Jiangsu Yanghe Distillery (002304) investor relations material

Executive summary

• Revenue for H1 2026 was ¥10.54 billion, down 28.76% year-over-year, with net profit attributable to shareholders at ¥2.60 billion, down 40.10%.

• The company operates primarily in the baijiu industry, focusing on both offline distribution and online direct sales, with no major changes in business model.

• The baijiu sector faced a deep adjustment period, with weak consumption and intensified competition, leading to a 4.7% national production decline.

• The company emphasized quality, product matrix optimization, brand building, market consolidation, and management upgrades to navigate industry challenges.

Financial highlights

• Operating income: ¥10.54 billion, down 28.76% year-over-year.

• Net profit attributable to shareholders: ¥2.60 billion, down 40.10% year-over-year.

• Operating cash flow: ¥335 million, down 45.65% year-over-year.

• Basic and diluted EPS: ¥1.7271, down 40.10% year-over-year.

• Gross margin for main business: 74.29%, down 1.65 percentage points.

• Total assets at period end: ¥55.98 billion, down 4.47% from year-end 2025.

• Net assets attributable to shareholders: ¥47.18 billion, up 0.82% from year-end 2025.

Outlook and guidance

• The company expects continued industry adjustment, with focus on core business, product innovation, and channel expansion to enhance competitiveness.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2026.