Anhui Gujing Distillery Co Ltd

On July 30, the liquor sector strengthened rapidly, with Shede Spirits hitting the daily limit up, while Jiugui Liquor, Gujing Distillery, and Kouzijiao all rose over 5 percent. Wuliangye and Shanxi Xinghuacun Fenjiu gained over 4 percent, and Kweichow Moutai advanced more than 2 percent. A research note from Guotai Haitong Securities suggests that liquor valuations are poised for recovery and health food value is emerging. According to mutual fund holdings for the second quarter of 2026, the heavy allocation ratio for liquor and food and beverage has fallen to a historical low. Considering positive macro signals, the possibility of consumer policy stimulus cannot be ruled out, and the brokerage recommends positioning in early-stage recovery plays. Kaiyuan Securities believes that amid the ongoing correction in the tech sector, the defensive attributes of the food and beverage sector are once again highlighted, with the sector's allocation value rising. Current institutional holdings are at historical lows, sector valuations have fallen to a bottom range, and market pessimism has been largely priced in. With triple bottom signals converging, the sector has entered a strategic allocation window.

On July 30, liquor concept stocks strengthened intraday, with the sector rising 3.04 percent. Shede Spirits gained 10.01 percent, Gujing Distillery rose 7.25 percent, Jiugui Liquor advanced 5.28 percent, Yingjia Distillery climbed 4.77 percent, and Huangtai Liquor added 4.73 percent. Monitoring data from the China Alcoholic Drinks Association shows that in June 2026, imports of 16 major imported alcoholic beverage categories totaled 70.7 thousand kiloliters, with an import value of 2.721 billion yuan. For the first six months, cumulative imports reached 348.6 thousand kiloliters, valued at 13.427 billion yuan. A research note from China Securities points out that the liquor sector has entered an upward phase of earnings cleansing. In the first quarter of 2026, the year-on-year declines in industry revenue and net profit attributable to the parent company narrowed significantly. Leading distillers such as Kweichow Moutai and Wuliangye have already achieved positive revenue and profit growth. The second quarter is expected to be an earnings inflection point for some distillers. A research note from Shenwan Hongyuan Securities notes that high-end liquor prices are likely to stabilize in 2026, and the industry is accelerating into a consolidation phase centered on rising concentration. The future will see a pattern of big fish eating big fish, and top-tier companies with advantages in brand strength, channel power, and organizational capability will navigate the cycle more effectively.

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.

Kweichow Moutai shares jumped more than 5% intraday after its second price increase this year, lifting the entire baijiu sector. On the evening of July 17, Kweichow Moutai announced it would raise the retail price of Feitian Moutai on the iMoutai platform from 1,539 yuan per bottle to 1,639 yuan per bottle, and the contract sales price from 1,269 yuan per bottle to 1,369 yuan per bottle, representing increases of 6.5% and 7.9% respectively. Institutions estimate the price hike will contribute about 2.7 billion yuan in incremental revenue and roughly 1.6 billion yuan in additional profit for 2026. Moutai opened higher and continued to climb after the market opened today, rising 5.25% as of 11:13 a.m. to reclaim the 1,300 yuan level. Gujing Gongjiu hit its daily limit up, while Luzhou Laojiao, Yingjia Gongjiu, and Jinhui Liquor all gained more than 5%. Independent baijiu commentator Xiao Zhuqing said the Moutai price adjustment is conducive to generating greater profit returns for shareholders, squeezing out speculative room in the market, and is positive for the entire baijiu industry.

In this morning's session, Zhongyan Technology shares saw wild swings, opening at the daily limit-up before heavy volume broke the board and sent the stock plunging straight down, briefly hitting the daily limit-down during the session in a classic limit-up to limit-down reversal. As of the midday break, the stock traded at 18.30 yuan, down 6.44 percent, with half-day turnover of 486 million yuan. The market widely attributes the recent volatility to the company's announcement of plans to acquire a 60 percent stake in Shenzhen Xinhuan Yu Jinggong Technology through cash purchase and capital increase, though the company subsequently disclosed that the transaction is subject to significant uncertainty. On the broader market, A-shares opened sharply higher on weekend policy tailwinds, with the baijiu sector leading the gains. Gujing Gongjiu hit the daily limit-up, while Kweichow Moutai rose 5.58 percent by midday after the company announced it would raise the retail price of its 53 percent ABV 500 milliliter Feitian Moutai on the iMoutai platform to 1,639 yuan per bottle starting July 18. The traditional Chinese medicine sector also followed through to strengthen, with Longshen Rongfa touching the 20 percent daily limit-up during the session. The State Council recently approved the 15th Five-Year Plan for the Revitalization and Development of Traditional Chinese Medicine.

