Core Viewpoint - Yingjia Gongjiu, known as a "dark horse," experienced a significant decline in performance in the first half of 2025, marking the first time in five years that both revenue and profit decreased in the same period [2] Financial Performance - In the first half of 2025, Yingjia Gongjiu's revenue target is set at 7.6 billion yuan, reflecting a year-on-year growth of 3.49%, while the net profit target is 2.62 billion yuan, indicating a year-on-year growth of 1% [2] - The company has historically met its financial budget targets during periods of high growth, but the recent double-digit decline raises concerns about achieving the annual performance goals [2] Market Conditions - The majority of Yingjia Gongjiu's revenue comes from Anhui Province, where revenue in the first half of 2025 decreased by 12% year-on-year, with a more pronounced decline of 20.29% in the second quarter, indicating severe demand challenges [4] - The company plans to continue focusing on the Anhui market while addressing the weak demand and consumption fatigue [4] - In external markets, the company also faced significant declines, attributed to weak demand and insufficient brand influence outside of Anhui, with Shanghai and Jiangsu identified as key markets for growth [4] Cost and Efficiency Challenges - Despite a significant drop in operating costs due to reduced sales volume, both sales and management expenses increased year-on-year, with management expenses rising by 17% [6] - The management has not provided a clear explanation for the substantial increase in expenses but aims to enhance profitability through refined operations and efficiency improvements [6] Stock Performance - Yingjia Gongjiu's stock price has dropped nearly 18% this year and has seen a continuous decline for two consecutive years, with a closing price of 42.7 yuan per share and a market capitalization of approximately 34.16 billion yuan [7]

Core Viewpoint - The company, Yingjia Gongjiu, reported a significant decline in both revenue and net profit for the first half of 2025, marking the first time in five years that both metrics have decreased, primarily due to the impact of new alcohol consumption restrictions and an industry-wide cyclical adjustment [1][3]. Financial Performance - Revenue for the first half of 2025 was 3.16 billion yuan, a year-on-year decrease of 16.89% - Net profit attributable to shareholders was 1.13 billion yuan, down 18.19% year-on-year [1][3]. Market Challenges - The company faces challenges in both domestic and external markets, with a notable decline in performance in its primary market of Anhui, which accounts for over 60% of total revenue [3][4]. - Domestic revenue decreased by 12% to 2.364 billion yuan, raising concerns among investors [3][4]. - Revenue from external markets fell by 30% to 625 million yuan, with its share of total revenue dropping to less than 20% [6]. Strategic Plans - The company aims to achieve a revenue target of 7.6 billion yuan for the year, representing a growth of approximately 3.49%, and a net profit target of 2.62 billion yuan, with a growth of about 1% [3]. - Management plans to stabilize prices, optimize the distributor structure, innovate products, expand market reach, and enhance digital marketing and channel transformation to drive high-quality marketing development [3][6]. Sales and Marketing - Despite an increase in sales expenses to 307 million yuan, up 1.39% year-on-year, this did not translate into improved performance, leading to a rise in the sales expense ratio [7]. - The management indicated a focus on refined operations and efficiency improvements to enhance profitability moving forward [7].

Core Insights - The company held a performance briefing for the first half of 2025 on September 19, focusing on strategic developments and market positioning [1] Group 1: Strategic Focus - The company is prioritizing the provinces outside of its home market, specifically targeting Shanghai and Jiangsu [1] - The company aims to stabilize the development of existing products while fully introducing the Dongcang series [1] - The company is advancing the "Dual Core Project" in its distribution channels [1] Group 2: Market Development - The company will continue to deepen its presence in the domestic market [1] - The company is on track with its plans for the upcoming dual festivals [1]

Group 1 - The food and beverage sector experienced a decline on September 18, with the Food ETF (515710) dropping by 0.63% [1] - Within the sector, liquor stocks were notably weak, with companies like Yingjia Gongjiu falling over 2% and others like Jiu Gui Jiu and Lu Zhou Lao Jiao declining more than 1% [1] - Despite the current downturn, some analysts suggest that the liquor sector may have entered a bottoming phase, with potential for recovery during the upcoming festive season [1][4] Group 2 - According to Open Source Securities, the retail sales growth rate has slowed down, primarily due to diminishing effects of the "old-for-new" policy and a gradual recovery in consumer demand [3] - The food and beverage sector is expected to benefit from improving macroeconomic conditions and rising consumer income and willingness to spend [3] - The current valuation of the food and beverage sector is at a low point, making it a potentially good time for investment [3] Group 3 - Future outlook indicates that the liquor sector is undergoing adjustments due to policy impacts, with a noticeable decline in demand [4] - There are signs of recovery in consumer behavior, particularly in personal drinking and social gatherings, which could lead to improved sales figures [4] - Analysts predict that the worst phase for the liquor sector has passed, and there is cautious optimism for the upcoming Mid-Autumn Festival and National Day [4] Group 4 - The Food ETF (515710) tracks the CSI segmented food and beverage industry index, with a significant portion of its holdings in leading high-end liquor stocks [5] - Investors can also access core assets in the food and beverage sector through the Food ETF linked funds [5]

