Hebei Hengshui Laobaigan Liquor Co Ltd

Laobaigan Liquor released its 2026 interim report, showing second-quarter revenue fell 32.75% year on year and net profit attributable to the parent company dropped 42.92%, far exceeding the 15% and 25% declines previously forecast by China Merchants Securities and Shenwan Hongyuan Securities. In the first half, the company achieved operating revenue of 2.104 billion yuan, down 15.23% year on year, and net profit attributable to the parent of 262 million yuan, down 18.47%. Contract liabilities stood at 954 million yuan, a sharp year-on-year decline of about 25%, indicating weakening willingness among distributors to make advance payments. By product, revenue from products priced above 100 yuan fell 18.10%, a larger decline than the roughly 12% drop for products below 100 yuan. By region, revenue in its Hebei home base slipped 16.05%, while the Hunan market posted the largest decline at 21.60%, and Anhui and Shandong also saw double-digit contractions. In the second half, the company will continue to prioritise actual consumption and bottle openings, abandon channel inventory loading, strictly control cross-regional selling and price chaos, deepen its presence in banquets, dining and group-buying scenarios, solidify its Hebei home base, and strengthen the Hunan market for Wuling Liquor.