In the first half of 2026, the broader baijiu industry operated within a demanding macroeconomic environment characterized by structural adjustments and sluggish consumer demand. In response to cyclical headwinds during the Period, the Group proactively optimized its operational strategies, strengthened healthy channel management, and accelerated digital innovation, resulting in comprehensive stabilization and an operational rebound. The year 2026 marks a pivotal strategic inflection point for ZJLD, signaling the completion of a two-year industry-driven consolidation and the onset of a new high-quality growth cycle. <\/p>\n
The key financial and business highlights are as follows:<\/i> <\/p>\n (for the six months ended June 30, 2026)<\/b> <\/p>\n (RMB<\/b><\/i>‘<\/b><\/i>000)<\/b><\/i> <\/td>\n (for the six months ended June 30, 2025) <\/p>\n (RMB<\/i>‘<\/i>000)<\/i> <\/td>\n Complementing this channel evolution, the Group adopted an omnichannel marketing framework combining “Community Penetration + Digital Empowerment”. Chairman Wu Xiangdong’s executive video channel (“Wu Jindong \u2013 ZJLD, \u5433\u91d1\u6771\uff0d\u73cd\u9152\u674e\u6e21<\/i>“) and regional cultural livestreams topped the “Entrepreneur Video IP 100 List” (\u4f01\u696d\u5bb6\u8996\u983bIP100\u699c\u55ae) for seven consecutive months, averaging over one million views per broadcast. This sparked widespread co-created content with members of the Premier Retailers Alliance (\u842c\u5546\u806f\u76df), creating a powerful online-to-offline traffic funnel. Simultaneously, Zhenjiu’s brand value rose to RMB 34.685 billion, a 103% gain over five years, solidifying among China’s top three sauce-aroma baijiu brands. <\/p>\n Forward-Looking AI <\/b>Integration<\/b> and <\/b>Enterprise Digitization<\/b> Deepening Operational<\/b> Foundations to <\/b>Drive the<\/b> New High-Quality Growth Cycle<\/b> Mr. Wu Xiangdong, <\/b>Founder and Chairman<\/b> of ZJLD Group<\/b>, remarked, “Baijiu is a business that demands patience and reverence\u2014time speaks through quality, and authentic fragrance endures. Over two years of industry rebalancing, our distributor partners and we have navigated genuine challenges and hardships; yet this period offered an invaluable window for reflection, consolidation, and self-reinvention. The deeper the valley, the more vital it is to stay grounded and focus on disciplined execution. Our stabilization in the first half of 2026 is the natural reward of diligent work and marks the dawn of a new growth phase. There are no shortcuts in business\u2014only an uncompromising pursuit of quality, continuous market exploration, and adaptability in the face of change. In times of adversity, we chose to brew finer liquor, preserve channel profitability, and deliver utmost sincerity to our consumers. The launch of the ‘Premier Retailers Alliance’ and ‘Monthly Profit-sharing Model’ models ensures that every partner who trusts ZJLD enjoys security, clarity, and equitable rewards amid challenging conditions. <\/p>\n Engaging directly with consumers and merchants through digital broadcasts has reinvigorated my entrepreneurial passion and joy, which I felt when I first entered the baijiu industry. The consumers’ appreciation for fine baijiu remains undiminished, and their yearning for a better life remains passionate. 2026 serves as ZJLD’s springboard for a renewed journey. We remain a dedicated team of idealistic distillers, honoring nature’s harvest, grateful for the passage of time, and optimistic about the industry’s future. ZJLD will move forward with resilience, innovation, and an open heart alongside all our companions\u2014cheers to bright moments and the journey ahead.” <\/p>\n Hashtag: #ZJLDGroup<\/p>\n The issuer is solely responsible for the content of this announcement.<\/p>\n<\/p>\n Zhen Jiu was established in 1975 in Zunyi, Kweichow, China’s primary production area of sauce-aroma baijiu. In 1988, it was honored with the National Quality Award at the 5th National Wine Appreciation Conference. In the same year, it was announced by the Protocol Department of the Ministry of Foreign Affairs, the Communication Department of the Ministry of Economy and Trade, and the Great Hall of the People Management Bureau to become one of the two sauce-aroma baijiu served at state banquets. It is also known as one of the “Three Representative Baijiu Brands in Kweichow”.