Core Viewpoint - The overall market experienced a decline on December 11, with the Shanghai Composite Index dropping by 0.70% to 3873.32 points, indicating a bearish sentiment in the market [1] Industry Summary - The liquor sector closed at 2181.08 points, down 2.12%, with 17 liquor stocks experiencing declines [1] - Notable individual stock performances include: - Kweichow Moutai closed at 1411.99 CNY per share, up 0.66% - Wuliangye closed at 111.90 CNY per share, up 0.25% - Shanxi Fenjiu closed at 179.13 CNY per share, down 0.38% - Luzhou Laojiao closed at 121.40 CNY per share, down 0.99% - Yanghe Brewery closed at 62.43 CNY per share, down 0.87% [1] - Pacific Securities noted that the current adjustment in the liquor sector has been significant, with pessimistic expectations reflected in stock prices, leading to valuations entering historically low ranges [1]

Group 1 - The adjustment in the liquor sector began due to the revision of regulations promoting frugality and opposing waste, leading to strong concerns about the long-term demand for liquor [1] - High-end liquor's share in government affairs has decreased significantly, with business demand being a crucial driver correlated with the national economy's activity level [1] - The liquor industry is rapidly bottoming out, with leading companies adjusting channel structures and enhancing market development capabilities, which may lead to more growth opportunities if consumption gradually improves [1][2] Group 2 - The white liquor industry is considered a strong beta sector, with expectations of weak economic and consumption performance affecting sales, particularly after the Spring Festival [2] - Policy changes are accelerating the industry's clearing process, with performance bottoms expected to be reached by mid-2026, and stock prices may show trends before demand recovers [2] - The expected revenue for Zhenjiu Lidu for the six months ending June 30, 2025, is projected to be between RMB 2.4 billion and RMB 2.55 billion, representing a year-on-year decline of 38.3% to 41.9% [3]