Core Viewpoint - Yanghe Co., Ltd. has reported its worst performance since going public, with all major revenue indicators declining, leading to a significant drop in stock price and market confidence [2][3][8] Financial Performance - In 2024, Yanghe's net profit attributable to shareholders decreased by 33.37% to 6.673 billion yuan, marking the largest drop since its IPO and returning to 2017 levels [3] - Revenue for 2024 was 28.876 billion yuan, a significant decline from previous years, resulting in a drop from the third to the fifth position in the industry rankings [3] - The company experienced a comprehensive collapse in revenue across various segments, including mid-to-high-end products, regional sales, and online channels, with declines of 14.79%, 11.43%, and 9.7% respectively [4][5] Market Impact - Following the issuance of the strict "ban on alcohol" policy on May 18, 2025, Yanghe's market capitalization fell below 100 billion yuan, with a total market value loss exceeding 300 billion yuan since its peak in 2021 [3][6] - The stock price has dropped nearly 20% in 2025, reflecting a broader trend of declining stock prices in the liquor sector [5][6] Management Response - At the recent shareholders' meeting, Chairman Zhang Liandong apologized multiple times, attributing the company's issues to management shortcomings and acknowledging outdated brand strategies and rigid marketing models [3][5] - The company plans to focus on developing core products like "Hai Zhi Lan" as part of its strategic initiatives moving forward [5] Regulatory Environment - The new "ban on alcohol" has significantly impacted the liquor industry, particularly affecting high-end brands that relied on government consumption [6][7] - The policy has prompted many liquor companies to pivot towards market-driven strategies rather than relying on government contracts [6][7] Future Outlook - The effectiveness of initiatives to promote "intangible cultural heritage" in enhancing brand value and restoring market confidence remains uncertain for Yanghe [2][8]