Yanghe(SZ:002304) Sou Hu Cai Jing·2025-12-18 01:13Core Viewpoint - Yanghe Co., Ltd. has been facing significant challenges in the white liquor market, with declining sales and profits, despite continuing to invest heavily in advertising partnerships, such as being the exclusive timekeeping partner for the 2026 Spring Festival Gala for the seventh consecutive year [2][4]. Group 1: Financial Performance - In Q3 2024, Yanghe reported revenue of 3.295 billion yuan, a year-on-year decline of 29.01%, and a net loss of 373 million yuan, marking a significant downturn compared to leading competitors like Kweichow Moutai and Wuliangye [5][6]. - The company's sales volume in 2024 was 139,076.05 tons, down 16.3% from 2023, while production decreased by 8.4% to 145,494.73 tons [8]. - In the first half of 2025, Yanghe's sales volume fell to 78,192.32 tons, a decrease of 32.35%, and production dropped to 48,891.12 tons, down 51.63% [10]. Group 2: Market Position and Competition - Yanghe has dropped out of the top three in the white liquor industry, currently ranking fifth, facing increasing competition from regional brands like Jinshiyuan and Gujinggongjiu [5][6]. - In Jiangsu Province, Yanghe's revenue fell by 11.43% to 12.748 billion yuan, while Jinshiyuan experienced a 16% growth to 10.551 billion yuan, narrowing the revenue gap significantly [12][14]. - The number of Yanghe's distributors decreased by 257 to 8,609, indicating weakened market presence and a potential impact on future sales [15]. Group 3: Strategic Challenges - Yanghe's high-end brand, Dream Blue, struggles to establish itself in the market compared to established products from competitors like Moutai and Wuliangye, limiting its appeal as a collectible item [19]. - The company has faced challenges in brand positioning and channel management, leading to a decline in distributor enthusiasm and market share [16][18]. - The new leadership under Gu Yu lacks experience in corporate management and the liquor industry, raising concerns about the effectiveness of future strategies [17]. Group 4: Future Outlook - Yanghe may need to focus on maintaining its mid-range product line while exploring new consumer segments, particularly younger demographics, to adapt to changing market dynamics [21]. - The company has seen a slight increase in average price per ton, indicating potential for maintaining profit margins despite declining sales volume [21].