2026-08-19
Jinshiyuan, a Chinese baijiu producer based in Jiangsu province, reported weaker first-half results as sales of its higher-priced products fell sharply, even as demand improved for bottles in a lower price band and second-quarter earnings turned higher.
The company said in its half-year report released on the evening of Aug. 17 that revenue for the first six months of 2026 fell 7.41% from a year earlier to 6.435 billion yuan. Net profit declined 6.60% to 2.082 billion yuan. Based on the reported rates of change, that means revenue was down by roughly 515 million yuan from the comparable period last year, while profit fell by about 147 million yuan.
The main pressure came from Jinshiyuan’s most expensive core segment. Revenue from its Special A+ products, which carry an ex-factory guide price above 300 yuan, dropped 13.19% to 3.743 billion yuan. Using the reported percentage decline, the comparable figure a year earlier was about 4.312 billion yuan, implying a loss of roughly 569 million yuan in sales in that category alone.
By contrast, the company’s Special A products, priced at 100 yuan to 300 yuan, posted growth. Revenue in that segment rose 3.36% to 2.307 billion yuan, which amounts to an increase of about 75 million yuan from a year earlier. The result points to a shift in consumer demand toward more affordable baijiu at a time when China’s liquor industry remains under pressure from weaker discretionary spending and a slower-than-expected recovery in banquet and business dining occasions.
The two price bands remain the center of Jinshiyuan’s business. Together they accounted for more than 90% of the company’s revenue in the first half, according to the filing. The company’s core products in those categories include Guoyuan Si Kai in the above-300-yuan range and Guoyuan Danya in the 100-yuan-to-300-yuan range.
Lower-tier products were mixed. Revenue from A-class products fell 21.8% to 182 million yuan, while B-class products edged up 0.57% to 77 million yuan. The company did not disclose shipment volumes in liters or cases, so the results do not allow a clear breakdown between changes in unit sales, pricing, and product mix.
The first-half decline came after years of faster expansion for Jinshiyuan, and it reflects broader strains across China’s baijiu market. Chinese industry research cited by local media said many producers faced lower profits and softer average spending per customer in the first half as households remained cautious and cut non-essential purchases. Baijiu, a traditional distilled spirit, is closely tied to business meals, family gatherings, and weddings, making it sensitive to changes in social and corporate spending.
Still, Jinshiyuan’s quarterly figures showed some improvement. In the second quarter, revenue rose 14.11% from a year earlier to 2.113 billion yuan, while net profit attributable to shareholders increased 19.17% to 697 million yuan. Those gains translate to roughly 261 million yuan in additional revenue and about 112 million yuan in additional profit from the same quarter last year.
The company told Chinese media that its high-end product performance improved in the second quarter as banquet consumption and related occasions moved into what it called a “new normal.” Management also said consumption scenarios for premium baijiu recovered somewhat from last year’s low base. At the same time, it said the price band where Guoyuan Danya competes is still expanding, helping support growth, although it also acknowledged that growth rates in that product line are likely to slow later as earlier momentum is absorbed.
The geographic split in sales shows how dependent Jinshiyuan still is on its home market. Revenue in Jiangsu and other in-province markets fell 9.36% in the first half to 5.668 billion yuan, accounting for 88% of total revenue. Sales outside the province increased 7.18% to 673 million yuan, offering one of the few clear growth areas in the company’s business.
Jinshiyuan said the share of code-scanned sales for its main products outside Jiangsu has continued to rise and now exceeds 20%. In China’s consumer goods sector, code-scanning data is often used by companies as a proxy for sell-through and market activity. The company also expanded its distributor network in the first half, adding 107 distributors in total, including 16 in its home market and 91 outside the province.
Chinese media reports cited industry analyst Xiao Zhuqing as saying Jinshiyuan’s results were supported by three factors: a relatively stable base in Jiangsu, tangible progress in outside markets, and broader product and channel coverage, including digital and instant retail channels. But he also said the second-quarter rebound was helped in part by a low comparison base from a year earlier and should not be read as proof that either Jinshiyuan or the wider baijiu industry has already reached a full turning point.
That caution reflects the company’s product mix. Even after the rebound in the second quarter, the higher-end category above 300 yuan remained Jinshiyuan’s biggest revenue source, and it is still contracting at a double-digit rate. The lower-priced 100-yuan-to-300-yuan segment is growing, but the increase there has not yet been large enough to offset the decline in premium sales.
Investors and analysts in China are expected to watch the coming Mid-Autumn Festival and National Day selling season closely for signs of whether banquet demand, consumer traffic, and pricing can hold up. For Jinshiyuan, the next question is whether the second-quarter recovery can continue while the company leans more on its mid-priced products and tries to stabilize its premium business.