China’s leading liquor company, Yibin Wuliangye Co., Ltd. (Wuliangye), saw its net profit attributable to shareholders drop by over 65% in the third quarter of this year, a decline greater than what analysts had anticipated. As the third-quarter financial reports of liquor companies in mainland China continue to be released, profits have sharply decreased across the board, with some even reporting losses.
On the evening of October 30, Wuliangye released its “Third Quarter Report for 2025.” The report revealed a decline in both operating income and net profit for the third quarter of this year. Specifically, the company’s revenue was 8.174 billion yuan, a 52.66% decrease year-on-year, while its net profit reached 2.019 billion yuan, down 65.62% compared to the same period last year.
For the first three quarters of this year, Wuliangye’s revenue totaled 60.945 billion yuan, a 10.26% decrease year-on-year, with net profit attributable to shareholders at 21.511 billion yuan, a 13.72% decrease compared to the same period last year.
In response to these figures, Wuliangye stated in its third-quarter report that the decline in revenue was due to the liquor industry being in a period of deep adjustment, with a slower-than-expected recovery in effective demand. The decrease in profit was attributed to the drop in revenue, as well as increased investments made by the company to adapt to changing market dynamics.
In mid-October, GF Securities had predicted a decline in Wuliangye’s performance that was significantly higher than other brokerage firms, and their forecast has now materialized. GF Securities pointed out three main reasons for Wuliangye’s substantial decline in the third quarter. Firstly, the declining demand led to a continuous decrease in the price of their common Wuliangye (Pu Wu) product, which fell to around 820 yuan per bottle, a decrease of 100 yuan per bottle from the beginning of the year. Secondly, the company was expected to actively adjust its business strategies in the third quarter to reduce channel inventory and stabilize product prices to boost distributor confidence. Lastly, the increasing proportion of high-end products in Wuliangye’s revenue in recent years was not aligned with the trend of focusing on mid-to-low-end products in the industry, leading to a supply-demand imbalance as the company strived to meet annual targets.
As the third-quarter financial reports of liquor companies in mainland China are gradually released, the performance of these companies in the third quarter of this year can be described as bleak. This includes companies like Gujinggong, Shede, and Shuijingfang, which mainly produce mid-to-high-end products.
According to the reports, among liquor companies, Yanghe Co., Ltd. saw a 29.01% year-on-year decrease in revenue in the third quarter, with a quarterly net loss of 369 million yuan, a rare occurrence among leading liquor companies.
Additionally, Yilite’s net profit dropped by 158.52% year-on-year; Shunxin Agriculture’s net profit fell by 136.75%; Gujinggong’s net profit dropped by 74.56%; Kouzijiao declined by 92.55%; Jinzhongzi liquor decreased by 74.42%, resulting in a loss of 100 million yuan; Shuijingfang’s profit fell by 75.01%; Jiugui liquor declined by 70.93%; Laobaigan liquor dropped by 68.78%; Shede liquor industry saw a decrease of 63.18%, with all declines exceeding 60%.
Furthermore, although Guizhou Maotai, as the industry leader, did not experience a decline in profits, its revenue growth rate in the third quarter was less than 1%. Moreover, Maotai’s prices have been continuously declining this year, with the price of a 25-year-old Feitian Maotai box dropping to 1690 yuan per bottle on October 30, hitting a new low after breaking below the psychological threshold of 1800 yuan in September.
According to DaMo Finance, under Beijing Jinhuiwen Cultural Co., Ltd., on October 30th, although the market had predicted a further decline in the performance of the liquor industry, the actual performance of liquor companies proved to be worse than expected.
The Chinese liquor market reached its peak in production in 2016, but by 2024, production had decreased by nearly 70%. Today, the industry is facing a dilemma due to factors such as the reluctance of young people to consume, and constraints on consumption among middle-aged and elderly consumers.
Sina Finance’s “Market Information” believes that five major factors have contributed to the sluggish state of the Chinese liquor market.
First, economic constraints on consumer purchasing power, within the context of “consumption downgrading,” have caused consumers to be more cautious about spending on non-essential items like liquor. The unstable economy has severely impacted liquor consumption, with businesses facing difficulties, construction sites being shut down, reductions in business banquets, and weddings being scaled down. This combination of factors has led to a continuous decline in liquor sales, with many liquor salespeople transitioning to other industries.
Secondly, younger generations have little interest in liquor. Those born in the 1990s and 2000s have become the main consumer demographic, and they prefer beer, fruit wine, and pre-mixed cocktails for leisure. They perceive liquor’s taste as spicy, having a quick effect, slow recovery, and an outdated image, causing them to view drinking liquor at gatherings as “unconventional.”
Moreover, middle-aged and elderly consumers have reduced purchasing power. As they age, health issues such as hypertension, diabetes, and gout become obstacles to drinking. These individuals are gradually approaching retirement, with significantly fewer workplace social engagements. Consequently, business-related liquor consumption has also halved.
Additionally, a shift in drinking habits has seen many people switch from social drinking to tea consumption, while the competition in the alcoholic beverage market has become more diversified, with low-alcohol drinks being favored by the younger population.
The Chinese liquor industry is currently facing a “midlife crisis”: being shunned by the youth, experiencing decreased consumption among the middle-aged and elderly, and significant impacts from economic fluctuations.