Kouzijiao(SH:603589) Xin Lang Cai Jing·2025-10-31 11:59Core Viewpoint - Kouzi Jiao, a representative enterprise of Chinese mixed aroma liquor, has faced significant revenue and profit declines in 2025, indicating challenges in market demand and competition [2][6][7]. Group 1: Company Overview - Kouzi Jiao was established on December 26, 2002, and listed on the Shanghai Stock Exchange on June 29, 2015, with its headquarters in Huaibei, Anhui Province [1]. - The company specializes in the production and sale of liquor, particularly mixed aroma liquor, and is recognized for its unique brewing process and stable quality [1]. Group 2: Financial Performance - For Q3 2025, Kouzi Jiao reported revenue of 31.74 billion yuan, ranking 12th among 20 companies in the industry, significantly lower than the top competitors, Kweichow Moutai and Wuliangye [2]. - The net profit for the same period was 7.42 billion yuan, placing the company 9th in the industry, again trailing behind Kweichow Moutai and Wuliangye [2]. - Year-on-year revenue decline was noted at 27.2%, with a more severe drop of 46.2% in Q3 alone [6][7]. Group 3: Profitability and Debt Management - As of Q3 2025, Kouzi Jiao's debt-to-asset ratio was 16.77%, lower than the industry average of 32.41%, indicating strong debt repayment capability [3]. - The gross profit margin was reported at 70.96%, which, despite a decline from the previous year, remains above the industry average of 67.32% [3]. Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders increased by 1.65% to 73,100, while the average number of circulating A-shares held per shareholder decreased by 1.63% [5]. - Notably, the top circulating shareholder, the China Securities White Wine Index A, increased its holdings by 580,000 shares [5]. Group 5: Executive Compensation - The chairman and general manager, Xu Jin, saw his compensation decrease from 3.64 million yuan in 2023 to 2.64 million yuan in 2024, a reduction of 1 million yuan [4]. Group 6: Market Challenges - The company faced a significant decline in high-end liquor sales, with a 49.3% drop in Q3 2025, while mid-range and low-end liquor showed mixed results [6][7]. - The overall operating cash flow turned negative in Q3 2025, indicating potential liquidity issues [7].