Group 1 - The food and beverage sector is experiencing a downturn, with the Food ETF (515710) showing a decline of 0.64% as of the report time [1][2] - Key stocks in the sector, particularly in the liquor and consumer goods categories, are seeing significant drops, with Meihua Biological down over 3% and several others down more than 1% [1][2] - The report indicates that the overall performance of the food and beverage sector is under pressure due to policy impacts and increased competition, leading to reduced profit margins for companies [1][4] Group 2 - The valuation of the food and beverage sector is at a historical low, with the Food ETF's underlying index PE ratio at 21.22 times, indicating a potential opportunity for left-side positioning [3] - The report highlights that leading liquor companies are showing resilience despite the pressure on their financial statements, suggesting a potential for high-quality development in the coming year [4][5] - The demand side is expected to improve gradually, with policies likely to become less restrictive, which may drive demand recovery in the sector [5]