ZJLD Group has reported a slump in first-half profits amid what the Hong Kong-listed distiller called the “structural challenges” facing China’s baijiu industry.
Profit attributable to equity holders fell 23.5% to 574.8m yuan (US$80.3m) in the first six months of the year. Revenue dropped 39.6% to almost 2.5bn yuan. The company’s board did not recommend an interim dividend for shareholders.
In a stock-exchange statement, ZJLD Group said China’s baijiu sector “continues to grapple with structural challenges”.
The company pointed to “deteriorating channel pricing systems, compressed distributor margins, mounting financial pressure across the value chain and sluggish terminal sales”.
Demand for baijiu had “softened significantly” since the second quarter of 2024 amid lower sales from “business banquets, gifting occasions and other offline consumption scenarios”.
Earlier this year, China announced new rules banning alcohol during business meals. Weaker consumer confidence has also weighed on sales.
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By GlobalDataSales of ZJLD Group’s “flagship” brand Zhenjiu, which the company describes as its “primary growth engine” fell 44.8% to 1.5bn yuan. The company said it had “proactively managed” inventories and “strictly controlled sales pacing to safeguard long-term sustainability”.
ZJLD Group founder and chairman Wu Xiangdong said: “The first half of 2025 presented unprecedented challenges for the baijiu industry. Shrinking consumption scenarios and intensifying channel pressures have ushered in a period of profound recalibration. This is not merely a cyclical downturn but a test of strategic conviction and cultural integrity.”
The company has made changes to its distribution model and reviewed its product mix to try to boost sales.
ZJLD Group has launched a baijiu under the brand Da Zhen, which it described as “a deeper, strategic push” into the “sub-premium” segment of the market.
The group markets four baijiu brands in China: two national baijiu brands, Zhenjiu and Li Du; and the regional brands Xiangjiao and Kaikouxiao.
