Anhui Kouzi Distillery (603589) investor relations material

Executive summary

• Revenue for 2025 was ¥3.99 billion, down 33.65% year-over-year; net profit attributable to shareholders was ¥673 million, down 59.32% year-over-year.

• The company faced macroeconomic headwinds, industry competition, and weak consumption, leading to significant declines in high-end product sales.

• Cash flow from operating activities was negative at -¥216 million, a sharp decline from the previous year.

• The board proposes a cash dividend of ¥5.00 per 10 shares, representing a payout ratio of 44.31%.

Financial highlights

• Gross margin for the year was 68.91%, down 5.42 percentage points year-over-year.

• Basic EPS was ¥1.13, down 59.06% year-over-year.

• Operating profit was ¥891 million, down 60.89% year-over-year.

• Cash and cash equivalents at year-end were ¥910 million, down 52.66% from the prior year.

• R&D expenses totaled ¥31 million, accounting for 0.78% of revenue.

Outlook and guidance

• The company expects continued industry pressure in 2026 and will focus on channel optimization, product structure adjustment, and digital transformation.

• Plans include deepening market penetration, optimizing product mix, and enhancing digital and membership operations.