Gansu Mogao Industrial Development Co Ltd

The wine index has fallen more than 21% over the past 90 days, with several constituent companies expecting losses in the first half of 2026. As of the close on August 21, Wind data showed the wine index at 589.4 points, down 21.18% from three months earlier and down 29.79% from its November 2024 stage high. Weilong Grape Wine, Tonghua Grape Wine, Mogao and several other stocks expect losses in the first half of 2026. Mogao expects net profit attributable to shareholders of roughly minus 31.5 million yuan to minus 23 million yuan, while Weilong expects roughly minus 15.55 million yuan to minus 10.77 million yuan. Changyu Pioneer Wine disclosed its 2026 half-year report on the evening of August 20, with operating revenue of 1.573 billion yuan, up 6.94% year on year, and net profit attributable to shareholders of 141 million yuan, down 24.29% year on year. In 2025, national output of wineries above designated size was 97,000 kiloliters, down more than 17% year on year, while output in the first half of 2026 was 43,000 kiloliters, roughly flat compared with the same period last year.

*ST Mogao disclosed its earnings forecast, expecting a net loss attributable to shareholders of 23 million to 31.5 million yuan in the first half of 2026, compared with a loss of 31.8645 million yuan in the same period last year. The net loss after deducting non-recurring items is also expected to be 23 million to 31.5 million yuan, versus a loss of 31.8433 million yuan a year earlier. The company stated that the domestic wine market remains sluggish, leading to lower-than-expected sales. Compound liquorice tablets saw both volume and price decline due to deep industry adjustments. The degradable materials business faces intense competition, and the proportion of degradable mulch film and express bags in the film and bag business is still low. Losses across all segments have not been reversed.