Investment Rating - The report maintains an "Increase" rating for the food and beverage industry, indicating a positive outlook for the sector [6]. Core Insights - The beverage sector is currently in its peak season, with a focus on differentiated performance among companies. The report highlights three main investment themes in the liquor segment: leading brands, sustained regional benefits, and recovery-driven stocks [1][2]. - The report notes that the overall retail sales in June grew by 4.8% year-on-year, with the liquor category experiencing a slight decline of 0.7% [2]. - The beer segment faced slight pressure in June, with a year-on-year production decrease of 0.2%. However, the report suggests that the beer market remains in a high-demand season, and emphasizes the importance of focusing on high-growth products and companies [3]. Summary by Sections Liquor Industry - The report discusses the recent channel reforms initiated by Moutai, aimed at stabilizing prices and enhancing regional cultural product development. This is seen as a positive move for the industry, which has been under pressure due to weak consumption and pricing challenges [2]. - Leading liquor companies such as Moutai, Wuliangye, and Shanxi Fenjiu are expected to continue gaining market share, while companies like Jiuzi and Luzhou Laojiao are highlighted as potential recovery plays [1][2]. Beer and Beverage Sector - The beer production data indicates a slight decline, attributed to seasonal factors and market conditions. The report encourages investors to focus on companies with strong product lines and growth potential, such as Yanjing Beer and Zhujiang Beer [3]. - KKR's acquisition of an 85% stake in Dayao is noted, with Dayao being recognized for its established market presence and new product launches [3]. Food Sector - The report highlights the ongoing disclosure of mid-year performance forecasts, with companies like Zhou Hei Ya and Hao Xiang Ni showing improvements in profitability due to operational optimizations [4]. - However, companies like Ganyuan and Qiaqia are facing profit pressures, with significant expected declines in net profits for the first half of 2025 [4].

Group 1 - The core idea is that Moutai is establishing joint venture companies with provincial distributors to stabilize the price of its flagship product, Feitian Moutai, which has been subject to significant price inflation [1][6][11] - The joint venture companies will allow provincial distributors to develop regionally customized Moutai products, which could potentially offer higher profit margins compared to standard Feitian Moutai [3][5][11] - This move is seen as a response to the increasing pressure on Moutai to control prices and maintain profit margins, as the market price of Feitian Moutai has surged beyond its suggested retail price [6][9][12] Group 2 - The joint venture model involves a partnership where Moutai provides the brand and distributors offer the sales channels, creating a collaborative business environment [3][5] - Customized products will reflect local cultural elements, such as unique packaging and branding, which may attract consumers and create a new revenue stream for distributors [5][11] - However, there are concerns that distributors may not fully abandon the lucrative practice of inflating Feitian prices, as the demand for the product remains high and it is considered a "hard currency" in the market [7][10][12] Group 3 - The effectiveness of this strategy in stabilizing prices is uncertain, as it depends on the success of the customized products and whether distributors will prioritize them over the more profitable Feitian Moutai [11][12] - Moutai's production capacity is limited, which complicates the situation further, as even if prices stabilize, the supply may not meet consumer demand [9][10] - The potential for a shift in the entire liquor industry is present, as other brands may adopt similar joint venture models if Moutai's approach proves successful [11][12]

