Core Viewpoint - Hainan Yedao, known as the "first stock of health wine," reported a significant decline in revenue and continued losses, raising concerns about its management and market strategy [1][2][4]. Financial Performance - In 2024, Hainan Yedao achieved revenue of only 175 million yuan, marking a 21.97% decline following two consecutive years of nearly 50% decreases [1]. - Cumulative losses since 2015 have reached 794 million yuan, leading to a "*ST" warning and increasing the risk of delisting [2]. - The company's revenue for Q1 2025 further declined by 18.47% to 44 million yuan [4]. Product Performance - Sales of the flagship product, Luguijiu, fell by 44.47%, with a gross margin decrease of 7.87% [4]. - Other product lines, including the white wine series and other alcoholic beverages, also experienced significant revenue declines of 28.27% and 20.84%, respectively [4]. - High-end products, such as the Haijiao Sea Sauce 20, recorded minimal sales, with only 2 purchases noted [7]. Management and Strategy - The management team has faced instability, with the recent departure of General Manager Ma He shortly after the poor performance announcement [1][8]. - Ma He had previously engaged in aggressive marketing strategies, including a nationwide advertising campaign, which did not yield the expected results [10][12]. - The company has shown a high dependency on a limited number of clients and suppliers, with the top five clients accounting for 79.17% of total sales [7]. Market Position - Hainan Yedao's stock price has plummeted by 84.7% from its peak of 32.78 yuan, reflecting a severe loss of investor confidence [13]. - The company is at a critical juncture, facing internal challenges and market pressures that threaten its operational viability and future prospects [13].

Financial Performance - In 2024, the company reported a revenue of 175 million, a year-on-year decline of 21.97%, and a nearly 80% decrease from 833 million in 2021 [1] - The net profit attributable to shareholders was a loss of 136 million, with a non-deductible net profit of -142 million, indicating a continuous decline in the core business's profitability [1] - The company faced a significant financial pressure with a debt-to-asset ratio rising to 84.34% [1] Business Challenges - The health wine business, which once contributed significantly to revenue, saw a decline of over 40% in 2024, while the white wine segment's revenue dropped by 28% [2] - New product launches in 2024 failed to alleviate inventory issues, resulting in a low inventory turnover rate of only 0.45 times [2] - Management acknowledged delays in new product development and marketing, leading to insufficient sales contributions and increased operational losses [2] Industry Context - The white wine industry in 2024 experienced a bifurcation, with leading brands like Moutai and Wuliangye seeing revenue growth over 10%, while smaller enterprises faced challenges [3] - The company has shifted its strategic focus towards core business, with liquor revenue accounting for 72.8% and beverage revenue at 25.7% in 2024 [3] - The company lacks high-end brand premium and has not established a competitive advantage in regional markets [3] Financial Support - A state-owned company has provided financial support through loans and guarantees, but the company may require more time to recover [4]