On October 30, Shanxi Xinghuacun Fen Wine Factory Co., Ltd. released its financial report for the first three quarters of 2025. The data shows that the company achieved operating revenue of 32.924 billion yuan, a year-on-year increase of 5.00%, with third-quarter revenue reaching 8.960 billion yuan, up 4.05% YoY. Net profit attributable to shareholders of the listed company stood at 11.405 billion yuan, a 0.48% increase YoY.
Amid industry-wide pressure on the baijiu sector, Shanxi Fen Wine has adhered to a "steady growth" strategy since its global distributor conference in December 2024. The company has implemented a structured product portfolio—high-end Qinghua series for brand elevation, mid-range Laobaifen and Panama series for banquets and business consumption, and entry-level Bofen to stabilize mass-market demand. This pyramid model enhances resilience against market volatility, avoiding over-reliance on single hit products.
Financial data reveals that Fen Wine’s core product line generated sales of 32.171 billion yuan in the first three quarters, up 5.54% YoY, serving as the company’s performance anchor. Meanwhile, its "Nationalization 2.0 Strategy" gained traction, with out-of-province sales surging 12.72% to 21.813 billion yuan, becoming the primary growth driver.
The company’s nationwide market expansion—dubbed "One Red Sun, Five Stars, Fragrance Across China"—has seen strong sales growth in high-potential regions like the Yangtze and Pearl River Deltas, reflecting successful cross-regional penetration and channel development.
Industry analyst Xiao Zhuqing noted that while this growth rate might seem modest during boom periods, it stands out in the current challenging environment, solidifying Shanxi Fen Wine’s position among the top three baijiu producers.
In 2025, the company intensified efforts in branding, leveraging high-traffic venues like airports and high-speed rail stations, while collaborating on cultural IP projects to reinforce its heritage as "the origin of Chinese liquor." To counter concerns over aging consumer demographics, Shanxi Fen Wine has actively engaged younger audiences by blending tradition with innovation through co-creation initiatives.
Internationally, the company debuted a promotional video, *Qinghua Fen Wine: A Fragrant World*, during the Berkshire Hathaway Annual Meeting in May, marking the launch of its "Globalization 1.0 Strategy" and pioneering new ways for Chinese baijiu brands to connect with global investors.
With a strong brand legacy, clear strategic direction, robust distribution, and long-term vision, Shanxi Fen Wine is well-equipped to navigate industry cycles. The company has shifted focus from rapid expansion to sustainable growth, emphasizing quality as its core competitive edge.
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