Anhui Kouzi Distillery (603589) H2 2024 earnings summary

Executive summary

• 2024 revenue reached RMB 6.01 billion, up 0.89% year-over-year; net profit attributable to shareholders was RMB 1.66 billion, down 3.83% year-over-year.

• Cash dividend proposal: RMB 13 per 10 shares (pre-tax), pending shareholder approval.

• Company maintained strong market position amid industry headwinds, focusing on high-end product promotion and digital transformation.

• Audit report issued with standard unqualified opinion.

Financial highlights

• Operating income: RMB 6.01 billion, up 0.89% year-over-year; operating cost: RMB 1.53 billion, up 3.34%.

• Net profit attributable to shareholders: RMB 1.66 billion, down 3.83% year-over-year.

• Operating cash flow: RMB 1.46 billion, up 60.24% year-over-year.

• Gross margin for main business: 74.33%, down 0.59 percentage points year-over-year.

• Basic EPS: RMB 2.76; weighted average ROE: 16.39%.

Outlook and guidance

• 2025 industry outlook remains challenging with weak consumption and ongoing structural adjustments.

• Strategic focus on market, product, and brand upgrades; digitalization and capacity expansion projects to continue.

• Emphasis on high-end product promotion, e-commerce channel expansion, and digital marketing.