As the industry adjustment enters deep waters, performance volatility among regional liquor companies is beginning to manifest prominently; &#34;Number Two of Huizhou Liquor,&#34; YINGJIAGONGJIU, has also found it difficult to remain unaffected.
The company reported operating revenue of 6.02 billion yuan in 2025, a year-on-year decline of 18%; net profit attributable to shareholders was 1.99 billion yuan, a year-on-year drop of 23.3%.
This marks the first time since YINGJIAGONGJIU's IPO in 2015 that both revenue and net profit have declined simultaneously, with both drops reaching double digits, falling far short of the company's previously stated 2025 targets of 7.6 billion yuan in revenue and 2.62 billion yuan in net profit.
Revenue from mid-to-high-end white liquor reached 4.683 billion yuan in 2025, down 18% year-on-year, while its share of total liquor revenue rose to 77.8%.
Breaking down volume and price: sales volume of mid-to-high-end products decreased by approximately 14% year-on-year, unit price per ton fell by about 4%, and gross margin dipped slightly to 80.6%; ordinary white liquor sales volume dropped by around 15%, unit price per ton fell by roughly 8%, and gross margin declined to 56.1%.
The structural shift toward higher-end products intertwines to some extent with YINGJIAGONGJIU's regional strategy adjustments.
In terms of the correspondence between products and regions, ordinary liquor holds a relatively high proportion in out-of-province markets, with its revenue declining by 22.13% year-on-year—a significantly larger drop compared to mid-to-high-end products.
On one hand, this reflects that lower-priced products are more vulnerable during periods of demand contraction; on the other hand, it cannot be ruled out that the company actively contracted its out-of-province frontlines and reduced inefficient investments during the industry adjustment phase, which temporarily impacted the scale of ordinary liquor.
In 2025, the company achieved operating revenue of 4.266 billion yuan within Anhui Province, down 16.25% year-on-year, with its market share rising by approximately 2.7 percentage points to 75%.
Changes at the channel level provide further evidence. During the reporting period, the number of out-of-province distributors net decreased by 33, while those within the province net increased by 26, indicating the company is shifting more resources toward its home base market.
Entering 2026, signs of stabilization began to emerge in the company's performance: Q1 operating revenue reached 2.230 billion yuan, up 8.91% year-on-year; net profit attributable to shareholders was 835 million yuan, up 0.73% year-on-year.
By structure, both mid-to-high-end and ordinary white liquor revenues posted positive growth, and out-of-province markets essentially halted their declines. Additionally, operating cash flow improved significantly, growing over 120% year-on-year, with collection rhythms showing signs of recovery.
Looking ahead, the industry remains in an adjustment and recovery phase; the pace of consumption confidence rebuilding and channel inventory digestion will determine the slope of recovery.
For YINGJIAGONGJIU, whether out-of-province markets can resume growth and whether core single-product sales momentum can sustain volume expansion will become key variables determining its performance recovery potential.

YINGJIAGONGJIU Faces Deepest Adjustment Since IPO, Contracts Frontline to Defend Anhui