Anhui Kouzi Distillery (603589) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was ¥642.7 million, down 46.23% year-over-year; YTD revenue was ¥3.17 billion, down 27.24% year-over-year.

• Net profit attributable to shareholders for Q3 was ¥27.0 million, down 92.55% year-over-year; YTD net profit was ¥742.0 million, down 43.39% year-over-year.

• The sharp declines were attributed to weak consumer demand in the baijiu market and reduced sales of high-end products.

Financial highlights

• Gross margin declined due to lower average selling prices and a significant drop in revenue.

• Operating cash flow for Q3 was negative ¥7.47 million, a 102.11% decrease year-over-year; YTD operating cash flow was negative ¥390.4 million, down 208.91% year-over-year.

• Basic EPS for Q3 was ¥0.04, down 93.44% year-over-year; YTD basic EPS was ¥1.24, down 43.38% year-over-year.

• Total assets at quarter-end were ¥12.58 billion, down 7.87% from year-end 2024.

• Shareholders’ equity was ¥10.47 billion, down 0.39% from year-end 2024.

Outlook and guidance

• Management cited ongoing market weakness and continued investment in operations and marketing as key factors impacting profitability.