ZJLD Group (6979) H2 2025 earnings summary

Executive summary

• Revenue fell 48.3% year-over-year to RMB3,650.5 million, with net profit down 59.3% to RMB538.5 million, reflecting challenging market conditions and reduced baijiu demand.

• Gross profit margin remained stable at 58.5%, supported by higher-margin products like Da Zhen and Li Du.

• Strategic initiatives included launching the Premier Retailers Alliance model, digital transformation, and product innovation to address industry headwinds.

Financial highlights

• Revenue: RMB3,650.5 million (down 48.3% YoY); gross profit: RMB2,134.6 million (down 48.5% YoY).

• Net profit: RMB538.5 million (down 59.3% YoY); adjusted net profit: RMB523.4 million (down 68.8% YoY).

• Earnings per share: RMB0.163 (basic and diluted, down ~59% YoY).

• Net cash used in operating activities: RMB885.6 million (vs. RMB781.0 million generated in 2024).

• Final dividend proposed: HKD0.07 per share (vs. HKD0.21 in 2024).

Outlook and guidance

• Focus on expanding the Premier Retailers Alliance model and deepening market penetration in county and rural markets.

• Continued optimization of distribution channels and increased investment in consumer engagement and market development.

• Expectation of considerable revenue contributions from new business models in 2026.