Core Viewpoint - The legal opinion letter from Shanghai Junlan Law Firm confirms that Anhui Kouzi Liquor Co., Ltd. has complied with relevant laws and regulations regarding the repurchase and cancellation of restricted stocks under its 2023 incentive plan, indicating that the process is legally sound and will not adversely affect the company's operations or shareholder interests [1][10]. Summary by Sections Approval and Authorization of Repurchase - The company has obtained necessary approvals and authorizations for the repurchase and cancellation of restricted stocks as per the relevant legal frameworks, including the Company Law and the Management Measures for Incentive Plans [5][9]. Details of the Repurchase - The repurchase is based on the failure to meet performance targets set for the second release period of the incentive plan, leading to the cancellation of 1,880,528 shares of restricted stock [6][9]. - The repurchase price is set at 35.16 yuan per share plus interest from the People's Bank of China, with funding sourced from the company's own funds [7][9]. Impact of the Repurchase - The repurchase and cancellation of shares will not harm the interests of the company or its shareholders and will not significantly impact the company's daily operations or future development [8][9]. Arrangements for the Repurchase - The company has established a dedicated securities account for the repurchase and plans to complete the cancellation by July 23, 2025, followed by necessary changes in business registration [8][9]. Share Capital Structure Post-Repurchase - After the completion of the repurchase, the company's share capital structure will change, resulting in zero restricted shares and a total of 598,119,472 unrestricted shares [8][9]. Information Disclosure - The company has fulfilled its information disclosure obligations as required by law and will continue to do so as the repurchase progresses [9][10].

安徽口子酒业股份有限公司 关于股权激励限制性股票回购注销实施的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 证券代码：603589 证券简称：口子窖 公告编号：2025-019 重要内容提示： ●回购注销原因：安徽口子酒业股份有限公司（以下简称"公司"）《2023 年限制性股票激励计划》第二个解除限售期的公司层面业绩考核未达标，解除限 售条件未成就，公司董事会审议决定回购注销《2023年限制性股票激励计划》第 二个解除限售期激励对象已获授尚未解除限售的限制性股票940,264股；此外， 根据《2023年限制性股票激励计划》中变更、终止程序的相关规定，董事会审议 决定回购注销除《2023年限制性股票激励计划》第二个解除限售期无法解除限售 以外的激励对象已获授尚未解除限售的940,264股限制性股票。综上，公司本次 拟回购注销的限制性股票数量合计为1,880,528股。 ●本次注销股份的有关情况： 回购股份数量（股） 注销股份数量（股） 注销日期 一、本次限制性股票回购注销的决策程序和信息披露情况 次会议，审议通过《关于终 ...

Group 1 - Wuliangye's stock has recently shown a remarkable "9 consecutive days of gains" trend, which has boosted market sentiment despite one day of decline during this period [1][5] - The stock price of Wuliangye has stabilized after entering a downward trend following its historical peak in 2021, with recent performance indicating a potential recovery [5][7] - The white liquor sector, including Wuliangye, has seen negative sentiment and pessimistic expectations fully priced in, suggesting limited downside potential [7] Group 2 - Wuliangye is considered a representative of value investment in the white liquor industry, with early investors having profited significantly during the previous bull market [3] - The stock price of Wuliangye increased dramatically from approximately 27.18 yuan at the beginning of 2019 to a peak of 337.39 yuan in 2021, reflecting a substantial rise over two years [3] - Despite recent earnings declines in the white liquor sector, Wuliangye's stock has shown resilience, indicating that the market may react positively to earnings that are not as bad as expected [5][7]

Core Viewpoint - The recent actions taken by China's leading liquor companies, Moutai and Wuliangye, to clean up their e-commerce channels highlight a significant shift in the industry aimed at combating counterfeit products and improving consumer experience [1][5]. Group 1: E-commerce Channel Changes - Moutai's e-commerce channel underwent notable changes within 12 days, with approximately 24 online stores being removed and 4 new ones added [1]. - Wuliangye previously reduced its e-commerce stores by 15 and added 4, indicating a trend among major liquor brands to tighten control over online sales [1][5]. - The cleaning actions by both companies are responses to increasing issues faced by consumers when purchasing products online, reflecting a need to restore order in e-commerce channels [1]. Group 2: Impact on Specific Retailers - All 6 stores under the "billion-level" distributor, Gedeyingxiang, were removed from Moutai's e-commerce channel, marking a significant shift in Moutai's online sales strategy [1]. - Gedeyingxiang's stores showed abnormal operational status, with many listings indicating "out of stock" and a lack of recent activity on social media platforms [6]. Group 3: Counterfeit Product Concerns - Moutai's subsidiary, Laimao, found that 22.1% of the 289 bottles sampled from various platforms were counterfeit [5]. - Wuliangye provided free authentication services for 1,610 bottles, revealing that 16.65% were counterfeit, underscoring the severity of the issue [5]. Group 4: Gedeyingxiang's Operational Challenges - Gedeyingxiang has faced significant operational difficulties, including a history of unpaid wages and legal restrictions on its consumption due to non-compliance with court orders [8]. - The company’s financial troubles have led to the freezing of 44.29 million RMB worth of shares held by its legal representative [8][10]. Group 5: Industry Implications - The actions of Moutai and Wuliangye signal a broader trend in the liquor industry towards stricter channel management and quality control, indicating that companies must ensure high standards to survive in a competitive market [11].

