Gujing Gongjiu H1 2026 Revenue Falls 27%, Net Profit Drops 40.89%

Gujing Gongjiu disclosed its 2026 semi-annual report on August 28. During the reporting period, the company achieved operating revenue of RMB 10.131 billion, down 27.01% year-on-year; net profit attributable to shareholders was RMB 2.164 billion, down 40.89%; net cash flow from operating activities was RMB 1.543 billion, down 62.87%. The baijiu industry continued its deep adjustment cycle, with consumption scenarios being reshaped and market competition intensifying.

By quarter, in Q1 2026 the company achieved operating revenue of RMB 7.446 billion, down 18.59% year-on-year; net profit attributable to shareholders was RMB 1.607 billion, down 31.03%. In Q2, operating revenue was RMB 2.686 billion, down 43.27%; net profit attributable to shareholders was RMB 558 million, down 58.14%. Both Q2 revenue and net profit declined more sharply year-on-year than in Q1. The decrease in net cash flow from operating activities was mainly due to reduced cash received from sales of goods.

By channel, in the first half, online channels achieved operating revenue of RMB 658 million, up 14.92% year-on-year; offline channels achieved operating revenue of RMB 9.473 billion, with a double-digit decline year-on-year. During the reporting period, the number of distributors decreased by 125, mainly in the central and northern China regions. Inventory at period-end stood at RMB 10.795 billion, remaining stable. In terms of gross margin, the Gujing Gongjiu series gross margin increased by 3.66 percentage points year-on-year, the Nianfen Yuanjiang series product gross margin decreased by 0.11 percentage points, and the Huanghelou and other products gross margin increased by 1 percentage point year-on-year.

From January to June 2026, cumulative baijiu production by national-scale enterprises above designated size was 1.679 million kiloliters, down 4.7% year-on-year. On the demand side, business banquets and gift-giving demand contracted notably, while the share of mass consumption scenarios such as daily self-drinking, friend and family gatherings, and family banquets increased. Consumer demand concentrated in the RMB 100 to RMB 300 price band.

The company stated that it will continue to execute its strategy of "national expansion, sub-premium positioning, Gu20+, and strong base market," focusing on promoting sell-through, reducing inventory, expanding channels, and stabilizing prices, while coordinating deep cultivation of the provincial market and breakthroughs in key markets outside the province. During the same period, the company promoted "light Gu20" targeting younger consumers, leveraged the "Gujing Shenli Jiu" series to enter the health segment, created the "Gujing Qingshe She" experience scenario, developed instant retail, coordinated baijiu and "baijiu+" businesses, optimized product quality and taste, and promoted deep integration of AI with business operations to empower development through intelligent transformation.