Investment Rating - The investment rating for the company is "Buy" with a target price not specified [8] Core Views - The company's performance has been significantly impacted by a structural shift in consumption, leading to a notable decline in revenue and profit margins. The Q2 2025 results showed a year-over-year decrease in revenue, net profit, and adjusted net profit by 48.48%, 70.91%, and 73.41% respectively [2] - The high-end liquor segment has seen a substantial drop in revenue share, primarily due to the implementation of alcohol bans and reduced consumption scenarios affecting mid to high-end liquor sales. The revenue for high-end, mid-range, and low-end liquor in Q2 2025 was 6.57, 0.12, and 0.29 billion yuan respectively, with year-over-year changes of -49.64%, -7.68%, and +7.49% [3] - The company has proactively managed channel pressures by adjusting its product offerings and inventory levels, which has led to a decrease in gross and net profit margins. The gross margin fell by 9.86 percentage points to 65.18% in Q2 2025 [5] Financial Performance Summary - In Q2 2025, the company's revenue from domestic and foreign markets was 5.15 billion yuan and 1.83 billion yuan respectively, reflecting a year-over-year decline of 54.01% and 18.57% [4] - The company's gross profit margin and net profit margin decreased to 65.18% and 14.51% respectively, primarily due to a shift in product structure and increased channel inventory management [5] - The company expects a gradual improvement in demand for white liquor in Anhui province as policies relax, which may positively impact future performance [6] Financial Forecasts - The company has adjusted its profit forecasts for 2025 and 2026, expecting net profits of 1.30 billion yuan and 1.35 billion yuan respectively, with a growth rate of -21% and 4% [6] - The projected revenue for 2025 is 4.96 billion yuan, with a year-over-year decline of 17.56% [12] - The earnings per share (EPS) is expected to decrease to 2.18 yuan in 2025, with a recovery to 2.40 yuan by 2027 [12]