Financial Associated Press, August 27 — Amid a deep correction in the baijiu industry, Kouzijiao released its 2026 interim report. First-half revenue was 1.952 billion yuan, down 22.89% year-on-year, and net profit attributable to the parent was 365 million yuan, down 48.97% year-on-year. Second-quarter revenue was 576 million yuan, down 20.03% year-on-year, while net profit attributable to the parent was 36 million yuan, a sharp drop of 65.43% year-on-year, far exceeding the 15% to 30% decline estimated by multiple brokerages including China Merchants Securities and Huachuang Securities. Premium baijiu revenue fell 24.43% year-on-year in the first half, becoming the main drag, while mid- and low-end liquor achieved only single-digit growth. Contract liabilities fell about 57% year-on-year to 129 million yuan, indicating insufficient willingness among distributors to stock up. The company judges that the industry is in a stage of weak recovery and stock competition. In the second half, it will prioritize consolidating foundations and stabilizing prices, deepen penetration of county and district terminals within the province, scale back expansion outside the province, and focus on building a model market in the Yangtze River Delta.
Anhui Kouzi Distillery Co LtdPremium baijiu revenue fell 24.43% and contract liabilities dropped 57%, indicating weak distributor demand.
