Core Viewpoint - The financial performance of Shunxin Agriculture in the first half of 2025 shows significant declines in both revenue and net profit, primarily driven by challenges in the white liquor business and a sluggish pork segment [1][3]. Financial Performance - In the first half of 2025, Shunxin Agriculture reported revenue of 4.59 billion yuan, a year-on-year decrease of 19% [1]. - The net profit attributable to shareholders was 170 million yuan, down 59% year-on-year [1]. - For Q2 2025, revenue was 1.334 billion yuan, a decline of 18% compared to the same period last year, with a net loss of 109 million yuan, representing a threefold increase in losses year-on-year [1]. White Liquor Business - The white liquor segment, which includes brands like Niulanshan and Ningcheng Laojiao, generated revenue of 3.6 billion yuan in the first half of 2025, down 23% year-on-year [3]. - Sales of the 42-degree "Bai Niu Er" product fell by 33%, with production dropping nearly 60% and inventory surging by 652% [3]. - Compared to five years ago, the revenue from the white liquor business has shrunk by 40% [3]. Pork Business - The pork business also faced challenges, with revenue of 889 million yuan in the first half of 2025, only 60% of the revenue from the same period five years ago [3]. Shareholder Actions - Major funds have reduced their holdings in Shunxin Agriculture, with notable reductions including a decrease of over 26.66 million shares by the E Fund Consumer Industry Fund, representing more than an 80% reduction from the previous year [4]. - Northbound capital also continued to reduce its stake, with the Hong Kong Central Clearing and Settlement System cutting 870,000 shares, a 30% decrease [6]. Market Performance - Despite a general rise in the A-share market, Shunxin Agriculture's stock price has declined by approximately 14% year-to-date, making it one of the worst performers in the white liquor sector [6].

Group 1: New Standards in Baijiu Industry - The new national standard for sauce-flavored baijiu (GB/T 10781.4-2024) officially took effect on June 1, 2025, marking the first update since its initial release in 2011, involving 11 technical changes [1] - The standard aims to regulate industry standards, enhance product quality, and optimize market structure, significantly promoting the healthy and sustainable development of the baijiu industry [1] - Large enterprises are expected to adapt quickly to the new standards due to their financial, technical, and brand advantages, while small and medium-sized enterprises may face significant challenges [1] Group 2: Governance Concerns in Jin Hui Jiu - At a performance briefing on May 29, concerns were raised regarding potential related-party transactions involving Jin Hui Jiu's investment in a technology upgrade project, which was won by a company controlled by the chairman's nephew [2] - The chairman responded by emphasizing that the company adhered to principles of openness, fairness, and justice throughout the bidding process, ensuring compliance with relevant regulations [2] - This situation may lead to increased market scrutiny of the company's governance, potentially affecting investor sentiment in the short term, but long-term impacts may be limited if the company can demonstrate fairness [2] Group 3: Sales Growth in Baijiu Market - During the "618" shopping festival, Meituan's flash purchase platform reported that the overall sales of alcoholic beverages increased by over 18 times year-on-year, with baijiu sales soaring by over 70 times [3] - The growth in sales of other alcoholic beverages favored by younger consumers, such as foreign wines and cocktails, exceeded 100% year-on-year [3] - Meituan's flash purchase platform significantly expands the sales boundaries for baijiu, providing new sales channels and enhancing local market penetration [3]

Core Viewpoint - The new national standard GB/T10781.3-2025 for rice-flavored liquor will replace the previous standard from 2006, marking a significant update to the industry standards and aiming to enhance product quality and market competitiveness [1][2]. Group 1: New National Standard Details - The new standard will be implemented on May 1, 2026, and reflects changes in the production environment and methods of rice-flavored liquor over the past 20 years [1]. - The definition of rice-flavored liquor has been clarified, specifying that it must be made primarily from rice and not contain added alcohol or non-fermentation-derived substances [1]. - The new standard eliminates the classification by alcohol content, instead establishing a unified range of 25.0% vol to 68.0% vol [1]. Group 2: Quality Control and Sensory Requirements - The new standard introduces enhanced production process controls, covering various stages such as raw materials, fermentation agents, and distillation, to improve the overall quality of rice-flavored liquor [1]. - Changes have been made to sensory requirements and physicochemical indicators, with different standards for products within one year of production and those older than one year [2]. - Specific sensory descriptors have been developed to make the product characteristics more understandable to consumers, including terms like rice aroma, honey aroma, and floral aroma [2]. Group 3: Industry Impact - The release and implementation of the new standard signify a new phase of standardized development in the industry, promoting innovation in production processes [2]. - The new standard is expected to enhance product quality, market recognition, and competitive advantages within the rice-flavored liquor category [2].