Swellfun released its 2026 interim report. In the first half, it achieved operating revenue of 1.082 billion yuan, down 27.78% year on year, while net profit was negative 6.2225 million yuan, down 105.9% year on year. The company said the baijiu industry is undergoing deep adjustment, and that proactively optimising inventory and adjusting shipment pace led to lower revenue. Channel inventory in the first half fell about 50% compared with the same period last year, selling expenses dropped 29.57% year on year, administrative expenses fell 19.28% year on year, and net cash flow from operating activities improved by about 85.5% year on year. The company adhered to the prudence principle in making provisions, and factors including reduced government subsidies resulted in a negative net profit. Xiao Zhuzhuo, a China liquor industry analyst, said Swellfun is trading short-term pain for long-term health by proactively cutting inventory, reducing costs and improving cash flow, which will help restore a healthier channel cycle going forward.
Sichuan Swellfun Co LtdRevenue down 27.78% due to proactive inventory optimization and shipment pace adjustment amid industry adjustment.
