Kouzijiao(SH:603589) Chang Jiang Shang Bao·2025-10-29 23:52Core Viewpoint - The liquor industry is entering a deep adjustment period, significantly impacting medium-sized liquor companies like Kuozi Jiao [1] Financial Performance - In the first three quarters of 2025, Kuozi Jiao reported revenue of 3.174 billion yuan, a year-on-year decline of approximately 27% [2][3] - The net profit attributable to shareholders was 742 million yuan, down over 43% year-on-year, with a staggering 92.55% decline in the third quarter [1][3] - Operating cash flow turned negative at -390 million yuan, marking only the second occurrence of negative cash flow in the past decade [2][8] Sales Performance - High and mid-range liquor sales saw double-digit declines, while low-end liquor sales increased by 25.09% [2][8] - The sales revenue from high and mid-range liquor was 2.961 billion yuan and 41.304 million yuan, respectively, both showing significant year-on-year declines [7][8] Market Dependency - Kuozi Jiao remains highly dependent on the Anhui provincial market, with provincial revenue accounting for 84.54% in the first half of 2025 [7] - The company’s high-end liquor revenue growth has been declining, with growth rates of 1.94%, 16.58%, and 0.06% from 2022 to 2024 [7] Cost Structure - Despite the significant drop in net profit, the company’s selling expenses were 515 million yuan, only a 17.47% decrease year-on-year, indicating that cost reductions have not kept pace with revenue declines [4][8] - Management expenses increased slightly to 283 million yuan, compared to 280 million yuan in the previous year [4] Inventory Levels - As of September 2025, Kuozi Jiao's inventory reached a historical high of 6.218 billion yuan [9]