Bottom formation evident, consolidating fundamentals, Shed Liquor Industry 2025 revenue of 4.419 billion yuan, fundamentals showing marginal improvement

On the evening after the market close on March 20, Shede Spirits Co., Ltd. (600702.SH, hereinafter referred to as “Shede Spirits”) disclosed its 2025 annual report. The report shows that in 2025, Shede Spirits achieved operating revenue of 4.419 billion yuan and a net profit attributable to shareholders of 223 million yuan.

At the same time, Shede Spirits announced its 2025 profit distribution plan, proposing a cash dividend of 3.10 yuan (tax included) per 10 shares, totaling approximately 102 million yuan (tax included), accounting for 45.67% of the net profit attributable to shareholders in 2025.

In 2025, facing ongoing industry adjustments, Shede Spirits made proactive strategic deployments, actively reducing inventory, and improving the company’s fundamentals through product innovation, channel optimization, and operational efficiency. During the reporting period, the company’s revenue and net profit saw a significant narrowing of declines year-over-year, demonstrating stronger resilience and cyclical resistance. Meanwhile, the company’s sustainable development capabilities were recognized by international authorities, with S&P ESG scores increasing by 73% compared to 2024.

The industry’s pressure highlights corporate resilience. Shede Spirits adjusted early, took proactive measures, and enriched its toolkit.

Leading liquor companies are taking initiative, and a rich toolkit is their confidence. In 2025, the Chinese liquor industry entered a “total volume contraction and stock game” phase. Due to weak consumption and less-than-expected scene recovery, the industry faced overall pressure, with performance generally declining.

Against this backdrop, in 2025, Shede Spirits continued to vigorously reduce inventory, fully committed to operational excellence, and achieved results beyond industry expectations, maintaining stable operations and resilience.

1. Key indicators showed “four rises and one fall,” continuously strengthening the operational foundation. In 2025, net cash flow from operating activities improved year-over-year, and both revenue and net profit declines narrowed, indicating an overall improvement in operations; management expenses decreased by 12.39% YoY, reflecting further cost control optimization. Additionally, total assets increased to 12.615 billion yuan, laying a solid foundation for long-term development.

2. Product structure continued to optimize, with stable pricing of core products. In response to industry deep adjustments, Shede Spirits continued to optimize its product layout, achieving high growth in the mass market. Notably, the strategic flagship product TuoPai T68 maintained high sales velocity, with sales data continuing to grow rapidly. During the year, ordinary liquor sales revenue increased by 5.75% YoY to 733 million yuan. Meanwhile, inventory was further brought back to rational levels, ensuring core flagship products’ prices remained stable, establishing a steady development trend despite market headwinds.

3. Online and offline channels continued to break through, with channel structure further optimized. Online, Shede Spirits’ e-commerce sales accelerated, reaching 604 million yuan, a 35.46% increase. Offline, channel penetration deepened, with thousands of new stores added in key account channels, and multi-channel operational capabilities steadily improved.

Liquor analyst Cai Xuefei stated that based on disclosed performance forecasts of listed Chinese liquor companies, Shede Spirits outperformed the industry average. Facing cyclical challenges, the company’s nationwide layout, management improvements, full-range capacity deployment, and innovative marketing tools will ensure long-term leading performance. Shede Spirits had already adjusted a comprehensive set of pragmatic strategies in 2024, giving it a first-mover advantage and systemic edge in the upcoming competitive environment.

Product innovation and brand marketing are multi-dimensional efforts to enhance high-quality development.

In 2025, Shede Spirits’ resilient development foundation is built on solid efforts in product layout, brand elevation, and sustainable development.

First, dual-driven by flagship and innovative products, providing strong support for performance. On one hand, core products and core business developed steadily. The inventory of Shede Spirits’ main channels continued to clear, with the 10-year collection of Shede preserved stable prices, sales of Shede Celebrations doubled, and sales of Shede Dao doubled with new openings. TuoPai T68 grew rapidly. On the other hand, new products expanded new scenarios and added new growth points. Focusing on new consumer demands, Shede Spirits launched the industry’s first low-alcohol, drinkable aged liquor, “Shede Zizai,” which won seven awards within four months of launch and was available at over a thousand outlets; also incubated cultural and creative products like “Ma Shang You Shede” blind boxes and the 24 Solar Terms series, connecting with a broader consumer base.

Second, brand value was elevated, with increasing domestic and international influence. Shede Spirits continued to develop IP matrices such as “Shede Wisdom Figures,” deepening the “aged liquor + culture” brand connotation; collaborated with celebrities like Evan Kyle, Luo Zhenyu, and Lang Yongchun to hold major marketing events, promoting brand-market synergy; refreshed the brand spirit “This era needs Shede,” deepening consumer resonance. Additionally, the “Shede Aged Liquor Festival” expanded into more overseas markets, and TuoPai’s intangible cultural heritage techniques appeared at UNESCO headquarters, further enhancing brand influence.

Finally, sustainable development and ecological layout continued to improve, highlighting long-term value. Shede Spirits’ S&P ESG score surged 73% YoY in 2025, earning honors such as the “Guoxin Cup ESG Golden Bull Award” and the “2025 China Enterprise ESG Top 100,” with sustainable development capabilities fully recognized by capital markets. During the year, the company deepened integration of liquor and tourism, with visitor numbers reaching 230,000; the industrial ecological chain remained robust, with Tianma Glass’ operational cash flow increasing by 20% YoY.

Multiple impressive performances across fields signal Shede Spirits’ steady progress and continuous improvement in 2025.

During the Spring Festival trade fair, frequent positive news: Yabuli China Entrepreneurs Forum’s exclusive designated liquor, and the Old Liquor Festival’s million-bottle collection.

Shede Spirits’ better-than-expected performance in 2025 provides strong confidence for high-quality development in 2026.

In the first quarter of this year, Shede Spirits started the year with a strong opening.

During the Spring Festival, the company’s product series saw strong growth, terminal inventory accelerated clearance, and bottle opening rates increased in double digits, successfully achieving a “good start” for the new year.

In terms of brand momentum, Shede Spirits held its fifth Old Liquor Festival during the Spring Festival trade fair, using innovative methods to deepen the value experience of aged liquor and boost dealer confidence. Relying on Fosun’s ecosystem resources, Shede Spirits became a “strategic partner” and the “exclusive designated liquor” for the 2026 Yabuli China Entrepreneurs Forum, engaging with top entrepreneurs.

Strategically, in 2026, Shede Spirits will fully empower the Yelanggu brand, using high-quality aged liquor at favorable prices to create a differentiated core competitiveness, supporting overall performance.

In 2026, Shede Spirits will focus on the themes of “strengthening the foundation, breaking through, and restarting,” adhering to the strategies of “aged liquor, multi-brand, youthfulness, and internationalization,” and cultivating “product strength, brand strength, channel strength, and organizational strength.” The company will uphold quality, deepen branding, expand markets, and enhance cyclicality resilience.

(Edited by: Guo Jiandong)

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