][83]

Group 1 - The core opinion of the legal opinion letter is that the procedures for convening and holding the 2024 annual general meeting of Sichuan Shui Jing Fang Co., Ltd. comply with relevant laws and regulations [1][7] - The meeting was held on June 18, 2025, at the designated location, and the actual time and place matched the notice provided [3][4] - A total of 976 shareholders and their proxies attended the meeting, representing 317,967,677 shares, which is 65.6264% of the total shares with voting rights [4][5] Group 2 - The voting process combined on-site and online voting, with the online voting period from June 18, 2025, 9:15 to 9:25 and 9:30 to the end of the meeting [3][4] - The resolutions presented at the meeting were approved with a high percentage of votes in favor, with the majority of proposals receiving over 99% approval [5][7] - The legal opinion concludes that the resolutions passed during the meeting are legal and valid, adhering to the requirements of the Company Law and the company's articles of association [7][8]

Group 1 - The company is restructuring its product matrix with a dual-brand strategy to accurately cover diverse consumer groups, focusing on "Shuijingfang" for mid-to-high-end and "Diyifang" for high-end markets [1] - The company plans to cultivate a second star product priced between 300-800 RMB, following the success of its existing product, which is expected to drive future performance growth [1] - The company is also launching a mid-range sub-brand "Tianhao Chen" to meet consumer demand for high cost-performance products [1] Group 2 - The company is enhancing channel construction and optimizing the value chain distribution mechanism to promote high-quality business development [2] - It will implement refined channel management and classify markets into three categories: fortress, vanguard, and potential, tailoring strategies to each market's characteristics [2] - The company aims to strengthen partnerships with distributors through initiatives like the "Gold Customer Plan" and "Doubling Plan" to stimulate distributor potential [2] Group 3 - The company anticipates revenue growth driven by changes in consumption scenarios, with a focus on emotional connections with consumers [3] - Revenue projections for 2025-2027 are 5.665 billion, 6.370 billion, and 7.427 billion RMB, with corresponding net profits of 1.479 billion, 1.697 billion, and 2.017 billion RMB [3] - The company maintains a strong recommendation rating based on its commitment to brand value and sustainable development [3]

Core Viewpoint - In 2024, the company continues to implement its ESG sustainable development strategy themed "Water Well · Respect the Future," aiming to enhance the quality of life through high-quality products and services [3]. Group 1: Product Quality and Safety - The company has achieved third-party certifications for HACCP and ISO9001 in 2024 [4]. - All packaging suppliers have signed food safety requirements and standards, and have obtained ISO9001 certification [5]. - The company conducted 80 training sessions on quality management and food safety, covering 1,535 employees with a total training duration of 2,172 hours [5]. Group 2: Responsible Marketing and Consumer Experience - The company adheres to a strict marketing code and requires partners to comply as well [5]. - Customer inquiries and complaints are responded to within 5 minutes, with 100% of issues addressed promptly [5]. - A new wine tourism route was launched in collaboration with the Chengdu Tourism Association to enhance brand value and create new growth points [5]. Group 3: Employee Satisfaction and Training - The company conducted an annual "Your Voice" survey with a 99% participation rate in 2024 [6]. - A total of 24,036.45 hours of targeted training were provided, covering 100% of full-time employees, with an average training duration of 11.93 hours per employee [7]. Group 4: Supplier Management - A comprehensive supplier screening system is in place, including background checks and on-site evaluations [8]. - An annual performance management plan for suppliers was established, focusing on quality, delivery, technology, and compliance [8]. - In 2024, 89 key suppliers were identified, with 59 completing the SEDEX self-assessment [8]. Group 5: Corporate Social Responsibility - The company donated a total of 1.88 million yuan to support six major public welfare areas in 2024 [9]. - Over 1,000 volunteers contributed a total of 759 hours of service [10]. - The "Friendly Neighbor Program" was upgraded to promote community harmony through factory open days and diverse community activities [10]. Group 6: Industry Standards and Environmental Management - The company collaborated with the Sichuan China Baijiu Golden Triangle Liquor Industry Association to release management guidelines for the use of group standards [11]. - It actively participated in the formulation of production technical specifications for Sichuan liquor [11]. - The company conducted a comprehensive assessment of its carbon emissions and set a target to reduce scope 1 and 2 emissions by at least 60,000 tons of CO2 equivalent from 2024 to 2030 [12]. Group 7: Water Resource and Packaging Management - A water risk assessment is regularly conducted, with a goal to improve water efficiency by 30% by 2030 compared to 2020 [13]. - The company achieved 100% recycling of cooling water in its production workshop, amounting to 821,060 tons [14]. - Efforts to reduce plastic use include optimizing packaging to save nearly 70 tons of ABS plastic annually [15]. Group 8: Corporate Governance and Compliance - The board of directors participated in training related to independent director reforms and information disclosure [16]. - A risk management system based on a "three lines of defense" approach was established, ensuring compliance management aligns with business development [16]. - A specialized brand protection team was formed to enhance product anti-counterfeiting capabilities [17].

