Kuaijishan Overtakes Guyue Longshan in H1 Revenue, Net Profit Up 37.04%
In the first half of 2026, Kuaijishan reported revenue of RMB 853 million, up 4.43% year-on-year, and net profit of RMB 129 million, up 37.04%, surpassing Guyue Longshan in half-year revenue for the first time. Guyue Longshan's revenue fell 11.89% to RMB 787 million, with net profit barely rising 1.38% and operating cash flow turning sharply negative.
China's baijiu industry remains in a deep adjustment phase, with more than 20 A-share listed baijiu companies reporting year-on-year declines in both revenue and net profit for the first half of the year. In contrast, the two leading listed rice wine companies, Guyue Longshan and Kuaijishan, both achieved positive net profit growth, though the competitive landscape has shifted. In the first half, Kuaijishan posted growth in both revenue and profit, with its half-year revenue exceeding Guyue Longshan's for the first time. Guyue Longshan saw its revenue decline year-on-year, with profitability under pressure.
Based on the core financial data from the 2026 half-year reports, the rice wine industry maintains a duopoly structure, but the two companies' operating performance has diverged markedly. Kuaijishan recorded operating revenue of RMB 853 million in the first half, up 4.43% year-on-year; net profit of RMB 129 million, up 37.04%; and non-GAAP net profit of RMB 104 million, up 16.77%. Net operating cash flow turned positive at RMB 42.6309 million. Due to slower off-season sell-through, the second quarter alone saw a small non-GAAP net loss. By product mix, Kuaijishan's mid-to-high-end rice wine revenue reached RMB 595 million, up 14.17% year-on-year, becoming the core revenue and profit pillar. Regional performance diverged, with Zhejiang market revenue down 9.85% year-on-year, while non-provincial markets maintained rapid growth.
Guyue Longshan faced notable operating pressure in the first half. It posted operating revenue of RMB 787 million, down 11.89% year-on-year, with its revenue scale overtaken by Kuaijishan. Net profit was RMB 91.5564 million, up a marginal 1.38%; non-GAAP net profit was RMB 52.6860 million, down 34.94% year-on-year. By category, mid-to-high-end wine revenue fell 9.92% to RMB 560 million, while ordinary wine revenue dropped 17.29% to RMB 213 million. Cash flow pressure was pronounced, with net operating cash flow at negative RMB 310 million in the first half of 2026, down 106.85% year-on-year. In the second quarter alone, revenue fell more than 30% year-on-year, and core operating profit turned negative.
Both companies have made product premiumization a core strategy, but their approaches differ. Guyue Longshan leverages its brand heritage and raw wine reserves to deepen its high-end positioning, maintaining price discipline through volume control and quota-based sales, while advancing nationwide expansion via tasting pavilions. Kuaijishan has boosted overall profitability by increasing high-margin mid-to-high-end products and divesting low-efficiency, low-end operations. Its non-provincial markets are growing rapidly, but the Zhejiang home market continues to decline, and the non-provincial base remains small, not yet forming scale revenue support. Youth-oriented innovative products are still in the market cultivation stage. The rice wine industry as a whole remains small in scale, with limited consumption scenarios, strong regional characteristics, and pronounced seasonal sales patterns.