Shunxin Agriculture's 2026 Interim Net Profit Falls 76.66% Year-on-Year
Shunxin Agriculture released its 2026 interim report, with net profit attributable to the parent company of 40.351 million yuan, down 76.66% from the same period last year. Total operating revenue was 3.804 billion yuan, down 17.17% year-on-year. Net cash flow from operating activities was negative 635 million yuan, an increase of 315 million yuan compared with the same period last year, marking three consecutive years of growth. The company's latest asset-liability ratio was 45.85%, gross margin was 32.98%, return on equity was 0.59%, and diluted earnings per share was 0.05 yuan.
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National cigarette and alcohol retail sales rose 13.2% year-on-year in the first half; baijiu sector rallies but earnings generally expected to decline
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.
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Liquor stocks rally after first-half profit warnings, some shares back to 2013 levels
On the evening of July 14, several A-share listed liquor companies disclosed their first-half earnings forecasts. The sector's decline widened in the second quarter, with three distillers warning of losses. Yet on July 15, the liquor sector bucked the trend and surged after the market opened. By midday, Golden Seed Winery hit its daily limit up, Gujing Distillery rose 8.72 percent, and Shunxin Agriculture and Shanxi Xinghuacun Fenjiu both gained over 6 percent. Despite the short-term share price rebound, after three years of deep industry adjustment, some stocks have fallen back to the starting point of the previous upcycle. Shunxin Agriculture traded at 10.87 yuan at midday, a level last seen in June 2013. Yanghe Brewery stood at 39.91 yuan, back to around December 2013. Shares of Shede Spirits, Gujing Distillery, Luzhou Laojiao and others have also retreated to ranges seen around 2019 to 2020. Earlier, multiple institutions published research reports bullish on the liquor sector bottoming out, noting that distillers' operating strategies have shifted this year. Short- to medium-term tactics broadly focus on destocking, stabilizing price levels, boosting sales, and strengthening direct-to-consumer engagement. The trend of proactive supply-side destocking and balance-sheet cleanup continues. Second-quarter results are expected to show a mixed picture of declines and growth. As the peak consumption season arrives in the second half, sales momentum is likely to recover further. Independent liquor commentator Xiao Zhuqing argues that the current earnings decline is the result of three long-term structural contradictions resonating across consumption, usage scenarios, and distribution channels, rather than a short-term market fluctuation. In particular, the contraction in government and corporate consumption is a systemic, long-term variable. Restoring consumer confidence requires a supportive macro cycle. The trillion-yuan inventory overhang in distribution channels will need at least one to two years to slowly clear.
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Shunxin Agriculture expects first-half 2026 net profit to fall 69.34% to 79.18% year-on-year
Shunxin Agriculture announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 36 million yuan and 53 million yuan, a year-on-year decline of 69.34% to 79.18%. The change in performance is mainly due to a drop in liquor sales volume and sluggish pork prices during the reporting period, with the two core businesses weighing on overall revenue and profit levels.
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Liquor earnings previews pour in: Sub-premium and regional distillers widely swing to losses, profits shrink sharply
First-half earnings previews from liquor companies have been released in a concentrated batch. Sub-premium and regional players such as Tianyoude, Swellfun, Golden Seed Winery, Shede Spirits, Shunxin Agriculture, and Huangtai Liquor broadly reported steep profit declines or outright losses. Tianyoude expects first-half revenue to fall about 14 percent year on year, with net profit attributable to the parent down 76 to 84 percent. Shunxin Agriculture sees attributable net profit dropping 69.34 to 79.18 percent. Swellfun delivered its first loss-making half-year report in recent years, with attributable net profit at negative 6.2221 million yuan, swinging from profit to loss. Golden Seed Winery expects an attributable net loss of 60 to 72 million yuan. Huangtai Liquor projects a loss of 10 to 18 million yuan, widening its year-on-year deficit. Shede Spirits earlier disclosed that attributable net profit fell 60.52 to 69.55 percent. Wuliangye, benefiting from a low base a year earlier, expects attributable net profit to rise 88.80 to 98.97 percent. Xiao Zhuqing, an independent commentator on China's liquor industry, said the sector is in a phase of deep adjustment in the first half, marked by shrinking demand, intense channel competition, and structural optimization, putting revenue and gross margins at sub-premium distillers under pressure.
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