Qinghai Huzhu Barley Wine Co Ltd

Tianyoude Liquor released its 2026 interim report. Total operating revenue was 575 million yuan, down 14.68% year on year. Net profit attributable to the parent company was 10.44 million yuan, down 79.71% year on year. Net cash inflow from operating activities was 118 million yuan. The company's asset-liability ratio was 10.26%, gross margin was 60.14%, return on equity was 0.37%, and diluted earnings per share was 0.02 yuan. The number of shareholders was 48,300, and the top ten shareholders held 48.29% of total share capital.

Tianyoude Liquor released its 2026 interim report. Net profit attributable to the parent in the first half was 10.44 million yuan, down 79.7% year-on-year. Operating revenue was 575 million yuan, down 14.7% year-on-year. Net profit attributable to the parent after deducting non-recurring items was 8.99 million yuan, down 81.6% year-on-year. Net operating cash flow was 118 million yuan, up 119.4% year-on-year. Second-quarter operating revenue was 169 million yuan, down 30.4% year-on-year, while net profit attributable to the parent recorded a loss of 38.04 million yuan, a wider loss than the same period last year. The company said its main business and distribution model remain unchanged, and it continues to focus on the research, production and sales of highland barley baijiu.

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.

Tianyoude Wine disclosed its earnings forecast, projecting attributable net profit for the first half of 2026 at between 8.23 million yuan and 12.35 million yuan, a year-on-year decline of 76% to 84%. The company expects operating revenue for the same period to fall by around 14% year-on-year, with recurring net profit estimated at between 6.69 million yuan and 10.03 million yuan, down 79.52% to 86.34% year-on-year. The company stated that the baijiu industry is in a period of deep adjustment, with intensifying competition for existing market share and a return to rational consumption, and overall it still faces significant pressure. In the first half of the year, the company fully advanced its consumer service efforts, empowering distributors and retail outlets, and maintained a certain level of investment intensity in sales expenses, which did not decline in step with operating revenue.

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.