Core Viewpoint - The article highlights the significant decline in the performance of Kuozi Jiao, once a leading brand in the Chinese liquor market, now facing severe financial challenges and a drop in market position due to various internal and external pressures [2][5]. Financial Performance - Kuozi Jiao reported a third-quarter revenue of 643 million yuan, a year-on-year decrease of 46.23%, and a net profit of 26.97 million yuan, down 92.55% year-on-year [3]. - For the first three quarters, total revenue was 3.174 billion yuan, down 27.24%, with net profit at 742 million yuan, a decline of 43.39% [3]. - The company experienced its largest single-quarter decline since its listing in 2015, with operating cash flow showing a net outflow of 390 million yuan, a decrease of 208.9% year-on-year [4][8]. Product Line Performance - Kuozi Jiao's product lines showed a mixed performance: high-end liquor revenue fell by 27.98% to 2.961 billion yuan, mid-range liquor revenue dropped by 15.38% to 41.3 million yuan, while low-end liquor grew by 25% to 114 million yuan [7]. - High-end liquor accounts for approximately 95% of Kuozi Jiao's revenue, and its decline has severely impacted overall profitability [7]. Cash Flow and Inventory Issues - The gross margin decreased from 74.76% to 70.96%, indicating a shift in product structure towards lower-margin products [8]. - Inventory levels rose to 6.218 billion yuan, exceeding the projected figure for the end of 2024, marking a historical high [8]. - The decline in contract liabilities to 339 million yuan, down nearly 40% from the previous year, signals weakened future sales potential [8]. Channel Strategy and Market Position - Kuozi Jiao's reliance on a "big dealer" model has backfired, as the company failed to adapt to market changes and missed opportunities in the mid-to-high-end segment [9][11]. - The company has initiated a channel reform from "big dealer" to a "1+N small dealer" model, but this has not yet translated into increased sales [11][12]. - Despite adding 102 new dealers in the first three quarters, revenue from both domestic and international markets declined significantly [12]. Leadership and Market Sentiment - The founder, Liu Ansheng, has sold over 17.25 million shares since 2018, raising more than 1 billion yuan, which has raised concerns about the company's future [15][16]. - Kuozi Jiao's stock price has dropped approximately 60% from its peak of over 80 yuan in December 2021, reflecting negative market sentiment [15][16]. Strategic Response - Kuozi Jiao has proposed a "three-pronged" strategy to address its challenges, focusing on channel restructuring, product optimization, and increased brand investment [16][17]. - The company aims to enhance its direct sales channel to exceed 10% of total revenue and establish model markets outside Anhui [17].

Core Viewpoint - The performance of Kuozi Jiao in 2024 shows weak growth, with revenue only slightly increasing by 0.89% to 6.015 billion yuan, while net profit declined by 3.83% to 1.655 billion yuan, indicating a significant gap compared to its main competitor, Yingjia Gongjiu [1][2] Group 1: Financial Performance - Kuozi Jiao's revenue for 2024 is 6.015 billion yuan, with a net profit of 1.655 billion yuan, both showing declines compared to the previous year [1] - Yingjia Gongjiu reported a revenue increase of 8.46% to 7.344 billion yuan and a net profit increase of 13.45% to 2.589 billion yuan, highlighting Kuozi Jiao's underperformance [2] - Kuozi Jiao's revenue growth in its core market of Anhui is only 1.1%, while Yingjia Gongjiu's growth is significantly higher at 12.75% [1][2] Group 2: Market Position and Competition - The competition in the Anhui liquor market is intensifying, with Kuozi Jiao previously holding the second position but now being surpassed by Yingjia Gongjiu [2][3] - The revenue gap between Kuozi Jiao and Yingjia Gongjiu narrowed from 780 million yuan in 2018 to 452 million yuan in 2021, but Kuozi Jiao was overtaken again in 2022 [3] - Kuozi Jiao's slow product updates and ineffective sales strategies have contributed to its declining market position [3][4] Group 3: Product and Channel Strategy - Kuozi Jiao's main product line has not been updated for over a decade, leading to product aging and a lack of competitiveness in the high-end market [3][4] - The company has implemented a large dealer system for distribution, which has limited its ability to adapt to market changes and promote new products effectively [5][6] - Kuozi Jiao is attempting to reform its distribution channels to enhance product promotion and market development, but the short-term effects of these changes have yet to be seen [5][6] Group 4: National Expansion Challenges - Kuozi Jiao's revenue from outside Anhui remains low, accounting for less than 20% of total revenue, with a decline of 2.88% in 2024 [6][7] - The company aims to accelerate its national expansion by establishing operational centers in other regions, but it faces significant challenges in reducing its reliance on the Anhui market [6][7] - The chairman of Kuozi Jiao acknowledged the gap in achieving national expansion, emphasizing the need for further development outside its core market [7]