On the evening of August 25, Anhui Yingjia Distillery Co.,Ltd., known as the second-largest liquor brand in Anhui province, announced its first-half performance results.
The company reported that in the first half of 2025, the baijiu industry continued its deep adjustment phase. Affected by multiple factors including weak consumption and sluggish demand, the company achieved operating revenue of 3.16 billion yuan during the reporting period, a year-on-year decrease of 16.89%, and net profit attributable to shareholders of 1.13 billion yuan, down 18.19% year-on-year.
Simultaneously, the company will divest 100% equity of its subsidiary Anhui Yingjia Business Hotel Co., Ltd. for a transaction value of 31.7265 million yuan to focus on its main business. The counterparty, Anhui Yingjia International Travel Agency Co., Ltd., is controlled by the controlling shareholder, constituting a related party transaction.
**Revenue and Net Profit Both Decline in H1, Provincial Markets See 30% Revenue Drop**
The company is primarily engaged in the research, development, production and sales of baijiu. Its main products include the Master Edition series, Cave Storage series, Gold and Silver Star series, and Century Yingjia series, with the Cave Storage series being the core product line.
According to the company, 2025 marks a new round of policy adjustment period, consumption structure transformation and differentiation period, and deep adjustment period of stock competition for the liquor industry. National Bureau of Statistics data shows that cumulative production of industrial baijiu above designated size reached 1.916 million kiloliters from January to June 2025, down 5.8% year-on-year.
In the first half, both operating revenue and net profit declined. Sales of mid-to-high-end baijiu and ordinary baijiu both decreased to varying degrees compared to the same period last year. During the reporting period, mid-to-high-end baijiu revenue was 2.537 billion yuan, down 587 million yuan year-on-year, with representative brands including Cave Storage series, Gold Star series, and Silver Star series. Ordinary baijiu revenue was 452 million yuan, down 217 million yuan year-on-year, with main products being the Century Yingjia Tribute series and simple packaging wine series.
During the reporting period, provincial revenue was 2.364 billion yuan while revenue from markets outside the province was 625 million yuan, with extra-provincial market revenue declining by more than 30%.
Regarding expenses, sales expenses were 307 million yuan during the reporting period, up only 1.39% year-on-year, while administrative expenses were 126 million yuan, up 17.08% year-on-year. The company attributed this mainly to increases in depreciation and intangible asset amortization. For cash flow, operating net cash flow was 317 million yuan, down nearly half year-on-year, primarily due to reduced cash receipts from goods sales and service provision.
The company stated that the market still faces short-term pressures including channel inventory digestion and weak demand. However, as macro policies take effect and consumer confidence recovers, the industry will gradually transform toward "quality + brand + culture" value competition, focusing on quality upgrades, brand resilience, cultural empowerment, consumption scenario innovation, and market penetration. Advantageous regions, enterprises, and brands are expected to gain first-mover advantages in stock competition.
**Focusing on Baijiu Core Business, Plans to Sell Hotel at Nearly 6% Premium**
While facing performance challenges, Anhui Yingjia Distillery plans to sell 100% equity of Yingjia Business Hotel at a 5.68% premium.
According to available information, Yingjia Business Hotel was established in March 2024 with registered capital of 30 million yuan. The entity operates a Ji Hotel (Huoshan Yingjia Avenue branch) through franchising, with 132 rooms.
According to the company's 2024 annual report, the hotel's predecessor was Anhui Yingjia Distillery Co., Ltd.'s Chunfeng Hotel. In 2024, the company established a new subsidiary, Anhui Yingjia Business Hotel Co., Ltd., and transferred all assets, liabilities, business operations, and personnel of Chunfeng Hotel to Yingjia Business Hotel.
The announcement stated: "Yingjia Business Hotel has been in a loss-making or marginally profitable state for the past two years due to its remote geographical location, small local population base, and overall low occupancy rates."
According to Huazhu Group's platform, the hotel opened in 2022 and has been operating for just over three years, receiving 7,474 reviews. The description shows the hotel is located near Huoshan Grand Canyon Rafting, a famous internet-famous scenic spot in Lu'an. Room rates are around 300 yuan.
Financial data shows the hotel achieved operating revenue of 5.7424 million yuan and net profit of 563,800 yuan in 2024. In the first half of this year, the hotel generated revenue of 3.1316 million yuan, with a net loss of 543,100 yuan and net assets of 30.0207 million yuan.
The company stated that this equity transfer aims to further optimize assets, management structure, and integrate resources while focusing on the company's main business, aligning with operational development needs. After the transaction completion, routine related party transactions with Yingjia Business Hotel are expected, arising from normal business operations and are necessary.
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