Core Viewpoint - The company reported a nearly 30% year-on-year decline in revenue for Q2, aligning with market conditions, and anticipates similar performance trends for Q3 and Q4, albeit with a slight narrowing of the decline [1][2] Financial Performance - In the first half of the year, the company achieved revenue of 6.95 billion yuan, a year-on-year decrease of 4.8%, and a net profit of 2.23 billion yuan, down 9.5% [2] - Q2 revenue fell by 29.7% year-on-year, with net profit declining by 37.1% [2] Market Strategy - The company is shifting its focus from revenue growth to maintaining market share, indicating a strategic pivot in response to market conditions [1][3] - The 2025 revenue target is set for a growth of 5%-12%, with net profit growth expected to be slightly lower than revenue growth, aiming for a balance between profit growth and operational quality [1] Industry Context - The white liquor market is entering a new normal, with many companies transitioning from growth to stability, facing both external competition and internal structural upgrades [1][3] - The overall revenue of 17 major white liquor companies declined by 0.4% in the first half of the year, with a more significant drop of nearly 5% in Q2 [4] Regional Focus - The company primarily operates in Jiangsu, where it holds a market share exceeding 17%, ranking second in the province's 60 billion yuan market [3][4] - The company is adopting a regional strategy for expansion, focusing on nearby provinces with strong consumer power and similar cultural backgrounds [5] Product Strategy - The company is exploring product line extensions to capture a broader consumer base, particularly in the 100-300 yuan price range, which is expected to be a key segment in the market [6][7] - The company plans to enhance its product offerings by developing lower-priced products to offset declines in high-end product sales [7][8]

Core Viewpoint - The company is adapting its market strategies in response to changing consumer behavior and competitive pressures, while maintaining its strategic direction and focusing on product quality and market share growth [1][2][4]. Group 1: Market Strategy Adjustments - The company plans to accelerate the launch of its "Danyan" product in response to current market pressures, which may become a key consumer segment [1]. - There will be an increase in promotional efforts to address competition, potentially leading to a slight decrease in actual transaction prices [1]. - The company is committed to investing in high-end products to build consumer trust while adjusting prices to enhance product value [1]. Group 2: Sales Performance and Market Conditions - Since late May, the consumption environment has changed significantly, with high-end product sales declining sharply, particularly for products priced at "Four Open" and above [1]. - Despite a general decline in revenue, the company is still gaining market share, especially in the "Danyan" and lower-tier product lines [1][2]. - The company reports that the inventory rate among distributors is approximately 20%, equating to about 2.5 months of sales, indicating a healthy inventory level [2]. Group 3: Future Outlook and Consumer Trends - The company anticipates that the impact of graduation banquets on sales in August is uncertain, but there is a noted interest in higher-end products among families with better economic conditions [3]. - The industry is expected to see substantial improvement by the second half of 2026, with potential for a recovery in the fourth quarter of 2025 [3]. - The company is exploring the possibility of introducing lower-alcohol products, contingent on achieving a balance between taste and quality [3]. Group 4: Long-term Goals and Dividend Policy - The company's growth targets are seen as operational plans rather than firm commitments, with respect for market conditions influencing future performance [4]. - The "15th Five-Year Plan" goals have not yet been established, pending further assessment of market conditions [4]. - Dividend policies will be determined by shareholder meetings, with management expressing support for a more proactive dividend approach [4].