Summary of Shede Liquor Industry Conference Call Company Overview - **Company**: Shede Liquor Industry - **Industry**: Baijiu (Chinese liquor) Key Points and Arguments Sales Performance and Market Recovery - During the double festival period, four major products achieved year-on-year growth, indicating a gradual recovery in Baijiu consumption scenarios [2][3] - The demand for banquet scenarios is recovering the fastest, with the mass consumption segment maintaining double-digit growth, particularly for the T68 product [2][5] - Post-festival, the company continues to track weekly opening bottle numbers, which are still in a recovery phase [3] Inventory Management - The company has optimized distributor inventory to 3-4 months, ensuring a healthy and sustainable growth trajectory [2][6] - The goal is to further reduce inventory to 3 months or less by year-end, which is considered a reasonable level [7][8] Pricing and Sales Strategy - Strict price control and incentive adjustments are in place to ensure alignment between actual sales and financial reports [6][16] - The company has shifted its incentive system to target achievement based on historical sales data, resulting in over 75% of sales personnel receiving bonuses [6] Product Performance - T68 is positioned as a mid-to-high-end product and has shown steady growth in the mass consumption segment, contributing to the company's revenue [12][13] - The new 29-degree product "Zizai" is aimed at young consumers and will not enter traditional channels, focusing instead on self-operated stores and new sales strategies [14][26] E-commerce and Online Sales - E-commerce channels have seen rapid growth, with their share increasing to over 10% in 2025, and the company plans to increase online investments while maintaining stable offline development [15][18] - The main focus online is on cultural products, which do not compete with traditional distributors [18] Regional Performance - The "Pinwei Shede" brand has performed exceptionally well in Shandong, particularly in cities like Liaocheng, Tianjin, and Tangshan [10][11] - The company has seen significant growth in the Shandong market post-ban on alcohol [5][21] Future Outlook - The company expects to perform slightly better than the industry average if the overall market remains healthy [9] - Plans for 2026 include continued focus on brand elevation and channel penetration to secure a larger customer base [9][13] International Expansion - The company is actively pursuing international markets, particularly in Southeast Asia and the U.S., adapting products to local cultures and preferences [22][23] - Overseas sales have increased by over 50% in the first half of the year, although significant results will take time [23] New Product Development - The introduction of the 29-degree "Zizai" product aims to cater to new drinkers and women, while also appealing to older consumers who prefer lower alcohol content [24][26] - The company plans to launch affordable products around 100 yuan to meet diverse consumer needs [25][26] Conclusion - Shede Liquor Industry is strategically positioned for growth through effective inventory management, targeted marketing, and expansion into new consumer segments and international markets. The focus on product innovation and e-commerce development will further enhance its competitive edge in the Baijiu industry.