Core Viewpoint - The company, Shede Liquor Co., reported a significant decline in revenue and production in its 2024 annual report, raising concerns about its business performance and financial health [1][5]. Group 1: Main Business Performance - The company achieved total revenue of 5.357 billion yuan in the reporting period, a year-on-year decrease of 27.08% [1][5]. - The liquor business revenue was 4.789 billion yuan, also down 27.08% year-on-year, with a production volume of 31,300 kiloliters, reflecting a 28.21% decline [1][5]. - The gross profit margin for liquor products has decreased significantly, with previous years showing margins of 81.54%, 80.89%, and 78.55%, indicating a downward trend [1][5]. Group 2: Supplier and Customer Relationships - The company provided detailed disclosures regarding its main suppliers and customers over the past three years, including transaction amounts and balances, confirming no significant related party transactions [2][3]. - Major suppliers include Chengdu Shengshi Pinwei Supply Chain Co., Ltd. and Dezhou Zhicheng Baozhen Liquor Co., Ltd., with transaction amounts of 121.4 million yuan and 121.1 million yuan respectively [2][3]. Group 3: Cost and Revenue Recognition - The company explained that despite the decline in revenue and production, the cost of liquor business remained relatively stable due to its cost accounting methods and revenue recognition policies [4][6]. - The unit cost of liquor increased by 38.80% year-on-year, attributed to rising material costs and changes in procurement practices [5][8]. - The average selling price of liquor products increased by 2%, with specific price segments showing significant changes due to adjustments in sales strategies and market conditions [7][8]. Group 4: Market and Competitive Position - The company adopted a price control model to support distributors, which has led to a temporary decrease in order quantities as part of inventory management strategies [7][9]. - The overall sales structure has shifted, with a notable decline in the sales of higher-priced products, contributing to a decrease in the overall gross margin [7][9].

投资要点 25Q1 公司实现收入 15.76 亿元， 同比-25.14%； 实现归母净利润 3.46 亿元， 同比-37.10%；实现扣非 净利润 3.43 亿元， 同比-37.14%。 公司坚持老酒战略，推进多品牌齐头并进。我们认为随着宏观经济政策发力+政商务消费需求恢复，公 司盈利能力有望提升。 产品结构承压，关注政商务消费需求恢复 1 ）利润端：25Q1 白酒收入 14.42 亿元，同比-26.5%，或因渠道库存消化，蓄力后续健康发展。25Q1 公司毛利率/净利率同比-4.8/ -4.2pcts 至 69.4%/21.9%。 3）现金流：销售收现16.23 亿（-15%），经营性净现金流为2.24 亿（+107%）。 品味舍得短期承压，电商渠道增速较快 1）分产品：25Q1 中高档酒/普通酒实现收入 12.34 亿元/2.08 亿元，同比-28.46%/-12.59%。品味短期销 售承压，舍之道受益 200 元价格带增长，增长保持相对稳健。 盈利预测及估值 2）分区域：25Q1 四川省内/省外收入为4.94 亿元/9.49 亿元，分别同比-8.96%/-33.25%，省内表现相对 优异。 3）分渠道：2 ...

Investment Rating - The investment rating for the company is maintained as "Buy" [5] Core Views - The company is experiencing short-term pressure on performance, with a focus on the recovery of government and business consumption demand [1] - The company is committed to its old liquor strategy while promoting multi-brand, youth-oriented, and international strategies [3] - The stock option incentive plan aims to boost confidence among executives and is linked to ambitious revenue and profit growth targets [3] Financial Performance Summary - In Q1 2025, the company's white liquor revenue was 1.442 billion yuan, down 26.5% year-on-year, attributed to channel inventory digestion [1] - Gross margin and net margin decreased by 4.8 and 4.2 percentage points year-on-year to 69.4% and 21.9%, respectively [1] - The company reported a cash flow from sales of 1.623 billion yuan, a decrease of 15%, while operating net cash flow increased by 107% to 224 million yuan [1] - The company’s revenue forecast for 2025-2027 is projected to grow at rates of 5.7%, 6.2%, and 8.4%, respectively, with net profit growth rates adjusted to 165%, 25%, and 10% [4] Product and Channel Performance - In Q1 2025, the revenue from mid-to-high-end liquor and ordinary liquor was 1.234 billion yuan and 208 million yuan, down 28.46% and 12.59% year-on-year, respectively [1][2] - E-commerce revenue grew by 37% year-on-year, indicating a rapid development in this channel [2] - The company’s revenue from Sichuan province was 494 million yuan, down 8.96%, while revenue from outside the province was 949 million yuan, down 33.25% [2] Strategic Initiatives - The company is enhancing its production system through intelligent upgrades and expanding its capacity while improving the quality of old liquor [3] - The stock option incentive plan involves granting up to 2.0366 million restricted shares to 168 executives at a price of 28.78 yuan per share, with performance targets set for revenue and net profit growth [3]

