Moutai 2Q25 Quick Interpretation: Overall, Moutai's Q2 performance continued to decelerate based on Q1, with the sluggish demand side being reflected in Moutai's financial statements, indicating that the company is experiencing a 'pain period'.

In Q2, Moutai achieved revenue of 39.65 billion yuan, an increase of 7.3% year-on-year, of which Moutai liquor achieved revenue of 32 billion yuan, an increase of 11% year-on-year, still being the main contributor to the performance.

Considering the strict control and price support of Feitian, Dolphin Research speculates that the growth of Moutai liquor is more likely due to the increased contribution from the non-standard liquor.

The series liquor achieved revenue of 6.7 billion yuan, a decrease of 6.6% year-on-year. Based on research information, although Moutai 1935, as the 'main contributor' of the series liquor, maintained double-digit growth, other products including Prince and Yingbin liquor almost fell across the board due to weak demand and high inventory.

From the channel perspective, in 2Q25, Moutai's direct sales accounted for 43.3%, a slight decline compared to Q1. Dolphin Research speculates that since the direct sales channel reflects the actual terminal demand, Moutai increased the proportion of distributor channels to alleviate performance pressure in the context of weak demand.

Regarding gross profit margin, although the proportion of Moutai liquor increased compared to the same period last year, the overall gross profit margin slightly declined by 0.3 percentage points to 90.6% due to the significant decline in series liquor.

Regarding expense ratio, due to Moutai's increased efforts in promoting non-standard liquor and series liquor, market promotion expenses increased, leading to a rise in the sales expense ratio by 0.5 percentage points to 4.5%, while the management expense ratio remained stable. Ultimately, the net profit attributable to the parent company reached 18.56 billion yuan, an increase of 5.2% year-on-year. For more details, please refer to Dolphin Research's subsequent financial report commentary.$Moutai(600519.SH)