Analysis Report on Base Liquor Inventory of ST Yanshi (600696)

Based on public information I collected through multiple channels, the base liquor inventory situation of ST Yanshi (Shanghai Guijiu Co., Ltd., stock code 600696) is as follows:

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According to the operating data disclosed in the company’s 2024 Annual Report[0]:

Inventory Type	Quantity (Kiloliters)	Notes
Finished Liquor	1,039.66	Products packaged and ready for sale
Semi-finished Liquor (including base liquor)	7,471.62	Mainly base liquor reserves
Base Liquor Impairment Status	No Impairment	No inventory impairment provision for semi-finished liquor (base liquor)

The company’s main production base is

, located in the Famous Liquor Industrial Park, Renhuai City, Guizhou Province[0][1]:

Capacity Indicator	Data
Designed Capacity	1,500 tons/year
Actual Capacity	1,600 tons/year
Under-construction Technical Transformation and Expansion Project for Sauce-Flavored Baijiu	Will reach 8,500 tons/year upon completion

The company adopts the traditional

[0][1]:

“The production cycle of base liquor lasts up to one year, including two feedings and 1 to 7 distillation rounds. It is summarized as one production cycle per year, two feedings, nine times of steaming, eight times of fermentation, seven times of liquor extraction, spanning the four seasons of spring, summer, autumn and winter over one year. It is characterized by a long production cycle and high capital occupation.”

Reason Analysis:

1. Disclosure Level Restrictions
   : Detailed age composition of base liquor is core commercial confidential information of the enterprise and is usually not disclosed in detail in public reports
2. Industry Practice
   : Baijiu enterprises generally only disclose the total amount of semi-finished liquor and rarely disclose the age structure
3. Company Development Stage
   : ST Yanshi (formerly Yanshi Co., Ltd.) began transforming and deploying sauce-flavored liquor business around 2019. Compared with established liquor enterprises such as Kweichow Moutai and Shede Spirits, its base liquor reserves are relatively limited[2]

For industry reference, the base liquor reserves of other listed baijiu enterprises are as follows[3]:

Enterprise	Semi-finished Liquor Inventory (10,000 Kiloliters)	Features
Yanghe Co., Ltd.	65+	Industry Leader
Luzhou Laojiao	43+	Nationally Leading
Shede Spirits	12+	Famous for Aged Liquor Reserves
Kweichow Moutai	Hundreds of thousands of tons	Valued at Trillions of Yuan

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ST Yanshi currently holds base liquor reserves of approximately

, adopts the traditional sauce-flavored brewing process, has an annual production capacity of about 1,600 tons, and is advancing a capacity expansion project. However, the specific age composition of the inventory base liquor (proportion distribution of base liquor of different ages) is core operating information of the enterprise. It is recommended to pay attention to the company’s subsequent investor communication activities or detailed disclosures in annual reports.

To obtain more detailed information on age composition, it is recommended to:

1. Pay attention to the company’s performance briefings or investor communication activities
2. Contact the company’s investor relations department directly
3. Review the company’s more detailed ESG reports or special disclosure documents

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[0] 2024 Annual Report of Shanghai Guijiu Co., Ltd. (https://file.finance.qq.com/finance/hs/pdf/2025/04/23/1223214665.PDF)

[1] 2024 Semi-Annual Report of Shanghai Guijiu Co., Ltd. (http://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=600696&id=10414715)

[2] Announcement of Shanghai Guijiu Co., Ltd. on the Convening of the 2022 Online Performance Briefing (http://shhk.zqrb.cn/pdf/20230518/news-323-747692.pdf)

[3] Baijiu Inventory Hits a New High! Unsaleable or Overstocked? (https://www.stcn.com/article/detail/1206321.html)