2025-09-09-深交所-泸州老窖_2025年半年度报告（英文版）页_211页_1mb

Luzhou Laojiao Co., Ltd. 2025 Interim Report Summary

Core Content Overview

This document is the 2025 Interim Report of Luzhou Laojiao Co., Ltd., a leading Chinese baijiu (sorghum-based liquor) manufacturer. The report outlines the company's operational performance, management strategies, brand development, financial status, and social responsibilities for the first half of 2025.

Main Financial Highlights

The company reported a decline in operating revenue and net profit compared to the same period in 2024, primarily due to market and economic uncertainties. The net cash flow from operations also saw a notable decrease, indicating a need for improved cash management.

Main Business and Sales Models

• Business Scope: The company operates in the baijiu industry, focusing on specialized baijiu product design, production, and sales. Its main products include "National Cellar 1573" and "Luzhou Laojiao" series.
• Sales Models:
  • Traditional Channel Operation Model: Involves offline authorized distribution, with direct supply to distributors who then sell to consumers.
  • Emerging Channel Operation Model: Focuses on online sales, including e-commerce platforms like JD.com and Tmall, as well as live streaming and flagship stores.

Key Operational Strategies

• Market Expansion: Implemented the "Hundred Cities Program" and "East China Strategy 2.0", with a focus on precise reach and customer operation.
• Brand Culture: Launched the "Philosophy of Symbiosis" corporate culture guidelines, and was recognized as a National Demonstration Base for Productive Protection of Intangible Cultural Heritage.
• Product Innovation: Continued to develop health-conscious and Chinese-style fruit baijiu to meet evolving consumer preferences.
• Quality Control: Achieved a 100% pass rate in external audits for quality, food safety, environment, and measurement management systems.
• Production Efficiency: Advanced intelligent brewing processes through the Huangyi Brewery Eco-Park and MES system.
• Research and Development: Enhanced sci-tech platform capabilities, with the Huangyi Laboratory achieving CNAS certification. Filed 91 patent applications and received 36 patent grants.

Distribution and Sales

• Distributors:
  • Domestic: 1,703 distributors, with an increase of 88 and a decrease of 86.
  • Overseas: 88 distributors, with an increase of 10 and a decrease of 7.
• Top Five Distributors:
  • Total sales to top five customers: CNY 11,923,072,076.23, accounting for 72.47% of total sales.
  • No accounts receivable from top five distributors.
• Sales Distribution:
  • Traditional Channel: 87.40% gross profit margin, with a -3.99% YoY revenue change.
  • Emerging Channel: 83.52% gross profit margin, with a +27.55% YoY revenue change.

Corporate Governance and Social Responsibility

• Governance: Strengthened strategic decision-making mechanisms and digitalized information disclosure.
• Social Responsibility: Actively supported rural revitalization and social welfare projects, including education and disaster relief.
• ESG Initiatives: Published the 2024 ESG Report, and launched the ESG system development project. MSCI ESG rating was among the best in the industry.

Non-Recurring Gains and Losses

• Total non-recurring gains and losses for H1 2025: CNY 12,903,344.93
• Key items:
  • Profit from disposal of non-current assets: CNY 106,501.12
  • Government grants: CNY 24,391,252.80
  • Fair-value changes in financial assets: CNY 24,740,658.64
  • Other non-operating income/expenditure: -CNY 31,970,083.39
• Corporate income tax: -CNY 4,374,431.76
• Minority interests (after tax): -CNY 9,447.52

Risk and Forward-Looking Statements

• The report includes forward-looking statements about business objectives and future plans, which may differ from actual results due to risks and uncertainties.
• The company has no interim dividend plan for H1 2025.
• Non-recurring gains/losses were not classified as recurring items during the reporting period.

Conclusion

The company has maintained its core competitive advantages through geographical superiority, traditional brewing techniques, and strong brand reputation. It continues to innovate and adapt to market changes, focusing on digital transformation, product diversification, and channel optimization to drive sustainable growth.