Event: On December 23, the 2025 Maotai Sauce-Flavored Liquor Dealers Association with the theme of “Building a 100 billion Maotai Growth Pole and Jointly Embarking on a New 10-Year Journey of Sauce” was held; on December 25, the 2025 Kweichow Moutai Liquor National Dealer Association with the theme of “Gathering Consensus for Win-Win, Taking Good Virtue and Going the Distance” was held in Guiyang.

Wine series: The goal is more rational. In 25 years, the focus was on making Prince Liquor Maotai sauce wine achieve various goals and maintain a steady development trend in '24. ① Flexibly adjust product sales strategies, abolish the dynamic quota system inherited from Maotai 1935 and Han sauce, and fully implement contract management; ② Strengthen market infrastructure, display more than 15,700 units; carry out tasting sessions with more than 44,000 banquets.

The overall direction of 2025 continues for 24 years, but is more rational & clear-headed:

1. The goal is more rational: the 24-year wine series successfully achieved the group target, and the target growth rate for the 25-year series wine is not lower than the average growth rate of the top five listed companies. Sauce-flavored Liquor Company positions the Group's new growth pole in the short term, and will become a leading mass consumer enterprise and the foundation for the century-old Maotai.

2. Clear product strategy: Adhere to the “two wings in one” brand development strategy, and make every effort to build a large single product cluster with Maotai 1935 as the core. In the future, we will focus on the three major series of 1935, Prince, and Han Sauce to build the “Three Ten Billion Division”. ① 1935: Based on the classic 1935, enhancing the scarcity of cultural and creative products, developing personalized products and exclusive Maotai 1935, forming the Maotai 1935 “pyramid structure” product structure system; ② Prince Liquor:

Develop Tajian products and low-grade products, and strive to become the second largest 10 billion single product in Maotai sauce within 2 years; ③ Han Sauce: Reducing Han Sauce (Ingenuity Inheritance) market investment in 25 years; ④ General distribution brand: in terms of total volume and share, only a decrease, not an increase.

3. Clear channel strategy: Adhere to matrix-style channel collaborative development. The company currently has a sales team of 400 people and will be further expanded in the future to match the sales scale of 20 billion.

Maotai Liquor: Overcoming difficulties through the three major transformations, the integrated marketing structure and channels are expected to increase by double digits in revenue and profit in 24, continuing to consolidate the company's “ballast stone”. ① Product side: Continuously optimize the product matrix to enhance brand value; ② Channel side: form two major systems of “self-management” and “society” to effectively ensure the stability of the Maotai liquor market; ③ Brand side: carried out more than 6,600 themed tasting events and held more than 60 cultural events such as the “Maoyou Carnival”.

We have been consumer-centered for 25 years and have continued to do a good job in the “three transformations”. ① Customer base transformation: focus on the “new business” group to promote customer base composition and structural transformation; ② scenario transformation: around the “new business” group on the basis of continuing to consolidate traditional gatherings; ③ service transformation: transforming “selling alcohol” into a “selling lifestyle”.

Adjust the sales volume of each product and increase market expenses. In terms of product structure, ① Pufei plans to slightly increase sales volume in 2025; ② reduce the amount of precious products sold; ③ moderately increase the quantity of 1000 ml Maotai liquor; ④ adjust the e-commerce contract product structure of specialty stores and supermarkets to improve the consumer reach rate; ⑤ adjust the contract product structure of internal subsidiaries, develop Maotai 1935 Premium Edition, 1935ml and 375ml products, and shrink 1935 cultural and creative products to develop Maotai Prince Liquor Tabian products and low-grade products. Furthermore, on January 5, 2025, the new products Otsumi Year of the Snake Zodiac and Shengle Flying Moutai Liquor were officially released. In terms of market policy, the company's New Year budget supports investment expenses of about 0.675 billion yuan in marketing activities, an increase of 83% over the previous year.

Profit forecast: We expect the company's 24-26 revenue to increase 15%/9%/8% year on year to 173.5/189/204.7 billion yuan, and net profit to mother will increase 15%/9%/8% year on year to 85.8/93.5/101.3 billion yuan, corresponding PE will be 21X/19X/18X, respectively.

Risk warning: macroeconomic impact, weak consumption, changes in industry policies, price fluctuations in Flying Moutai.