Core Viewpoint - The rapid rise and fall of Shanghai Gui Jiu exemplifies the pitfalls of capital-driven growth in the liquor industry, highlighting the risks of prioritizing short-term profits over sustainable business practices [2][6][19] Company Summary - Shanghai Gui Jiu, once a rising star in the liquor industry, is facing mandatory delisting due to projected revenues below 300 million yuan and negative net profits for 2025 [2][6] - The company experienced a meteoric rise in revenue from 109 million yuan in 2019 to 1.629 billion yuan in 2023, with a net profit of 85 million yuan in 2023, marking a 133% year-on-year increase [8] - However, the growth was heavily reliant on financial support from related parties, particularly the "Haiyin system," which ultimately led to its downfall when funding was cut off [10][12] Industry Summary - The liquor industry is undergoing a significant adjustment phase, characterized by declining sales and profits, with over 60% of enterprises experiencing reduced profit margins [17][19] - The market is shifting towards a more rational consumer base that values product quality and brand heritage over speculative marketing tactics [17][19] - The collapse of capital-driven companies like Shanghai Gui Jiu is seen as a necessary cleansing process for the industry, allowing quality-focused enterprises to emerge [19]