Anhui Kouzi Distillery (603589) H1 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 was RMB 1.95 billion, down 22.89% year-over-year, with net profit attributable to shareholders at RMB 364.86 million, a 48.97% decrease year-over-year.

• The decline in profit was mainly due to a sharper drop in revenue than in operating expenses, as the company maintained investments in operations and marketing.

• Cash flow from operating activities remained negative at -RMB 256.58 million, though improved from the previous year.

• The company continued to focus on core white liquor business, optimizing product structure, and expanding both online and offline brand presence.

Financial highlights

• Operating income: RMB 1,951,744,051.30, down 22.89% year-over-year.

• Net profit attributable to shareholders: RMB 364,856,015.35, down 48.97% year-over-year.

• Gross margin remained robust, but total profit and net profit fell nearly 50% due to limited reduction in expenses.

• Basic EPS: RMB 0.61, down 49.17% year-over-year.

• Net assets attributable to shareholders at period end: RMB 10.47 billion, up 0.64% from year-end 2025.

Outlook and guidance

• The company plans to deepen market penetration in Anhui and expand in the Yangtze River Delta, with a focus on both online and offline marketing.

• Product innovation and diversification will continue, targeting new consumer segments and scenarios.

• Ongoing investment in digital transformation and integration with cultural tourism is expected to enhance competitiveness.