China's liquor market is in a state of involution, dealers' survival is in jeopardy

Published 2024년 12월 25일

Tridge summary

China's liquor market is experiencing a slump with declining sales, leading to survival pressure for distributors. Huazhi Liquor Store, the first A-share liquor circulation stock, has seen a significant decrease in operating income, net profit, and cash flow. The decline in the liquor market is evident among first-line distributors, with many facing financial challenges. The decrease in income and the shift in consumer preferences towards ration liquor from high-end liquor are contributing factors. The situation threatens the stability of the price system and the financial stability of dealers, raising concerns about the potential for market disruption.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

[Epoch Times December 25, 2024] (Reported by Epoch Times reporter Liu Yi) China's liquor market is sluggish and sales are declining. Many liquor distributors are facing huge survival pressure, and many distributors are in trouble. According to the mainland financial media Harbor Business Observation, Huazhi Liquor Store, the first A-share liquor circulation stock, achieved operating income of 7.832 billion yuan (RMB, the same below) in the first three quarters of this year, a year-on-year decrease of 5.10%; net profit attributable to the parent was 168 million yuan, a year-on-year decrease of 27.36%; non-net profit was 149 million yuan, a year-on-year decrease of 15.24%; net cash flow from operating activities was -393 million yuan, compared with 389 million yuan in the same period last year; gross profit margin was 10.02%, A year-on-year decline of 0.98 percentage points. As of the end of the third quarter, Huazhi Liquor Store's total assets were 6.888 billion yuan, a ...

Source: Epochtimes