Luzhou Laojiao (000568) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥25.73 billion, down 17.52% year-over-year; net profit attributable to shareholders was ¥10.83 billion, down 19.61% year-over-year.

• Gross margin for core high-end liquor remained high at 90.94%, but sales volume and revenue both declined.

• The company maintained strong brand leadership, continued digital transformation, and invested in R&D and ESG initiatives.

• Cash dividend payout ratio reached 78.48% of net profit, with total cash dividends of ¥8.5 billion for the year.

Financial highlights

• Operating income: ¥25.73 billion, down 17.52% year-over-year.

• Net profit attributable to shareholders: ¥10.83 billion, down 19.61% year-over-year.

• Basic and diluted EPS: ¥7.36, down 19.83% year-over-year.

• Operating cash flow: ¥7.12 billion, down 62.86% year-over-year.

• Gross margin for high-end liquor: 90.94%.

• Total assets at year-end: ¥64.79 billion, down 5.18% from previous year.

• Net assets attributable to shareholders: ¥49.78 billion, up 5.05% year-over-year.

Outlook and guidance

• The company expects the liquor industry to remain under pressure in the short term due to policy adjustments, consumption structure shifts, and intensified competition.

• Strategic focus remains on high-quality growth, digital transformation, and brand value enhancement.

• 2026 plan emphasizes stable progress, efficiency, and profitability, with continued investment in innovation, supply chain, and international expansion.