Investment Rating - The investment rating for the company is maintained at "Outperform" [1] Core Views - The company reported a significant decline in revenue and net profit for the first half of 2025, with total revenue of 4.593 billion yuan, down 19.2% year-on-year, and a net profit of 173 million yuan, down 59.1% year-on-year [6] - The report anticipates a gradual recovery in demand, particularly in the high-end liquor segment, which is expected to drive future profitability [6] - The company’s white liquor segment saw a revenue drop of 23.3% in the first half of 2025, with a net profit margin of 9.45%, down 3.43 percentage points year-on-year [6] Financial Data and Profit Forecast - Total revenue projections for 2025 are estimated at 8.016 billion yuan, with a year-on-year decline of 12.2% [5] - The forecasted net profit for 2025 is 199 million yuan, reflecting a decrease of 13.8% compared to the previous year [5] - The company’s gross margin for the white liquor segment is projected to be 35.4% for 2025, with a gradual increase expected in subsequent years [5] - The company’s return on equity (ROE) is expected to improve from 2.8% in 2025 to 4.3% by 2027 [5] Segment Performance - The white liquor segment's revenue breakdown shows high-end, mid-range, and low-end liquor revenues of 529 million, 498 million, and 2.58 billion yuan respectively, all experiencing declines [6] - The pork business reported a slight revenue decline of 0.49% in the first half of 2025, with a gross margin of only 0.01% [6] - The company’s cash flow from operating activities showed improvement, with a net cash flow of -247 million yuan in Q2 2025, compared to -574 million yuan in the same period last year [6]