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].