As the industry's adjustment phase deepens, regional liquor companies are experiencing concentrated performance volatility, with Anhui Yingjia Distillery Co.,Ltd., the second-largest player in Anhui's liquor market, unable to remain immune. In 2025, the company reported operating revenue of 6.02 billion yuan, down 18% year-on-year, and net profit attributable to shareholders of 1.99 billion yuan, a decline of 23.3%. This marks the first simultaneous drop in both revenue and net profit since its listing in 2015, with both decreases reaching double digits, falling far short of the company's previously stated operational targets of 7.6 billion yuan in revenue and 2.62 billion yuan in net profit for 2025.
Revenue from mid-to-high-end baijiu reached 4.683 billion yuan in 2025, down 18% year-on-year, yet its share of liquor revenue increased to 77.8%. Breaking down volume and price, sales volume of mid-to-high-end products decreased by approximately 14%, while the price per ton dropped about 4%, leading to a slight decline in gross margin to 80.6%. For standard baijiu, sales volume fell about 15%, with the price per ton down 8%, reducing the gross margin to 56.1%.
The upward concentration in product structure is, to some extent, intertwined with Yingjia Distillery's regional strategy adjustments. From the correlation between products and regions, standard baijiu holds a relatively high share in markets outside Anhui province, where revenue fell 22.13% year-on-year, a noticeably steeper decline than for mid-to-high-end products. On one hand, this reflects how lower-priced products are more vulnerable during demand contraction cycles; on the other, it suggests the company may be proactively scaling back its presence outside Anhui and reducing inefficient expenditures during the industry's adjustment phase, temporarily impacting the scale of standard baijiu.
In 2025, revenue from the Anhui market totaled 4.266 billion yuan, down 16.25% year-on-year, yet its share increased by about 2.7 percentage points to 75%. Changes in the channel side provide further evidence: during the reporting period, the number of distributors outside Anhui decreased by a net 33, while those within the province increased by a net 26, indicating a strategic shift of resources toward the company's home base.
Entering 2026, there are signs of stabilization in the company's performance. First-quarter operating revenue reached 2.23 billion yuan, up 8.91% year-on-year, with net profit attributable to shareholders at 835 million yuan, a slight increase of 0.73%. By segment, both mid-to-high-end and standard baijiu revenues saw positive growth, and the decline in non-Anhui markets largely halted. Meanwhile, operating cash flow improved significantly, rising over 120% year-on-year, indicating a recovery in payment collection rhythms.
Looking ahead, the industry remains in an adjustment and recovery phase, with the pace of consumer confidence recovery and channel inventory digestion determining the slope of the rebound. For Yingjia Distillery, whether non-Anhui markets can resume growth and whether core product sales can sustainably expand will be critical variables shaping its earnings recovery potential.
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