Core Viewpoint - Yanghe Co., Ltd. reported a revenue of 28.876 billion yuan and a net profit of 6.673 billion yuan for 2024, indicating a strategic transformation aimed at high-quality development amidst structural changes in the liquor industry [1] Group 1: Product Strategy - The company has developed a comprehensive product matrix, combining the "old liquor strategy" with product renewal to achieve a dual drive of "quality + consumption segmentation" [2] - In the high-end market, the "Dream Blue Handcrafted Class" has become the first Chinese high-end vintage liquor to receive authoritative certification, initiating a quality revolution [2] - The upcoming seventh generation of "Sea Blue" aims to redefine standards with a focus on high-quality aged liquor, while also introducing a high-line light bottle liquor to enhance competitive differentiation [2] Group 2: Supply Chain and Management - Yanghe boasts the world's largest liquor cellar group, with an annual production capacity of 160,000 tons and a raw liquor storage capacity of 700,000 tons, establishing a differentiated competitive edge [3] - The company has optimized its marketing organization and focused on brand regionalization, enhancing brand collaboration and market management [3] - Yanghe has categorized markets into four types and is strategically focusing resources on its home market and the Yangtze River Delta region [3] Group 3: Brand Value and Cultural Heritage - As one of the "Old Eight Famous Liquors," Yanghe holds significant brand value, ranking third in the Chinese liquor industry with a brand value of 90.979 billion yuan [4] - The company has launched the "Soft Year Vintage Liquor Strategy," redefining the value of Chinese high-end liquor through genuine quality [4] - Yanghe's commitment to cultural depth and product quality has solidified its competitive position in the high-end market [4] Group 4: Investor Relations and Governance - Yanghe is focusing on long-termism and has made adjustments to its governance structure, including the establishment of new independent director work systems [7] - The company actively engages with investors through annual reports and shareholder meetings to enhance understanding of its value [7] - Yanghe has implemented a cash dividend plan, distributing 7.02 billion yuan in dividends for 2023, which is 70.09% of its net profit [8] Group 5: Resilience and Future Outlook - Amidst deep differentiation in the liquor industry, Yanghe is leveraging its old liquor strategy to build a quality foundation and create a strategic depth across all price ranges [8] - The company is exploring pathways for traditional industries to transition towards high-quality development, emphasizing a balance between traditional craftsmanship and new consumer trends [8]

Core Viewpoint - Shede Liquor's Q1 2025 report shows significant revenue and profit growth, indicating a successful strategy amidst industry adjustments [1][2] Financial Performance - Q1 2025 revenue reached 1.576 billion, a 75.68% increase quarter-on-quarter; net profit was 346 million, surpassing the total net profit of 345.8 million for the entire year of 2024 [1] - Gross margin improved to 69.36%, and net cash flow from operating activities increased by 106.76% to 224.2 million [2] - Operating costs and management expenses decreased by 11.25% and 25.24% respectively, enhancing profit margins [2] Market Strategy - The company implemented a "stable price, control inventory, strong sales" strategy, leading to a 41 million increase in contract liabilities, reflecting restored channel confidence [2] - E-commerce sales grew to 205 million, a 36.71% year-on-year increase, indicating successful channel optimization [2] Product Development - Focus on core products led to Q1 revenue of 1.234 billion from mid-to-high-end liquor and 208 million from ordinary liquor, accounting for 85.58% and 14.42% of total revenue respectively [3] - The company aims to strengthen its position in the 400 yuan price range and expand into rural markets [3] Long-term Growth and Innovation - R&D expenses surged from 8.39 million to 95.33 million from 2019 to 2024, with a compound annual growth rate of 62.59% [5] - The company holds 45 invention patents and has developed over 144 new products, enhancing its technological capabilities [5] - Brand value for "Shede" reached 100.655 billion and "Tuopai" 72.196 billion, totaling 172.851 billion, a 51.48% increase since 2020 [6] Industry Outlook - The industry is viewed as undergoing a short-term adjustment, with companies demonstrating resilience and strategic focus expected to thrive [2][4]