Investment Rating - The report suggests a recommendation for strong brands such as Guizhou Moutai, Wuliangye, and Luzhou Laojiao, as well as Shanxi Fenjiu, which has a clear growth path in a counter-cyclical environment [5]. Core Insights - The industry is currently in a phase of accelerated bottoming, transitioning from "passive clearing" to "active adjustment" due to ongoing pressures from excess supply and demand scenarios [3][5]. - The first half of 2025 saw a negative growth in revenue and net profit for major liquor companies, marking the first negative growth in this cycle [15]. - The report highlights a structural opportunity during the volume adjustment period, with market pricing increasingly favoring dividend yield and market share [3][5]. Summary by Sections Industry Overview - The white liquor industry faced challenges in the first half of 2025, including slow macroeconomic recovery and strict alcohol prohibition policies, leading to a decline in consumption scenarios and continued pressure on demand [5]. - The overall revenue and net profit for 17 major liquor companies were 2368.3 billion and 944.6 billion respectively, with a year-on-year decline of 0.4% and 0.9% [15]. Performance Analysis - In Q2 2025, the revenue and net profit for the industry were 867.2 billion and 313.4 billion respectively, reflecting a year-on-year decline of 4.7% and 7.3%, marking the first negative growth in revenue during this cycle [15]. - High-end liquor maintained positive growth, while the mid-range and regional brands experienced declines [20][22]. Market Dynamics - The report indicates that the market is shifting focus from short-term recovery scenarios to verifying the bottom of demand trends through year-on-year comparisons [3]. - The report anticipates a recovery in the third quarter, driven by seasonal consumption events such as Mid-Autumn Festival and National Day, which may accelerate the bottoming process of the fundamentals [5]. Investment Recommendations - The report recommends focusing on brands with strong market positions and growth potential, including Guizhou Moutai, Wuliangye, Luzhou Laojiao, and regional leaders like Guyi Gongjiu and Jinhui Jiu [5].

Investment Rating - The report assigns a "Buy-A" investment rating to the company with a target price of 53.51 CNY for the next six months [4][7]. Core Views - The company reported a decline in revenue and net profit for the first half of 2025, with revenue at 3.16 billion CNY, down 16.89% year-on-year, and net profit at 1.13 billion CNY, down 18.19% year-on-year [1][4]. - The company is actively adjusting its sales strategies and optimizing its channel structure to cope with the current market challenges, including leveraging digital marketing and enhancing its IP influence [2][3]. Financial Performance - In Q2 2025, the company achieved revenue of 1.11 billion CNY, a decrease of 23.82% year-on-year, and a net profit of 302 million CNY, down 35.19% year-on-year [1][2]. - The gross margin for Q2 2025 was 68.33%, a decrease of 2.82 percentage points year-on-year, while the net profit margin was 27.10%, down 4.78 percentage points year-on-year [3]. - The company is expected to see revenue growth rates of -14.0%, 6.2%, and 8.4% from 2025 to 2027, with net profit growth rates of -17.6%, 7.1%, and 9.1% respectively [4][11]. Product and Channel Analysis - In Q2 2025, the revenue from mid-to-high-end liquor was 817 million CNY, down 23.57% year-on-year, while ordinary liquor revenue was 210 million CNY, down 32.91% year-on-year [2]. - Direct sales (including group purchases) generated 82 million CNY, up 1.23% year-on-year, while wholesale and agency sales were 944 million CNY, down 27.44% year-on-year [2]. Regional Performance - Revenue from the domestic market was 730 million CNY, down 20.31% year-on-year, while revenue from outside the province was 296 million CNY, down 36.34% year-on-year [2].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a total revenue of 3.16 billion yuan for the first half of 2025, a year-on-year decrease of 16.89%. The net profit attributable to shareholders was 1.13 billion yuan, down 18.19% year-on-year, and the net profit excluding non-recurring items was 1.093 billion yuan, a decline of 19.94% year-on-year [2][4] - In the second quarter of 2025, the company achieved total revenue of 1.113 billion yuan, a year-on-year decrease of 24.13%. The net profit attributable to shareholders was 302 million yuan, down 35.20% year-on-year, and the net profit excluding non-recurring items was 277 million yuan, a decline of 40.24% year-on-year [2][4] - The company is controlling its delivery rhythm, resulting in overall pressure in the second quarter. The mid-to-high-end liquor segment generated revenue of 817 million yuan, down 23.6% year-on-year, while ordinary liquor revenue was 210 million yuan, down 32.9% year-on-year, indicating that the decline in ordinary liquor was greater due to intensified industry competition [8][4] - The company’s net profit margin for the first half of 2025 decreased by 0.57 percentage points to 35.76%, while the gross margin increased by 0.18 percentage points to 73.62%. The expense ratio increased by 2.00 percentage points to 13.34%, with notable changes in sales expense ratio (+1.75 percentage points) and management expense ratio (+1.15 percentage points) [8][4] - The company is maintaining a healthy market rhythm and adjusting its targets flexibly in response to external pressures, with inventory remaining in a good state for future growth. The expected EPS for 2025 and 2026 are 2.77 yuan and 2.93 yuan, respectively, corresponding to current PE ratios of 16 and 15 times [8][4]

