ZJLD Group (6979) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, declined 39.6% year-over-year to RMB2,497.1 million, reflecting weak baijiu consumption and disciplined sales pacing to maintain healthy channel inventory.

• Net profit attributable to equity shareholders decreased 23.5% year-over-year to RMB574.8 million, with adjusted net profit down 39.8% to RMB613.2 million.

• Gross profit margin improved slightly to 59.0% from 58.8% year-over-year, driven by cost optimization, increased self-produced base liquor, and higher revenue contribution from Li Du.

• All four major brands—Zhen Jiu, Li Du, Xiang Jiao, and Kai Kou Xiao—experienced revenue declines, with Zhen Jiu and Kai Kou Xiao seeing the largest drops.

• Strategic initiatives included disciplined sales pacing, channel innovation, product portfolio optimization, and continued investment in digitalization, ESG, and brand promotion.

Financial highlights

• Revenue: RMB2,497.1 million (down 39.6% year-over-year).

• Gross profit: RMB1,474.3 million (down 39.3% year-over-year); gross margin at 59.0%.

• Net profit: RMB574.8 million (down 23.5% year-over-year).

• Adjusted net profit: RMB613.2 million (down 39.8% year-over-year).

• Net cash used in operating activities: RMB322.3 million (vs. net cash generated of RMB574.9 million in 1H2024).

• Basic EPS: RMB0.174 (down 24.4% year-over-year).

• No interim dividend declared for the period.

Outlook and guidance

• The group expects continued industry challenges in 2H2025 but remains confident in long-term growth, citing accelerated transformation in channel management and brand operations.

• Strategic focus includes launching new flagship products, deepening market penetration, and targeting emerging consumption trends and scenarios.