Shede Spirits Co.,Ltd. (600702.SH) disclosed its first-quarter report for 2026 after market hours on April 15. The company achieved revenue of 1.481 billion yuan and a net profit attributable to shareholders of 232 million yuan during the period.
Building on its robust operational performance that exceeded industry expectations in 2025, Shede Spirits intensified its consumer-focused strategy during the first quarter of this year. The company enhanced sales dynamics and optimized consumer experiences while strengthening its mass-market liquor and e-commerce operations. These efforts contributed to continuous operational improvements, with first-quarter net profit surpassing the full-year 2025 figure. Although revenue showed a slight year-over-year decline, the decrease narrowed significantly, and the company essentially met various revenue targets, indicating clear signs of business recovery. Shede Spirits has achieved stabilization ahead of peers during the industry's consolidation phase, laying a solid foundation for steady growth throughout 2026.
The baijiu sector continued its deep adjustment under multiple pressures during the first quarter, characterized by ongoing structural differentiation, overall volume and price contraction, and intensified competition among existing players.
As one of the first companies in the industry to proactively adjust its strategy, Shede Spirits has consistently worked to stabilize prices and reduce inventory since 2024. After two years of strategic transition and accumulation, the company has now taken the lead in showing signs of stabilization and recovery in the first quarter. Core metrics continued to improve, revenue targets were largely achieved, and the burdens from the current cycle have been substantially cleared.
Specifically, Shede Spirits generated revenue of 1.481 billion yuan in the first quarter, representing a 106.45% increase from the previous quarter and a significant narrowing of the year-over-year decline. Net profit reached 232 million yuan, exceeding the 223 million yuan recorded for the entire year of 2025 and showing substantial quarter-over-quarter growth, reflecting the ongoing improvement in the company's operational quality.
Meanwhile, total assets increased to 13.2 billion yuan, indicating enhanced long-term development capabilities. Sales revenue in the company's home market reached 524 million yuan, up 6.08% year-over-year and showing significant improvement from the fourth quarter of last year, demonstrating the effectiveness of Shede Spirits' strategy to build high-market-share regional bases. Additionally, administrative expenses continued to decline year-over-year, signaling further improvements in operational efficiency and quality.
Notably, aligning with rational consumption trends, Shede Spirits continued to focus on the mass-market liquor segment during the first quarter. Core products such as Shede Zhi Dao and Tuopai Teji T68 performed exceptionally well, driving a 41.88% year-over-year increase in mass-market liquor sales, which served as a stabilizer for performance growth during challenging market conditions. Concurrently, the e-commerce channel maintained its growth trajectory, with online sales rising 14.2% year-over-year, demonstrating the sustained effectiveness of channel reforms.
Industry experts believe that as the first baijiu company to disclose both its annual and first-quarter reports, Shede Spirits' consecutive delivery of better-than-expected results fully validates the precision of its strategic direction. The company has established a distinctive anti-cyclical path characterized by early adjustment and率先 recovery.
Focusing comprehensively on consumer-centric strategies to drive industry transformation and navigate cycles has become a consensus within the sector. During the first quarter, Shede Spirits continued to adhere to its comprehensive consumer-oriented approach, implementing innovations and expansions across branding, marketing, and product dimensions to establish a solid foundation for enhanced operational quality and efficiency throughout the year.
In terms of brand momentum, the company deepened consumer value experiences and capitalized on peak season marketing to achieve integrated brand and performance outcomes.
Addressing social interaction needs during the Spring Festival, Shede Spirits collaborated with Li Jing and Dai Jun to present "Expressing Sentiments During Spring Festival," while Tuopai liquor partnered with Liu Xiaoqing and Yang Yuguang to launch the integrated marketing campaign "T68 Truth or Dare." During the 2026 Spring Festival, centered around emotional resonance with consumers, Shede Spirits achieved synchronized brand visibility, user favorability, and market sales. The company's product series demonstrated strong growth during the holiday period, with accelerated destocking at the retail level and double-digit growth in bottle-opening rates, achieving a successful start to the new year.
During the Chengdu Sugar and Wine Fair, Shede Spirits innovatively hosted the Fifth Old Liquor Festival, featuring diverse activities such as a sealing ceremony, old liquor carnival, and "Carefree Night" to expand the多元 expression and youthful appeal of aged liquors, transitioning from "selling liquor" to "selling lifestyles." The immersive "old liquor + culture" experience at the Fifth Old Liquor Festival reinforced the company's core advantages in "ecology, aged liquor, and culture," effectively enhancing consumer mindshare and boosting distributor confidence. Simultaneously, the Spring Brew sealing project during the festival achieved significant year-over-year sales growth, successfully converting brand awareness into consumer purchases.
Regarding market expansion, the company used spiritual resonance to penetrate new consumer circles and expand internationally, opening new growth avenues.
During the first quarter, Shede Spirits participated deeply in the China Entrepreneurs Forum at Yabuli as the "Exclusive Designated Baijiu" and "Strategic Partner," using brand spirit resonance to precisely reach high-net-worth individuals and continuously break through into premium circles. The Shede Old Liquor Festival expanded to Australia, the "Shede Carefree" product launched globally, and the Shede Global Wisdom Elite Club was established, communicating Shede's wisdom and aged liquor culture to overseas consumers and unlocking international growth potential through profound cultural recognition. To date, Shede Spirits' products are available in 42 countries and regions.
In product innovation, the company explored new consumption scenarios through contemporary drinking culture, capturing opportunities in the casual business segment.
During the first quarter, Shede Spirits collaborated with Ma Dong, spokesperson for the 29-proof mildly intoxicated old liquor "Shede Carefree," to promote a new drinking culture characterized by "relaxation, ease, and appropriateness." This initiative addressed the diverse social scene needs of new consumer groups, rapidly establishing clear brand recognition in the casual business segment and securing first-mover advantage in new scenarios through differentiated positioning.
Multiple institutions predict that after undergoing a period of deep adjustment, the baijiu industry may see financial statement clearance and a bottoming-out recovery in 2026. Through two years of率先 adjustment and early commitment to a comprehensive consumer focus, Shede Spirits has continuously alleviated performance pressures. The company will continue to deepen value and strengthen differentiation in 2026, demonstrating resilience to navigate cycles and steadily advance along a path of long-term, robust development.
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