Wuliangye (000858) Q2 2024 earnings summary

Executive summary

• Operating revenue for H1 2024 reached RMB50.65 billion, up 11.3% year-over-year; net profit attributable to shareholders was RMB19.06 billion, up 11.86% year-over-year.

• Liquor products remain the core business, with strong performance in both Wuliangye-branded and NongXiang Baijiu segments.

• The company maintained high brand visibility through major sponsorships and cultural events, supporting continued brand value growth.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit margin for liquor products was 82.59%, with Wuliangye-branded Baijiu at 86.69%.

• Net cash from operating activities increased 18.52% year-over-year to RMB13.43 billion.

• Basic and diluted EPS were both RMB4.91, up 11.87% year-over-year.

• Weighted average ROE was 13.70%, down 0.49 percentage points from last year.

• Total assets grew 12.42% to RMB185.98 billion as of June 30, 2024.

Outlook and guidance

• The company aims to maintain strategic focus, strengthen core competitive edges, and pursue high-quality, sustainable growth amid industry competition and macro uncertainties.

• Ongoing implementation of the "Dual Enhancement of Development Quality and Investor Returns" action plan, with continued focus on innovation, compliance, and shareholder returns.