ZJLD recently released its 2025 annual performance report, delivering results that were nearly halved compared to the previous year.
In 2025, ZJLD's operating revenue was 3.65 billion yuan, a significant decrease of 48.3% compared to 7.067 billion yuan in 2024. Net profit attributable to owners of the parent was 538 million yuan, down 59.3% year-on-year. Adjusted net profit was 523 million yuan, a decline of 68.8%. Additionally, net cash used in operating activities was -886 million yuan, compared to a net inflow of 781 million yuan in 2024, indicating a severe shortage of operating cash flow.
From a brand perspective, all four brands under ZJLD experienced revenue declines in 2025. The flagship brand, Zhenjiu, generated revenue of 1.921 billion yuan, a 57.1% decrease from the previous year. Despite the decline, it still accounted for 52.6% of total revenue, making it the primary factor for the poor performance.
The premium brand, Lidu, achieved revenue of 1.085 billion yuan, down 17.3% year-on-year, accounting for 29.7% of total revenue. This brand showed the smallest decline among the four, demonstrating a degree of brand resilience.
Xiangjiao's annual revenue fell 41.6% to 468 million yuan, representing 12.8% of total revenue. Kaikouxiao performed the worst, with revenue plummeting 69.7% to 102 million yuan, accounting for just 2.8% of the total.
Regarding the significant performance fluctuations, ZJLD stated in its announcement that in 2025, the baijiu industry faced challenges such as weak consumer demand and a reduction in scenarios like business banquets and social gifting. The sub-premium price segment, where the company's core products are positioned, was particularly impacted. Furthermore, to alleviate pressure on distributors and stabilize the price system, the company accelerated channel destocking efforts in the second half of 2025 and proactively reduced shipments. While this strategic contraction affected current revenue and profit, it effectively maintained the long-term profitability and confidence of the distribution channels.
Chairman Wu Xiangdong stated at the ZJLD Group 2025 Full-Year Results Investor Briefing that, affected by macroeconomic uncertainty and a deep adjustment phase in the baijiu industry, the company's performance experienced periodic fluctuations. However, against a backdrop of generally declining industry stock prices, ZJLD's share price rose over 30% in 2025, fully demonstrating capital market recognition of the company's operational resilience, innovation strategy, and long-term investment value.
On March 30, CICC released a research report maintaining its target price for ZJLD at HKD 11.2 and an Outperform rating. CICC pointed out that, considering the company's proactive and vigorous efforts to reduce inventory, actual sell-through performance is better than what is reflected in the financial statements. They project significant profit recovery elasticity from 2027 onwards.
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