Jiangsu King's Luck Brewery Joint-Stock Co. (603369) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 6.44 billion, down 7.41% year-over-year; net profit attributable to shareholders was RMB 2.08 billion, down 6.60% year-over-year.

• The company faced a challenging environment with the liquor industry in a deep adjustment phase, marked by volume, price, and profit contraction.

• Strategic focus remained on deepening provincial markets, expanding outside Jiangsu, and accelerating digital and ESG initiatives.

Financial highlights

• Operating income: RMB 6.44 billion, down 7.41% year-over-year.

• Net profit attributable to shareholders: RMB 2.08 billion, down 6.60% year-over-year.

• Operating cash flow: RMB 1.62 billion, up 50.31% year-over-year.

• Gross margin remained robust; cost control and efficiency measures contributed to stable profitability.

• Non-recurring losses (mainly asset disposals and fair value changes) totaled RMB -13.85 million.

Outlook and guidance

• The company expects continued industry headwinds, with focus on inventory reduction, price stabilization, and channel optimization.

• Strategic priorities include product innovation, digital transformation, and ESG leadership.