Core Viewpoint - The "Shede·Oriental Mediterranean" project, a joint investment of 10 billion yuan, aims to integrate liquor and tourism, enhancing the cultural and experiential aspects of the liquor industry while addressing the challenges faced by traditional liquor brands [1][3]. Investment and Project Overview - The project is a collaboration between Shede Liquor, the government of Shehong City, and ClubMed, with a total investment of 10 billion yuan, and is expected to be completed by 2029 [1][2]. - The project includes five thematic areas: "Ecological Shede," "Years of Shede," "Celebration of Shede," "Free Shede," and "Homecoming Shede," each offering different experiential scenarios [2]. Industry Context and Challenges - The liquor and tourism integration is becoming a significant transformation strategy for the liquor industry, with many companies exploring this model [4]. - Despite the growing interest, the liquor tourism sector in China is still in the exploratory phase compared to established wine tourism in regions like Bordeaux and Napa Valley [4]. Operational and Cultural Integration - The core of liquor-tourism integration is not merely adding a tourism component but enhancing the liquor industry through cultural and experiential offerings [3][5]. - The project aims to provide new branding channels and enhance consumer engagement through cultural and emotional experiences [3]. Location and Accessibility - The geographical advantage of Shehong City, located between Chengdu and Chongqing, is crucial for attracting a broader tourist base, with travel times expected to be reduced to one hour due to high-speed rail developments [6]. Professional Management and Sustainability - The integration of professional management resources, such as those from Fosun Tourism, is essential for overcoming operational challenges in the liquor-tourism sector [6]. - The project must establish a sustainable business model, as the tourism industry typically has long investment cycles and relies heavily on real estate [6]. Cultural Depth and Future Outlook - The depth of cultural exploration will determine the success of the liquor-tourism integration, with Shede's unique cultural philosophy being a key asset [7]. - The industry consensus is shifting towards the necessity of liquor-tourism integration, emphasizing the need for companies to assess their capabilities in this area [7].

Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, indicating challenges in the high-end liquor market and overall industry adjustments [1][2][3]. Financial Performance - In H1 2025, the company achieved revenue of 2.531 billion yuan, a year-on-year decrease of 20.07%, and a net profit attributable to shareholders of 715 million yuan, down 24.63% [1]. - For Q2 2025, revenue was 721 million yuan, reflecting a substantial year-on-year decline of 48.48%, with net profit dropping to 105 million yuan, a decrease of 70.91% [1]. Product Performance - Revenue from high-end, mid-range, and low-end liquor in H1 2025 was 2.385 billion yuan, 32 million yuan, and 68 million yuan, respectively, with year-on-year changes of -19.8%, -10.8%, and -2.6% [2]. - In Q2 2025, revenue from high-end, mid-range, and low-end liquor was 657 million yuan, 12 million yuan, and 29 million yuan, with year-on-year changes of -49.6%, -7.7%, and +7.5%, respectively [2]. Regional and Channel Analysis - H1 2025 revenue from domestic and external markets was 2.101 billion yuan and 384 million yuan, with year-on-year changes of -19.3% and -19.2% [2]. - In Q2 2025, domestic and external revenue was 515 million yuan and 183 million yuan, with year-on-year changes of -54.0% and -18.6% [2]. - Direct sales (including group purchases) and wholesale agency revenue in H1 2025 were 133 million yuan and 2.352 billion yuan, with year-on-year changes of +44.6% and -21.3% [2]. Profitability and Cost Structure - The gross margin for Q2 2025 was 65.18%, a decrease of 9.86 percentage points year-on-year, primarily due to reduced revenue from high-end liquor and an increase in low-margin products [3]. - The net profit margin for Q2 2025 was 14.51%, down 11.18 percentage points year-on-year [3]. Strategic Focus - The company aims to maintain strategic focus during the industry adjustment period by enhancing market presence, structural improvements, and brand upgrades, while also investing in smart and digital transformation [3]. - Efforts include deepening the domestic market, expanding in key regions like the Yangtze River Delta, and actively developing e-commerce and digital marketing [3]. Investment Outlook - Revenue growth rates are projected to be -21.0% for 2025, +4.3% for 2026, and +7.0% for 2027, with net profit growth rates of -28.6%, +7.2%, and +7.3% respectively [4].

Core Viewpoint - The "Shede·Oriental Mediterranean" project, a 10 billion yuan investment by Shede Liquor Industry, aims to integrate liquor and tourism, addressing the cyclical fluctuations faced by traditional liquor brands [1][4][6]. Investment and Project Overview - The project is a collaboration between Shede Liquor, the government of Shehong City, and Club Med, with a total investment of 10 billion yuan, and is set to be completed by 2029 [1][4]. - The project includes various experiential segments such as "Ecological Shede," "Years of Shede," "Celebration of Shede," "Free Shede," and "Homecoming Shede," each offering unique experiences [6][8]. Industry Context - The liquor and tourism integration is becoming a significant transformation method for the liquor industry, with many companies exploring this model to enhance their value chain [8][11]. - Compared to mature wine tourism in regions like Bordeaux and Napa Valley, the Chinese liquor industry's integration is still in the exploratory phase [8][11]. Challenges and Strategic Insights - Key challenges include location limitations, operational capabilities, and investment return cycles, with many liquor companies lacking the necessary tourism operation skills [12][11]. - Shede's project benefits from its advantageous location between Chengdu and Chongqing, making it accessible for mass tourism [12]. - The integration of cultural elements into the tourism experience is crucial for the project's success, leveraging Shede's unique cultural brand identity [13][14].

