Core Viewpoint - The company reported its 2024 annual results and Q1 2025 results, showing a slight decline in revenue and net profit, indicating pressure from external market conditions [1] Revenue and Profit Performance - In 2024, the company achieved revenue of 2.2 billion yuan, a year-on-year decrease of 1.3%, and a net profit of 290 million yuan, down 15.9% year-on-year [1] - For Q1 2025, revenue was 800 million yuan, a decline of 4.3% year-on-year, with a net profit of 140 million yuan, down 9.3% year-on-year [1] Product Structure and Sales Channels - The product structure continues to optimize, with significant growth in self-operated sales outside the region. In 2024, high-end, mid-range, and low-end products generated revenues of 1.53 billion, 510 million, and 130 million yuan, respectively, with year-on-year changes of +4.3%, -8.2%, and -20.5% [2] - In Q1 2025, revenue from high-end, mid-range, and low-end products was 620 million, 130 million, and 30 million yuan, with year-on-year changes of +8.8%, -30.7%, and -41.0% [2] - The company’s direct sales channel showed resilience, with revenue of 490 million yuan in 2024, up 90.9% year-on-year, and 200 million yuan in Q1 2025, up 69.9% year-on-year [2] Gross Margin and Cost Structure - The gross margin for 2024 was 52.3%, an increase of 4.1 percentage points year-on-year, while Q1 2025 saw a gross margin of 48.8%, a decrease of 3.1 percentage points year-on-year [3] - The sales and management expense ratios for 2024 were 11.9% and 4.1%, respectively, with increases of 2.5 percentage points and 0.5 percentage points year-on-year [3] - The net profit margin for 2024 was 13.1%, down 2.4 percentage points year-on-year, while Q1 2025 had a net profit margin of 18.0%, down 1.3 percentage points year-on-year [3] Strategic Initiatives and Future Outlook - The company is undergoing significant transformation, focusing on core products and optimizing its marketing system to enhance sales team performance [4] - New product launches and external sales efforts are expected to drive growth, particularly in high-end product segments [4] - Profit forecasts for 2025-2027 are projected at 320 million, 370 million, and 430 million yuan, with corresponding EPS of 0.68, 0.77, and 0.90 yuan [4]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with a strategic focus on product upgrades and market expansion despite industry pressures [1][4]. Financial Performance - In 2024, the company achieved total revenue of 2.203 billion yuan, a year-on-year decrease of 1.3% - The net profit attributable to shareholders was 286 million yuan, down 15.9% year-on-year - The net profit excluding non-recurring items was 278 million yuan, a decrease of 16.5% year-on-year - For Q4 2024, total revenue was 549 million yuan, down 6.6% year-on-year, with a net profit of 45 million yuan, down 59.6% year-on-year [1] - In Q1 2025, total revenue reached 796 million yuan, a decrease of 4.3% year-on-year, with a net profit of 144 million yuan, down 9.3% year-on-year [1] Product Structure - In 2024, revenue from high-end, mid-range, and low-end products was 1.529 billion yuan, 506 million yuan, and 134 million yuan, respectively, with year-on-year changes of +4.3%, -8.2%, and -20.5% - High-end liquor revenue accounted for 70.5% of total revenue, an increase of 3.4 percentage points [2] - In Q1 2025, high-end liquor revenue was 620 million yuan, up 8.8% year-on-year [2] Channel Structure - In 2024, revenue from direct sales, wholesale agents, and online sales was 492 million yuan, 1.544 billion yuan, and 133 million yuan, with year-on-year changes of +90.9%, -13.9%, and -1.7% - In Q1 2025, direct sales revenue was 197 million yuan, up 69.9% year-on-year [2] Regional Performance - In 2024, sales revenue from within and outside the region was 1.598 billion yuan and 571 million yuan, with year-on-year changes of -5.8% and +16.7% - In Q1 2025, sales revenue from within and outside the region was 695 million yuan and 93 million yuan, with year-on-year changes of +3.5% and -37.9% [2] Strategic Initiatives - The company is accelerating its strategic layout within the region, focusing on market expansion outside the region, particularly in Sichuan [3] - The gross profit margin for 2024 was 52.3%, an increase of 4.1 percentage points year-on-year, while Q1 2025 gross profit margin was 48.8%, down 3.1 percentage points year-on-year [3] - The company is implementing organizational reforms and product system upgrades, with a focus on major product strategies and market expansion [4] Future Outlook - The company expects to achieve revenues of 2.295 billion yuan and 2.483 billion yuan in 2025 and 2026, respectively, with year-on-year growth rates of 4.2% and 8.2% - Projected net profits for 2025 and 2026 are 376 million yuan and 422 million yuan, respectively [4]