Anhui Kouzi Liquor Co., Ltd. (Kouzi Cellar) announced on January 7 that the company expects a decrease of 50% to 60% in net profit for the year 2025. The decline in profit is primarily attributed to the declining market demand and policy changes, leading to a significant drop in sales of high-end cellar products.
In the “2025 Annual Performance Forecast Reduction Announcement” issued on the 7th, Kouzi Cellar stated, “It is expected that the net profit attributable to the shareholders of the listed company for the year 2025 will be between 662.10 million yuan and 827.60 million yuan. Compared with the same period of the previous year, it is expected to decrease by 827.67 million yuan to 993.17 million yuan, a year-on-year decrease of 50% to 60%.”
Furthermore, “The company expects the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses for the year 2025 to be between 645.27 million yuan and 810.77 million yuan. Compared with the same period of the previous year, it will decrease by 799.41 million yuan to 964.91 million yuan, a year-on-year decrease of 49.65% to 59.93%.”
The announcement explained that the main reason for the decline in net profit is due to “the intensified market differentiation and channel changes in the liquor industry, combined with the impact of declining demand and policy changes, resulting in a significant decrease in sales of high-end cellar products, leading to a reduction in operating income.”
According to the Southern Metropolis Daily on January 7, high-end products are the core source of income for Kouzi Cellar. In the first three quarters of 2025, the sales revenue of high-end liquor was 2.96 billion yuan, accounting for 95% of the total liquor revenue, but this segment’s revenue decreased by 27.98% year-on-year, showing the most significant decline among all products, thus leading to an overall decline in performance.
Public records show that Anhui Kouzi Liquor Co., Ltd. was established on December 26, 2002. Its predecessor was the state-owned Suixi People’s Distillery founded in May 1949, and it is a key backbone enterprise in China’s liquor industry. The company was listed on the Shanghai Stock Exchange in June 2015 and owns brands such as Kouzi Cellar and Kouzi Fang, making it the 17th liquor company and the 4th liquor listed company in Anhui Province.
According to Kouzi Cellar’s 2025 third-quarter report, the operating income for the first three quarters was 3.174 billion yuan, a decrease of 27.24% year-on-year; the net profit attributable to the parent company was 742 million yuan, a decrease of 43.39% year-on-year; with the operating income for the third quarter being 643 million yuan, a decrease of 46.23% year-on-year; and the net profit attributable to the parent company was 26.9651 million yuan, a decrease of 92.55% year-on-year.
Data provider Wind stated that Kouzi Cellar’s net profit in the third quarter of 2025 decreased by over 90% year-on-year, marking the worst quarterly performance since its listing in 2015.
In its 2025 third-quarter report, Kouzi Cellar admitted, “Since 2025, the liquor industry has seen intensified market differentiation and channel changes, with continuous shrinkage in production and slowing sales growth. Especially with the impact of economic downturn, sluggish consumption, and other factors, the industry as a whole is under pressure, characterized by declining demand, slow sales, and high inventory levels becoming the industry norm.”
While the company’s performance declined, Kouzi Cellar’s controlling shareholder reduced its stock holdings. In July 2025, Kouzi Cellar announced a shareholder’s plan to reduce holdings, with major shareholder Liu Ansheng planning to reduce up to 10 million shares, accounting for 1.67% of the total share capital, between August 12, 2025, and November 11, 2025, through block trading. Based on the stock price at the time, this would amount to approximately 336 million yuan.
Some investors expressed concerns about the shareholder’s plan to reduce holdings by 1.67% in a short period (within 3 months), considering the substantial scale and rapid pace, leading to speculation about the confidence of shareholders and the company’s future prospects.
The current situation of Kouzi Cellar reflects the overall bleak situation of the Chinese liquor industry. According to The Paper on January 7, the liquor industry is still undergoing a deep adjustment period. Data released by the National Bureau of Statistics of China recently shows that in November 2025, the output of industrial liquor above a designated scale was 318,000 kiloliters, a decrease of 13.8% year-on-year. From January to November, the cumulative output was 3.215 million kiloliters, a decrease of 11.3% year-on-year.
As of the closing on January 7, Kouzi Cellar’s stock price was 30.32 yuan per share, a decrease of 0.52%, with a total market value of 18.1 billion yuan.