King's Luck(SH:603369) Guo Ji Jin Rong Bao·2025-11-26 14:49Core Viewpoint - The liquor industry is undergoing a deep adjustment period focused on "destocking, stabilizing prices, and promoting sales," significantly impacting overall performance since the second quarter [2]. Industry Summary - In the first three quarters of this year, the average revenue of liquor listed companies decreased by 20.04%, while net profit fell by 39.2% [3]. - The third quarter saw a 26.78% year-on-year decline in revenue for the company, amounting to 1.931 billion yuan, with a corresponding net profit of 320 million yuan, down 48.69% year-on-year [3]. Company Performance - All product categories of the company experienced a decline in sales during the third quarter. The A+ category products (factory guide price of 300 yuan) generated revenue of 1.124 billion yuan, down 38% year-on-year, marking the steepest decline [4]. - A category products (priced between 50-100 yuan) saw revenue drop by 36.7% to 69 million yuan, while B category products (20-50 yuan) fell by 26.83%. C and D category products (below 20 yuan) experienced an 11.76% decline [4]. - The only category to achieve year-on-year growth was the A category products (100-300 yuan), which generated 639 million yuan, down only 1.08% [4]. - For the first three quarters, A category products saw a slight revenue increase of 0.32% to 2.871 billion yuan, while A+ category products fell by 15.97% to 5.435 billion yuan [4]. Regional Performance - From January to September, the company's revenue from the Jiangsu province was 7.955 billion yuan, down 12.4% year-on-year, while revenue from outside the province slightly increased by 0.06% to 804 million yuan [5]. - In the third quarter alone, the demand in the Suzhong region showed strong growth, reversing previous downward trends with a year-on-year increase of 1.13% [5]. Future Outlook - The company anticipates a gradual recovery in the liquor market next year, although it acknowledges that the pressure will remain high due to a relatively high base in the first half of the year [5]. - The management expressed a cautious optimism regarding market recovery and emphasized the importance of enhancing management systems and market share [5]. - The company is working on replicating the advantages of its Jiangsu team in other provinces, but the pace will be cautious, considering talent reserves and regional configurations [5]. Strategic Direction - The company is focusing on a firm strategic direction and increasing flexibility in its assessment mechanisms to avoid unrealistic targets that could distort actions during the industry's downturn [6].