Core Viewpoint - Shanghai Gui Jiu is facing a severe crisis, with its stock nearing delisting due to financial difficulties and legal issues stemming from the actions of its controlling shareholder, Han Qiao [4][20]. Financial Performance - The company's revenue plummeted from 1.629 billion yuan in 2023 to less than 300 million yuan in 2024, with a net loss of 217 million yuan [6][16]. - In the first half of 2025, revenue further declined to 28.25 million yuan, a staggering 85.22% drop compared to the same period in 2024 [16]. Legal Issues - Shanghai Gui Jiu was ordered to pay approximately 4.1885 million yuan in damages for trademark infringement, adding to its financial woes [5]. - The company has been involved in 527 legal cases with a total amount of 222 million yuan, indicating a significant legal burden [13]. Management and Operational Challenges - The management team has seen a mass exodus, with six key executives leaving within six months, leading to operational instability [15]. - The number of distributors dropped from 4,465 to 772, severely impacting sales channels [15]. Debt and Financial Health - The company has a total current liability of 1.417 billion yuan, with a debt-to-asset ratio of 74.38%, significantly higher than the industry average of 22.05% [11]. - Cash reserves are critically low, with only 1.5387 million yuan in monetary funds [11]. Delisting Risk - According to new regulations, if the company fails to achieve a revenue of 300 million yuan and a positive net profit for two consecutive years, it will face mandatory delisting [18]. - To meet the revenue threshold for 2025, the company would need to generate approximately 272 million yuan in the second half, requiring an unrealistic growth rate of 962% [18]. Self-Rescue Efforts - The company has initiated discount promotions to clear inventory, but the effectiveness has been limited, with inventory only reduced by 7.07% [22][24]. - Attempts to expand online sales through platforms like Douyin and Pinduoduo have not yielded significant results, with low follower counts on social media [25]. Strategic Moves - Shanghai Gui Jiu is exploring the sale of base liquor to generate cash, but the market for base liquor has cooled significantly, making this strategy challenging [27][29]. - The company is actively seeking strategic investors, but no substantial progress has been reported [30]. Historical Context - The company has undergone multiple name changes and business model shifts since its establishment in 1993, reflecting a tumultuous history in the capital market [33]. - The likelihood of the company being delisted is high, given the current financial and operational challenges it faces [35][36].