Shanghai Guijiu (600696.SH): The liquor industry is still in a destocking cycle, and the company's financial difficulties have not been effectively improved.

Shanghai Guijiu (600696.SH) announcement, the company's stock trading experienced abnormal fluctuations as the closing prices on September 19th and September 20th, 2024 increased by a cumulative deviation of 20.00% for two consecutive trading days. Since 2024, the overall recovery of the liquor industry has not met expectations, with a slowdown in end-market sales, insufficient consumer growth momentum, and a common phenomenon of price inversion in the industry. The liquor industry is still in a destocking cycle, with a clear trend towards concentration in advantageous production areas, companies, and brands, putting pressure on small and medium-sized brand liquor enterprises, including the company. In addition, starting from the end of 2023, due to financial pressures, the company has been unable to timely pay back rebates to distributors, fees, and market promotion costs, leading to strained distributor relationships. As of now, the company's financial situation has not significantly improved, leading to a substantial reduction in brand promotion and marketing activities, which has had a significant impact on attracting investment. Additionally, negative media coverage and regulatory inquiries in the first half of the year have eroded distributor confidence in the company's future development, leading to a cautious attitude towards restocking and replenishment.