Luzhou Laojiao stock faces 57% third-quarter profit plunge
Published on 11/11/2026 at 01:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSEarnings Pressure Deepens
- Revenue for the first nine months fell 36.58 percent year over year as product sales volumes declined.
- Net profit attributable to shareholders dropped 47.31 percent through September, while operating cash flow fell 54.74 percent.
- Luzhou Laojiao is reducing inventories and adjusting its product mix as China's baijiu market remains under pressure.
Luzhou Laojiao reported a sharp earnings contraction for the quarter ended September 30, 2026. Revenue fell 37.14 percent year over year to CNY 4.195 billion, while net profit attributable to shareholders dropped 57.03 percent to CNY 1.332 billion, according to the company's Q3 2026 report.
Sales Volumes Weigh On Results
For the first nine months, operating revenue declined 36.58 percent to CNY 14.668 billion. Net profit attributable to shareholders fell 47.31 percent to CNY 5.671 billion, while profit before non-recurring gains and losses decreased 47.67 percent to CNY 5.621 billion.
The company attributed the revenue decline mainly to lower product sales volumes. It also cited an overall decrease in product sales volume and product-mix adjustments as the main drivers of the decline in profit before tax.
Cash Flow And Balance Sheet
Net cash flow from operating activities fell 54.74 percent year over year to CNY 4.445 billion in the first nine months. The report also showed total assets of CNY 59.346 billion at September 30, down 8.41 percent from the end of 2025, while short-term loans increased by CNY 3.002 billion.
Advance payments from customers declined during the period, and the company said cash received from product sales decreased. These figures point to continued pressure on shipments and working capital as the company adjusts inventory and distribution conditions.
Company And Competitive Setting
Luzhou Laojiao produces Chinese baijiu, with a focus on strong-aroma spirits and a portfolio built around the Guojiao 1573 and Luzhou Laojiao brands. The company is based in Luzhou, Sichuan province, and its products serve China's domestic spirits market as well as overseas operations.
Its competitive set includes Kweichow Moutai, Wuliangye and Shanxi Fenjiu. Luzhou Laojiao is positioned as a major premium-baijiu producer, while the group competes across different brand tiers and regional strengths.
Luzhou Laojiao At A Glance
- Company: Luzhou Laojiao Co., Ltd.
- ISIN: CNE000000GF2
- Stock code: 000568
- Reporting period: First nine months of 2026
- Revenue: CNY 14.668 billion, down 36.58 percent year over year
- Net profit attributable to shareholders: CNY 5.671 billion, down 47.31 percent year over year
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