Group 1 - The core discussion focused on the development trends in the liquor industry, operational practices of both companies, and future directions for growth [3][4] - Both companies acknowledged that the liquor industry is currently undergoing a deep adjustment period, with structural changes in consumer markets posing new challenges to traditional sales models [3] - There is a shift in liquor consumption scenarios from single banquet occasions to diversified experiences such as leisure socializing and cultural experiences, necessitating continuous exploration in product innovation, channel optimization, and brand building [3][4] Group 2 - The importance of maintaining quality while accurately grasping market trends and establishing emotional resonance with consumers was emphasized [3] - Innovations in consumption scenarios and cultural value dissemination should reflect brand prestige while being close to everyday life, achieving an organic unity between brand tone and market demand [3] - Future collaboration will focus on deepening mutual learning and exploring new paths for high-quality development through experience sharing and innovative thinking [3]

Core Viewpoint - The liquor sector experienced a slight increase of 0.3% on September 11, with strong performance from Jiu Gui Jiu, while the overall market indices also saw gains, indicating a positive sentiment in the market [1]. Group 1: Market Performance - The Shanghai Composite Index closed at 3875.31, up by 1.65% [1]. - The Shenzhen Component Index closed at 12979.89, up by 3.36% [1]. - The liquor sector's individual stock performance showed varied results, with notable gains from Ji Si Xing at 5.50% and She De Jiu Ye at 2.37% [1]. Group 2: Stock Data - Ji Si Xing (000799) closed at 73.29 with a trading volume of 348,200 shares and a transaction value of 2.533 billion [1]. - She De Jiu Ye (600702) closed at 68.26 with a trading volume of 156,700 shares and a transaction value of 1.060 billion [1]. - Guizhou Moutai (600519) closed at 1523.50 with a trading volume of 37,200 shares and a transaction value of 5.643 billion [2]. Group 3: Capital Flow - The liquor sector saw a net outflow of 52.239 million from institutional investors and 236 million from speculative funds, while retail investors contributed a net inflow of 289 million [2]. - Guizhou Moutai experienced a net inflow of 26,661, while Jiu Gui Jiu had a net outflow of 1.37 billion from institutional investors [3]. - The overall capital flow indicates a mixed sentiment, with retail investors showing interest despite the outflows from larger funds [2][3].

Core Viewpoint - Anhui Yingjia Gongjiu Co., Ltd. is holding a half-year performance briefing on September 19, 2025, to discuss its operational results and financial status for the first half of 2025, allowing investors to engage in Q&A [2][3][4]. Group 1: Meeting Details - The meeting is scheduled for September 19, 2025, from 15:00 to 16:00 [4]. - It will take place at the Shanghai Stock Exchange Roadshow Center and will be conducted in an interactive online format [4][5]. - Investors can submit questions from September 12 to September 18, 2025, through the Roadshow Center website or via the company's email [2][5]. Group 2: Participants - Key participants in the meeting include General Manager Mr. Qin Hai, Deputy General Manager Mr. Guang Jiaquan, Independent Director Mr. Wang Shanyong, Board Secretary Mr. Sun Wangsheng, and Financial Officer Mr. Wang Ya [4]. Group 3: Contact Information - For inquiries, investors can contact Ms. Chen at phone number 0564-5231473 or via email at stock@yingjia.cn [6].