Jiugui Liquor Responds at Earnings Call: Price Hike for Inner Reference Achieves Expected Results, Partnership with Pangdonglai Won't Disrupt Traditional Channels

September 20, 2026 – Jiugui Liquor Co., Ltd. (000799) announced on September 18, 2026, that it held a performance briefing to address investor questions. Below is a structured summary of the key exchanges.

Company Strategies for Growth and Channel Optimization

Q1: Jiugui was among the first in the industry to destock, a process now spanning four years. Industry cycles typically last 48 months. However, the half-year report shows declines in core products (Neican, Zitan, Hongtan, Huangtan). What concrete measures are being taken to restore growth? Additionally, the report shows a reduction of several hundred distributors—was this due to voluntary exits or proactive termination for price-cutting and cross-regional sales? Could distributor instability create negative feedback on sales? What products are included in the "other series"? Finally, some media outlets are skeptical of the partnership with Pangdonglai, citing risks of becoming an OEM, brand dilution, and channel conflict. Can sales data address these concerns?

A:

• Growth initiatives: Leverage cultural产区 advantages for brand differentiation; focus on core markets in Hunan and key provinces; stabilize prices for Neican and Hongtan to protect distributor margins; boost end-consumer sales through banquet promotions and QR code campaigns; expand into hypermarket, group-purchase, and e-commerce channels (including instant retail and private domains); advance digital transformation for supply chain and quality control.
• Distributor changes: The core distributor base remains stable, with most maintaining long-term partnerships. The reduction is due to small-scale distributors exiting amid market conditions and proactive optimization by the company. This will not impact overall sales.
• Other series: Primarily the Neipin series.
• Pangdonglai partnership: This is a new channel expansion that has achieved positive results. It will not disrupt traditional channels or dilute brand value.

New Product Launches and Channel Strategy

Q2: Following the collaboration on "Jiugui·Freedom Love," will there be a Neican product launched with Pangdonglai?

A: In addition to "Jiugui·Freedom Love," a 750ml Xiangquan product has recently been launched. For further updates, please follow the company's official WeChat account.

Pricing and Volume Strategy for Neican

Q3: In July, Neican implemented a price increase and a one-month shipment suspension. What were the actual results? Beyond supply control, what fundamental measures are being taken to repair Neican's pricing system and channel profits? Is the priority price stability or sales volume?

A: The policy achieved its intended results. Additional measures include strengthening distributor flow management, establishing regional alliances in key Hunan markets to maintain pricing and margins, and launching a new group-purchase product, "Neican (Batik)," to enhance brand value. The company aims to expand sales volume on the basis of stable prices.

Xiangquan Product Positioning and Low-Price Strategy

Q4: Is the new Xiangquan only sold at Pangdonglai? Will it cannibalize sales of "Freedom Love"? What is the low-price liquor strategy for the second half of the year?

A: The new 750ml Xiangquan (priced at RMB 65) is currently exclusive to Pangdonglai. It targets a different price segment than "Jiugui·Freedom Love" and will not affect its sales.

Heritage and Brand Value

Q5: Vintage liquor enthusiasts highly praise the 1997 sack-wrapped, pottery-bottle Jiugui, noting its quality once surpassed Moutai and Wuliangye. Does the company plan to organize a tasting event to analyze why this product earned such strong consumer trust?

A: Thank you for your suggestion. Jiugui products enjoy considerable recognition and reputation in the vintage liquor market. The company will seriously consider your proposal.

Channel Concentration and Distributor Strategy

Q6: The top five distributors account for over half of revenue, while the total number of distributors has declined. How does the company view channel concentration? Are there exclusivity clauses or long-term agreements with top clients? Will growth rely on deepening ties with major clients, or is there a plan to rebuild the network of smaller distributors?

A: The company will continue to deepen strategic partnerships with major clients while also selecting suitable, resource-rich distributors in regional markets to improve the overall distributor system.

Hunan Market Performance

Q7: The company established a Hunan business unit to strengthen its home market. While progress has been made in Changsha, Xiangxi, and Yueyang, are other cities underperforming? Will the company set detailed sales and market share targets for each city?

A: Thank you for your suggestion. The Hunan business unit is progressing as planned, and all city-level sales teams have detailed performance targets.

Shareholder Engagement

Q8: Will the company consider gifting products annually to shareholders holding over RMB 500,000 in stock to increase loyalty?

A: Thank you for your suggestion.

Share Price Support Measures

Q9: What policies will the company introduce to boost the share price?

A: The company will focus on improving operational performance—deepening core markets, expanding new channels, reducing costs, and enhancing efficiency—to strengthen fundamentals. Simultaneously, it will improve investor relations and communicate business highlights to the market. We believe the share price will gradually improve as fundamentals strengthen.

Potential Collaboration with Kuaijishan

Q10: Given the recent strength of yellow wine stocks like Kuaijishan, is Jiugui considering closer cooperation with COFCO Kong Yiji?

A: Thank you for your suggestion. We will seriously consider it.

Company Overview and Financial Highlights

Core Business: Production and sale of Jiugui series baijiu and Xiangquan series baijiu.

2026 Half-Year Results:

• Revenue: RMB 530 million (down 5.58% YoY)
• Net profit attributable to shareholders: RMB 12.32 million (up 37.57% YoY)
• Core net profit: RMB 11.35 million (up 34.83% YoY)
• Q2 2026 revenue: RMB 213 million (down 2.09% YoY)
• Q2 2026 net profit attributable to shareholders: RMB -20.86 million (up 8.33% YoY)
• Q2 2026 core net profit: RMB -21.34 million (up 7.32% YoY)
• Debt ratio: 22.86%
• Gross margin: 66.58%

Analyst Ratings (past 90 days): 9 ratings: 6 Buy, 3 Outperform. Average target price: RMB 46.26.

Margin Trading Data (past 3 months): Net margin buying outflow of RMB 94.01 million; net short selling outflow of RMB 30,600.

Disclaimer: The above content is compiled from publicly available information by Securities Star and is for reference only. It does not constitute investment advice.