Jiangsu Yanghe Distillery ( 002304) H2 2025 earnings summary

Executive summary

• Operating revenue for 2025 was CNY 19.21 billion, down 33.47% year-over-year, with net profit attributable to shareholders at CNY 2.21 billion, a 66.94% decrease from 2024.

• The company faced a challenging liquor industry environment, marked by declining volume and profit, intensified competition, and a shift toward value cultivation and quality focus.

• Strategic adjustments included inventory reduction, price stabilization, product upgrades, and enhanced brand communication, with a focus on core markets and digital transformation.

Financial highlights

• Gross margin remained high at 72.71%, only slightly down by 1.35 percentage points year-over-year.

• Net cash flow from operating activities was negative at -CNY 763 million, a sharp decline from CNY 4.63 billion in 2024.

• Total assets at year-end were CNY 58.60 billion, down 12.99% from the previous year; net assets attributable to shareholders fell 9.29% to CNY 46.80 billion.

• Basic and diluted EPS were both CNY 1.4644, down 66.94% year-over-year.

• Cash dividend of CNY 14.70 per 10 shares proposed, totaling CNY 2.21 billion.

Outlook and guidance

• The company expects continued industry contraction in production and profit, with high-end liquor remaining stable and mid-range segments under pressure.

• 2026 strategy focuses on quality revolution, brand empowerment, product-driven growth, market expansion, and management upgrades.

• Risks include macroeconomic uncertainty, intensified competition, and evolving consumer demand.