Ge Long Hui A P P·2025-08-26 06:51Core Viewpoint - The report from Zhongyin Securities indicates that Yanghe Co., Ltd. experienced a significant decline in net profit for the first half of 2025, with a year-on-year decrease of 45.3% to 4.34 billion yuan [1] Financial Performance - In Q2 2025, the company's revenue and net profit attributable to the parent company were 3.73 billion yuan and 710 million yuan, respectively, reflecting year-on-year declines of 43.7% and 62.7% [1] - The revenue decline in Q2 2025 was more pronounced compared to the previous quarter, particularly due to a reduction in the number of distributors outside the province, which saw a greater decline than those within the province [1] Distributor Analysis - As of the first half of 2025, the total number of distributors within the province was 3,010, which increased by 11 from the end of 2024, while the number of distributors outside the province was 5,599, which decreased by 268 from the end of 2024 [1] Strategic Adjustments - The company plans to continue its adjustments in the second half of 2025, aligning with industry trends by launching the seventh generation of "Hai Zhi Lan" and high-end light bottle liquor to solidify its consumer base [1] - The company's operational pace is described as pragmatic and steady, with expectations that it will gradually emerge from the bottom adjustment period as channel health improves [1] Outlook - The report suggests that the company's ongoing adjustments and the clearing of financial statements will alleviate pressure, with anticipation for the effects of reforms to become evident [1] - Given the current industry environment and the company's performance in the first half of the year, the rating remains at "Buy" [1]