Yanghe(SZ:002304) Sou Hu Cai Jing·2025-05-12 15:47Core Viewpoint - Yanghe Co., once a leading player alongside Moutai and Wuliangye, is now facing significant challenges, including a decline in sales and market share, leading to its status as a "laggard" in the industry [1][2]. Group 1: Market Performance - Yanghe's sales volume dropped to 139,100 tons in 2024, a year-on-year decline of 16.3%, while production fell to 145,400 tons, down 8.4% [7]. - The company's revenue for 2024 was 28.88 billion yuan, a decrease of 12.83% year-on-year, and net profit dropped by 33.37% to 6.67 billion yuan, resulting in a loss of its third-place position in the industry [8][9]. - In Q1 2025, Yanghe's revenue was 11.07 billion yuan, down 31.92% year-on-year, and net profit fell by 39.93% to 3.64 billion yuan [9]. Group 2: Competitive Landscape - Yanghe has been surpassed by Shanxi Fenjiu and Luzhou Laojiao, with the latter achieving revenue of 31.2 billion yuan in 2024, while Yanghe's revenue fell to 28.88 billion yuan [8]. - The competition in the market has intensified, with local brands like Jiusiyuan gaining traction, further eroding Yanghe's market share [12][13]. Group 3: Distribution and Channel Issues - There is a growing channel crisis, with retailers reporting a significant drop in customer interest in Yanghe products, leading to increased inventory and reduced sales [3][5]. - Retailers are advising customers to purchase Yanghe products online due to lower prices, indicating a loss of pricing power [7]. - The number of distributors for Yanghe has decreased, and the average sales per distributor fell to 3.26 million yuan in 2024, down from 3.77 million yuan in 2023 [12]. Group 4: Financial Strategies - Despite the declining performance, Yanghe announced a record dividend of 7 billion yuan for 2024, representing 105% of its net profit, in an attempt to maintain investor confidence [9]. - The company's contract liabilities have decreased from 13.74 billion yuan at the end of 2022 to 10.34 billion yuan at the end of 2024, indicating challenges in cash flow and inventory management [10].