Investment Rating - The report maintains a "Strong Buy" rating for the company [1][7][3] Core Views - The management team is stable, and a performance culture is enhancing employee execution capabilities. The company emphasizes a self-driven approach during external fluctuations, viewing them as opportunities for growth [7] - The North China market is performing exceptionally well, with a significant increase in the number of distribution stores. The company plans to expand its market share through key projects and a robust distribution strategy [7] - Marketing strategies focus on emotional connections with consumers, with plans to introduce low-alcohol products and enhance new retail channels [7] - The company is committed to strict inventory control and cautious, sustained investment in brand building and channel expansion [7] - The projected EPS for 2025-2027 is 2.87, 3.02, and 3.21, respectively, with a corresponding PE ratio of 14x for 2025 [7] Financial Data and Valuation - Total revenue is projected to grow from 4,953 million in 2023 to 5,810 million in 2027, with a CAGR of approximately 4% [2][15] - Operating profit is expected to increase from 1,698 million in 2023 to 2,120 million in 2027, reflecting a steady growth trend [2][15] - Net profit attributable to the parent company is forecasted to rise from 1,269 million in 2023 to 1,563 million in 2027, with a consistent growth rate [2][15] - The company’s current share price is 41.02 yuan, with a total market capitalization of 20 billion yuan [3][3] Key Financial Ratios - The projected ROE is expected to decline from 32.3% in 2023 to 20.9% in 2027, indicating a gradual decrease in return on equity [16] - The asset-liability ratio is projected to decrease from 47.8% in 2023 to 34.3% in 2027, suggesting improved financial stability [16] - The net profit margin is expected to improve from 25.6% in 2023 to 26.9% in 2027, indicating enhanced profitability [16]

Investment Rating - The report maintains a "Strong Buy" rating for the company, indicating an expectation to outperform the benchmark index by over 20% in the next six months [3][21]. Core Insights - The management highlighted the importance of internal improvement and efficiency enhancement, acknowledging current pressures on white liquor demand but maintaining a positive outlook on the industry's medium to long-term resilience [2][6]. - The strategic direction for 2025 is clear, focusing on steady progress and execution, with an emphasis on brand development and market expansion [2][6]. - The company plans to enhance its product matrix by launching high-end brands and innovating with lower-alcohol products, while also leveraging seasonal marketing strategies [2][6]. - The channel strategy includes expanding store coverage and improving single-store productivity, with a focus on new retail initiatives [2][6]. - The report emphasizes the need for operational precision and efficiency improvements, with expectations for better execution in marketing and resource allocation [2][6]. Financial Summary - Projected total revenue for 2024 is 5,217 million, with a growth rate of 5.3%, and expected to reach 6,308 million by 2027, reflecting a CAGR of 10.8% [2][11]. - The net profit attributable to shareholders is forecasted to be 1,341 million in 2024, growing to 1,658 million by 2027, with a net profit growth rate of 14.5% in 2027 [2][11]. - Earnings per share (EPS) are projected to increase from 2.75 in 2024 to 3.40 in 2027, with a decreasing price-to-earnings (P/E) ratio from 15 in 2024 to 12 in 2027 [2][11]. Market Performance - The company's stock price target is set at 64 yuan, with the current price at 41.02 yuan, indicating significant upside potential [3][6]. - The total market capitalization is approximately 199.97 billion, with a debt-to-asset ratio of 39.95% [3][6].

Core Viewpoint - Water Jiufang's management emphasizes the importance of internal improvement to navigate through the current liquor cycle, focusing on brand, channel, product, and cultural development to seize growth opportunities in 2025 [3][4]. Inventory Management - The company asserts that its inventory levels are reasonable, with a strong focus on sustainable business practices and strict inventory management [6]. - In Q1, consumer bottle-opening actions increased by 45.1%, indicating a positive trend in sales activity [6]. Sales Strategy - Water Jiufang's revenue growth is primarily driven by increased sales volume, with a notable rise in new retail channels, which saw a 184% year-on-year increase in Q1 [5][8]. - The company is targeting younger consumers, particularly those aged 25-30, and plans to innovate products, including launching more offerings below 38 degrees in specific regions [5]. Financial Performance - For 2024, Water Jiufang reported a revenue of 5.217 billion yuan, a year-on-year increase of 5.32%, and a net profit of 1.341 billion yuan, up 5.69% [4]. - In Q1 2025, the company achieved a revenue of 959 million yuan, a 2.74% increase, and a net profit of 190 million yuan, up 2.15% [4]. Channel Expansion - The company has expanded its retail channels significantly, with over 24,000 new stores opened by Q1, and aims for double-digit growth in store productivity and coverage in key cities by 2025 [8]. - Water Jiufang is also focusing on enhancing its e-commerce capabilities to drive growth in new retail channels [8].

