Against the backdrop of a deep industry adjustment in the baijiu sector, Luzhou Laojiao Co., Ltd. (hereinafter referred to as "Luzhou Laojiao") has delivered steady growth. The company recently released its Q3 2025 financial report, showing revenue of 6.674 billion yuan and net profit attributable to shareholders of 3.099 billion yuan. Adjusted net profit stood at 3.092 billion yuan. On October 31, its shares closed at 134.54 yuan, up 3.59%, with a year-to-date gain of 12.82%, pushing its market cap to 198.036 billion yuan.
**Premium Leadership Drives Steady Growth** National Bureau of Statistics data shows China's above-scale baijiu output fell 9.9% YoY to 2.655 million kiloliters in January-September 2025. During this period, Luzhou Laojiao achieved 23.127 billion yuan in revenue and 10.762 billion yuan in net profit (adjusted: 10.742 billion yuan), demonstrating resilient performance amid industry headwinds.
Strategically, Luzhou Laojiao has reinforced its premium positioning through its "dual-brand, triple-product-line, flagship-product" approach, building a comprehensive price-tier matrix to enhance risk resilience. Since 2024, its flagship Guojiao 1573 surpassed 20 billion yuan in sales, cementing its position among China's top three premium baijiu brands. In H1 2025, Guojiao 1573 maintained terminal prices above 900 yuan, with expanding coverage in key markets like North and East China.
Concurrently, its brand revival plan has borne fruit: mid-tier products (e.g., Tequ and Jiaoling) saw refined operations, while new Erqu offerings strengthened its mass-market foothold. The company also entered the high-growth affordable bottled baijiu segment.
**Analysts’ Outlook** On October 31, Guojin Securities analysts noted Q3 stability in Luzhou Laojiao’s product mix, with strict price controls for high-proof Guojiao 1573 pre-holiday and aggressive low-proof sales expansion in East China. They anticipate continued focus on mid-to-low-tier segments through resource allocation and new product launches, leveraging the company’s sales prowess amid recovering consumption. Long-term, analysts highlight Luzhou Laojiao’s nationwide potential and resilience.
**Embracing ‘Long-Termism’** Despite industry challenges, Luzhou Laojiao remains committed to long-term growth. At its 2025 interim earnings call, management affirmed baijiu’s enduring cultural value and consumer demand, forecasting sustained industry expansion.
**Innovating for Younger Consumers** "Drinking habits are evolving—from traditional social settings to self-indulgent, personal, or trendy experiences. This demands systemic innovation across R&D, branding, and user experience," stated Chairman Liu Miao at the 23rd China International Alcoholic Drinks Expo.
Per the China Alcoholic Drinks Association’s 2025 report, young consumers now dominate 60%+ of baijiu demand, with 18–35-year-olds growing significantly. Luzhou Laojiao pioneered "iced baijiu" trends as early as 2009; its Guojiao 1573 Ice.JOYS series has since redefined premium baijiu as youthful and versatile. In 2024, 38-proof Guojiao 1573 became the industry’s first 10-billion-yuan low-proof premium product.
Beyond product innovation, Luzhou Laojiao has launched cross-sector collaborations—perfumes, liquor chocolates, sake-based skincare—bridging centuries-old craftsmanship with contemporary youth culture.
**Future Initiatives** The company plans to accelerate low-proof, health-conscious, and diverse product development while exploring novel marketing via cross-industry partnerships, digital engagement, and scenario-based experiences. Channel-wise, it will deepen e-commerce integration to build an omnichannel network, swiftly meeting consumer needs.
By fostering youth-centric consumption ecosystems—spanning scenarios, cultural immersion, and social platforms—Luzhou Laojiao aims to pioneer "light-living, light-socializing" baijiu paradigms, creating emotional value for younger demographics.