Golden Seed Spirits has responded to the Shanghai Stock Exchange's inquiry regarding five consecutive years of losses and gross margins below the industry average. The company's 2025 revenue was 722 million yuan, down 21.96 percent year-on-year, with a net loss of 199 million yuan, mainly due to fierce competition in the Anhui baijiu market and deep industry adjustments. Low-end liquor sales volume accounted for about 85.58 percent, while mid-to-high-end product revenue made up only 33.28 percent. The imbalanced product mix dragged down overall gross margins, while selling and administrative expenses together accounted for 45.29 percent of revenue, far exceeding the industry average. The fourth-quarter 2025 loss of 98.08 million yuan was primarily due to dealer rebates in kind reducing revenue, asset impairment provisions, and the divestiture of the pharmaceutical business. The company stated that losses are continuing to narrow, the asset-liability ratio is only 35.89 percent, and 57,300 tonnes of high-quality base liquor provide long-term support. Going forward, it will focus on its Fuyang base market, optimize the product mix, and strictly control expenses to improve profitability.
Anhui Golden Seed Winery Co LtdFierce competition in Anhui baijiu market and deep industry adjustments cited as main cause of losses.