Report clearance and channel repair proceed in parallel; Gujinggong Liquor intensively "squeezes bubbles" in the fourth quarter

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Under the deep adjustment of the baijiu industry, Gujing Gongjiu's "stress test" will be concentrated in 2025.

For the full year 2025, operating income was 18.832 billion yuan, a year-on-year decrease of 20.13%; net profit attributable to shareholders was 3.549 billion yuan, down 35.67% year-on-year.

This performance is not only the largest profit decline in nearly ten years, but also means that for the first time since 2014 the company has experienced negative annual revenue growth.

The pressure is mainly concentrated in the second half of the year.

Entering the third quarter, inventory reduction and price adjustments in the baijiu industry began to accelerate their impact. In the fourth quarter, single-quarter revenue fell to 2.407 billion yuan, a year-on-year decrease of 46.61%, with a net loss attributable to shareholders of 411 million yuan, whereas in the same period last year there was still a profit of 771 million yuan.

This time, the "loss" also carries a clear sense of market cleansing.

On one hand, the company made a goodwill impairment provision for Huanghelou Distillery, which individually impacted net profit attributable to shareholders by about 310 million yuan; on the other hand, at the channel end, there was a proactive slowdown in payments and release of inventory pressure, leading to a one-time hit to profit margins.

By the end of 2025, the number of Gujing Gongjiu distributors dropped to 4,865, a net decrease of 224 from the beginning of the year.

By region, the core central China base market centered on Anhui achieved revenue of 16.65 billion yuan, a year-on-year decrease of 17.4%. The decline was relatively manageable, while in markets outside the province, especially the northern regions, the contraction amid headwinds was significant.

On the product side, the core "Nianfen Yuanjiang" series remains the stabilizing force, achieving revenue of approximately 14.59 billion yuan for the year, down 19.3% year-on-year; among them, high-end products were hit harder by the decline in business occasions, while mid-tier products such as Gu 8 and Gu 16 performed relatively steadily.

At the same time, the company filled the sub-100 yuan price segment with the eighth generation Gujing Gongjiu and Lao Ci Gong light bottle, catering to mass consumption demand for “downgrading without compromising quality.”

In the first quarter of 2026, Gujing Gongjiu's performance showed marginal improvement: revenue was 7.45 billion yuan, with the year-on-year decline narrowing to 18.6%; contract liabilities rebounded to 2.3 billion yuan, an increase of about 780 million yuan quarter-on-quarter, indicating a recovery in advance payments and channel remittance willingness.

Even in a year of profit pressure, the company maintained a relatively positive dividend policy. For the whole year of 2025, about 2.33 billion yuan of cash dividends were distributed, with a dividend payout ratio of 65.5%, an increase of about 8 percentage points over the previous year.

Looking ahead, whether channel inventory reduction progresses as expected, whether the price system can stabilize, and whether mass-priced and mid-tier products can capture segmented demand growth will become key variables determining the slope of Gujing Gongjiu's subsequent recovery.

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