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It's exploded, totally messed up, profits are declining, and the national team has even pulled out. Last night, Kweichow Moutai's half-year report was released, and something feels off. The overall performance was significantly below expectations. Revenue for the first half of the year was about ¥90.7 billion, a year-on-year increase of only 1.47%; net profit excluding non-recurring items was about ¥44.4 billion, a year-on-year decrease of 2.04%. Looking at the second quarter alone, the pressure is even more obvious: Revenue dropped about 9.2% year-on-year, net profit excluding non-recurring items fell about 6.88%, roughly 10% lower than previous institutional expectations. This is no longer just a simple "slowdown in growth," but core profits have started to show negative growth. But I think there are actually a few changes in Moutai's financial report that are truly worth paying attention to: First, direct sales are getting stronger while distributors are weakening. In the first half, Moutai's direct sales revenue was about ¥51.9 billion, accounting for more than half of total revenue. Previously relying on a large distributor system, it is now accelerating the shift to direct sales and the consumer end. When the industry was booming, the distributor system helped expand the market; but as the industry enters an adjustment period, these intermediaries have become costs and risks. So what Moutai is doing now is essentially reorganizing its sales system. Second, the cash flow is impressively strong. Net cash flow from operating activities was about ¥70.7 billion, a year-on-year increase of over 400%. The cash on hand has also reached about ¥184.8 billion. They can still earn over ¥80 billion a year, and have this much cash sitting idle. My simple view: Don't just let the money lie in the account.