Wuliangye Yibin Co., Ltd. recently released a dismal third-quarter report, revealing sharp declines in both revenue and net profit. In Q3 2025, the company’s revenue plummeted 52.66% year-over-year to RMB 8.174 billion, while net profit dropped 65.62% to RMB 2.019 billion.
The liquor giant is also grappling with severe price inversion risks. To stabilize the market, Wuliangye has rolled out multiple measures: 1. Allowing distributors to source products from secondary markets instead of direct payments, with such sales counting toward 2025 contractual targets. 2. Strengthening crackdowns on disruptive low-price sales during regional dealer meetings while expanding subsidies based on distributor scale.
Despite these efforts, wholesale prices for its flagship product—the Eighth Generation Wuliangye—remain weak: loose bottles trade at ~RMB 790, and cases at RMB 820–825, now below premium competitor Guojiao 1573. Online channels also show consistent price breaches, with e-commerce platforms like JD.com listing single bottles as low as RMB 750–830.
**Financial Performance** For the first nine months of 2025, Wuliangye’s revenue fell 10.26% to RMB 60.945 billion, with net profit down 13.72% to RMB 21.511 billion. Q3’s steeper-than-expected slump—far exceeding Guangfa Securities’ forecast of 30% revenue and 45% profit declines—reflects industry-wide adjustments and tepid demand recovery. Contract liabilities, a key metric for future revenue, shrank by RMB 2.422 billion quarter-on-quarter to RMB 9.268 billion, signaling reduced distributor prepayments.
In response, Wuliangye announced a RMB 10.007 billion dividend (RMB 25.78 per 10 shares) to bolster investor confidence, following a RMB 12.301 billion payout in July. However, market sentiment remains cautious, with some investors anticipating prolonged declines.
**Industry Outlook** Analyst Xiao Zhuqing noted that Wuliangye’s brand strength and strategic resilience position it to capitalize on long-term opportunities, including low-alcohol products, global expansion, and cultural IP development. He emphasized that industry consolidation during this downturn could benefit leading brands like Wuliangye as smaller players exit the market.
The company attributed its Q3 underperformance to heightened market competition and increased investment in stabilizing prices. Nevertheless, persistent wholesale and retail price erosion underscores ongoing challenges in restoring pricing power and channel health.