Shares of ZJLD (06979) climbed nearly 5% during the morning trading session. At the time of writing, the stock was up 4.23% to HK$7.63, with a turnover of HK$171.218 million.

The company's recent strategic initiatives are seen as a key driver. Over the past year, ZJLD has innovated its sales model, launching the strategic new product "Da Zhen · Zhen Jiu" and pioneering a "Ten-Thousand Merchant Alliance" mechanism that offers continuous dividends. By April 2026, over 4,300 alliance merchants had been signed, generating prepayments exceeding RMB 1 billion.

To address profitability and inventory turnover challenges in current channels, the company has also adjusted its core product, Zhen 15. In March 2026, it launched the fifth generation of Zhen 15 along with a corresponding alliance plan. This initiative aims to strengthen market order maintenance and uses a monthly dividend scheme to safeguard channel cash flow.

Analysts note that the company's first-half 2026 performance recovery is likely to outpace earlier market expectations. Benefiting from inventory destocking in the second half of 2025 and solid sales during the Lunar New Year period, combined with sales data from the first five months, it's estimated that year-on-year revenue decline for the first half of 2026 will narrow to a mid-single-digit percentage. This outlook is better than the market's initial expectation of a double-digit decline.

Within the portfolio, the core Zhen Jiu brand continues to adjust in line with the broader sector, though its year-on-year decline in the first half is expected to narrow sequentially. Meanwhile, the Li Du brand, having been introduced into broader circulation channels, is performing better than other brands in the portfolio.