Luzhou Laojiao (000568) H1 2024 earnings summary

Executive summary

• H1 2024 operating revenue reached CNY 16.905 billion, up 15.84% year-over-year; net profit attributable to shareholders was CNY 8.028 billion, up 13.22% year-over-year.

• The company maintained strong market expansion, brand building, and digital marketing initiatives, with high-end baijiu products driving growth.

• No interim dividend was declared; a cash dividend of CNY 54.00 per 10 shares was approved post-period.

• The company advanced its “136” strategic plan, focusing on brand, quality, and digital transformation.

Financial highlights

• Operating revenue: CNY 16.905 billion (H1 2024), up 15.84% year-over-year.

• Net profit attributable to shareholders: CNY 8.028 billion, up 13.22% year-over-year.

• Basic and diluted EPS: CNY 5.46, up 13.28% year-over-year.

• Net cash flows from operating activities: CNY 8.23 billion, up 45.63% year-over-year.

• Gross margin for baijiu segment: 88.65%; mid- and high-end baijiu: 92.26%.

Outlook and guidance

• Focus on expanding market layout, deepening digital marketing, and leveraging major events for brand promotion in H2 2024.

• Continued investment in intelligent production, talent development, and digital empowerment.

• Strategic goal to regain “Top 3” ranking in the Chinese baijiu industry.