Zhenjiu Lidu(06979.HK) Announces 2025 Performance! Product, channel, and brand innovation attract attention

In 2025, the liquor industry is still in a deep adjustment period. Among the 11 listed liquor companies that have disclosed their 2025 performance forecasts and annual reports, net profits generally declined, with 4 companies reporting losses.

On March 25, Zhenjiu Lidu (6979.HK) released its performance announcement for 2025. The announcement showed that due to multiple factors such as the overall weakening of industry demand and the proactive push for inventory reduction in channels, the company achieved revenue of 3.65 billion yuan, with an adjusted net profit of 523 million yuan.

Announcement screenshot

Industry insiders pointed out that Zhenjiu Lidu, as a company with outstanding adaptability and strong forward-looking layout, reflects the depth and breadth of this round of industry adjustment through its performance fluctuations in 2025. Last year, the company launched its strategic product Dazhen·Zhenjiu and the Wanshang Alliance model. This year, it innovated with the major product Zhen Fifteen·Fifth Generation and released the “Zhen Fifteen Alliance Plan,” reconstructing the market ecosystem and attracting wide attention.

Upholding Integrity and Innovation, Solidifying the Development Foundation

During the industry’s deep adjustment period, adaptability is the norm for survival, stability is the foundation for development, and innovation is the core driving force. Starting in 2023, Zhenjiu Lidu began channel optimization and expanded into different industry clients. Compared to some liquor companies that started adjustments in 2024, Zhenjiu Lidu’s adjustment timeline was even later.

In 2025, as the industry continued to cool down, although Zhenjiu Lidu could not avoid a decline, it maintained stable operations through a combination strategy of upholding integrity and innovating breakthroughs, with channel and market confidence gradually restored.

Some products of Zhenjiu Lidu

In terms of upholding integrity, the company focused on reducing inventory, stabilizing prices, and optimizing management as core tasks. During the reporting period, the company proactively adjusted and reasonably optimized channel inventory to alleviate financial pressure on distributors. At the same time, the company continued to promote refined management and supply chain optimization, with sales and distribution expenses decreasing by 30.6% year-on-year, and operational efficiency steadily improving. Notably, the company’s gross profit margin for 2025 was 58.5%, basically unchanged from 58.6% in 2024, maintaining a stable core profit level.

In terms of innovation, Zhenjiu Lidu made breakthroughs in multiple areas, covering products, channels, and brands, creating differentiated competitive advantages.

In response to the trend of rational consumption returning, the company launched the strategic product Dazhen·Zhenjiu last June, priced at 600 yuan to match the quality of products priced at 3,000 yuan in the market. Since its launch, Dazhen has been a hot seller in 31 provinces and 280 cities across the country, generating over 900 million yuan in returns, becoming the top-selling new product in the mid-to-high-end liquor category across all networks. At the same time, it launched Zhen Ten, Lidu Sorghum 1965, Lidu King, and Longjiang·Hongyun, focusing on the banquet market.

Dazhen·Zhenjiu

To address industry challenges such as price inversion, high inventory, and thin profits, Zhenjiu Lidu innovatively introduced the Wanshang Alliance model. By selecting quality alliance partners, strictly controlling supply volumes, establishing a mixed revenue mechanism, and enforcing strict price controls, it promoted the formation of a benefit community among manufacturers and distributors, fundamentally solving problems of channel pressure, price distortion, and chaotic pricing. So far, the Wanshang Alliance has signed contracts with over 4,000 alliance partners, of which more than 2,500 have surpassed expected sales progress, being recognized by People’s Daily as a “2025 National Consumption Innovation Case.”

The company actively promotes brand elevation, inviting young actress Yao Anna to serve as the “Cultural Heritage Ambassador” for Chinese liquor, leveraging the influence of the new generation to convey the intangible cultural heritage of liquor and the brand’s craftsmanship; Zhenjiu Lidu Group Chairman Wu Xiangdong began operating a personal video account last July, releasing over 160 videos with a total playback of 680 million, with a single video exceeding 100 million views and 18 videos with tens of millions of views, ranking first in the “Top 100 Entrepreneur Video IP List” in January-February 2026, injecting strong trust endorsement and flow dynamics into the brand.

“Wu Jindong-Zhenjiu Lidu” video account

In addition, the company actively expands the boundaries of product categories, launching its first high-end craft beer, Bull Market Super Beer, which has become a popular high-end beer product due to its distinct hoppy flavor. The Bull Market Beer, with the concept of “pleasing people, pleasing oneself, and enjoying life,” covers more diverse consumption scenarios. The company is exploring a new model of “liquor + beer,” seeking new performance growth curves.