Summary of Shede Liquor Industry Conference Call Company Overview - **Company**: Shede Liquor Industry - **Date**: Q2 2025 Key Points Industry Impact and Sales Performance - The macro environment and the 518 alcohol ban have reduced consumption scenarios, impacting government and enterprise-related projects, but sales of main products remained stable during the Dragon Boat Festival [2][3] - The T68 banquet product was not affected, and the market for townships, counties, mass consumption, self-drinking, and banquet markets maintained double-digit growth [2][3] - After the 618 period, the number of opened bottles gradually recovered, indicating a loosening of demand [2][4] Inventory and Distribution - 70% of Shede's distributors are large businesses with over 5 million in sales, maintaining a healthy inventory level of two to three months [2][4] - The company has actively reduced inventory since last year, with a slight increase in inventory levels by the end of Q2 2025, but overall inventory management remains good [2][6] Pricing Strategy - Mainstream wholesale prices remained firm in Q2 2025, with the Taste series priced around 330 yuan, and the Water of the Way series priced between 190-200 yuan and 150 yuan for the Tiandao series [2][6] Market Segmentation and Product Strategy - The banquet market is a focus, but the opening rate in cities above the prefecture level is low due to unfamiliarity among participants, while products in township markets perform better [2][7] - The company is developing a 29-degree liquor product that incorporates decades-old liquor, showcasing its old liquor strategy [3][23] - Online sales channels account for about 10%-15% of total sales, primarily driven by cultural customization and youth-oriented products [2][5] Marketing and Advertising - Shede is focusing on precise advertising investments, including main products and brand building through platforms like CCTV, and targeting mass banquet consumption [3][11] - The company is innovating in youth marketing by integrating emotional value and thematic elements into online cultural products and live streaming platforms [3][24] Future Outlook and Strategic Adjustments - The company plans to strengthen its base market strategy, covering all regions and channels, and will focus on new channels and products for young consumers [3][21] - Shede is optimistic about market demand for Q3 and the upcoming festivals, with plans to enhance resource allocation and incentivize sales personnel [3][20] - The company aims to launch new cultural products for the upcoming year and upgrade its main products to ensure the best quality at competitive prices [3][22] Financial Performance - Overall profit and gross margin are expected to recover in 2025, driven by cost control and refined management practices [3][17][18] Channel Management - The company is managing channels by controlling distributor inventory and protecting product prices to create a positive sales cycle [3][19] Conclusion - Shede Liquor Industry is navigating a challenging macro environment while focusing on strategic growth areas, product innovation, and effective marketing to engage younger consumers and maintain sales momentum.

Group 1 - Wuliangye is actively pursuing internationalization, participating in high-profile global events to enhance cultural exchange and cooperation [1][2] - The company showcased its products at the China International Supply Chain Promotion Expo, highlighting its core offerings and attracting significant attention [1] - Wuliangye's participation in the Boao Forum for Asia emphasizes its commitment to long-term development and quality growth amidst external uncertainties [2] Group 2 - The company is focusing on openness, inclusivity, and cultural exchange as key development themes, aiming to promote Chinese traditional culture globally [3] - Wuliangye plans to achieve over 20% growth in international market sales by 2024, enhancing its brand competitiveness [3] - The brand has been rated AAA+ in the Brand Finance 2025 Global Spirits Brand 50 list, marking the highest rating and demonstrating consistent growth in brand strength over the past decade [3]

