Anhui Kouzi Distillery (603589) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 was RMB 2.53 billion, down 20.07% year-over-year, with net profit attributable to shareholders at RMB 715 million, a 24.63% decrease year-over-year.

• The decline was mainly due to reduced sales of high-end products and overall industry headwinds, including weak demand and high inventory.

• The company focused on market, structure, and brand upgrades, with notable growth in e-commerce and digital marketing channels.

• Strategic projects in smart manufacturing, cultural tourism, capacity optimization, and product R&D advanced as planned.

Financial highlights

• Operating income: RMB 2,530,980,655.68, down 20.07% year-over-year.

• Net profit attributable to shareholders: RMB 715,046,548.96, down 24.63% year-over-year.

• Operating cash flow: -RMB 382,934,622.95, a significant decrease due to lower cash receipts from sales.

• Basic EPS: RMB 1.20, down 24.05% year-over-year.

• Gross margin remained robust despite revenue decline; cost control measures were implemented.

Outlook and guidance

• The company expects continued industry pressure from economic headwinds and consumption weakness.

• Focus remains on market expansion, product structure optimization, and digital transformation.

• No interim dividend or capital increase from reserves was proposed for the period.