According to the CICC research report, it is believed that Kweichow Moutai is expected to resonate with the triple improvement of demand cycle, operating adjustments, and price performance. In the context where Moutai has now reached a new balance between supply and demand, it is worth looking forward to future price flexibility and room for market share growth. 1) Cyclical perspective: Currently, consumption and prices in the liquor industry have fallen back to a low range. We believe that the structural impact of the transformation of the liquor scene may have come to an end. 2) Business perspective: The company's current round of systematic transformation and adjustment helps to continuously strengthen accurate adaptation to different dimensions such as region, channel, customer base, and time to achieve optimal sales solutions. 3) Product attribute perspective: Maotai's cross-cycle growth elasticity performance is leading. Its sales penetration space and upward price elasticity are better than most leading consumer goods brands, and the potential future volume space should not be underestimated. Maintaining a “outperforming the industry” rating.

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