Laobaigan Liquor released its 2026 interim report on August 28. First-half operating revenue was 2.10 billion yuan, down 15.2% year on year, while net profit attributable to the parent company was 262 million yuan, down 18.5%, marking another period of declines in both revenue and profit. The company had achieved growth in both revenue and net profit in the first quarter, but second-quarter revenue was 883 million yuan, down 32.8% year on year, and net profit was 96.14 million yuan, down 42.9%. The company said the industry is undergoing deep adjustment, consumer recovery momentum remains weak, and top-tier national brands are pushing into lower-tier markets, squeezing regional liquor producers. As of the end of June, accounts receivable reached 42.37 million yuan, a surge of 649.98% from the beginning of the year, mainly due to an increase in credit sales. At the same time, the company significantly cut expenses, with selling expenses down 35.26% year on year and research and development expenses down 59.65%, while net operating cash flow turned positive at 191 million yuan. Performance among its brands diverged markedly: Wuling Liquor posted net profit of 130 million yuan, while Kongfujia Liquor recorded a loss of 2.81 million yuan. The company also invested 20 million yuan to set up an e-commerce subsidiary to coordinate the online business of its five major brands. In the secondary market, the stock closed at 11.63 yuan, down more than 26% for the year.
Hebei Hengshui Laobaigan Liquor Co LtdH1 revenue fell 15.2% and net profit fell 18.5%, with Q2 declines accelerating, and accounts receivable surged 650% on credit sales.
