Performance of 10 Listed Wine Companies Falls Short of One "Lao Bai Gan", Wine Merchants Admit "Teaching the Wrong Lesson"

With the release of the financial results of 10 listed wine companies, the industry continues to face a persistent downward trend, leading many wine merchants to lament that "the bottom keeps dropping."

Financial reports show that the total revenue of the 10 listed wine companies was approximately RMB 2.48 billion, with a net profit of RMB 120 million. This is less than the profit of Lao Bai Gan Liquor (600559.SH) alone and only equivalent to one-tenth of the revenue of China Resources Beer (00291.HK).

In the industry's view, wine has yet to find an effective way to connect with consumers.

Based on the performance of the 10 listed wine companies, only three companies achieved revenue growth in the first half of the year, while most wine companies still faced declines in both revenue and net profit. Only one wine company reported revenue exceeding RMB 1 billion in the first half of the year, four companies had revenues between RMB 100 million and RMB 400 million, and the rest reported revenues below RMB 100 million.

Industry leader Changyu (000869.SZ) continued to lead the sector, with revenue of RMB 1.47 billion in the first half of the year, a year-on-year decrease of 3.4%, and a net profit attributable to shareholders of RMB 190 million, down 16.1% year-on-year. Dynasty Wine (00828.HK), once one of the "three pillars" of domestic wine, reported revenue of HKD 120 million in the first half of the year, a decrease of 9.3% year-on-year, and a net profit of HKD 8.17 million, down 55.9% year-on-year. CITIC Niya (600084.SH) reported revenue of RMB 70 million in the first half of the year, a year-on-year increase of 4.1%, but its net profit was only RMB 1 million.

Reporters noted that after continuous contraction, the gap between wine and baijiu (white liquor) and beer has further widened. Although listed baijiu companies also generally faced challenges such as sluggish sales, price inversions, and market shrinkage in the first half of the year, the total revenue of the 10 listed wine companies was only equivalent to that of regional baijiu producer Lao Bai Gan Liquor from Hebei. The latter reported revenue of RMB 2.48 billion and a net profit of RMB 320 million in the first half of the year, more than double the total net profit of the 10 wine companies. Lao Bai Gan Liquor ranked 13th in revenue among the 20 listed baijiu companies. Compared to beer companies, the gap between wine companies and the sixth-ranked Zhujiang Beer (revenue of RMB 3.2 billion and net profit of RMB 610 million in the first half of the year) is even more pronounced