Core Viewpoint - The company reported a significant decline in revenue and net profit for 2024, indicating potential challenges in its operational performance and market conditions [3][4]. Financial Performance - In 2024, the company achieved a revenue of 9.464 billion, a year-on-year decrease of 6.49%, and a net profit attributable to shareholders of 44 million, down 81.11% [3]. - The fourth quarter of 2024 saw a revenue of 1.633 billion, a decrease of 12.62% year-on-year, with a net profit of -123 million, compared to a profit of 4 million in the same period last year [3]. Profitability Metrics - The overall gross margin for 2024 was 9.00%, reflecting a decline of 1.75 percentage points year-on-year. In Q4 2024, the gross margin dropped to 4.16%, down 5.47 percentage points year-on-year [4]. - The operating expense ratio for 2024 was 7.54%, a decrease of 0.94 percentage points year-on-year. In Q4 2024, the expense ratio was 8.33%, down 1.31 percentage points year-on-year [4]. Strategic Initiatives - The company is enhancing its offline store competitiveness by developing 127 new Huazhi Wine 3.0 stores in 2024, aiming to provide a comprehensive consumer experience [5]. - Online sales channels have been strengthened, with e-commerce revenue reaching 2.092 billion, a year-on-year increase of 72.87% [5]. - The company has restructured its national market into 16 battle zones and established six support centers to enhance marketing strategies [5].

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company experienced a revenue decline of 6.49% year-on-year in 2024, with total revenue reaching 9.464 billion yuan and a significant drop in net profit by 81.11% to 44 million yuan [1] - The company is focusing on enhancing its offline store competitiveness and has developed 127 new stores under the "华致酒行 3.0" model, while also achieving a 72.87% year-on-year growth in e-commerce revenue, totaling 2.092 billion yuan [3] - The report indicates a downward adjustment in profit forecasts for 2025 and 2026, with net profit estimates reduced by 52.9% and 48.2% respectively, while a new estimate for 2027 is introduced at 113 million yuan [4] Summary by Sections Financial Performance - In 2024, the company's comprehensive gross margin decreased by 1.75 percentage points to 9.00%, with a quarterly gross margin of 4.16% in Q4 2024, down 5.47 percentage points year-on-year [2] - The company’s operating income for 2024 was 9.464 billion yuan, with a year-on-year growth rate of -6.49% [5] - The net profit attributable to the parent company for 2024 was 44 million yuan, reflecting a year-on-year decline of 81.11% [5] Cost and Expense Management - The company's expense ratio decreased by 0.94 percentage points to 7.54% in 2024, with specific changes in sales, management, and financial expense ratios [2] - The sales expense ratio for 2024 was 5.38%, down 1.05 percentage points year-on-year [2] Strategic Initiatives - The company is implementing a multi-channel strategy, enhancing its offline store competitiveness and optimizing its organizational structure by dividing the national market into 16 battle zones and establishing six support centers [3] - The report highlights the company's efforts in brand building, product supply, marketing planning, and operational management to attract partners [3]