Core Viewpoint - The performance decline of Yingjia Gongjiu in the first quarter of this year exceeded investor expectations, with revenue and net profit both experiencing significant drops compared to the previous year [1][2]. Financial Performance - In Q1, Yingjia Gongjiu reported revenue of 2.047 billion yuan, a year-on-year decrease of 12.4%, and a net profit of 829 million yuan, down 9.5% [1]. - The company's financial targets for 2024 are set at 7.6 billion yuan in revenue and 2.62 billion yuan in net profit, representing a modest growth of 3.49% and 1% respectively compared to the previous year [1]. Market Conditions - The decline in performance is attributed to several factors, including a slowdown in economic growth, weak consumer demand, and the company's strategy to control volume and stabilize prices [1][2]. - The mid-to-high-end product segment, particularly the Dongcang series, saw an 8.57% revenue decline in Q1, raising concerns about potential growth limitations [2]. Accounts Receivable - Yingjia Gongjiu's accounts receivable increased significantly, with figures reaching 195 million yuan by the end of 2024 and 123 million yuan by the end of Q1 2025, more than double and over one time the previous year's figures respectively [2]. Stock Performance - The company's stock has underperformed in the market, with a decline of 24.66% year-to-date as of June 3 [2][3]. - The management is focused on improving operational performance to enhance valuation and is committed to better investor communication [2][3]. Dividend Policy - Currently, there are no plans for mid-term dividends or share buybacks, with the company emphasizing the need to balance capital expenditures with dividend payouts [3]. - The management indicated that future dividend rates will be adjusted based on actual operating conditions and development plans [3].