The Group has recently announced its interim results for FY2023 (for the six months ended June 30, 2023, or the “Period”). Leveraging on its strategic brand premiumization initiatives to optimize the product portfolio and resources invested to accelerate and promote sell-through and sell-out. The Group’s baijiu sales increased by approximately RMB457.98 million, up 15.0% compared to the same period in 2022, with the adjusted net profit (non-IFRS measure) reaching approximately RMB803 million, showing a year-on-year increase of about 22.0%. The flagship brand, Zhen Jiu, introduced three new “package-free” baijiu products (光瓶酒) within the deluxe and premium price ranges, which gained significant market response and impressively contributed to the revenue growth during the Period.
Along with the increasing popularity of sauce-aroma baijiu in China and the rising consumer preferences towards premiumization, the Group has timely capitalized on favorable market trends to expand its production capacity. Currently, the Group has seven production sites in China. With the continuous expansion of production capacity, the Group is able to secure an adequate reserve of vintage baijiu and base liquor to achieve product premiumization to the greatest extent while at the same time enriching its product portfolio, strengthening competitiveness, and meeting the growing market demand for deluxe and above baijiu products, thus consolidate its profitability.