Guizhou Maotai Co., Ltd. (Maotai) announced on April 17 that its operating income in 2025 decreased by 1.21% year-on-year, while net profit attributable to the parent company shareholders declined by 4.53%. This marks the first profit decline in nearly a decade for Maotai, breaking its steady growth trend over the past ten years. Some investors have commented that “Maotai has stumbled.”
Maotai released its “2025 Annual Report” on April 17. The report indicated that in 2025, the operating income was 168,838,102,514.79 yuan, a decrease from 170,899,152,276.34 yuan in 2024, down by 1.21% year-on-year. The total profit amounted to 114,755,261,605.08 yuan, compared to 119,638,578,194.46 yuan in 2024, marking a 4.08% decline. Net profit attributable to the listed company’s shareholders was 82,320,067,101.68 yuan, a decrease from 86,228,146,421.62 yuan in 2024, down by 4.53%. Net profit attributable to the listed company’s shareholders after deducting non-recurring gains and losses was 82,293,107,655.25 yuan in 2025, down by 4.58% compared to 86,240,905,977.42 yuan in 2024.
Furthermore, the net cash flow generated from operating activities decreased by 33.46% from 92,463,692,168.43 yuan in 2024 to 61,522,204,989.35 yuan in 2025.
According to a report by Chao News under the Qianjiang Media Group, Maotai maintained double-digit growth for nine out of ten years from 2015 to 2024, with only a 3.44% growth rate in 2015 due to deep adjustments in the high-end liquor industry.
As a leader in the Chinese liquor industry, Maotai is considered a barometer of the industry. However, its performance in 2025 broke the steady growth trend of the past decade, leading many investors to exclaim, “Maotai is in trouble.”
Baijiu industry analyst Cai Xuefei told Chao News that the annual report reflects the difficulties and pressures faced by the liquor industry over the past year.
On April 16, Dongwu Securities issued a research report on the food and beverage industry, stating that the baijiu industry continued its trend of restructuring and reaching a bottom in 2025, entering a deeper adjustment phase in the second quarter. It is expected to maintain this trend in the first and second quarters of 2026, with the possibility of starting a new inventory cycle in the third quarter.
In its “2025 Annual Report,” Maotai acknowledged facing “macroeconomic risks, safety risks, public opinion risks, and environmental protection risks.”
After the release of Maotai’s annual report, many netizens viewed the decline in revenue and profit as normal, attributing it to the current economic downturn and the decreasing popularity of baijiu among younger consumers. However, some were surprised by the excessive profits of Maotai.
One netizen named “Qiyu Teacher” analyzed the financial statements, stating, “I work in finance, let me translate the financial report for you: revenue of 160 billion, net profit of 80 billion, net profit margin of 50%, which is after deducting various expenses and income taxes. Conservatively estimating a gross profit margin of over 70%, meaning Maotai sells for a thousand dollars to distributors after a cost of 300, making a profit of 700. So, the Maotai you buy for 2,000 to 3,000 yuan actually costs only a hundred or so yuan.”
Another netizen, “Simple,” commented, “It’s indeed profitable! With revenue of 160 billion and a net profit of 80 billion, this is the net profit after deducting Maotai’s high operating expenses, and I estimate a gross profit margin of 90%.”