Anhui Golden Seed Winery Co.,Ltd. (600199.SH) continues to struggle with mounting losses as its high-end liquor segment stagnates and mid-to-low-end market share erodes.
On December 2, the company announced adjustments to its fundraising projects, extending the completion deadlines for its "Premium Base Liquor Technological Upgrade and Supporting Projects" and "Marketing System Construction Project" from December 31, 2025 to December 31, 2027. This follows a previous extension granted in 2023.
The day prior, the company disclosed the sale of its 92% stake in subsidiary Jintaiyang Pharmaceutical for ¥126 million - a 10% discount from the initial listing price of ¥140 million. The transaction, completed on December 1, 2025, marks another attempt to shore up finances through asset disposals.
Financial reports reveal persistent operational challenges: - Q1-Q3 2025 revenue fell 22.08% YoY to ¥628 million - Net loss attributable to shareholders reached ¥100 million - Five consecutive years of losses (2021-2025) totaling over ¥700 million - Negative operating cash flow of ¥118 million in Q3 2025 - Inventory bloated at ¥1.531 billion (76.74% of current assets)
Product segmentation shows worrying trends: - Premium liquor (10.01% of revenue): ¥51.27 million (+7.33% YoY) - Mid-range liquor (25.56%): ¥131 million (-24.06% YoY) - Budget liquor (64.43%): ¥330 million (-23.83% YoY)
The company's gross margin of 43.26% trails industry leaders significantly. Its flagship "Fragrant Blend" premium series achieved only ¥250 million in 2024 (8% of revenue), missing the ¥500 million annual target despite a 2700% increase in advertising spend to ¥46.87 million in H1 2025.
Management turmoil under China Resources' stewardship has failed to reverse fortunes: - Multiple executive changes since China Resources' 49% stake acquisition in February 2022 - Two general managers and several vice presidents resigned - "Beer-Liquor Integration" strategy abandoned - Executive compensation paradoxically rose to over ¥10 million in 2024 despite losses
Strategic shifts include: - Relocating marketing headquarters from Hefei back to Fuyang - Pivoting premium product distribution from B2B to B2C channels - Streamlining SKUs to three core product lines
Once among Anhui's "Four Liquor Jewels" with 2012 revenue of ¥2.294 billion, Golden Seed now generates less than 4% of rival Gujing Distillery's sales (¥23.578 billion in 2024). With accumulated non-GAAP losses of ¥1.178 billion since 2019 and multiple legal disputes, the company's turnaround prospects remain uncertain despite asset sales exceeding ¥330 million since 2023.
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