As the baijiu industry enters a phase of "squeezed stock competition" with increasingly rational consumption, Shede Spirits Co.,Ltd., a renowned Sichuan distiller that had previously returned to the capital market spotlight through its "aged liquor strategy," is now confronting multiple challenges. These include performance pressure, channel volatility, and management turnover.
The recently disclosed financial report for 2025 shows that Shede Spirits achieved operating revenue of 4.419 billion yuan, a decrease of 17.51% year-on-year. Net profit attributable to shareholders was only 223 million yuan, a significant decline of 35.51% compared to the previous year.
The performance exhibited a clear trend of "quarterly cooling." While net profit attributable to shareholders was 346 million yuan in the first quarter, it dropped to just 28.73 million yuan by the third quarter, culminating in a net loss of 249 million yuan in the fourth quarter.
In terms of product structure, revenue from mid-to-high-end products (such as Zhihui Shede and Pinwei Shede) for the full year was 3.12 billion yuan, down 23.83% year-on-year. Revenue from standard products (such as Tuopai Super Grade T68) was 733 million yuan, representing a year-on-year increase of 5.75%. The combination of declining high-end product sales and the limited profit margins of standard products made it difficult to close the profitability gap.
According to the equity incentive assessment targets disclosed by the company at the beginning of the year, 2025 revenue was required to grow by 20% year-on-year, and net profit attributable to shareholders by 164% year-on-year, corresponding to targets of 6.428 billion yuan and 913 million yuan, respectively. The final achievement rates were only 68.7% and 24.4%, highlighting a significant gap between operational expectations and market reality.
The distribution channel also experienced turbulence. Wholesale and agency revenue was 3.249 billion yuan, a decrease of 25.19% year-on-year. The number of distributors decreased by 516, with a net reduction of 138, bringing the total to 2,525.
The company's e-commerce channel achieved sales revenue of 603.593 million yuan in 2025, a year-on-year increase of 35.46%, standing out as one of the few bright spots in the financial report. However, given that baijiu consumption remains predominantly driven by offline banquets, the online growth is still insufficient to reverse the overall situation.
Shortly before the earnings release, the company announced the resignation of Vice President Wang Yong. Over the five years since the Fosun Group took control, the core management team at Shede Spirits has seen frequent changes, and Wang Yong's departure has further heightened market concerns regarding the stability of execution.
Despite facing multiple challenges, the board of directors continues to send positive signals to shareholders. According to the 2025 profit distribution plan, the company proposed a cash dividend of 3.10 yuan per share (before tax), with an expected total cash distribution of approximately 102 million yuan, accounting for 45.67% of the annual net profit attributable to shareholders.
At the strategic level, Shede Spirits continues to adhere to the narrative direction of its "aged liquor strategy." The company stated clearly in its annual report that it will focus on traditional stronghold markets such as Sichuan, Hebei, Shandong, Henan, and the Northeast, while gradually advancing the brand's national expansion. The company has built a dual-brand matrix centered on "Shede" and "Tuopai," planning to establish "Shede" as the leading brand in the aged liquor category while simultaneously promoting "Tuopai" as a high-value, mass-market famous liquor brand.
However, this strategy of "seeking premium pricing for high-end products while pushing for volume in the mass market" faces significant resource allocation challenges in an era of stock competition.
From a regional perspective, revenue from within the home province decreased by 20.19% year-on-year in 2025, while revenue from outside the province decreased by 19.25% year-on-year.
Amid an industry-wide destocking cycle, Shede Spirits finds itself at a crossroads, balancing the defense of its home turf against the push for external expansion—a true test of what to "shed" and what to "gain."
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