Shede Spirits Co.,Ltd. (SH: 600702) has released its semi-annual report for fiscal year 2026, revealing a challenging first half marked by a significant earnings contraction.

During the reporting period, the company generated total operating revenue of 2.287 billion yuan, representing a 15.34% decline compared to the same period last year. Net profit attributable to shareholders of the listed company stood at 145 million yuan, a steep drop of 67.26% year-on-year. After excluding non-recurring gains and losses, net profit came in at 132 million yuan, down 69.84%, while basic earnings per share reached 0.4425 yuan.

The broader baijiu industry remained entrenched in a deep adjustment phase during the first six months of 2026. Intense competition for market share persisted, consumer spending momentum stayed subdued, and rivalry between traditional and emerging sales channels intensified, all of which continued to weigh on white liquor product sales.

In response to these industry headwinds, the company proactively implemented a "volume control and price support" strategy, deliberately moderating shipment volumes while actively assisting distributors in reducing their inventory levels. At the same time, Shede Spirits has adhered to its long-term development philosophy, reinforcing fundamental market activities and stepping up efforts to cultivate consumer loyalty. These initiatives, coupled with a phased increase in market investment, kept selling expenses at a relatively elevated level throughout the first half of the year.