Core Viewpoint - The Chinese liquor industry experienced a slight recovery in investment sentiment despite a generally weak sales performance during the Dragon Boat Festival, with the WIND liquor index rising by 0.49% after three weeks of decline [1][2]. Group 1: Industry Performance - The WIND liquor index saw a minor increase of 0.49%, with notable weekly gains from Jinhuijiu (6.25%) and Yanghe Co. (2.16%), while only a few companies like Shui Jing Fang and Shede Liquor experienced declines exceeding 2% [2][3]. - The national liquor price index for May was reported at 99.73, indicating a month-on-month decrease of 0.27%, with famous liquor brands seeing a decline of 0.35% [3]. Group 2: Company-Specific Developments - Kuaijishan, which had previously surged in stock price due to the popularity of "sparkling yellow wine," saw a significant drop of 12% this week as interest waned post-Dragon Boat Festival [1][5]. - Kuaijishan's aggressive marketing strategy, including celebrity endorsements and live-streaming sales, initially led to impressive sales figures, but the subsequent decline in viewer engagement and sales performance raises concerns about the effectiveness of this approach [8][11]. - The company's sales expenses surged to 332 million yuan in 2024, a 60.25% increase from 207 million yuan in 2023, with advertising costs doubling, yet the contribution from new products remains uncertain [11].