Core Viewpoint - Shunxin Agriculture has announced a forecast for a net loss in the first half of 2025, following a brief recovery in 2024, primarily due to a significant decline in the liquor industry and reduced sales volume [1][3]. Financial Performance - The company expects a net profit attributable to shareholders in the range of 155 million to 195 million yuan, representing a year-on-year decline of 53.85% to 63.32% [1][3]. - The expected non-recurring net profit is also projected to decline by 53.79% to 63.27%, with similar figures for both net profit and non-recurring net profit [1][3]. - In the first quarter of 2025, Shunxin's revenue was approximately 3.258 billion yuan, a decrease of about 19.69% compared to the previous year [5][4]. Sales and Revenue Trends - Shunxin Agriculture's revenue has been declining for four consecutive years, with figures of 14.869 billion yuan in 2021, 11.678 billion yuan in 2022, 10.593 billion yuan in 2023, and 9.126 billion yuan in 2024 [5][11]. - The first quarter of 2025 saw a net profit of approximately 282 million yuan, down 37.34% year-on-year, indicating further deterioration in the second quarter [5][6]. Market Position and Strategy - The company is attempting to focus on the light bottle liquor market to address its challenges, but market expectations for its full-year performance in 2025 remain cautious [5][10]. - Shunxin's liquor business is heavily reliant on low-end products, which accounted for 70.64% of its liquor sales in 2024, leading to limited profitability [7][9]. - The gross margin for low-end liquor is significantly lower at 39.44%, compared to 70.83% for high-end and 47.26% for mid-range products, highlighting the risks associated with its product mix [8][9]. Competitive Landscape - The company faces increasing competition from regional brands and mid-to-high-end liquor companies that are encroaching on its market share through various promotional strategies [9][10]. - The shift in consumer preferences towards mid-to-high-end liquor products further exacerbates Shunxin's challenges due to its heavy reliance on low-end offerings [9][10]. Future Outlook - The ability of Shunxin Agriculture to successfully pivot towards the light bottle liquor market and reverse its financial decline remains to be seen, with market observations needed in the latter half of 2025 [10][18].