Shede Spirits Co., Ltd., together with its subsidiaries, designs, produces, and sells liquor products in China. It also produces and sells glass products, wholesales and retails alcoholic beverages and packaging materials, purchases and sells grain, procures and sells materials, and engages in commercial trade. The company is involved in domestic tourism, scenic area development, exhibition services, food sales, wine distribution, brand management, marketing, internet sales, inspection and testing, and road freight transport and warehousing. It offers products under the Shede, Toupai, and Tunzhihu brands. Founded in 1940, it is headquartered in Shehong, China.
Shede Spirits Completes Board Renewal; Tang Hui Elected Chairman and Concurrently Serves as President
Shede Spirits Co., Ltd. convened its second extraordinary shareholders' meeting of 2026 on September 29, deliberating and approving proposals related to the board renewal election, resulting in the formation of the twelfth board of directors, with Tang Hui elected as chairman and concurrently serving as president. The new board consists of 11 directors, including non-independent directors Chen Chunlin, Chen Yihang, Zhou Bo, Tang Hui, Huang Zhen, and Tan Xiangyang; independent directors Liu Haiying, Yu Zhen, Xie Youping, and Ye Weiling; and employee representative director Liu Qiang, who was elected through the employee representative assembly on September 28. At the first meeting of the new board held the same day, it was approved that Tang Hui would continue as company president, Li Anhua and Luo Chao would serve as vice presidents, Zhong Lingyao would continue as chief financial officer, and Zhang Wei would continue as board secretary. Tang Hui, aged 46, has 20 years of experience within the Procter & Gamble system and has served as president of Shede Spirits since December 2023. This renewal received unanimous recognition from the two major shareholders, Fosun and the Shehong municipal government. The representation of both parties on the board remains consistent with the previous term, and the Shehong municipal government has for the first time recommended Tan Xiangyang, who comes from the financial system, to join the board and serve as a member of the strategy committee.
600702.CG · · Neutral Shede Spirits completed a board renewal and re-elected Tang Hui as chairman/president; a governance change with no clear product, financial, or operational driver.
Shede Spirits first-half 2026 net profit 145 million yuan, down 67.26% year on year
Shede Spirits released its 2026 interim report, with net profit attributable to the parent company of 145 million yuan, down 67.26% from the same period last year. Total operating revenue was 2.287 billion yuan, down 15.34% year on year. Net cash flow from operating activities was negative 26.58 million yuan, down 139.46% year on year. The latest gross margin was 61.24%, down 4.47 percentage points from the same period last year. The latest return on equity was 2.08%, down 4.20 percentage points from the same period last year. Diluted earnings per share were 0.44 yuan, down 67.37% year on year.
Liquor stocks rally, Jinhui Liquor and Shede Spirits hit daily limit up intraday
The liquor sector strengthened today, with Jinhui Liquor and Shede Spirits hitting their daily limit up intraday at 16.89 yuan per share and 37.49 yuan per share respectively. Golden Seed Winery surged more than 7% at one point, while Kouzi Distillery, Shanxi Xinghuacun Fen Wine Factory, Jiugui Liquor, Wuliangye, and Yanghe Brewery all gained over 4%. Goldman Sachs noted in its latest research report that the most difficult destocking phase for China's liquor industry is over, with supply-side cuts accelerating, wholesale prices of key mid-to-high-end varieties stabilizing, and channel inventories trending healthier. The industry is in the very early stages of recovery, but broader commercial demand recovery still needs confirmation due to macroeconomic uncertainties, and the industry's long-term market capacity faces structural contraction.