Refining Core Advantages, Building a Strong Development Moat

Looking at the development history of the liquor industry, each round of deep adjustment has been a key opportunity for quality enterprises to overtake in curves. For the capital market and distributors, it is even more necessary to view short-term performance fluctuations rationally and gain insights into corporate strategic innovations and response strategies.

In 2025, Zhenjiu Lidu will focus on adjustments; in 2026, it will continue to deepen model innovation, consolidate core advantages, and seize new opportunities for industry development.

In terms of channel ecology, the company will continue to expand the scale of the Wanshang Alliance, deepen its implementation effects, and strive for the number of alliance partners to exceed ten thousand; in March of this year, the company’s core product Zhen Fifteen·Fifth Generation made its innovative debut, accompanied by the release of the “Zhen Fifteen Alliance Plan,” innovatively introducing a “monthly dividend” mechanism, and through the construction of a “Zhen Fifteen + Dazhen” dual-core product matrix, accurately covering the two core price ranges of mid-to-high-end and strengthening channel stickiness and competitiveness.

In market operations, Zhenjiu Lidu has clearly stated its commitment to fully transitioning to a “C” model, aiming to create a service-oriented liquor enterprise. It will subsequently tilt resources toward in-depth market development and consumer cultivation, accelerate channel turnover, and empower a group of distributors who recognize the brand philosophy and possess independent operation capabilities through professional team services, alliance partner activities, customer tasting meetings, and support for video account traffic. This channel resilience and risk resistance cultivated in the industry’s winter hold far greater long-term strategic value than blind expansion in favorable conditions.

In terms of consumer experience, the company focuses on cultural empowerment, experiential innovation, and scene integration, deeply excavating brand cultural connotations and upgrading the consumer experience. Zhenjiu has created the “Pilgrimage Journey” factory tour and the “National Treasure Feast” tasting event, striving to build a new benchmark for the integration of liquor and tourism—the Zhenjiu Manor; Lidu relies on its “dual heritage” resources to create a featured IP called “From Ancient Brewing to Today” covering the Tang, Song, Yuan, Ming, and Qing dynasties, collaborating with Moutai, Wuliangye, and others to jointly apply for World Cultural Heritage; Xiangjiao is based in the cultural fertile soil of Hunan and integrates the customs of sealing坛 in Meishan and the high-quality ecology of Longshan to create a sealing ceremony IP, achieving an organic integration of brand culture and regional culture.

Upholding Long-Termism, Future Development Momentum is Promising

As the largest, most active, and most diverse spirit market in the world, the Chinese liquor market demands higher capabilities from liquor companies in product development, channel operations, and brand building.

In this round of industry reshuffling, Zhenjiu Lidu’s flagship brand Zhenjiu remains firmly positioned in the industry. In recent years, Zhenjiu has steadily improved its production capacity, revenue, and brand influence, maintaining a strong overall strength in the top three of Guizhou sauce liquor, being the largest private liquor company in Guizhou. In 2025, the production capacity is 45,000 tons, with 150,000 tons of high-quality base liquor stored, providing ample support for stable product quality and new product development.

Bull Market Super Beer

According to the judgment of the Quan Tu Sauce Liquor Studio, the current “transition to sauce liquor” process of the core consumer group nationwide is only two-thirds complete, and there is still significant room for improvement in the market share of sauce liquor consumption. In the future, mainstream sauce liquor brands will enjoy dual dividends from concentrated production capacity and expanded consumption.

Zhenjiu Lidu’s performance in the ESG field is also commendable. In 2025, the company’s Wind ESG rating soared to the highest AAA level, ranking first among 58 listed beverage companies in China; it received the CDP “Supplier Cooperation Assessment” A-level certification; and was selected for the 2026 S&P Global “Sustainability Yearbook” (Global Edition).

The capital market recognizes Zhenjiu Lidu’s operational resilience, innovative strategy, and long-term value. On February 27, after the performance forecast was released, the stock price did not show significant fluctuations. According to a report by Founder Securities, Zhenjiu Lidu has a clear brand positioning and firm strategic determination, relying on multi-brand collaborative development, and possesses strong risk resistance, maintaining a “strong push” rating.

Behind the performance fluctuations of Zhenjiu Lidu in 2025 is the company’s strategic choice to proactively adjust and relieve channel pressure. As the liquor industry hits bottom and begins to recover, with production capacity reserves, channel innovations, and brand empowerment, it is expected to release stronger momentum in market competition.