Jiangsu Yanghe Distillery ( 002304) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥19.21 billion, down 33.47% year-over-year, with net profit attributable to shareholders at ¥2.21 billion, a 66.94% decrease from 2024.

• Gross margin remained high at 72.71%, but sales volume and production volume of both baijiu and wine dropped sharply due to market demand and strategic adjustments.

• The company maintained a strong brand presence and continued to invest in R&D and digital transformation, despite industry headwinds.

Financial highlights

• Operating cash flow was negative at -¥763 million, a 116.48% decline year-over-year, mainly due to lower sales and reduced cash inflows.

• Total assets at year-end were ¥58.60 billion, down 12.99% from the previous year.

• Basic and diluted EPS were both ¥1.4644, down 66.94% year-over-year.

• R&D expenses increased 38.35% to ¥145 million, with R&D investment ratio rising to 0.80% of revenue.

• Dividend payout proposed at ¥14.70 per 10 shares, totaling ¥2.21 billion, representing 100% of the profit distribution.

Outlook and guidance

• The company expects continued industry contraction and intensified competition, with a focus on quality improvement, brand empowerment, and market expansion in 2026.

• Strategic priorities include stabilizing prices, reducing inventory, and enhancing consumer engagement.

• Risks identified include macroeconomic volatility, intensified competition, and shifting consumer demand.