Sichuan Shuijingfang Co., Ltd. (Shuijingfang) announced on January 20 that it is expected to see a year-on-year decrease of 42% in operating income and a 71% drop in net profit in 2025, potentially reaching a new low since 2018.
In its “2025 Performance Forecast” released on January 20, Shuijingfang stated, “It is expected that the net profit attributable to the owners of the parent company in 2025 will be 391.85 million yuan, a decrease of 949.18 million yuan compared to the same period last year, representing a 71% decrease. The company is expected to achieve operating income of 3.03776 billion yuan in 2025, a decrease of 2.179 billion yuan, representing a 42% decline.”
According to data from Wind Information, with a predicted net profit of 392 million yuan, Shuijingfang’s net profit in 2025 may hit a new low since 2018.
The announcement explained the decline in profits, stating, “In 2025, the Baijiu industry entered a period of deep adjustment under the multiple impacts of macroeconomic cycles, industry restructuring, and policy adjustments. Traditional business banquets and other consumption scenes are recovering slowly, and overall industry inventory levels are high.”
According to reports from The Paper, in the A-share market, Shuijingfang is currently the only listed Baijiu company in China controlled by foreign capital. Its third-quarter report for 2025 showed that British spirits giant Diageo Plc holds a 63.27% stake in Shuijingfang. Last year, rumors of Shuijingfang being acquired circulated. On December 25th, rumors of “Jiannanchun acquiring Shuijingfang” surfaced, to which Shuijingfang subsequently issued a clarification announcement denying the news.
Public records show that the history of Sichuan Shuijingfang Co., Ltd. can be traced back to the late Yuan and early Ming dynasties. The company was listed on the Shanghai Stock Exchange in 1996.
Overall, the Chinese Baijiu market in 2025 is still in a period of deep adjustment. Sales are weak, and demand is sluggish. According to the “2025 Mid-term Research Report on the Chinese Baijiu Market,” the average industry inventory turnover days have reached 900 days, an increase of 10% compared to the previous year, with 60% of companies experiencing price inversion.
Even during the highly anticipated traditional Chinese Mid-Autumn Festival, sales failed to reverse the market downturn. Third-quarter financial reports from Baijiu companies showed a significant decline in profits, especially for companies specializing in mid-to-high-end products such as Gujing Gong, Shedeh, and Shuijingfang. Some even reported losses, with Yanghe Co., Ltd. seeing a 29.01% decline in revenue year-on-year and a quarterly loss of 369 million yuan, making it a rare case of a leading Baijiu company incurring losses.
As of the closing on January 19, Shuijingfang’s stock price was at 40.39 yuan per share, up 0.80%, with a total market value of 19.7 billion yuan.