Hebei Hengshui Laobaigan Liquor Co Ltd

Laobaigan Liquor held an online performance briefing for its 2026 semi-annual report on the Shanghai Stock Exchange roadshow center on September 29. The company's net cash flow from operating activities in the first half turned positive to 191 million yuan from a negative 45.8 million yuan in the same period last year, up 517.0 percent year on year. Vice chairman and general manager Zhao Xudong and other senior executives attended and answered investor questions. In the first half, the company's operating revenue was 2.1 billion yuan, down 15.2 percent year on year; net profit attributable to the parent was 262 million yuan, down 18.5 percent; net profit attributable to the parent after deducting non-recurring items was 252 million yuan, down 14.8 percent; and earnings per share were 0.286 yuan. The company said the cash flow turnaround was mainly due to lower taxes and fees driven by the revenue decline and optimized expense investment, and that in the second half it will maintain necessary investment in key areas such as terminal development, consumer cultivation, and brand promotion. Regarding the goal raised at the May 2026 dealer forum for the main Hengshui Laobaigan brand to strive for 10 billion yuan in revenue within ten years, the company said this is a long-term vision. The industry is currently in a period of deep adjustment, and management does not pursue a high level of book advance receipts. Contract liabilities have fallen from 1.521 billion yuan at the end of 2023 to 1.026 billion yuan at the end of 2025, and further declined to 954 million yuan in the 2026 semi-annual report.

Laobaigan Liquor released its 2026 interim report, showing second-quarter revenue fell 32.75% year on year and net profit attributable to the parent company dropped 42.92%, far exceeding the 15% and 25% declines previously forecast by China Merchants Securities and Shenwan Hongyuan Securities. In the first half, the company achieved operating revenue of 2.104 billion yuan, down 15.23% year on year, and net profit attributable to the parent of 262 million yuan, down 18.47%. Contract liabilities stood at 954 million yuan, a sharp year-on-year decline of about 25%, indicating weakening willingness among distributors to make advance payments. By product, revenue from products priced above 100 yuan fell 18.10%, a larger decline than the roughly 12% drop for products below 100 yuan. By region, revenue in its Hebei home base slipped 16.05%, while the Hunan market posted the largest decline at 21.60%, and Anhui and Shandong also saw double-digit contractions. In the second half, the company will continue to prioritise actual consumption and bottle openings, abandon channel inventory loading, strictly control cross-regional selling and price chaos, deepen its presence in banquets, dining and group-buying scenarios, solidify its Hebei home base, and strengthen the Hunan market for Wuling Liquor.