每经记者｜刘明涛 每经编辑｜肖芮冬 丨2025年6月19日星期三丨 NO.1 《2025中国白酒市场中期研究报告》发布 NO.3 水井坊：针对年轻消费者创新，将尝试推出38度以下产品 6月18日，水井坊召开2024年年度股东大会。针对白酒年轻化趋势，水井坊首席市场与数字商务官周苑 忻表示，公司观察到一些25岁~30岁的年轻群体消费者，在新零售OTO平台上的消费提升，所以我们很 看好这条赛道。在这些人群、渠道方面，水井坊会有持续的投入。同时，水井坊也可能会在一些产品上 进行创新，包括在一些特定区域，将尝试推出更多38度以下产品。 点评：水井坊对年轻化趋势的响应值得肯定，但其战略落地仍需跨越两大挑战。一是"认知转化"，如何 从"年轻群体在OTO平台消费提升"的表象，深入挖掘其真实需求，比如社交属性、情感共鸣等。二 是"长期投入"，年轻化非一日之功，需持续的资源投入与耐心培育。因此，年轻化不是简单的包装升级 或营销噱头，而是需要从渠道、产品到品牌调性的系统性适配。 NO.2 贵州茅台酱香酒营销有限公司发布招聘公告 6月18日，贵州茅台酱香酒营销有限公司发布2025年社会招聘公告，为满足公司发展需求，决定面向社 会公 ...

Core Viewpoint - Sichuan Shui Jing Fang Co., Ltd. is optimistic about the long-term development of the liquor industry and plans to implement a "dual-star" product strategy to enhance growth potential [2][3] Group 1: Company Strategy and Growth - The company will launch a second flagship product priced between 300 to 800 yuan to complement the existing Eight Series, aiming to inject new momentum into performance growth [2] - Shui Jing Fang is actively planning strategic upgrades and adjusting its business layout for 2024, with a focus on research investment, quality control, brand building, and channel development [3] - The company aims to open over 10,000 new stores throughout the year, contributing to a revenue increase of 5.32% and a net profit growth of 5.69% year-on-year [3] Group 2: Brand Development - In 2025, the company will establish a "dual brand" system with "Shui Jing Fang" focusing on the mid-to-high-end market (300 to 800 yuan) and "Di Yi Fang" targeting the high-end market (above 800 yuan) [3] - The company will also develop mid-range sub-brands to meet consumer demand for high cost-performance products [3] Group 3: Product Innovation - The company plans to continue product iteration to provide higher value products, with a potential new product launch before the Mid-Autumn Festival [4] - Shui Jing Fang recognizes the growing consumer preference for mid and low-alcohol products and intends to innovate in this area, particularly for products below 38 degrees [4] Group 4: Operational Goals - The 2025 operational plan will focus on six key areas: implementing the "dual brand" strategy, enhancing the product matrix, accelerating store coverage, improving single-store output, developing group purchasing capabilities, and increasing organizational efficiency [4] - The company aims for double-digit growth in new store openings in key cities and a similar increase in sales for benchmark stores [4]

Core Viewpoint - Water Jiufang's annual shareholder meeting highlighted the company's performance and management stability, with new CEO Hu Tingzhou emphasizing growth opportunities and the implementation of a dual-brand strategy to adapt to changing consumer demands in the liquor industry [1][3][4]. Financial Performance - In 2024, Water Jiufang achieved revenue of 5.217 billion yuan, a year-on-year increase of 5.32%, and a net profit of 1.341 billion yuan, up 5.69% [3]. - In Q1 2024, the company reported revenue of 959 million yuan, a 2.74% increase, and a net profit of 190 million yuan, up 2.15%, successfully meeting its operational goals [3][4]. Management Stability - The stability of the core management team has been a concern for investors, especially after the prolonged vacancy of the CEO position prior to Hu Tingzhou's appointment [4]. - Hu emphasized the implementation of an "achievement culture" to enhance management efficiency, which includes performance tracking and incentives for employees [4]. Brand Strategy - The dual-brand strategy involves the "Water Jiufang" brand targeting mid-range consumers (priced between 300-800 yuan) and the "First Fang" brand aimed at high-end consumers (priced above 800 yuan) [6][8]. - This strategy is designed to meet the evolving consumer preferences and to capture new growth opportunities in the market [7][8]. Market Trends - The liquor industry is experiencing a shift in consumer demand, with a decline in formal business settings and an increase in social and family gatherings driving growth [7]. - The company is also focusing on younger consumers, with plans to introduce lower-alcohol products to cater to this demographic [9]. Future Plans - The company aims to launch the "First Fang" product and introduce iterative products from the Water Jiufang series by 2025 [8]. - Ongoing product iterations are expected to differentiate new offerings from existing products, addressing consumer desires for quality and value [8].