Core Viewpoint - The company, Zhenjiu Lidu, is transitioning from "scale expansion" to "value cultivation" during the adjustment period of the liquor industry, achieving high-quality development and maintaining a strong market position [1][3]. Financial Performance - In 2024, Zhenjiu Lidu reported an annual revenue of 7.07 billion yuan, marking the second consecutive year of surpassing 7 billion yuan, ranking ninth among 21 listed liquor companies in China [1]. - The company achieved a gross profit margin of 58.6% in 2024, up from 55.3% in 2023, and if calculated under A-share accounting standards, the gross profit margin would be 75.5%, ranking seventh among listed liquor companies [4][6]. - The adjusted net profit margin for 2024 was 23.7%, reflecting a year-on-year increase of 0.6 percentage points, indicating enhanced profitability and effective cost control [6][8]. Industry Context - The liquor industry is experiencing a period of adjustment, with a reported production volume of 4.145 million kiloliters in 2024, a decrease of 1.8% year-on-year. Approximately 29% of listed liquor companies reported a decline in revenue [6]. - Despite the overall industry challenges, 9 out of the top 10 liquor companies, including Zhenjiu Lidu, saw both revenue and net profit increase, highlighting a trend of "the strong getting stronger" [6]. Strategic Initiatives - Zhenjiu Lidu is focusing on three main areas: product, channel, and brand, to build a solid foundation for sustainable development and to turn the adjustment period into an opportunity [3][11]. - The company plans to enhance product competitiveness by increasing production capacity in key regions and launching a new strategic product priced between 500 to 600 yuan, targeting the mid-to-high-end market [13]. - Zhenjiu Lidu is implementing a dual-channel growth strategy in five core markets, emphasizing innovation in channels and targeting new consumer demographics [15][16]. Brand Development - The company is committed to enhancing its brand image through cultural storytelling and experiential marketing, leveraging its historical significance and tourism resources [18]. - Zhenjiu Lidu aims to engage younger consumers, particularly those born in the 1980s and 1990s, by developing marketing strategies that resonate with this demographic [18].

Core Viewpoint - Zhenjiu Lidu has demonstrated resilience and adaptability in a challenging market, achieving steady growth in revenue and profit while transitioning from scale expansion to value cultivation in the face of industry-wide downturns [3][10]. Financial Performance - In 2024, Zhenjiu Lidu achieved revenue of 7.07 billion yuan, a year-on-year increase of 0.5%, and an adjusted net profit of 1.68 billion yuan, up 3.3% [1]. - The gross margin improved to 58.6%, and the adjusted net profit margin rose to 23.7%, both up by 0.6 percentage points year-on-year [1][5]. - Operating cash flow reached 780 million yuan, reflecting a significant growth of 116.3% [1]. Market Position - Zhenjiu Lidu has maintained its position as the ninth largest listed liquor company in China for two consecutive years and is recognized as the first listed liquor company in Hong Kong [1][3]. - The company has successfully navigated the challenges of the 2024 liquor market, which has seen a decline in consumption demand across various price segments [3][10]. Strategic Shift - The company has shifted its focus from "scale expansion" to "value cultivation," emphasizing high-quality development and optimizing its product, capacity, and market strategies [3][10]. - Zhenjiu Lidu has implemented a major product strategy, concentrating on core products like Zhen 15 and Zhen 30, while reducing low-margin products [5][6]. Product and Brand Development - The flagship brand Zhenjiu generated revenue of 4.48 billion yuan, accounting for 63.4% of total revenue, while Lidu contributed 1.31 billion yuan, representing 18.6% [5]. - The revenue share of mid-to-high-end products has increased to 67% [5]. Channel Strategy - Zhenjiu Lidu employs a dual strategy of deepening domestic market penetration while expanding internationally, with significant growth in high-end liquor sales [6][10]. - The company has entered markets in Malaysia, Singapore, and Australia, enhancing its international presence [6]. Industry Recognition - Zhenjiu Lidu has been recognized as one of the top three private liquor companies in China and the fourth largest sauce liquor brand, following Moutai, Xijiu, and Langjiu [8][10]. - The company has been listed among the "Top 500 Most Valuable Brands in China," ranking third among sauce liquor brands [12].