Shede Spirits (SH:600702) Zheng Quan Shi Bao Wang·2025-06-11 13:37Core Viewpoint - The overall performance of Shede Liquor Industry (600702) is under short-term pressure due to rising production costs and declining sales gross margin, compounded by prior investments in capacity expansion for 2024 [1][2] Group 1: Financial Performance - In 2024, Shede Liquor's total revenue is projected to be 5.357 billion yuan, a year-on-year decrease of 24.41%, while net profit is expected to be 346 million yuan, down 80.46% year-on-year [2] - The company's cash flow from operating activities has significantly improved, with a year-on-year increase of 106.76% [5] - As of the end of 2024, Shede Liquor's cash reserves are reported at 1.543 billion yuan, a decrease of 36.28% year-on-year, while interest-bearing liabilities have increased to 1.166 billion yuan [4][5] Group 2: Strategic Initiatives - Shede Liquor is implementing a strategy focused on "strong sales, inventory reduction, and price stability" to maintain healthy operations for the market and distributors [2] - The company has increased sales discounts by 3%-5% for different products to help distributors reduce social inventory [2] - The company is expected to invest approximately 1 billion yuan in capacity expansion projects by 2025, with an initial expenditure of 147 million yuan already made [5][6] Group 3: Market Conditions - The white liquor industry is currently in an adjustment phase, with intensified competition and a need for consumer confidence recovery, particularly in the mid-to-high-end product segment [2][6] - Despite the challenges, Shede Liquor's main products have maintained stable market prices, with terminal sales showing double-digit growth from 2021 to 2023 [3] - The company anticipates that the overall development of the white liquor industry will remain stable, with increasing market concentration and significant growth potential in sales volume [6]