KOUZI, the representative of Anhui liquor, has entered a period of deep adjustment amid weakening demand and intensifying competition within the province.
In 2025, the company achieved operating revenue of 3.99 billion yuan, a year-on-year decline of 33.7%; net profit attributable to the parent company was 670 million yuan, down 59.3% year-on-year, with revenue scale reaching only about 60% of the budget target set at the beginning of the year.
Entering the first quarter of 2026, although the rate of decline narrowed, the downward trend had not yet reversed. Revenue reached 1.375 billion yuan, down 24% year-on-year, while the drop in net profit attributable to the parent company widened to 46%.
A sharp decline in revenue, significant pressure on profits, and cash flow turning from positive to negative have caused multiple core indicators to weaken simultaneously, outlining a rare downturn cycle since the company's listing.
Breaking it down, this adjustment is first reflected in the loosening of core markets.
In recent years, internal competition among Anhui liquor brands has intensified. Regional leaders such as Gujing Gongjiu and Yingjia Gongjiu have increased investments in channels and branding, while national famous liquor brands have accelerated their penetration. Coupled with a temporary weakening of consumer demand, the competitive environment facing KOUZI has become increasingly complex.
In 2025, KOUZI generated 3.246 billion yuan in revenue within the province, a year-on-year decrease of 34.51%, a decline steeper than the 28.58% drop seen in the non-provincial market.
From a product structure perspective, in 2025, the company's high-end baijiu revenue amounted to 3.688 billion yuan, down 35% year-on-year.
With high-end products accounting for over 90% of its mix, the company remains highly dependent on mid-to-high-end demand, a price segment that currently faces the most pronounced pressure across the baijiu industry.
In 2025, KOUZI's net cash flow from operating activities was -216 million yuan, turning negative from positive year-on-year, marking a decline of 114.81%. In the first quarter of 2026, this figure remained at -135 million yuan, registering negative values for two consecutive reporting periods.
Echoing this, contract liabilities fell to 334 million yuan, a year-on-year drop of nearly 40%. Meanwhile, inventory &#34;de-stocking&#34; proved sluggish; despite a 22% reduction in production, inventory still grew by 6.4% year-on-year.
Amid multiple pressures, the company is also attempting to seek structural growth.
In 2025, direct sales (including group purchases) revenue rose 44.4% year-on-year, and in the first quarter of 2026, this growth accelerated to nearly 60%.
This growth primarily came from e-commerce and instant retail channels, including the &#34;Yuan Ming Qing&#34; series of e-commerce exclusive products, as well as volume increases on platforms like Douyin Local Life and Meituan Flash Grocery.
However, in terms of scale, direct sales still account for a small proportion and are unlikely to alter the overall landscape in the short term.
Furthermore, against a backdrop of generally weak industry demand, changes in channel formats represent more of a &#34;reallocation of distribution structure&#34; rather than an expansion in total demand, placing limits on their support for performance.
Overall, KOUZI currently faces a convergence of three factors: shrinking demand, regional competition, and its own structural challenges.
In the short term, performance recovery will depend on inventory digestion and a rebound in channel confidence; in the medium to long term, it hinges on whether the product structure and channel capabilities can achieve rebalancing.
Against the backdrop of the industry entering a phase of differentiation, this round of adjustment is more likely to be an endurance race with no visible end in sight.

603589

Anhui Liquor Big Player Revenue Collapses as KOUZI Posts Negative Operating Cash Flow for Two Consecutive Periods