Jiugui Liquor Cuts 447 Distributors in H1, Launches 65 Yuan New Product with Pangdonglai

September 18, 2026 — Following the success of the "Jiugui · Free Love" collaboration in 2025, Jiugui Liquor (000799.SZ) held its semi-annual earnings briefing for 2026 on September 18. Management addressed investor questions regarding new product collaborations with Pang Dong Lai, restoration of the Neican price system, adjustments to the dealer network, and efforts to boost the share price.

New Collaboration with Pang Dong Lai Sparks Debate

According to information obtained by Times Weekly, Jiugui Liquor recently partnered again with Pang Dong Lai to launch a 750mL bottle of Xiangquan, priced at 65 yuan. The release quickly sparked market discussion, though some critics voiced concerns that the move risks turning Jiugui into an "OEM factory" and "diluting the brand with low prices."

In response, Jiugui Liquor General Manager Cheng Jun stated at the earnings briefing that the new Xiangquan product and "Jiugui · Free Love" belong to different price segments and will not impact sales of Free Love. Cheng Jun also noted that this product is currently available only at Pang Dong Lai supermarkets.

A Look Back at the Partnership

In July 2025, Jiugui Liquor and Pang Dong Lai launched "Jiugui · Free Love," priced at 200 yuan. The product triggered purchase limits at stores and became a highlight in the baijiu industry last year.

Within just six months of collaboration, Pang Dong Lai became Jiugui Liquor's largest customer, with sales of 196 million yuan — accounting for 17.66% of the company's total annual sales in 2025. The product has since entered Yonghui and BBK supermarkets, with growth momentum continuing into the first quarter of 2026. Several brokerage firms believe this product was the core incremental source stabilizing the company's performance in the first quarter.

Financial Performance

In the first half of this year, Jiugui Liquor achieved revenue of 530 million yuan, down 5.58% year-on-year. Net profit attributable to shareholders rose 37.57% year-on-year to 12.319 million yuan. However, profits were mainly contributed by the first quarter, while the second quarter still recorded losses exceeding 20 million yuan.

Dealer Network Overhaul

Amid weak baijiu consumption, Jiugui Liquor intends to concentrate resources on core dealers. In the first half of the year, the number of dealers plummeted from 1,109 at the end of last year to 662 — a net reduction of 447 dealers. The revenue share of the company's top five dealer customers also increased from 32.63% in the same period last year to 50.51%.

When a Times Weekly reporter raised concerns about dealer concentration risk, Cheng Jun replied that the company will continue to deepen strategic partnerships with major clients while selecting suitable, resource-rich customers based on regional market conditions to refine its dealer system.

Cheng Jun also emphasized that the decline in the number of dealers is partly due to small dealers voluntarily exiting the market under industry pressures, and partly due to the company's proactive optimization and adjustment of its dealer team. He stated that the dealer team remains stable and will not affect overall sales.

Restoring the Price System

In recent years, Jiugui Liquor's product line has continued to streamline, having cut 60% of inefficient SKUs. Sales in the first half of this year further concentrated on the mid-price segment of the Jiugui series, while Neican revenue declined 24% year-on-year. Restoring the price system for the Neican series is a key focus for Jiugui Liquor this year.

In mid-July, Jiugui Liquor implemented policies to support prices and control inventory. Two months later, data from third-party platform "Today's Liquor Prices" on September 18 showed the wholesale price of Neican at 565 yuan per bottle, indicating that prices remain inverted with no clear signs of stabilization yet.

However, Zou Fei, Deputy General Manager of Jiugui Liquor overseeing sales, stated at the earnings briefing that the current price-support policy has achieved expected results. Beyond short-term controls such as volume restrictions and shipment suspensions, the company is advancing two long-term measures to restore the price system:

• Strengthening the flow of goods among dealers
• (Additional measures not specified in the original text)

Industry insiders told Times Weekly that Jiugui Liquor and Yingjia Gongjiu...

Capital Market Performance

Regarding capital markets, the yellow wine sector has seen rising market heat recently, while the baijiu sector — including Kuaijishan — continues to fluctuate at bottom levels, appearing even more dismal.

Wind data shows that Jiugui Liquor's share price has fallen over 31% since the beginning of this year. Many investors are concerned whether the company has targeted arrangements to boost market capitalization.

Song Jiaqi, the company's securities affairs representative, believes the core strategy lies in deepening engagement in core markets, exploring new channels, and reducing costs and improving efficiency, while simultaneously managing investor relations effectively and communicating operational highlights.

Notably, in the second quarter, UBS entered the company's top ten shareholders for the first time, indicating that capital is already betting on this recovery trend.

As of the close on September 18, Jiugui Liquor's share price stood at 37.26 yuan, with a market cap of 12.1 billion yuan.

Source: Times Weekly