In the first half of this year, Chinese A-share liquor companies have been facing a severe situation of declining revenue and net profit. Following the recent performance forecasts of several companies, market concerns about the liquor sector have intensified.
Specifically in terms of performance, Shui Jing Fang, Jiugui Liquor, and Shuijingfang have maintained profitability, but their net profits have seen significant declines. Shuijingfang is expected to have an operating income of 1.498 billion yuan in the first half of the year, a year-on-year decrease of 12.84%, with a net profit attributable to shareholders of 105 million yuan, down by 56.52% compared to the same period last year.
Shui Jing Fang also experienced the phenomenon of “increased volume but decreased prices”, with an expected increase in sales volume by 543 thousand liters, a 14.54% increase, but a decrease in revenue.
Jiugui Liquor expects a year-on-year decrease in net profit attributable to shareholders by 90% to 93%.
As the parent company of Niu Lan Shan, a famous liquor brand in Beijing, Sunxin Agriculture expects to achieve a net profit attributable to shareholders of 155 million to 195 million yuan, a significant decrease of 53.85% to 63.32% from the same period last year.
Some companies such as Jinzhongzi Liquor, Yan Shi Stock, and Hainan Coconut Island even reported losses.
In its performance forecast, Shui Jing Fang stated that the liquor industry as a whole is still in a phase of deep adjustment for the first half of 2025, especially in the second quarter, where traditional consumption scenarios such as business banquets and banquets continue to be under pressure, and the market recovery pace has slowed down.
Jiugui Liquor, on the other hand, mentioned that liquor companies are facing increasing pressures, with smaller and medium-sized liquor enterprises facing even greater challenges under the Matthew Effect, and distributors being more cautious about payments.
According to the China Alcoholic Drinks Association’s “Mid-term Research Report on China’s Liquor Market in 2025” released in June, 58.1% of distributors reported an increase in inventory, with over half facing the issue of price inversion. The average inventory turnover days in the liquor industry have reached 900 days, an increase of 10% compared to the same period last year.
Against the backdrop of rising inventory, leading liquor companies have actively implemented measures to stabilize prices in the first half of the year. Enterprises such as Wuliangye, Zhenjiu, Yanghe, Jinshiyuan, Fenjiu, Xijiuyuan, and Luzhou Laojiao have successively issued notices to halt sales in an attempt to control the flow of goods and counteract price inversion.
The report indicates that the price range of 800 to 1500 yuan is experiencing the most severe price inversion, while products priced between 500 to 800 yuan face the greatest survival challenges. The main selling price range is shifting from 300 to 500 yuan downwards towards 100 to 300 yuan.
Facing a sluggish market, terminal liquor merchants are actively seeking solutions. According to Jiemian News, a tobacco and liquor store owner in Chengdu, Sichuan, has introduced tobacco and liquor sets at different price points, where consumers can pay a bundled price to receive cigarettes, liquor, beverages, and even candies needed for a banquet table.