Core Viewpoint - The Chinese liquor industry is undergoing a profound transformation from "scale expansion" to "value cultivation," integrating cultural and product values to create a new industry ecosystem [1] Group 1: Cultural Significance - The liquor industry is entering a new development stage where enhancing cultural quality becomes a key competitive factor [3] - Experts believe that cultural empowerment is a new pathway for liquor brands to continue progressing amid transformation and redefined perceptions [5] Group 2: Market Adjustments - The liquor market is experiencing deep adjustments in capacity, sales, prices, and demand, influenced by both internal and external factors, with Chinese liquor culture being a core element [5] - The industry is urged to focus on cultural self-reflection, self-awareness, renewal, and confidence to build a unique value system and lifestyle [5][13] Group 3: Moutai's Strategic Initiatives - Moutai is actively guiding the market to shift focus from short-term price fluctuations to deepening brand heritage, product quality, consumer experience, and cultural value [8] - Moutai's strategy includes three transformations: customer group transformation, scene transformation, and service transformation, along with a focus on single product, collaborative channels, value branding, and service at the terminal [8][9] Group 4: Consumer Engagement - Moutai aims to transform from "selling liquor" to "selling a lifestyle," creating immersive consumption scenarios that meet diverse consumer needs [9] - The company is building a three-dimensional value matrix of experiential, emotional, and social value to deepen emotional connections with consumers [9][10] Group 5: International Expansion - Moutai is accelerating its internationalization efforts, collaborating with global events and increasing overseas market revenue by 31.29% to 2.893 billion yuan [14] - The company is committed to promoting Chinese liquor culture globally, enhancing brand value through cultural output and unique immersive experiences [14]

Group 1 - The 2025 China Xinghua Village International Wine Expo will be held from September 29 to October 1, with a theme of "Pointing to the Beautiful Luliang" [1] - The expo is organized by the China Alcoholic Drinks Association and aims to promote industry upgrades and regional economic development [1][2] - The exhibition area will cover 30,000 square meters with eight major exhibition zones, attracting nearly 500 domestic and international enterprises [1] Group 2 - Luliang is recognized as the birthplace and core production area of Qingxiang-style liquor, contributing 7.4% of the national liquor production in 2024 [2] - The expo serves as an important opportunity for the integration of liquor and tourism, promoting multi-dimensional development [2] - The event will feature high-end industry conferences and themed activities, including the 2025 China Liquor Industry Development Conference [1]

Group 1: Unique Resources and Tourism Development - The city of Zunyi, particularly the area around the Chishui River, is recognized for its unique natural resources and cultural heritage, making it a significant tourist destination [1][3] - The Chishui Danxia, covering an area of 1,300 square kilometers, was listed as a UNESCO World Heritage Site in August 2010, highlighting its geological significance [2] - The Chishui Danxia tourism area includes major attractions such as Chishui Waterfall, Foguang Rock, and Yanzi Rock, which are essential to its appeal as a 5A-level tourist site [2][3] Group 2: Integration of Alcohol Culture and Tourism - The local liquor industry, particularly the production of sauce-flavored liquor, has historical roots dating back to the Han Dynasty, with a significant presence in the Chishui River area [3][4] - The tourism sector is evolving to integrate liquor culture, with experiences such as DIY liquor blending and themed events like the "Liquor Language Bamboo Forest Seven Sages" and liquor festivals [3][4] - The launch of high-end liquor experience tours has attracted over 80,000 visitors, indicating a growing interest in the region's liquor tourism [4] Group 3: Historical Significance and Modern Developments - The ancient town of Fuxing has a rich history as a political, economic, and cultural center, with liquor brewing traditions dating back to the Ming and Qing Dynasties [6] - Guizhou Guifu Liquor Co., established in 1898, is one of the oldest liquor producers in the region, now integrating tourism with its production processes [6][7] - The company has developed a 3A-level scenic area that allows visitors to engage with local liquor culture through various interactive experiences [7] Group 4: Culinary Offerings and Cultural Significance - Chishui is known as "China's Bamboo Capital," with over 1.32 million acres of bamboo forests, which contributes to its unique culinary offerings [8] - The "Panda Feast," a bamboo-based dining experience, has been recognized as a representative of Guizhou's culinary culture and has undergone significant upgrades to enhance its appeal [9][10] - The local cuisine reflects the region's natural bounty and cultural heritage, contributing to the overall tourism experience [10]