Core Viewpoint - The article discusses the phenomenon of Pop Mart's popularity, analyzing its cultural and social implications through the lens of technology, consumer behavior, and collective anxiety in contemporary society [2][3]. Group 1: Pop Mart's Popularity Mechanism - Pop Mart's market value has exceeded 300 billion RMB, with its stock price increasing up to 17 times in a year, indicating significant investor interest [5]. - The company employs commercial strategies such as blind box mechanisms, limited releases, and regional exclusivity, creating a sense of scarcity and excitement among consumers [5][6]. - The fashion industry, to which Pop Mart belongs, is deeply intertwined with capitalism, as it stimulates consumption and product cycles through seasonal trends [7]. Group 2: Role of Technology and Social Media - The rise of Pop Mart is closely linked to social media and recommendation algorithms, which amplify popular content and drive consumer engagement [10][11]. - Platforms prioritize user engagement, leading to a homogenization of cultural content, as trends become dictated by a few popular items [11][12]. - The recommendation algorithms create a feedback loop that enhances visibility and interaction, further concentrating attention and revenue among a few dominant players [10][11]. Group 3: Cultural and Psychological Aspects - Pop Mart's products, like Labubu, evoke a mix of familiarity and surprise, aligning with the "familiar + surprising" principle that drives trends [19][20]. - The concept of "baby schema" is applied to explain why certain designs elicit protective instincts and emotional responses from consumers [21]. - The phenomenon of "vanity consumption" is highlighted, where purchasing decisions are influenced by social pressures and the desire for identity affirmation [25][26]. Group 4: Future Challenges and Sustainability - The sustainability of Pop Mart's IP ecosystem is questioned, as its success relies on a few key characters, and consumer preferences can shift rapidly [32][33]. - The ability to create enduring IPs is compared to Disney's long-term success, emphasizing the challenges Pop Mart faces in maintaining relevance [31][33]. - The article suggests that the current consumer landscape is characterized by a desire for symbolic consumption, particularly among younger generations who prioritize emotional and identity-driven purchases [30][34].

Investment Rating - The report maintains a positive outlook on traditional consumer head enterprises, indicating they have long-term investment value from a dividend and yield perspective [5] Core Viewpoints - The report highlights that the pressure on the liquor sector is expected to remain significant due to slow macro demand recovery and limited consumption scenarios, with key recommendations including Guizhou Moutai, Shanxi Fenjiu, and Luzhou Laojiao [5][6] - In the mass consumer goods sector, the report emphasizes the cost advantages supporting profitability and the growth potential driven by new products and channels, particularly in dairy and beer sectors [5][7] - The report identifies opportunities in the dairy sector due to supply-demand rebalancing and policy support, recommending companies like Yili and Qingdao Beer [5][7] Summary by Sections 1. Weekly Insights on Food and Beverage - The food and beverage sector saw a 0.68% increase last week, with liquor rising by 0.88%, underperforming the Shanghai Composite Index by 0.02 percentage points [4] - The report notes that the liquor sector is under pressure, with Moutai's bottle price stable at 1870 yuan and a slight decrease in bulk prices [6][26] 2. Market Performance of Food and Beverage Sectors - The report indicates that the food and beverage industry underperformed the Shenwan A index by 0.64 percentage points, with various sub-sectors showing mixed results [45] - The beverage and dairy sector outperformed the index by 0.14 percentage points, while other sectors like processed food and snacks lagged behind [45] 3. Liquor Sector Updates - Moutai's pricing remains stable, while other brands like Wuliangye and Guojiao 1573 experienced slight price declines [6][26] - The report mentions Moutai's plans to establish joint ventures in various provinces to enhance market order and collaboration [6] 4. Mass Consumer Goods Sector Insights - The retail sales of consumer goods reached 4.23 trillion yuan in June, with a year-on-year growth of 4.8%, but the beverage sector saw a decline of 4.4% [7] - The report highlights the growth potential in the snack and low-alcohol beverage segments driven by new retail formats and consumer trends [7]