Investment Rating - The investment rating for the company is upgraded to "Accumulate" from "Buy" [1][8] Core Viewpoints - The company reported a revenue of 28.876 billion yuan in 2024, a decrease of 12.83% year-on-year, and a net profit of 6.673 billion yuan, down 33.37% year-on-year, which aligns with market expectations [2] - In Q1 2025, the company achieved a revenue of 11.066 billion yuan, a decline of 31.92% year-on-year, and a net profit of 3.637 billion yuan, down 39.93% year-on-year, which fell short of market expectations [2] - The company is undergoing a strategic adjustment in response to industry pressures, focusing on sustainable development and shifting from aggressive growth to a more conservative approach [3] - The mid-to-high-end product lines, particularly the Blue Classic series, are significantly impacted, leading to a decline in revenue and profitability [4] - The company is committed to enhancing its distribution channels and maintaining a deep cultivation strategy both domestically and internationally [5] - The company plans to maintain a high dividend payout, with a total dividend of 7 billion yuan in 2024, resulting in a dividend yield of 6.72%, one of the highest in the liquor sector [7] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 28.876 billion yuan and a net profit of 6.673 billion yuan, with respective year-on-year changes of -12.8% and -33.4% [9] - For 2025, revenue and net profit forecasts have been revised down to 24.778 billion yuan and 5.967 billion yuan, respectively [8][9] Market Strategy - The company is implementing quota control measures to stabilize prices and optimize supply-demand relationships for its main products [6] - A new high-end product, the Dream Blue Handcrafted Class, has been launched to target the local high-end market [7] Dividend Policy - The company has committed to a cash dividend of no less than 70% of its net profit for the years 2024-2026, ensuring a consistent high dividend yield [7]