<\/p>\n ZJLD Group Inc. is a leading baijiu group in China devoted to offering premium baijiu products, including sauce-aroma, mixed-aroma, and strong-aroma varieties. According to Frost & Sullivan statistics, the flagship brand Zhenjiu has maintained its position for two consecutive years (2023 and 2024) as the fourth-largest sauce-aroma baijiu brand in China and the third-largest in Guizhou Province, by revenue. The Company operates four baijiu brands in China, including two national baijiu brands, Zhen Jiu and Li Du, and two regional brands, Xiangjiao and Kaikouxiao. ZJLD prides itself on inheriting the time-honored baijiu-brewing techniques and reinvigorating them to develop iconic products. It strives to create a wide variety of aromatic and mellow baijiu products to meet consumers’ diverse preferences, seize broader market opportunities, and promote traditional Chinese baijiu culture.<\/p>\n\n\n
\n <\/td>\n FY 2026<\/b> 1H<\/b> <\/p>\n FY 2025 1H <\/p>\n Chang<\/b>ed by<\/b> <\/td>\n<\/tr>\n \n Revenue <\/td>\n 2,546,069<\/b> <\/td>\n 2,497,106 <\/td>\n +2.0<\/b>%<\/b> <\/td>\n<\/tr>\n \n Gross profit <\/td>\n 1,520,856<\/b> <\/td>\n 1,474,284 <\/td>\n +3.2<\/b>%<\/b> <\/td>\n<\/tr>\n \n Gross profit margin <\/td>\n 5<\/b>9.<\/b>7<\/b>%<\/b> <\/td>\n 59.0% <\/td>\n +0<\/b>.7<\/b>percentage<\/b>points<\/b> <\/td>\n<\/tr>\n \n Profit attributable to equity holders of the Company <\/td>\n 580,717<\/b> <\/td>\n 574,771 <\/td>\n +1.0%<\/b> <\/td>\n<\/tr>\n \n Net cash generated from\/(used in) operating activities <\/td>\n (<\/b>234,035<\/b>)<\/b> <\/td>\n (322,274) <\/td>\n –<\/b>27.4<\/b>%<\/b> <\/td>\n<\/tr>\n \n Adjusted net profit (non-IFRS measure) <\/td>\n 626,064<\/b> <\/td>\n 613,202 <\/td>\n +2.1%<\/b> <\/td>\n<\/tr>\n \n Adjusted net profit margin (non-IFRS measure) <\/td>\n 24.6%<\/b> <\/td>\n 24.6% <\/td>\n \u2014<\/b> <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Optimized Product Mix Drives Profitability; Multi-Brand Synergy Amplifies Resilience<\/b> <\/p>\n\n
Strategic Agility: Pioneering Channel Innovation & Digital Synergy as Dual-Engine<\/b>
The Group’s proprietary “Premier Retailers Alliance” model and the Monthly Profit-sharing Model (“\u6708\u6708\u5206\u5229\u6a21\u5f0f”) designed for the 5th Generation Zhen 15<\/i> have effectively resolved long-standing industry pain points, such as price inversion and distributor margin compression. By establishing competitive monthly margins, automating online ordering, and offering a share-linked sales incentive plan with certain distributors, the Group successfully attracted and retained high-calibre distributors with strong group-selling capabilities and direct access to end consumers. As of 30 June 2026, the Group’s distributor network expanded to 8,993 partners, an increase of 710 from the end of 2025. <\/p>\n
The Group anchors its digital transformation strategy on operational capability and sustainable value creation. During the Period, in partnership with China Unicom, the Group developed an “AI + Expert Blending” framework powered by Large Language Models (LLMs). This synthesis of traditional heritage and advanced AI enables intelligent blending, elevating consistency, efficiency and craft precision. Furthermore, the Group upgraded Da Zhen<\/i>‘s digital coding system to a “Six-Code” integration architecture, incorporating NFC anti-counterfeiting and ceramic jar storage metrics, as well as an RFID smart case labelling system to track and ensure precise volumetric measurement and end-to-end lifecycle traceability for every Da Zhen <\/i>product. Zhenjiu was also awarded the national Data Management Capability Maturity Model (DCMM) Level 3 (Robust) accreditation, further validating its AI deployment and digital leadership. <\/p>\n
Looking ahead to the second half of 2026 and beyond, ZJLD will maintain strategic poise by extending proven operational frameworks, such as the “Premier Retailers Alliance” and “Monthly Profit-sharing Model” to Zhen 30<\/i> and other core product lines. This initiative will precisely activate high-end and mid-tier markets while strengthening portfolio synergies across all price ranges. Concurrently, the Group will deepen its operation-sales decoupling (\u71df\u92b7\u5206\u96e2) mechanism, rigorously monitor channel pricing, protect distributor profitability, and prioritize storage facility construction across its five major production facilities, namely Zhen Jiu Mao Tai Shuang Long (\u8305\u53f0\u93ae\u96d9\u9f8d), Zhen Jiu Bai Yan Gou (\u767d\u5ca9\u6e9d), Zhen Jiu Zhao Jia Gou (\u8d99\u5bb6\u6e9d), Li Du Zheng Jia Shan (\u912d\u5bb6\u5c71) and Xiang Jiao Jiang Bei (\u6c5f\u5317) to reinforce its long-term competitive moat. <\/p>\nAbout ZJLD Group Inc.<\/h4>\n