Anhui Golden Seed Winery Co.,Ltd. has forecast a net loss of up to 72 million yuan for the first half of 2026, failing to reverse the consecutive losses that have persisted since 2022.
Industry sources indicate that in 2026, Anhui Golden Seed Winery Co.,Ltd. implemented a strategic shift, abandoning the previous nationwide expansion strategy from the China Resources era. The company is now concentrating 100% of its resources on its home markets in northern Anhui, such as Fuyang, Bozhou, and Suzhou, with Hefei positioned only as a key model city, ceasing the blind expansion of channels outside the province.
However, even with this significant reallocation of resources back to its home province, the company's first-quarter revenue within Anhui still fell by 36.14% year-on-year.
Regarding its products, sources point out that Anhui Golden Seed Winery Co.,Ltd. has weak province-wide coverage. Apart from northern Anhui, its market share in southern and central Anhui is extremely low, with its channel network density, terminal product displays, and banquet resources lagging far behind competitors like Gujing, Yingjia, and Kouzijiao. While its Fuxiang series has seen improved sales in local Fuyang wedding banquets and small business scenarios after three years of cultivation, widespread volume growth across the entire province has yet to materialize.
Notably, the company recently faced repeated inquiries from the Shanghai Stock Exchange regarding an abnormal surge in its accounts receivable. It responded that this was due to "providing credit policy support to 14 reputable distributors."
Persistent Losses Despite Strategic Focus
Anhui Golden Seed Winery Co.,Ltd. recently issued a forecast for a net loss attributable to shareholders of 60 million to 72 million yuan for the first half of 2026. The estimated net loss after deducting non-recurring gains and losses is between 64 million and 76 million yuan, compared to a loss of 77 million yuan in the same period last year.
The company attributed the anticipated loss to the baijiu industry being in a period of deep adjustment, with intense competition in a saturated market, overall weak terminal consumption, heightened competition between traditional and emerging channels, and continued pressure on product sales. "Affected by this, the company's revenue has not met expected targets," the announcement stated.
Losses have been a persistent challenge for Anhui Golden Seed Winery Co.,Ltd. in recent years. Public information shows net losses attributable to shareholders were 187 million yuan in 2022, 22 million yuan in 2023, and 258 million yuan in 2024. Performance did not improve in 2025, with operating revenue of 722 million yuan, down 21.96% year-on-year, and a net loss of 199 million yuan.
Even during the peak collection season of the first quarter of 2026, the company's revenue still fell by 35.74% year-on-year, with a net loss of 15 million yuan.
In terms of products, revenue from its high-end, mid-range, and low-end series all declined in Q1 2026. High-end products, including Fu 16 and Fu 20, generated revenue of 19 million yuan, down 13.64%. Mid-range products like Fu 7 and Fu 9 brought in 41 million yuan, a decrease of 43.84%. Low-end series, including Rouhe, Xianghe, and Xitai, reported revenue of 126 million yuan, down 18.7%.
Geographically, domestic revenue within Anhui province was 159 million yuan in Q1, down 36.14%, while revenue from outside the province was 26 million yuan, down 43.48%. This clearly shows the company is not only losing further ground in its home market but also seeing contraction in external markets.
It is worth noting that during this period of losses, the compensation for the senior management team at Anhui Golden Seed Winery Co.,Ltd. has decreased. After China Resources executives took over in 2022, total executive compensation was 6.5928 million yuan, nearly double the 3.441 million yuan in 2021. It rose to 12.7943 million yuan in 2023 but fell to 11.1413 million yuan in 2024 and further to 7.8339 million yuan in 2025.
Regulatory Scrutiny and Inventory Concerns
Amid years of losses, Anhui Golden Seed Winery Co.,Ltd. recently faced persistent questioning from the Shanghai Stock Exchange. The inquiry letter raised five major issues: continued decline in operating performance, abnormal fluctuations in accounts receivable, distribution model and revenue recognition, high inventory levels, and consistently negative cash flow. The questions regarding the distribution model and revenue recognition drew particular attention.
Public information shows the book value of the company's accounts receivable was only 2.204 million yuan at the end of 2025, down 92.20% year-on-year. However, by the end of the first quarter of 2026, this figure had surged to 48.1917 million yuan, an increase of 2086.57% from year-end.
Given the industry's common practice of "payment before delivery," this sharp change raised regulatory concerns about whether the company had relaxed credit policies to stimulate sales or was pushing inventory onto distributors.
Anhui Golden Seed Winery Co.,Ltd. explained that the Q1 2026 surge was to seize the Spring Festival sales peak, with the company providing credit policy support to 14 reputable distributors, all with a 6-month payment term, to help them stock products and secure terminal resources. The company emphasized that credit policies are tiered based on distributor credibility and sales scale, with payment terms原则上 not exceeding one year, and denied any relaxation of policies to stimulate sales or inventory pushing.
When asked about the sustainability of the accounts receivable growth, an internal source stated the action was an accounting measure, and specific details would require consultation with the finance department.
Another major concern is the persistently weak performance. In its response, the company acknowledged that the root cause of losses lies in its baijiu business. Although it completed the transfer of its pharmaceutical business equity in November 2025, the baijiu segment, which is the main revenue driver, continues to underperform.
New Product Launch and Expert Outlook
It is also understood that Anhui Golden Seed Winery Co.,Ltd. is preparing to launch a new "Real Age" series in an attempt to further enhance its product portfolio. The series, named "Year Rouhe Series," includes three products: Real 5 Years, Real 7 Years, and Real 9 Years, though specific pricing and launch dates are not yet finalized.
Is launching a major new product during this industry adjustment period an effective move? Independent Chinese liquor industry commentator Xiao Zhuqing commented, "The launch of this product will not immediately lead to a surge in revenue. New products require investment in terminal market placement, banquet policies, and distributor incentives, which will increase sales expenses in the short term, making it difficult to achieve a turnaround quickly. However, it can divert mid-range customers from competitors, stabilize sales in the Fuyang base, and prevent further revenue decline."
He pointed out, "Anhui Golden Seed Winery Co.,Ltd. is currently facing multiple pressures including regulatory inquiries, consecutive losses, channel pressure, and personnel adjustments. However, all these adjustments are proactive strategic bottoming actions during the industry's deep adjustment period. Scaling back nationwide channels, filling the mid-range aged product portfolio, and adjusting management models to fit regional baijiu market dynamics do not indicate a continuous deterioration of fundamentals."
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