Luzhou Laojiao (000568) investor relations material

Executive summary

• Q3 2025 operating revenue was CNY 6.67 billion, down 9.8% year-over-year; Q1–Q3 revenue totaled CNY 23.13 billion, a 4.84% decrease year-over-year.

• Net profit attributable to shareholders for Q3 was CNY 3.10 billion, down 13.07% year-over-year; Q1–Q3 net profit was CNY 10.76 billion, a 7.17% decrease year-over-year.

• Basic and diluted EPS for Q1–Q3 were CNY 7.31, down 7.35% year-over-year.

Financial highlights

• Gross margin remained robust despite revenue and profit declines.

• Net cash flows from operating activities for Q1–Q3 were CNY 9.82 billion, down 21.20% year-over-year.

• Total assets as of September 30, 2025, were CNY 65.50 billion, down 4.15% from December 31, 2024.

• Net assets attributable to shareholders increased 4.84% to CNY 49.68 billion.

• Weighted average ROE for Q1–Q3 was 22.00%, down 3.88 percentage points year-over-year.

Key financial ratios and metrics

• Operating margin and net margin declined in line with lower revenue and profit.

• Financial expenses decreased by CNY 143.08 million due to lower bond interest and reclassification of bill discounting expenses.

• Other income rose by CNY 11.48 million, mainly from increased government grants.

• Investment income increased by CNY 14.64 million, driven by higher earnings from investee Huaxi Securities.