Core Viewpoint - The white liquor market is experiencing a slight price decline ahead of the Dragon Boat Festival, with various products showing different degrees of price drops [1][2]. Price Trends - High-end liquor prices have seen notable changes, with Feitian Moutai's average selling price dropping from 2269 CNY/bottle to 2230.4 CNY/bottle, a decrease of 38.8 CNY/bottle [1]. - The price of Feitian Moutai in retail channels decreased from 2300 CNY/bottle to 2250 CNY/bottle, while prices in the billion subsidy channel fell from 2040 CNY/bottle to 1990 CNY/bottle [1]. - Guojiao 1573's latest average selling price is 946.89 CNY/bottle, down by 29.22 CNY/bottle, primarily due to online channel influences [1][2]. Market Dynamics - In the next tier of pricing, the average selling price of Shui Jing Fang Zhen Niang No. 8 decreased from 357.44 CNY/bottle to 345.22 CNY/bottle, influenced by online sales [2]. - Conversely, the average price of Jin Zhi Xi Jiu increased from 205.56 CNY/bottle to 218.63 CNY/bottle, with significant price hikes observed on platforms like JD and Tmall [2]. - Overall, among 13 popular liquor products surveyed, 9 showed a price decline, while 2 increased and 2 remained stable [2]. Seasonal Trends - May is traditionally a slow sales season for the liquor market, yet it serves as a critical marketing period for brands [4]. - Seven liquor brands launched new products in May, including collaborations and new high-end offerings [4][5]. Product Innovations - Moutai 1935 has expanded its product line, introducing a new 1.935L variant aimed at high-end gifting scenarios [5]. - Other brands, such as Luzhou Laojiao and Jiu Gui Jiu, have also released new products, focusing on cultural attributes and mid-to-high-end market segments [5].

Summary of the Conference Call Industry Overview - The overall trend in the liquor industry is declining, with a two-digit percentage drop observed in April 2025. However, Moutai has shown strong performance amidst this downturn, particularly with its Feitian series maintaining reasonable inventory levels. This indicates effective demand release through price adjustments and marketing strategy changes [11][12][59]. Key Points on Moutai - Moutai is balancing revenue and market prices by adjusting product structure and enhancing channel management. The Feitian Moutai remains stable, while the Rooster Moutai has increased supply quotas and relaxed reporting restrictions for distributors [1][3]. - In 2025, Moutai's distribution channels progressed rapidly, completing approximately 50% of the total Feitian volume from January to April, with a contract plan reaching 48%. This is a 10 percentage point increase compared to the previous year [5]. - Moutai's pricing is expected to fluctuate between 2,100 and 2,200 yuan in the second quarter of 2025, with a low probability of dropping below 2,000 yuan [2][13]. - Moutai has successfully attracted new customer groups, particularly for non-business consumption, which has helped maintain its market position despite overall industry weakness [7][8]. Competitor Analysis - **Wuliangye**: The batch price remains stable at 915-920 yuan, but slow sales due to insufficient market demand have led to significant inventory pressure. The company has committed to not letting distributors incur losses, but the market's trust has diminished [4][21]. - **Guojiao 1573**: The batch price for high-alcohol liquor is 860 yuan and for low-alcohol liquor is 610 yuan. The low-alcohol segment is performing better in the Shandong market, with a strong sales strategy involving annual volume agreements with distributors [22][23]. Market Dynamics - The overall liquor market's shipment pace has increased in 2025, yet prices remain stable due to controlled shipment volumes and effective communication with distributors [6]. - The demand for liquor during the May Day holiday was not ideal, with Moutai's box price ranging from 2,100 to 2,170 yuan, reflecting weak market demand [14][15]. - Predictions for upcoming holidays like Dragon Boat Festival and Mid-Autumn Festival are cautious, with expectations of low gifting demand due to weak business activities [16]. Inventory and Sales Strategies - Moutai's inventory levels are low, typically less than a month for distributors, indicating tight supply management [31]. - Wuliangye's inventory situation is concerning, with many distributors facing financial losses and a lack of trust in the brand leading to slow sales [21][18]. - Guojiao 1573 has a relatively high inventory level, with low-alcohol products dominating the market [22]. Conclusion - The liquor industry is facing significant challenges, with Moutai managing to navigate these through strategic adjustments and effective channel management. Competitors like Wuliangye and Guojiao 1573 are struggling with inventory and market trust issues, highlighting the competitive pressures within the industry.