Anhui Kouzi Distillery Co Ltd

Kouzijiao confirmed at its 2025 annual and first-quarter 2026 results briefing that the company will not renew its contract with McKinsey and will independently continue to deepen channel reforms in 2026. This marks the end of a four-year external strategic consulting partnership that began in 2022 when McKinsey was brought in to refine brand strategy and drive product and organizational upgrades. Financial data shows that consulting service fees from 2022 to 2025 were 12.8887 million yuan, 38.2691 million yuan, 30.0746 million yuan, and 23.3361 million yuan respectively, totaling over 100 million yuan over the four years. However, the heavily funded external brain trust failed to deliver the expected growth. In 2025, the company's revenue plunged to 3.991 billion yuan, down 33.65 percent year-on-year, and net profit attributable to shareholders fell to 673 million yuan, down 59.32 percent, moving further away from the 10-billion-yuan revenue target. The company stated it will focus on improving channel quality, enhancing collaboration with manufacturers, and empowering distributors, while solidifying its core base in its home province by strengthening brand momentum and deepening refined operations.

Kouzijiao recently disclosed an investor relations activity record, sending a clear signal of adjustment. In 2025, the company achieved revenue of 3.991 billion yuan, down 33.65 percent year-on-year; net profit of 673 million yuan, down 59.32 percent year-on-year; and net cash flow from operating activities turned from positive to negative, reaching minus 216 million yuan. In the first quarter of 2026, revenue and net profit both declined again, falling 24 percent and 46 percent respectively. In its home market of Anhui, Kouzijiao's provincial revenue was about 3.2 billion yuan, a year-on-year drop of over 34 percent, as it faces a pincer attack from Gujing Gongjiu and Yingjia Gongjiu. Gujing Gongjiu's provincial market share has reached 36 percent, while Yingjia Gongjiu's revenue is about 6.019 billion yuan. Kouzijiao has lost its position as the second-largest Huizhou baijiu maker. The company said the provincial revenue decline resulted from intensified industry competition, a weak consumption environment, and proactive inventory control and price stabilization. Going forward, it will focus on the price band above 100 yuan and deepen refined channel operations to restore terminal sell-through. In addition, the pan-in-pan marketing model that once made Kouzijiao famous has lost its effectiveness. In 2025, the number of distributors increased by 184, but wholesale agency revenue plummeted 36.4 percent, trapping the company in a situation of adding distributors without adding revenue. The company stated that its out-of-province distributor recruitment is still in the cultivation stage, making it difficult to release scale revenue in the short term, and the channel profit model is undergoing restructuring.