Liquor concept stocks strengthen intraday, institutions see sector entering an upward phase of earnings cleansing
On July 30, liquor concept stocks strengthened intraday, with the sector rising 3.04 percent. Shede Spirits gained 10.01 percent, Gujing Distillery rose 7.25 percent, Jiugui Liquor advanced 5.28 percent, Yingjia Distillery climbed 4.77 percent, and Huangtai Liquor added 4.73 percent. Monitoring data from the China Alcoholic Drinks Association shows that in June 2026, imports of 16 major imported alcoholic beverage categories totaled 70.7 thousand kiloliters, with an import value of 2.721 billion yuan. For the first six months, cumulative imports reached 348.6 thousand kiloliters, valued at 13.427 billion yuan. A research note from China Securities points out that the liquor sector has entered an upward phase of earnings cleansing. In the first quarter of 2026, the year-on-year declines in industry revenue and net profit attributable to the parent company narrowed significantly. Leading distillers such as Kweichow Moutai and Wuliangye have already achieved positive revenue and profit growth. The second quarter is expected to be an earnings inflection point for some distillers. A research note from Shenwan Hongyuan Securities notes that high-end liquor prices are likely to stabilize in 2026, and the industry is accelerating into a consolidation phase centered on rising concentration. The future will see a pattern of big fish eating big fish, and top-tier companies with advantages in brand strength, channel power, and organizational capability will navigate the cycle more effectively.
000995.CS · Demand · Positive Huangtai Liquor rose 4.73% as part of sector-wide strength, with industry data showing narrowing earnings declines and expected inflection.
Liquor stocks rally strongly: Kweichow Moutai surges nearly 6%, institutions expect sector recovery in second half
The liquor sector staged a strong rebound on July 20, with Kweichow Moutai closing up nearly 6% and its share price reclaiming the 1,320 yuan level. Gujing Gongjiu hit the daily limit up, Luzhou Laojiao rose over 6%, Jinhui Liquor and Shanxi Xinghuacun Fenjiu gained over 5%, and Wuliangye, Yingjia Gongjiu, and Jinshiyuan all closed higher across the board. On the news front, Kweichow Moutai recently announced another price increase for its core blockbuster product, Feitian Moutai, and its non-standard product, the kilogram Moutai. Effective July 18, the retail price of Feitian 53% vol 500ml Kweichow Moutai on the iMoutai platform was raised from 1,539 yuan per bottle to 1,639 yuan per bottle, and the sales contract price was raised from 1,269 yuan per bottle to 1,369 yuan per bottle. The retail price of the kilogram Moutai was raised from 3,119 yuan per bottle to 3,269 yuan per bottle. Institutions believe the price hikes will help boost earnings. Huachuang Securities estimates that, after deducting value-added tax, the corresponding increase in reported revenue will be approximately 5.6 billion yuan, contributing an estimated profit of around 3.6 billion yuan. Recent semi-annual earnings forecasts from several liquor companies indicate the industry remains broadly under pressure, with Shede Spirits, Swellfun, Golden Seed Winery, and Huangtai Liquor posting losses or profit declines in the first half. Zheshang Securities believes the fundamentals have clearly bottomed out, and Kaiyuan Securities expects the sector to likely recover in the second half of the year. At the close, Kweichow Moutai traded at 1,327.5 yuan per share, up 5.95%, with a total market capitalization of 1.66 trillion yuan.
