Core Viewpoint - The article highlights the challenges faced by Moutai, particularly its declining pricing power and the impact of its distribution system on sales and profitability [3][10]. Group 1: Distribution System and Pricing Control - Moutai's extensive distributor network has significantly contributed to the sales of its series of products, but it has also become a major factor in the current oversupply of its flagship product, Flying Moutai [3][4]. - The company's ability to control prices through its distribution channels has weakened, leading to a situation where the suggested retail price of Flying Moutai (1499 yuan) is often disregarded in the market [5][10]. - The distributor system, while initially beneficial, has revealed issues such as corruption and a lack of control over end prices, which has resulted in distributors hoarding stock during peak seasons to maximize profits [5][6]. Group 2: Financial Performance and Market Conditions - Moutai's series of products have seen a significant increase in gross margin, rising from below 50% in 2016 to over 70% in 2024, indicating strong demand driven by the brand's prestige [8]. - The current market environment is characterized by a severe destocking cycle affecting both series products and Flying Moutai, with a shift from social destocking to channel destocking [11][12]. - Key indicators for Moutai's market conditions include accounts receivable and M1 growth rates, with M1 growth serving as a leading indicator for price changes in Flying Moutai [14][17]. Group 3: Future Outlook - The turning point for Moutai's market conditions is anticipated around mid-2026, contingent on improvements in external economic indicators and the company's ability to manage its distributor relationships effectively [12][17]. - The current situation reflects a struggle between distributors eager to convert inventory into cash and the company's concerns about maintaining price stability, suggesting that simply halting low-price promotions may not suffice to control the situation [10][17].