Facing the deepest correction since its listing, Yingjia Gongjiu shrinks its operations to focus on Anhui.
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As the industry adjustment enters deeper waters, the performance fluctuations of regional liquor companies are beginning to manifest more intensively, and "the second brother of Anhui liquor" Yingjia Gongjiu is no exception.
In 2025, the company achieved an operating revenue of 6.02 billion yuan, down 18% year-on-year; net profit attributable to shareholders was 1.99 billion yuan, down 23.3% year-on-year.
This is the first time since Yingjia Gongjiu's listing in 2015 that both revenue and net profit have declined, with both decreases reaching double digits, falling far short of the company's previously stated 2025 targets of 7.6 billion yuan in revenue and 2.62 billion yuan in net profit.
In 2025, mid-to-high-end baijiu achieved revenue of 4.683 billion yuan, down 18% year-on-year, with its share of liquor revenue rising to 77.8%.
Breaking down by volume and price, sales of mid-to-high-end products declined by about 14% year-on-year, price per ton dropped by about 4%, and gross margin fell slightly to 80.6%; sales of regular baijiu declined by about 15%, price per ton dropped by about 8%, and gross margin fell to 56.1%.
The "upward concentration" of the product structure is, to a certain extent, interwoven with Yingjia Gongjiu’s regional strategy adjustment.
From the relationship between product and region, regular liquor has a higher share in markets outside the province, and its revenue declined by 22.13% year-on-year, a clearly larger drop than mid-to-high-end products.
On one hand, this reflects that lower-priced products are more vulnerable during a demand contraction cycle; on the other hand, it is also possible that the company actively reduced its out-of-province presence and inefficient investments during the industry adjustment period, leading to a phased impact on regular liquor scale.
In 2025, the company achieved revenue of 4.266 billion yuan in the Anhui province market, down 16.25% year-on-year, with its share rising by about 2.7 percentage points to 75%.
Changes in channels provide further evidence. During the reporting period, the number of out-of-province distributors decreased by 33, while in-province distributors increased by 26, showing the company is allocating more resources to its home market.
After entering 2026, the company's performance showed signs of stabilizing: in the first quarter, operating revenue reached 2.23 billion yuan, up 8.91% year-on-year; net profit attributable to shareholders hit 835 million yuan, up 0.73% year-on-year.
By structure, both mid-to-high-end and regular baijiu revenues achieved positive growth, and the out-of-province market has largely stopped declining. Meanwhile, operating cash flow improved dramatically, up more than 120% year-on-year, with payment collection rhythm recovering to some extent.
Looking ahead, the industry is still in the adjustment and recovery phase, and the pace of restoring consumer confidence and digesting channel inventory will determine the slope of recovery.
For Yingjia Gongjiu, whether the out-of-province market can resume growth and whether core products’ sales can continue to expand will become key variables determining the scope of its performance recovery.
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