Jiangsu Yanghe Distillery Co Ltd: Third‑Quarter Performance and Strategic Moves

Third‑Quarter Results

  • Operating revenue for the first nine months of 2025 reached 180.9 billion CNY.
  • Net profit attributable to the parent company was 39.75 billion CNY.
  • Contract liabilities increased 29 % year‑on‑year, reflecting higher order volumes from distributors.
  • Gross margin for mid‑to‑high‑tier products rebounded, supporting the company’s pricing stability.

Inventory Reduction Efforts

The company has intensified its “de‑inventory, strengthen momentum, stabilize pricing” plan. Key actions include:

  1. Channel optimisation – large‑volume retailers are nurtured through a “big‑merchant cultivation” program, while “home‑banquet” and rural market penetration are expanded.
  2. Profit‑sharing model – a fixed rebate plus performance bonus and comprehensive evaluation system realign distributor incentives.
  3. Product mix management – “volume control, price stability” tactics are applied to flagship items such as Dream Blue M6+ and Sea Blue.

These measures have lowered inventory levels and improved channel confidence, contributing to a healthier balance sheet.

Product and Marketing Initiatives

  • New releases: the 7th‑generation Sea Blue and High‑line Light‑bottle Yongan Daqu were launched, alongside themed editions like National Guest, Gold Dream Nine (M9), and Super Football.
  • Targeted campaigns: events such as “Heaven Blue Fun Run”, “Feather Dream Journey”, and “Net Dream Gathering” engaged younger consumers and reinforced brand presence.
  • Creative marketing: the “Dream Connects the World” and “Soft Aroma Gift” campaigns expanded emotional linkage with consumers.

Although promotional spending temporarily increased cost‑to‑sale ratios, the company views these investments as catalysts for long‑term inventory clearance and sustainable growth.

Market Context

  • The white‑wine sector experienced a collective rally on 10 November, with peers such as Shède Yào Yè and Jiǔguǐ Yào hitting limit‑up, and Lùzhōu Lǎokǎ surging more than 8 %.
  • The China National Bureau of Statistics reported a 0.2 % month‑on‑month and 0.2 % year‑on‑year rise in CPI, with core inflation at 1.2 % for the sixth consecutive month.
  • Analysts view the current phase as a “deep adjustment” period where demand is slowing, but channel inventory is being cleared to prepare for a healthier long‑term trajectory.

Stock Performance

  • On 9 November, Jiangsu Yanghe closed at 71.55 CNY, a 3.01 % rise, positioning it among the 20 white‑wine stocks that gained that day.
  • The 52‑week high for the company is 92.17 CNY (13 November 2024), while the 52‑week low stands at 63.17 CNY (15 June 2025).
  • The market capitalization is 107.77 billion CNY and the price‑earnings ratio is 52.07.

Outlook

With inventory levels falling, pricing power stabilizing, and brand initiatives underway, Jiangsu Yanghe is focused on consolidating its channel network and sustaining long‑term demand resilience. The company’s strategy aims to balance short‑term promotional costs with the need to clear excess stock, thereby laying a foundation for continued performance improvement in the evolving white‑wine market.