In the first quarter of 2026, Anhui Golden Seed Winery Co.,Ltd., a local Anhui liquor company forced to increase its credit sales efforts, continued to see a decline in revenue, although its losses narrowed. According to its first-quarter report, operating revenue for the period was 190 million yuan, a year-on-year decrease of 35.74%. The net loss attributable to shareholders of the listed company was 15.2413 million yuan, narrowing by 60.85% year-on-year. The non-GAAP net loss was 16.1715 million yuan, also significantly narrowing by 60.15%.
Notably, as of the end of the first quarter, the balance of accounts receivable for Anhui Golden Seed Winery Co.,Ltd. stood at 48.1917 million yuan, a staggering increase of 2,086.46% compared to 2.204 million yuan at the end of 2025, marking the most significant change on the asset side. In terms of the composition of accounts receivable, the credit impairment loss for the reporting period reached 2.0571 million yuan, compared to a credit impairment gain of 100,000 yuan in the same period last year. This indirectly reflects potential risks in the quality of accounts receivable and an increased pressure for bad debt provisioning.
During an online earnings briefing held on May 28, Xie Jinming, Chairman and General Manager of Anhui Golden Seed Winery Co.,Ltd., responded that the company has a sound control system to ensure the timely recovery of accounts receivable. During the reporting period, the balance of notes receivable for Anhui Golden Seed Winery Co.,Ltd. was 38.3928 million yuan, an increase of 43.23% from 26.8044 million yuan at the end of 2025.
The growth in notes receivable also indicates an increase in the proportion of settlement via bills in the company's sales transactions, reflecting to some extent a possible weakening of its bargaining power within the industrial chain, as it maintains sales scale by relaxing settlement terms. Furthermore, the first-quarter report shows that its contract liabilities (advance payments) for the period were 129 million yuan, a sequential decrease of approximately 18.87%.
In practice, most baijiu (Chinese liquor) enterprises operate on a "payment before delivery" sales model, where distributors must pay in advance. Compared to immediate cash payments, accounts receivable and notes receivable represent deferred fulfillment. Contrasting with some liquor companies that settle in full with zero notes, the dual increase in notes and accounts receivable for Anhui Golden Seed Winery Co.,Ltd. in the first quarter signifies that distributors are taking more goods, but cash-on-delivery transactions have decreased, leading to a substantial rise in the proportion of credit sales. This indicates the manufacturer was forced to relax credit terms and provide "liquidity" to distributors.
Behind distributors' reluctance to make advance payments may lie obstacles in sales, high inventory levels, and chaotic channel management at Anhui Golden Seed Winery Co.,Ltd. leading to disorder in end-product pricing. At the 2025 annual shareholders' meeting of Anhui Golden Seed Winery Co.,Ltd., Xie Jinming stated that due to the generally small scale of distributors and low channel profit margins, some of Anhui Golden Seed Winery Co.,Ltd.'s distributors engaged in issues like low-price cross-regional sales, causing chaos in terminal product prices. This was cited as a main factor affecting Anhui Golden Seed Winery Co.,Ltd.'s market order and channel confidence.
To address this issue, Anhui Golden Seed Winery Co.,Ltd. implemented a series of measures in 2025. Xie Jinming explained that the company prohibited forced inventory loading on distributors, actively alleviated channel pressure, and helped channels digest over 100 million yuan worth of products throughout the year. Simultaneously, the company established a special fund of 20 million yuan to purchase inventory from distributors facing operational difficulties and strengthened efforts to combat cross-regional sales. Additionally, the company optimized expense control, shifting from a decentralized, bottom-up approach to centralized management by the marketing center.
Xie Jinming stated that, as of now, inventory for Anhui Golden Seed Winery Co.,Ltd.'s small and medium-sized distributors has been effectively reduced, though some major distributors still face inventory issues. Further governance is needed for inventory reduction and channel price disorder. In 2026, the company will continue to promote channel destocking through various measures.
Selling goods without receiving payment also led to a decrease in the net cash flow from operating activities to -78.8582 million yuan during the reporting period, with the net outflow scale expanding by 9.89%. Specifically, cash received from sales of goods plummeted from 247 million yuan to 104 million yuan, a drop of 57.96%, far exceeding the decline in operating revenue.
When an investor asked online about the company's future profit drivers, Xie Jinming stated that the focus is on strengthening the foundation, expanding the Fùhéxiāng product line, continuously optimizing the product structure, and concentrating resources on cultivating core flagship products. The company will also continue to optimize its expense control model, enhance precision in expense allocation, fully expand the scale of its core market base, actively promote the integration of beer and baijiu operations, and develop new retail business.
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