Core Viewpoint - The 2025 Hongshibao District Fourth Wine Merchant Distribution Conference was held in Ningxia Wuzhong City, focusing on the integration of wine culture and tourism, showcasing the growth and potential of the local wine industry [1] Industry Summary - Hongshibao District is recognized as a prime area for grape production, having developed 6 leading wineries and 8 classified wineries, with a total industry output value exceeding 700 million yuan [1] - The conference featured a dual approach of "industry docking + cultural experience," promoting the innovative integration of "wine + tourism + distribution" [1] - During the event, 10 wineries from Hongshibao District signed sales agreements with 20 national distributors, amounting to 79.2 million yuan [1] Company Summary - The district has been leveraging technology to empower the wine industry, collaborating with universities and research institutions to overcome challenges in planting and brewing techniques [1] - Wine estates have been included in the self-driving tour routes of the Helan Mountain East, promoting the development of 3A-level winery scenic spots, thus expanding the "wine tourism integration" market for distributors [1] - Future plans for Hongshibao District include enhancing services and strengthening branding to further elevate its status as "China's First Wine Town" [1]

Core Insights - The 2025 Hongshibao Wine Distribution Conference concluded on August 29, resulting in sales agreements worth 79.2 million yuan signed between 10 wineries in Hongshibao District and 20 national distributors [1] - The event aimed to foster industry cooperation and mark a new decade for Hongshibao's wine development, themed "Raise a Glass to Helan Mountain, A New Journey in Ten Years" [1] Industry Overview - Hongshibao District, known as "China's First Wine Town," is located in the prime grape-growing region of the Helan Mountain East Slope, featuring over 10,000 acres of vineyards and housing 6 leading wineries and 8 classified wineries, with a total industry output value exceeding 700 million yuan [2] - The district has been leveraging technology to enhance the wine industry, collaborating with universities to tackle cultivation and brewing challenges, and integrating wineries into self-driving tour routes to promote wine tourism [2] Event Highlights - The conference combined "industry matching + cultural experience," allowing distributors to engage in precise production and sales meetings while enjoying wine tasting and experiencing the winemaking process [2] - The event also capitalized on the Qixi Festival, positioning Hongshibao wine as a romantic choice for consumers, thereby enhancing brand influence in the market [2]

Group 1 - A new company, Sichuan Tuopai Shede Tourism Resort Management Co., Ltd., has been established with a registered capital of 20 million yuan [1] - The legal representative of the new company is Gao Ping, and its business scope includes tourism services, accommodation services, liquor sales, food sales, internet food sales, catering services, and commercial performances [1] - The company is wholly owned by Sichuan Tuopai Shede Cultural Tourism Development Co., Ltd., which is jointly held by Shede Liquor (600702) and Sichuan Tuopai Shede Group Co., Ltd. [1]

Investment Rating - The industry investment rating is "Recommended" (maintained) [5][28]. Core Views - The report highlights that the liquor sector is experiencing a steady performance from leading brands, with a focus on valuation recovery in growth segments. The recent market liquidity has led to an increase in valuations, with the food and beverage sector rising by 3.29% last week. The report suggests paying attention to the liquor sector, which has seen significant declines, and new consumer stocks with high growth potential [5][28]. - The report indicates that the demand for liquor has been under pressure since the second quarter due to a ban on alcohol, but the marginal impact of policies is expected to gradually narrow. The report emphasizes that the liquor sector is likely to see a valuation recovery ahead of fundamental improvements [5][28]. Summary by Sections Recent Market Trends - The food and beverage index increased by 3.29% last week, ranking eleventh among all sectors. The sub-sectors with the highest gains included other liquors (+8.21%), soft drinks (+5.06%), and liquor (+3.62%). Conversely, meat products saw a decline of 1.01% [13][28]. - Notable individual stock performances included a 25.10% increase for Jiu Gui Jiu and a 13.26% rise for Bai Run Co [13][28]. Liquor Sector Insights - The report notes that liquor production from January to July 2025 totaled 2.146 million kiloliters, a year-on-year decrease of 5.2%. In July alone, production was 236,000 kiloliters, down 8.9% year-on-year [24][28]. - The report recommends focusing on the following liquor stocks: She De Jiu Ye (for rebound potential), regional leaders Shanxi Fen Jiu, Guo Jing Gong Jiu, and high-end brands like Guizhou Moutai and Luzhou Laojiao [5][28]. Consumer Goods Sector Insights - The consumer goods sector, driven by new retail formats and product categories, shows promising growth potential. For instance, Salted Fish Co reported a revenue of 2.941 billion yuan in H1 2025, a year-on-year increase of 19.58% [5][28]. - The report also highlights the performance of Miao Ke Lan Duo, which achieved a revenue of 256.72 million yuan, with a 14.85% growth in its cheese business [5][28]. Key Company Performance - The report provides a detailed earnings forecast for key companies, including: - Guizhou Moutai: Expected EPS of 74.38 yuan in 2025, with a PE ratio of 19.7 [30]. - Salted Fish Co: Expected EPS of 2.93 yuan in 2025, with a PE ratio of 24.5 [30]. - Miao Ke Lan Duo: Expected EPS of 0.42 yuan in 2025, with a PE ratio of 64.7 [30].