Luzhou Laojiao Co., Ltd., a leading producer of strong-aroma baijiu, experienced a decline in both revenue and net profit last year, while proposing a cash dividend exceeding 6.5 billion yuan.
On April 28, Luzhou Laojiao Co., Ltd. released its 2025 annual report. During the reporting period, the company achieved operating revenue of 25.731 billion yuan, a decrease of 17.52% year-on-year. Net profit attributable to shareholders was 10.831 billion yuan, down 19.61% year-on-year. The company proposed a cash dividend of 44.17 yuan per 10 shares (before tax), totaling approximately 6.502 billion yuan (before tax).
Specifically, in the fourth quarter of 2025, the company's operating revenue was 2.604 billion yuan, a significant decline of 62.23% year-on-year. Net profit attributable to shareholders was 68.3193 million yuan, plummeting 96.37% year-on-year.
On the same day, Luzhou Laojiao also disclosed its first-quarter report for 2026. During the reporting period, the company achieved operating revenue of 8.025 billion yuan, down 14.19% year-on-year. Net profit attributable to shareholders was 3.708 billion yuan, a decrease of 19.25% year-on-year.
According to Wind data, the decline in both revenue and net profit for Luzhou Laojiao last year marks the first such occurrence since 2015. For the preceding ten years, the company had maintained positive annual growth in both revenue and net profit.
Regarding the performance decline, Luzhou Laojiao stated in its financial report that the primary reasons lie in the overall baijiu industry entering a new adjustment cycle characterized by "volume reduction and quality upgrade." This is reflected in "contracted external demand, internal adjustment pains, and extreme competition." Under the pressure of these multiple factors, the overall growth momentum of baijiu companies has weakened, and profitability has faced pressure.
An independent industry commentator suggested that Luzhou Laojiao's 2025 performance decline is not due to operational deterioration but rather the result of proactive strategic adjustments by the company. In 2025, Luzhou Laojiao implemented measures such as a comprehensive halt in shipments and channel inventory clearance. While these actions put short-term pressure on revenue and profit figures, the core objective was to stabilize the price system. The price system for its core premium product, Guojiao 1573, has remained stable, and its position as one of the "top three high-end brands" remains solid.
The financial report shows that Luzhou Laojiao's products are categorized into mid-to-high-end liquors and other liquors based on selling price. Mid-to-high-end liquors have a pre-tax selling price ≥150 yuan per bottle, represented by brands like Guojiao 1573, Luzhou Laojiao Tequ, and Century Luzhou Laojiao Cellar Age Wine. Other liquors have a pre-tax selling price <150 yuan per bottle, represented by brands like Luzhou Laojiao Touqu, Luzhou Laojiao Heigai, and Luzhou Laojiao Erqu.
In 2025, mid-to-high-end liquors generated revenue of 22.968 billion yuan, down 16.74% year-on-year, contributing nearly 90% of the company's total revenue. Revenue from other liquors was 2.638 billion yuan, down 23.93% year-on-year. Other income was 125 million yuan, down 12.62% year-on-year. In terms of sales volume, mid-to-high-end liquors sold 37,304.7 tons, a decrease of 13.23% year-on-year. Sales volume of other liquors was 48,784.62 tons, down 19.72% year-on-year.
By sales model, the company's traditional channel operation model (primarily offline authorized dealer distribution) achieved revenue of 24.220 billion yuan last year, down 18.10% year-on-year. Revenue from the emerging channel operation model (primarily online sales) was 1.386 billion yuan, down 6.34% year-on-year. At the end of the reporting period, the number of domestic dealers was 1,695, with 209 added and 215 reduced during the period. The number of overseas dealers was 93, with 19 added and 11 reduced during the period.
Furthermore, according to the financial report, Luzhou Laojiao's sales expenses, management expenses, and financial expenses all decreased in 2025. Sales expenses decreased by 8.51% year-on-year, while management expenses decreased by 12.57% year-on-year. Additionally, the company's R&D expenses decreased by 17.29% year-on-year.
According to its official website, Luzhou Laojiao is recognized as the originator of strong-aroma techniques, the setter of its standards, and the shaper of its brands, hailed as the "Originator of Strong Aroma." Its predecessor was the "Sichuan Luzzhou Distillery" established on the basis of 36 brewing workshops from the Ming and Qing dynasties. It was restructured and listed as "Luzhou Laojiao Co., Ltd." in 1994, becoming one of the first distilleries in China to adopt a shareholding system and the first baijiu company listed on the Shenzhen Stock Exchange. The company's leading products include Guojiao 1573, Century Luzhou Laojiao, and Luzhou Laojiao Tequ.
According to the latest quarterly report, the company's top three shareholders are Luzhou Laojiao Group Co., Ltd., Luzhou Xinglu Investment Group Co., Ltd., and China Merchants Zhongzheng Baijiu Index Segmented Securities Investment Fund, with shareholding ratios of 26.05%, 24.86%, and 3.84% respectively. Both Luzhou Laojiao Group Co., Ltd. and Luzhou Xinglu Investment Group Co., Ltd. are state-controlled companies under the Luzhou SASAC and have signed a concerted action agreement.
Discussing the industry outlook, Luzhou Laojiao stated in the financial report, "In 2025, the baijiu industry entered a new period of policy adjustment, consumption structure transformation, and intensified stock competition. Contradictions such as capacity growth versus slowing demand, insufficient consumption momentum versus price declines, a reduction in the number of distributors versus increased inventory, and price conflicts between traditional channels and e-commerce platforms have become prominent. For a period of time, the baijiu industry may continue to face pressure." However, from a medium to long-term perspective, opportunities in the baijiu industry still outweigh challenges. High-quality development remains the main theme of China's economy, and the foundation for long-term economic improvement remains unchanged. This industry adjustment cycle will allow truly excellent enterprises with strong brand power, channel power, innovation capability, and management skills to stand out.
Looking ahead to 2026, Luzhou Laojiao proposed a marketing strategy of "seeking progress while maintaining stability." On the premise of stabilizing market prices and channel profits, the company will fully promote consumption, expand channel outlets, and broaden market coverage. It will orderly advance channel penetration and refined operations through digital and intelligent marketing to solidify the market foundation. It will steadily promote international layout and explore marketing models suitable for local consumption habits. Additionally, the company will focus on key projects, ensuring their steady and orderly progress. It will continue to promote the integration of liquor with tourism, city tours, and cultural tourism; persistently create baijiu consumption and experience scenarios; and continuously advance production-related projects to inject new momentum for quality assurance.
According to DZH VIP, as of the close on April 28, Luzhou Laojiao's share price was 100.20 yuan per share, down 0.15%, with a total market capitalization of 147.5 billion yuan.
Comments