Core Viewpoint - The company reported a significant decline in revenue and net profit for Q1 2025, indicating challenges in the market while focusing on brand optimization and market expansion strategies [1][2]. Financial Performance - In Q1 2025, the company achieved total revenue of 1.576 billion yuan, a year-on-year decrease of 25.14% - The net profit attributable to shareholders was 346 million yuan, down 37.1% year-on-year - The revenue from mid-to-high-end liquor and ordinary liquor was 1.234 billion yuan and 208 million yuan, respectively, with year-on-year changes of -28.46% and -12.59% [1]. Product and Market Strategy - The company is optimizing its product structure, aiming to establish the Tuo Pai brand as the leading brand in the high-end light bottle segment of strong aroma liquor - The revenue from ordinary liquor increased its proportion to 14.42%, up by 2.33 percentage points [1]. - The company is focusing on consolidating its position in the 400 yuan price range while accelerating its market expansion in rural areas [1]. Sales Channels and Market Development - In Q1 2025, wholesale and e-commerce sales generated revenues of 1.237 billion yuan and 205 million yuan, with year-on-year changes of -31.77% and +36.71%, respectively - The company is enhancing its internet marketing channels and aims to make its brand a favorite among consumers in the online space [2]. - The total number of distributors was 2,621, with 215 new and 257 exiting distributors, resulting in a net decrease of 42 distributors compared to the end of 2024 [2]. Profitability Metrics - The gross margin and net margin for Q1 2025 were 69.36% and 21.96%, reflecting year-on-year declines of 4.79 and 4.18 percentage points, respectively - The operating expense ratio was 28.63%, an increase of 3.16 percentage points year-on-year, driven by higher sales and marketing investments [3]. Strategic Initiatives - The company is committed to a long-term strategy focusing on the old liquor market, multi-brand development, youth engagement, and international expansion - It aims to strengthen its brand matrix through a dual-brand strategy of "Shede + Tuo Pai" and enhance its presence in key cities and new regions [3]. - The company has introduced an equity incentive plan to boost team cohesion and performance, signaling management's confidence in future growth [3]. Revenue Forecast - The company expects to achieve revenues of 6.430 billion yuan, 7.285 billion yuan, and 8.310 billion yuan for the years 2025 to 2027, with year-on-year growth rates of 20.04%, 13.28%, and 14.08%, respectively - The projected net profit attributable to shareholders for the same period is 916 million yuan, 1.148 billion yuan, and 1.421 billion yuan, with growth rates of 165.04%, 25.28%, and 23.72% [4].

Core Viewpoint - Shede Liquor's Q1 2025 report shows significant improvement in key performance indicators, attributed to rational deceleration and effective inventory reduction strategies implemented last year [1][2]. Financial Performance - In Q1 2025, Shede Liquor achieved revenue of 1.576 billion yuan and net profit of 346.1 million yuan, surpassing the entire net profit of 345.8 million yuan for 2024 [2]. - The company's net cash flow from operating activities increased by 106.76% year-on-year, indicating a notable improvement in financial health [2]. - Operating costs decreased by 11.25% year-on-year, while management expenses fell by 25.24%, reflecting enhanced operational efficiency [2]. Inventory and Sales Strategy - The company successfully executed a strategy of "stabilizing prices, controlling inventory, and enhancing sales," leading to a return of inventory levels to a reasonable range [2]. - E-commerce channel sales grew to 205 million yuan, a year-on-year increase of 36.71%, demonstrating the effectiveness of dual-channel optimization [2]. Brand and Marketing Initiatives - Shede Liquor is focusing on enhancing brand influence through various marketing strategies, including participation in cultural events and sponsorship of programs to increase brand exposure [3]. - The company reported that offline activities during the 2025 Spring Festival reached 850,000 people, with over 800 million online exposures, effectively driving brand sales growth [3]. Strategic Development - The company is advancing its liquor-tourism integration projects, which were initiated in March 2025, aiming to create a culturally rich and internationally recognized liquor town [4]. - This strategic layout is expected to enhance brand strength, modernize the regional liquor industry, and promote collaborative development of industry, culture, and urban areas [4]. Long-term Outlook - The "old liquor strategy" remains robust, with high certainty of performance improvement in 2025 due to ongoing inventory reduction and strategic initiatives [5]. - The dual-driven model of "upgrading consumer experience and innovative scene marketing" is anticipated to enhance product structure towards higher-end and value-oriented offerings [5].

Core Viewpoint - Shéde Jiǔyè demonstrates resilience and strategic adaptability in a challenging industry environment, focusing on long-term growth through its "old liquor strategy" and proactive measures to enhance quality and market presence [1][3][6]. Group 1: Financial Performance - In 2024, Shéde Jiǔyè reported revenue of 5.357 billion yuan and a net profit of 346 million yuan, reflecting the impact of the overall industry environment [1]. - Total assets reached 11.802 billion yuan, an increase of 5.348 billion yuan since 2020, while net assets grew to 6.808 billion yuan, nearly doubling in the same period [3][6]. - The company plans to distribute a cash dividend of 4.30 yuan per 10 shares, totaling 142 million yuan, which represents 40.94% of the net profit attributable to shareholders [7]. Group 2: Strategic Initiatives - Shéde Jiǔyè is focusing on its "old liquor strategy," which emphasizes quality improvement, brand enhancement, and market expansion to navigate through industry cycles [1][6]. - The company has implemented a "control volume, support price, clear inventory" policy to stabilize channel confidence and profitability [5]. - New product launches, including the Shéde Wisdom series and various other brands, aim to enhance the product matrix and adapt to market trends [4][5]. Group 3: Market and Policy Environment - Recent government policies aimed at boosting domestic demand and supporting the private sector are expected to positively influence the white liquor market [2]. - The company is leveraging these policy changes to stimulate both consumer and business demand for white liquor [2]. Group 4: Operational Improvements - Management expenses decreased by 15.37% year-on-year, indicating improved operational efficiency [3]. - The company has made significant investments in production capacity and sustainability initiatives, including the establishment of a green industrial chain [7].