The liquor sector staged a strong rebound on July 20, with Kweichow Moutai closing up nearly 6% and its share price reclaiming the 1,320 yuan level. Gujing Gongjiu hit the daily limit up, Luzhou Laojiao rose over 6%, Jinhui Liquor and Shanxi Xinghuacun Fenjiu gained over 5%, and Wuliangye, Yingjia Gongjiu, and Jinshiyuan all closed higher across the board. On the news front, Kweichow Moutai recently announced another price increase for its core blockbuster product, Feitian Moutai, and its non-standard product, the kilogram Moutai. Effective July 18, the retail price of Feitian 53% vol 500ml Kweichow Moutai on the iMoutai platform was raised from 1,539 yuan per bottle to 1,639 yuan per bottle, and the sales contract price was raised from 1,269 yuan per bottle to 1,369 yuan per bottle. The retail price of the kilogram Moutai was raised from 3,119 yuan per bottle to 3,269 yuan per bottle. Institutions believe the price hikes will help boost earnings. Huachuang Securities estimates that, after deducting value-added tax, the corresponding increase in reported revenue will be approximately 5.6 billion yuan, contributing an estimated profit of around 3.6 billion yuan. Recent semi-annual earnings forecasts from several liquor companies indicate the industry remains broadly under pressure, with Shede Spirits, Swellfun, Golden Seed Winery, and Huangtai Liquor posting losses or profit declines in the first half. Zheshang Securities believes the fundamentals have clearly bottomed out, and Kaiyuan Securities expects the sector to likely recover in the second half of the year. At the close, Kweichow Moutai traded at 1,327.5 yuan per share, up 5.95%, with a total market capitalization of 1.66 trillion yuan.

The implementation season for listed companies' dividends has entered an intensive phase. Today, a total of 62 companies are carrying out their distribution plans based on the equity registration date. Among them, 34 companies have a cash dividend of 1 yuan or more per 10 shares. Gujing Gongjiu is the most generous, distributing 34.00 yuan per 10 shares, followed by China Pacific Insurance and Grandblue Environment, with cash dividends of 11.50 yuan and 8.00 yuan per 10 shares respectively. In terms of share transfer ratios, Xintong Electronics has the highest ratio among companies implementing today, with 4.8 bonus shares and 5 yuan per 10 shares. Recently, some stocks with attached rights have seen pre-dividend rallies. Xintong Electronics has surged 38.94 percent over the past five trading days, while Gujing Gongjiu and Jiyuan Group have also risen by more than 13 percent.

Data released by the National Bureau of Statistics on July 15 showed that in the first half of the year, the absolute retail sales of cigarette and alcohol products nationwide reached 354.7 billion yuan, up 13.2 percent year-on-year. In June alone, the absolute figure was 53.7 billion yuan, up 12.1 percent year-on-year. Boosted by this news, the A-share baijiu sector rose across the board that day. Gujing Gongjiu, Jinzhongzi Liquor, and Dahu Aquaculture hit the daily limit up. Luzhou Laojiao, Shanxi Xinghuacun Fenjiu, Shunxin Agriculture, and Jinshiyuan gained more than 5 percent. The sector's overall index rose 3.06 percent. However, the industry remains in a period of deep adjustment. As of July 15, about eight A-share listed baijiu companies had disclosed their first-half earnings forecasts. Except for Wuliangye, which is expected to report growth, the rest generally saw profit declines or losses. Tianyoude Liquor's net profit fell 76 to 84 percent year-on-year. Shunxin Agriculture's net profit fell 69.34 to 79.18 percent year-on-year. Jinzhongzi Liquor, Huangtai Liquor, Shuijingfang, and ST Spring are expected to report losses. Proactive destocking has become a common choice for liquor companies. Shuijingfang's channel inventory fell about 50 percent year-on-year. Shede Spirits controlled shipments to stabilize prices. Jiugui Liquor raised the strategic price of its 52-degree 500ml Neican liquor by 30 yuan per bottle and suspended shipments until August 15. Xiao Zhuqing, a Chinese liquor industry analyst, said consumers are shifting to affordable daily-drinking liquors priced under 100 yuan, and the premium on high-end famous brands is shrinking. Liquor companies need to face consumers directly to digest inventory.