Core Viewpoint - The company Zhangyu expresses a short-term pessimistic and long-term optimistic outlook on the domestic wine market, indicating that there is no significant improvement currently [2]. Financial Performance - Zhangyu reported a revenue of 3.277 billion yuan and a net profit of 305 million yuan, representing a year-on-year decline of 25.26% and 42.68% respectively, marking the lowest annual performance in 16 years [3]. - The company aims to achieve a revenue of no less than 4.7 billion yuan in 2024, which would represent a growth of approximately 7% compared to 2023 [3]. Market Challenges - The domestic wine market has been experiencing a downturn for several years, exacerbated by a significant increase in imported wines, leading to intensified competition for domestic producers [4]. - Zhangyu acknowledges the presence of substantial low-end wine production capacity, which poses challenges for immediate reduction efforts [4]. Strategic Initiatives - The company is implementing various measures to address performance issues, including refining the sales department structure, launching low-alcohol products, and focusing marketing efforts on key regions and cities [3]. - Zhangyu has also engaged in acquisitions of overseas wineries, which generated approximately 500 million yuan in revenue last year, with expectations of reaching 1 billion yuan in revenue from these wineries in the future [5]. Equity Incentives - Zhangyu's equity incentive plan, initiated in June 2023, has faced scrutiny from investors due to the company's declining performance. The plan involves granting stock options to 204 individuals at a price of 15.69 yuan per share [6]. - The company asserts that the equity incentive plan is linked to performance metrics and complies with legal procedures, while acknowledging the need to learn from the implementation experience [7].