Core Viewpoint - Shéde Jiǔyè (舍得酒业) is experiencing a decline in revenue for 2024 due to the overall adjustment in the liquor industry and intensified competition, although the company maintains stable average market prices for its main products [1] Group 1: Company Performance - In Q1, Shéde Jiǔyè achieved revenue of 1.576 billion yuan, a quarter-on-quarter increase of 75.68% [3] - The net profit attributable to the parent company was 346.1 million yuan, nearly unchanged from the previous year's total of 345.8 million yuan [3] - The net cash flow from operating activities saw a significant year-on-year increase of 106.76% [3] - The company reported a 11.25% decrease in operating costs and a 25.24% decrease in management expenses, indicating improved operational efficiency [3] Group 2: Strategic Developments - The company is advancing its old liquor strategy, which is expected to enhance market and brand value over time despite a current decrease in cash reserves [2] - Shéde Jiǔyè plans to increase production capacity with an expected annual output of 60,000 tons of raw liquor and 342,500 tons of raw liquor storage capacity [2] - The construction of new production facilities will take approximately 2 to 3 years, with the new capacity being gradually released [2] Group 3: Industry Outlook - The liquor industry is still in an adjustment phase, with consumer confidence recovering slowly, particularly in the mid-to-high-end product segment [1] - The market concentration in the liquor industry is expected to continue increasing, providing Shéde Jiǔyè with significant growth opportunities due to its advantages in brand, quality, and distribution channels [3]