National cigarette and alcohol retail sales rose 13.2% year-on-year in the first half; baijiu sector rallies but earnings generally expected to decline
Data released by the National Bureau of Statistics on July 15 showed that in the first half of the year, the absolute retail sales of cigarette and alcohol products nationwide reached 354.7 billion yuan, up 13.2 percent year-on-year. In June alone, the absolute figure was 53.7 billion yuan, up 12.1 percent year-on-year. Boosted by this news, the A-share baijiu sector rose across the board that day. Gujing Gongjiu, Jinzhongzi Liquor, and Dahu Aquaculture hit the daily limit up. Luzhou Laojiao, Shanxi Xinghuacun Fenjiu, Shunxin Agriculture, and Jinshiyuan gained more than 5 percent. The sector's overall index rose 3.06 percent. However, the industry remains in a period of deep adjustment. As of July 15, about eight A-share listed baijiu companies had disclosed their first-half earnings forecasts. Except for Wuliangye, which is expected to report growth, the rest generally saw profit declines or losses. Tianyoude Liquor's net profit fell 76 to 84 percent year-on-year. Shunxin Agriculture's net profit fell 69.34 to 79.18 percent year-on-year. Jinzhongzi Liquor, Huangtai Liquor, Shuijingfang, and ST Spring are expected to report losses. Proactive destocking has become a common choice for liquor companies. Shuijingfang's channel inventory fell about 50 percent year-on-year. Shede Spirits controlled shipments to stabilize prices. Jiugui Liquor raised the strategic price of its 52-degree 500ml Neican liquor by 30 yuan per bottle and suspended shipments until August 15. Xiao Zhuqing, a Chinese liquor industry analyst, said consumers are shifting to affordable daily-drinking liquors priced under 100 yuan, and the premium on high-end famous brands is shrinking. Liquor companies need to face consumers directly to digest inventory.
Liquor earnings previews pour in: Sub-premium and regional distillers widely swing to losses, profits shrink sharply
First-half earnings previews from liquor companies have been released in a concentrated batch. Sub-premium and regional players such as Tianyoude, Swellfun, Golden Seed Winery, Shede Spirits, Shunxin Agriculture, and Huangtai Liquor broadly reported steep profit declines or outright losses. Tianyoude expects first-half revenue to fall about 14 percent year on year, with net profit attributable to the parent down 76 to 84 percent. Shunxin Agriculture sees attributable net profit dropping 69.34 to 79.18 percent. Swellfun delivered its first loss-making half-year report in recent years, with attributable net profit at negative 6.2221 million yuan, swinging from profit to loss. Golden Seed Winery expects an attributable net loss of 60 to 72 million yuan. Huangtai Liquor projects a loss of 10 to 18 million yuan, widening its year-on-year deficit. Shede Spirits earlier disclosed that attributable net profit fell 60.52 to 69.55 percent. Wuliangye, benefiting from a low base a year earlier, expects attributable net profit to rise 88.80 to 98.97 percent. Xiao Zhuqing, an independent commentator on China's liquor industry, said the sector is in a phase of deep adjustment in the first half, marked by shrinking demand, intense channel competition, and structural optimization, putting revenue and gross margins at sub-premium distillers under pressure.
000860.CS · Demand · Negative Net profit drops 69.34-79.18% due to shrinking demand and channel competition.
000995.CS · Demand · Negative Huangtai Liquor projects a widened loss of 10-18 million yuan, reflecting shrinking demand and channel competition.
002646.CS · Demand · Negative Tianyoude expects first-half revenue to fall ~14% and net profit to drop 76-84%, due to shrinking demand and channel competition.
600199.CG · Demand · Negative Expects net loss of 60-72 million yuan due to shrinking demand and channel competition.
600702.CG · Demand · Negative Attributable net profit fell 60.52-69.55% amid sector adjustment and weak demand.
600779.CG · Demand · Negative First loss-making half-year, net loss of 6.22 million yuan, due to demand decline.
Shede Spirits forecasts first-half net profit of 135 million to 175 million yuan, down over 60% year-on-year
Shede Spirits issued a preliminary earnings decline announcement for the first half of 2026, forecasting net profit of 135 million to 175 million yuan, a year-on-year decrease of 60.52% to 69.55%. Net profit after deducting non-recurring items is expected to be 123 million to 163 million yuan. In the first half of this year, the baijiu industry as a whole remained in a period of deep adjustment, with weak consumption momentum and sustained sales pressure. The company adhered to the core principles of stabilizing prices, controlling inventory, and strengthening sales, moderately controlling shipments, actively supporting distributors in digesting inventory, stabilizing market prices, and maintaining healthy operations in the market and among distributors.
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