Core Viewpoint - The liquor industry is undergoing a deep adjustment cycle, with leading companies facing significant pressure. In this context, Yanghe Co., Ltd. has reported revenue of 14.796 billion yuan and a net profit of 4.344 billion yuan in the first half of the year, demonstrating strategic resilience during the cycle [1] Group 1: Company Performance - Yanghe's revenue in Jiangsu, its home market, reached 7.12 billion yuan, accounting for nearly half of its total revenue [1] - The company has optimized its dealer system, enhancing efficiency and deepening market penetration both domestically and in external markets [1] - The seventh generation of Hai Zhi Lan has been upgraded, continuing its legacy of selling 10 million bottles annually, while the Dream Blue Handcrafted series has established itself in the high-end market with "true vintage" certification [1][6] Group 2: Strategic Focus - Yanghe is implementing a "Four Focus" strategy, concentrating on its leading brands, mid-range and next-high-end price segments, domestic markets, and core business [2] - The seventh generation of Hai Zhi Lan has been launched with an extended base liquor aging of over three years, enhancing its appeal in the consumer market [2] Group 3: Market Positioning - The Yanghe Daqu high-end light bottle series has shown strong competitive differentiation, selling over 10,000 bottles within 48 hours of its pre-sale on JD.com [4] - Tian Zhi Lan has become a benchmark product in the mid-range segment, penetrating key scenarios such as business banquets and wedding gifts [6] Group 4: Consumer Engagement - Yanghe is focusing on consumer insights and long-term value, aligning its products with the emotional values of younger consumers through various activities [7] - The company has launched events like the Tian Zhi Lan Fun Run and the "Super Fan Festival" to engage younger demographics and enhance brand interaction [7] Group 5: Inventory and Supply Chain Management - Yanghe has proactively slowed its operational pace to alleviate pressure on dealers and reduce inventory, resulting in a 33.96% year-on-year decrease in white liquor inventory [8] - The company maintains a robust base liquor reserve of 70,000 cellars and 700,000 tons of original liquor, supporting its product quality claims [8]

Core Viewpoint - Yanghe Co., Ltd. reported a decline in both revenue and net profit for the first half of 2025, reflecting ongoing pressure in the liquor industry and intensified competition [1] Group 1: Financial Performance - The company achieved revenue of 14.796 billion yuan and a net profit of 4.344 billion yuan in the first half of 2025, both showing a year-on-year decline [1] - The liquor industry is experiencing a sustained downturn, with increasing competition and a trend towards industry consolidation and differentiation [1] Group 2: Strategic Focus - Yanghe Co. aims for long-term and rational development, focusing on core products and key markets while enhancing quality and brand reputation [2][3] - The company is implementing strategies to stabilize prices and reduce inventory for its main products, such as Meng Liu+ and Hai Zhi Lan, while launching the seventh generation of Hai Zhi Lan in Jiangsu [2] Group 3: Product and Consumer Engagement - Yanghe Co. is enhancing product quality by upgrading its offerings like Hai Zhi Lan and applying advanced brewing techniques, evidenced by its success in the national sommelier competition [3] - The company is actively engaging with consumers through various events and campaigns to strengthen brand loyalty and enhance interaction with younger demographics [3][4] Group 4: Brand and Channel Development - Despite facing cyclical adjustments, Yanghe Co. believes in the long-term value of the liquor industry and is committed to brand and channel development [4] - The company plans to deepen its brand culture and optimize advertising strategies, utilizing AI to enhance effectiveness [4][5] Group 5: Market Strategy - Yanghe Co. is focusing on the Jiangsu market, which is highly competitive, while also planning to expand strategically in other regions like the Yangtze River Delta [5] - The company aims to enhance its market share through targeted consumer engagement and digital tools, while also improving its distribution network [5]