Core Viewpoint - The price of Moutai has reached a new low, with significant declines observed in both wholesale and retail prices, indicating a challenging market environment for the brand [1][3][6]. Price Trends - As of September 14, 2023, the wholesale reference price for 25-year Moutai (53 degrees/500ml) in loose bottles is reported at 1770 RMB, down 10 RMB from the previous day, marking a new low since its launch [1]. - The original box price for the same product remains at 1790 RMB, also a new low, reflecting a decline of over 20% from its initial price of 2255 RMB [1]. - The kilogram Moutai (53 degrees/1L) is priced at 3300 RMB, down 18.92% from its launch price of 3700 RMB earlier this year [3]. Market Dynamics - Despite the general trend of declining prices, the white liquor industry is preparing for the peak consumption season around the National Day and Mid-Autumn Festival, with Moutai launching several new products to stimulate demand [8]. - Moutai has been actively engaging with over 200 distributors across various regions, indicating a strategic effort to strengthen market presence [8]. - Limited edition products, such as the 70th Anniversary Commemorative Moutai, have been well-received, with a stable wholesale price around 10,000 RMB, reflecting strong demand in the collectible and gifting markets [8]. Product Development - Moutai is expanding its product line with creative cultural products, which have seen rapid sales, indicating a successful diversification strategy [8]. - The company is also iterating on its high-end products, with recent upgrades announced for premium offerings, including new packaging and anti-counterfeiting measures [8]. - The kilogram Moutai is emerging as a new core product, with increasing inquiries and purchases noted in the market [9].

Core Viewpoint - Guizhou Moutai reported a revenue of 91.094 billion yuan and a net profit of 45.403 billion yuan for the first half of 2025, showing a year-on-year growth of 9.16% and 8.89% respectively, despite a slowdown in profit growth [2][3]. Financial Performance - The company achieved a total revenue of 91.094 billion yuan, marking a 9.16% increase year-on-year [2]. - The net profit attributable to shareholders reached 45.403 billion yuan, reflecting an 8.89% year-on-year growth [2]. - The company has a three-year dividend plan, committing to distribute no less than 75% of the annual net profit as cash dividends from 2024 to 2026 [3]. Dividend Policy - For 2024, the proposed cash dividend is 276.24 yuan per 10 shares, totaling 34.671 billion yuan, with an expected cumulative dividend of approximately 64.7 billion yuan for the year, resulting in a dividend rate of 75% and a dividend yield of about 3.33% [3]. - The company is considering maintaining its dividend policy and has already implemented a buyback of 6 billion yuan this year [4]. Market Strategy - The company is focusing on optimizing market strategies and maintaining channel resilience amid industry adjustments and changing consumer trends [2]. - There has been a noted improvement in terminal sales as of late August, with significant growth compared to June and July, indicating a potential positive market trend [5]. Product Development - Guizhou Moutai has launched several new products this year, including limited editions and creative cultural products, which have been well-received in the market [5]. - The company is committed to enhancing brand building and consumer group cultivation, particularly in series wines and overseas markets [5]. Sales and Marketing - The sales expense ratio remains around 3%, the lowest in the industry, indicating effective cost management despite absolute increases in sales expenses [6]. - The company is adapting its marketing strategies and expanding consumption scenarios to meet the rational consumption trends in the market [6].

Core Insights - The white liquor industry is entering a peak season as the National Day and Mid-Autumn Festival approach, with Moutai signaling a positive market recovery [1] - Moutai's management has conducted extensive market research, indicating a significant increase in terminal sales since late August, suggesting a favorable market trend [1][2] - Despite a generally sluggish consumption atmosphere in the white liquor sector this year, Moutai has successfully launched new products and adapted its strategies to meet diverse consumer demands [2][3] Market Trends - Moutai's management has emphasized the importance of continuous market research to inform operational decisions, with multiple surveys conducted across various provinces and channels [2] - The third quarter, typically a slow season for white liquor consumption, has seen Moutai introduce several new products that cater to niche markets, such as collectible and gift items [2] - The price of Moutai's core products, including the 1000ml Moutai, has recently increased, reflecting a growing demand in the market [3] Product Strategy - Moutai is diversifying its product offerings, including limited edition and cultural products, to enhance consumer engagement and drive sales [2][3] - The company has adopted a multi-channel strategy, ensuring that different products are marketed through appropriate channels based on consumer response and market demand [5] - Moutai's core products remain the main revenue drivers, with a focus on understanding and adapting to changing consumer preferences and behaviors [3][4] Channel Strategy - The concept of "collaboration" has become central to Moutai's channel development strategy, aiming to enhance efficiency and create a complementary channel ecosystem [5] - Moutai has established a "4+6" channel layout system to optimize the functionality of various sales channels [5] - The management has reiterated the importance of maintaining strategic focus to navigate market fluctuations and ensure sustained growth [5]