Investment Rating - The report maintains a "Buy" rating for the company [6] Core Views - The company experienced a significant decline in revenue and net profit in the first half of 2025, with total revenue of 3.16 billion yuan, down 16.89% year-on-year, and net profit of 1.13 billion yuan, down 18.19% year-on-year [1] - The second quarter saw an even larger decline in revenue, with a 24.13% drop compared to the same period last year, attributed to policy impacts and increased channel pressure [2] - The company is actively adjusting its product offerings, particularly in the mid-to-low-end segments, and anticipates a gradual recovery in performance as market conditions improve [4] Summary by Sections Financial Performance - In Q2 2025, the sales gross margin was 68.33%, a decrease of 2.82 percentage points year-on-year, while the net profit margin fell to 27.12%, down 4.83 percentage points year-on-year [3] - The company reported a cash flow from operating activities of -179 million yuan in Q2 2025, indicating a decline in cash collection [3] Revenue Breakdown - Q2 2025 revenue from mid-to-high-end and ordinary liquor was 817 million yuan and 210 million yuan, respectively, reflecting declines of 23.6% and 32.9% year-on-year [2] - Sales revenue in provincial and non-provincial markets for Q2 2025 were 730 million yuan and 296 million yuan, down 20.3% and 36.4% year-on-year, respectively [2] Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 have been revised down to 2.173 billion yuan and 2.402 billion yuan, representing decreases of 31% and 34% from previous estimates [4] - The estimated EPS for 2025-2027 is projected at 2.72, 3.00, and 3.29 yuan, with corresponding P/E ratios of 17, 15, and 14 times [4]