Beijing Shunxin Agriculture Co., Ltd. (Shunxin Agriculture) reported a year-on-year decrease of 79.85% in its net profit attributable to the parent company in the third quarter of this year, with losses reaching nearly 100 million yuan. The company attributed the losses to a significant drop in sales of its white liquor brand Niulanshan Er Guotou, with an average price of only around 20 yuan.
According to the “2025 Third Quarter Report” released by Shunxin Agriculture on the evening of October 30, the company’s operating income in the third quarter of this year was 1.28 billion yuan, a decrease of 21.7% year-on-year. The net profit attributable to the parent company showed a loss of 95.9 million yuan, and the non-recurring net profit attributable to the parent company increased from a loss of 40.35 million yuan in the same period last year to a loss of 94.69 million yuan, further widening the losses.
In summary, for the first three quarters of the year, Shunxin Agriculture’s operating income was 5.87 billion yuan, down 19.8% year-on-year; the net profit attributable to the parent company was 76.98 million yuan, down 79.9% year-on-year; and the non-recurring net profit was 82.76 million yuan, down 78.3% year-on-year.
Observer Net noted on October 31 that this is the second consecutive quarter of losses for Shunxin Agriculture this year. In the second quarter of 2025, the company achieved revenue of 1.334 billion yuan, a decrease of 18.12% year-on-year; the net profit attributable to the parent company was -109 million yuan, tripling the loss compared to the same period last year. In the first quarter of 2025, which was the only profitable quarter for Shunxin Agriculture so far this year, the company recorded total operating income of 3.258 billion yuan, net profit attributable to the parent company of 282 million yuan, and non-recurring net profit of 282 million yuan. However, the accumulated losses in the second and third quarters are on the verge of wiping out the profits earned in the first quarter.
Shunxin Agriculture attributed the losses to a cold slowdown in its white liquor business, which accounts for 80% of the company’s revenue, being the main reason for the decline in its performance.
In the quarterly report, Shunxin Agriculture stated that the white liquor industry is experiencing a trend of reduced production and squeezed growth, with white liquor enterprises facing multiple challenges such as switching consumption scenarios, changing consumer habits, and upgrading market marketing, indicating a transition from “quantity” to “quality” in consumer trends.
Established on September 21, 1998, Shunxin Agriculture Co., Ltd. was listed on the Shenzhen Stock Exchange on November 4, 1998. The company has developed two main industries focusing on white liquor and pork. Its main products in the white liquor industry are represented by “Niulanshan” and “Ningcheng.”
From a branding perspective, due to the long-term production and sale of low-end white liquor, Niulanshan has been positioned as a low-end popular liquor with a price of around 20 yuan. However, with the decline of the white liquor market, many white liquor companies have started to enter this field. According to incomplete statistics from mainland media apps, Fenjiu Bofen, Xifengjiu Green Neck, Wuliangye Jianzhuang, Langjiu Shunpinlang, Jiannanchun Gongnong Pai, Tuopai T68, Luzhou Laojiao Erqu, Yanghe Dazhu, and others have directly competed with Niulanshan in terms of cost performance.
In the light bottle liquor (without external packaging box) sector where Shunxin Agriculture is mainly positioned, market competition has entered a fierce stage, with many liquor companies rushing to grab market share. Observer Net reported that in June 2025, Yanghe Shares and JD.com jointly released the high-end light bottle liquor Yanghe Dazu, priced at 59 yuan per bottle of 42 degrees; in July, Yilite released a light bottle liquor strategy in Xinjiang, launching two Yililiangcang products priced at 28 yuan (500ml 42 degrees) and 35 yuan (500ml 50 degrees), directly impacting the core price range of Niulanshan.
Li Xiaoqing, an independent commentator on the liquor industry, pointed out that the decline in sales of Niulanshan Er Guotou is not just a problem of a single brand but a systemic challenge faced by the consumer goods industry. The biggest problem in the Chinese consumer goods market currently lies in insufficient purchasing power, with a large number of flexible employees, invisible unemployed people, and low-income groups having pessimistic expectations about future income, directly leading to constrained consumption and downgrading of consumption, with these groups being the core consumers of popular consumer goods such as Niulanshan. Additionally, over 70% of Niulanshan’s revenue relies on dining and immediate consumption scenarios, but with the slow recovery of public dining, core consumption scenarios like banquets and gatherings have significantly reduced, and even the attribute of “low-priced necessity” struggles to sustain sales.
Li Xiaoqing believes that the fundamental reasons for the decline in Shunxin Agriculture’s white liquor business are the consumption downgrade caused by insufficient social purchasing power, and the multiple impacts on consumption scenarios and channel systems. If the future economic environment and employment situation do not show significant improvements, the mid-to-low-end consumer goods market will continue to face significant pressure.
Moreover, it’s not just Shunxin Agriculture; with the successive release of third-quarter financial reports by mainland liquor companies, the industry’s performance in the third quarter of this year can be described as dismal, especially for companies focusing on mid to high-end products like Gujing Gong, Shed, and Shuijingfang.
The third-quarter reports show that among liquor companies, Yanghe Shares experienced a 29.01% year-on-year decline in revenue in the third quarter, with a loss of 369 million yuan for the quarter, making it a rare case of a leading liquor company falling into losses; Yilite’s net profit fell by 158.52% year-on-year; Gujing Gong Wine declined by 74.56%; Kweichow Moutai dropped 92.55%; Jinzongzi Wine decreased by 74.42%, with a loss of 100 million yuan; Shuijingfang dropped by 75.01%; Jiuguijiu declined by 70.93%; Laobaigan Wine decreased by 68.78%; Shed’s business fell off by 63.18%; with all experiencing declines of over 60%.
On October 30th, Damao Finance, owned by Beijing Jin Zhihui Culture Co., Ltd., mentioned that although the market had anticipated a further decline in the performance of the white liquor industry, the actual performance of the liquor companies turned out to be even worse than expected.
After reaching its peak in liquor production in 2016, the mainland white liquor market has shrunk by nearly 70% by 2024, facing challenges such as young people’s lack of interest in purchasing and limited consumption by middle-aged and elderly people.
Sina Finance’s “Market Information” believes that in an economic downturn, “consumption downgrading” causes consumers to be more cautious about spending on non-essential items like white liquor; the younger generation shows less interest in white liquor; the spending power of middle-aged and elderly people is not enthusiastic, leading to a change in drinking habits as many prefer tea over alcohol for socializing; the diversification of alcohol competition, with low-alcohol drinks being favored by young people, are five key factors contributing to the sluggish Chinese white liquor market.