Anhui Gujing Gongjiu Co., Ltd. (Gujing Gongjiu), reported on August 29 that their operating income in the first half of this year decreased by 27.01% year-on-year, and net profit attributable to the parent company’s shareholders dropped by 40.89%. This marks the first time since mid-2021 that the company has experienced a simultaneous decline in operating income and net profit.
The company released its “2026 Interim Report” on the same day, revealing figures for the period from January to June. The report stated: “Operating income was 10,131,395,927.11 yuan, down by 27.01% year-on-year; net profit attributable to shareholders of the listed company was 2,164,379,928.17 yuan, down by 40.89% year-on-year; net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 2,150,029,442.57 yuan, down by 40.71% year-on-year.”
Data from the information service provider Wind showed that Gujing Gongjiu experienced a simultaneous decline in revenue and net profit in the first half of 2026 for the first time since mid-2021.
According to the announcement, the central China region, as Gujing Gongjiu’s core market, saw a revenue decline of over 25% in the first half of this year, directly impacting the company’s overall revenue, but still accounting for 90.07% of total revenue. The North China region saw the largest revenue decline of 50.71% year-on-year, while the South China region saw a 21.46% decrease. Additionally, international market revenue was 3.9434 million yuan, down by 20.24% year-on-year.
A decrease in income resulted in a decline in the company’s net cash flow. The announcement indicated that in the first half of the year, the net cash flow generated from operating activities decreased by over 60% to 1.543 billion yuan.
The announcement mentioned a decline in demand in the Chinese liquor market, with significant contraction in demand for business banquets and gifts. On the other hand, there was an increase in the proportion of mass consumption scenarios such as personal consumption, gatherings with friends and family, and home banquets, with demand focusing on products in the 100 to 300 yuan range. Business-related consumption remained low, reflecting an overall gap in demand year-on-year.
As reported by Financial First on August 28, as of that evening, except for Shanxi Fenjiu, the financial performance for the first half of the year for the remaining 19 A-share and H-share listed liquor companies was released. The total net profit attributable to the parent companies was 67.4 billion yuan, a decrease of 9.5 billion yuan compared to the same period last year, representing a 12.3% decrease.
According to the “2026 Mid-term Research Report on the Chinese Liquor Market” jointly released by the China Alcoholic Drinks Association, 74.8% of surveyed liquor companies experienced a contraction in revenue in the first half of the year, 86.7% saw a decrease in operating profit, and 56.6% of distributors noted an increased level of price inversion compared to the previous year. The industry-wide average inventory turnover days exceeded 900 days, and the overall destocking cycle is expected to take 2 to 3 years. The combined operating income of the 19 A-share listed liquor companies totaled approximately 179.4 billion yuan, a 5.1% decrease year-on-year.
The Beijing News on August 26 mentioned that the liquor industry continues to face challenges such as fierce competition, weak consumer momentum, and the contraction of supply and pricing.
Public information indicates that Gujing Gongjiu is one of China’s renowned eight major liquor companies, established in March 1999 with its headquarters located in Bozhou City, Anhui Province. The company, formerly known as Gongxing Caofang established in the 10th year of the Ming Dynasty’s Zhengde era (1515), completed its transformation into a joint-stock company and went public in 1996. It owns brands such as Gujing Gong, Huanghelou, and Laomingguang, covering five fragrance types: strong fragrance, light fragrance, Minglu fragrance, ancient fragrance (roasted wheat fragrance), and soy fragrance.
As a leading Huizhou liquor, Gujing Gongjiu is often referred to in the market alongside brands like Yingjia Gongjiu, Kouzijiao, and Jinzhongzi Jiu as the “Four Golden Flowers of Huizhou Liquor.”
By the close of trading on August 28, Gujing Gongjiu was trading at 93.9 yuan per share, representing a 1.88% increase.