Overview
ZJLD Group Inc, a leading baijiu producer listed on the Hong Kong Stock Exchange (stock code: 6979), has issued a significant profit warning for the financial year ended December 31, 2025. The company, incorporated in the Cayman Islands, has notified shareholders and investors of a marked decline in both revenue and profit, based on preliminary unaudited consolidated management accounts.
Key Financial Highlights
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Revenue: The Group expects revenue of RMB3.55 billion to RMB3.70 billion for FY2025, compared to RMB7.07 billion in FY2024. This represents a year-on-year decrease of 47.7% to 49.8%.
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Profit Attributable to Equity Shareholders: Projected profit is RMB0.52 billion to RMB0.58 billion for FY2025, down from RMB1.32 billion in FY2024, a decline of 56.1% to 60.6%.
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Adjusted Net Profit (Non-IFRS): Expected adjusted net profit is RMB0.52 billion to RMB0.58 billion for FY2025, compared to RMB1.68 billion in FY2024, a drop of 65.5% to 69.0%.
Causes of the Decline
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Softened Market Demand: There was reduced spending on baijiu, particularly in business and social banquet and gifting occasions, indicating a broad-based demand weakness.
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Channel Inventory Reduction: The company undertook further reductions in channel inventories in the second half of 2025, which negatively impacted revenue in the short term but is intended to lay a foundation for future growth.
Strategic Actions and Outlook for 2026
Despite the disappointing financial results for 2025, ZJLD Group Inc has implemented several strategic initiatives aimed at recovery and growth:
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Premier Retailers Alliance Model: Since June 2025, the company advanced this model and adopted the Alliance Retailers Benefits Plan in September 2025. These actions have bolstered sales momentum, attracted high-quality distributors, and enhanced the Zhen Jiu brand. The company expects considerable revenue contributions from this model in 2026.
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Inventory Optimization: Significant efforts in H2 2025 to reduce channel inventories are intended to accelerate channel turnover and strengthen the company’s competitive position in core regional markets.
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Market Penetration: The company aims to deepen penetration in county-level and rural markets with products in the premium price range and below, and expand presence in social occasions such as birthday and wedding banquets.
Important Information for Shareholders
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Price Sensitivity: The sharp declines in revenue and profit are highly price sensitive and could significantly affect the share value of ZJLD Group Inc.
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Preliminary Figures: The numbers disclosed are based on unaudited management accounts and have not been reviewed by external auditors. Actual results for FY2025 may differ from those disclosed.
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Annual Results Announcement: Investors and shareholders are advised to await the official annual results, to be published on or before March 31, 2026.
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Caution Advised: Shareholders and investors are urged to exercise caution when dealing in the company’s shares due to the material uncertainties highlighted.
Board Statement
The announcement was signed by Mr. Wu Xiangdong, Executive Director and Chairman of the Board, on February 27, 2026. The Board comprises multiple executive, non-executive, and independent directors, ensuring robust governance.
Conclusion
The profit warning issued by ZJLD Group Inc signals a challenging year ahead, with substantial declines in revenue and profit. The company’s strategic pivots and new business models aim to restore growth in 2026, but the immediate financial impact is significant and may materially affect share price. Investors should monitor subsequent disclosures and exercise prudence in trading the company’s shares.
Disclaimer: This article is based on preliminary unaudited figures and strategic intentions disclosed by ZJLD Group Inc. Actual results may differ. The information provided does not constitute investment advice. Investors should exercise their own judgment and consult professional advisors before making investment decisions.
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