Yanghe(SZ:002304) Cai Jing Wang·2025-05-19 11:15Core Viewpoint - The liquor industry is under pressure, and Yanghe Co. is experiencing another year of adjustment, focusing on "stability" and sustainable development rather than aggressive growth targets [1][2]. Industry Overview - The collective decline in accounts receivable notes in the liquor industry indicates that leading companies are no longer urging distributors to leverage to meet payment targets, reflecting a more cautious approach to financial health [1][3]. - The first quarter of 2023 saw a 29% year-on-year decrease in accounts receivable notes across the industry, highlighting a trend of reduced financial leverage since Q3 2022 [3]. Company Performance - Yanghe's Q1 2023 cash receipts from sales decreased by 24.03% to 9.805 billion yuan, while contract liabilities increased by 20.78% to 7.024 billion yuan, suggesting a controlled shipping pace to manage inventory [2]. - The company has not set quantitative growth targets for the year, instead prioritizing healthy and sustainable development, focusing on stabilizing key markets and product pricing [1][2]. Strategic Adjustments - Yanghe has implemented a refined rating, admission, and exit mechanism for distributors, resulting in a net increase of 77 distributors nationwide in the past year [5]. - The company is enhancing its marketing strategies, focusing on consumer operations and transitioning from terminal channels to direct consumer engagement [2][5]. Product Focus - Yanghe is concentrating on its main brands and mid-to-high-end price segments, with a commitment to long-term value rather than short-term sales volume [6][7]. - The M6+ brand has undergone strict quota management to ensure healthy development, with a focus on balancing supply and demand [7]. Financial Management - The sales expense ratio for Yanghe increased by 54.6 percentage points year-on-year in Q4 2022 and by 3.9 percentage points in Q1 2023, indicating a strategic increase in marketing investments [9]. - Despite facing slight downward pressure on net profit margins, Yanghe's management anticipates improved efficiency in expense utilization moving forward [9].