Summary of the White Wine Sector Conference Call Industry Overview - The white wine sector showed mixed performance during the recent holiday periods, with banquet consumption remaining relatively strong, while business-related consumption declined significantly, with an expected drop of over 30% [1][4][19]. - The market for gift-giving remained stable, without significant declines [1][4]. Key Insights and Arguments - Certain banquet-style local wines (e.g., Gu 8, Gu 16, Meng 3) and national products (e.g., Honghua Lang 10, 1,618) benefited from the holiday demand, while products like Moutai 1,935 performed well due to their cost-effectiveness [1][6]. - High-end white wine rankings are as follows: Feitian Moutai > Pu Wuliang > Feitian Bian Moutai and Gaoduan Guojiao, which correlates with consumer perceptions of value [7]. - Feitian Moutai's price has dropped to around 1,800 RMB, a decrease of over 20% year-on-year, while Pu Wuliang's price has fallen from 950-1,000 RMB to 850-860 RMB, and even below 800 RMB in some cases [7]. Regional Performance - The Henan region outperformed expectations with a sales increase of approximately 15%, while regions like Hunan, Jiangsu, and Shandong experienced declines of about 20% [9][10]. - Most major white wine provinces saw declines between 20% to 25%, with Anhui and Zhejiang facing declines close to 30% to 40% due to slower recovery in business consumption [10]. Channel Dynamics - Inventory levels among wholesalers did not show significant weakness, with some brands even seeing increases. However, distributor inventories have decreased without a clear trend [11]. - The online channel has increasingly diverted sales from offline channels, with high-risk consumers preferring online purchases, while those seeking authenticity still favor offline buying [12][15]. - Instant retail has emerged as a significant trend, allowing consumers to purchase lower-priced white wine products through platforms like Meituan [13]. Company Strategies - White wine companies have generally refrained from large-scale expenditure and may reduce sales team sizes to control costs while maintaining current price levels [2][16]. - Companies are focusing on internal management and cost control in response to market changes, with most maintaining stable expenditure policies [16]. Market Outlook - Short-term demand for wedding wines is expected to weaken, with price adjustments anticipated due to the late timing of the upcoming Spring Festival [18]. - The overall market is expected to face pressure during the Spring Festival, but the decline will be less severe compared to the previous year [21]. - Investment recommendations include focusing on companies with high potential returns, such as Laojiao, Fenjiu, Gujing, as well as leading brands like Moutai and Wuliangye, which are considered undervalued [21].

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.