Zhenjiu Lidu's 3.65 billion in revenue, and Lidu is quietly catching up

How does AI achieve nearly 30% independent revenue growth?

On March 25, Zhenjiu Li Du released its 2025 financial report. The total revenue for the year was 3.65 billion yuan, with an adjusted net profit of 523 million yuan and a gross margin of 58.5%. If we only look at the overall figures, this is a fairly standard report. However, when we break down the brand, the structural changes are more interesting than the total figures. The flagship brand Zhenjiu contributed 1.921 billion yuan, accounting for 52.6% of total revenue, and remains the backbone. But what’s truly noteworthy is Li Du— with a revenue of 1.085 billion yuan, accounting for 29.7%. Xiangjiao contributed 468 million yuan, accounting for 12.8%.

Li Du’s share is already close to 30%. It’s important to note that there are not many groups in the liquor industry that can achieve multiple brands progressing simultaneously; most operate under a “main brand with several sub-brands” structure. The current situation of Zhenjiu Li Du is that Zhenjiu accounts for more than half, Li Du nearly one-third, and less than 20% is from Xiangjiao and others. This structure is not considered bad among liquor listed companies. Compared to some enterprises that rely on a single brand for 90% of revenue, Zhenjiu Li Du has a better brand diversification. For Li Du to achieve a scale of 1 billion yuan already demonstrates its ability for independent revenue generation. Looking at the gross margin of 58.5%, this figure is indeed not high among premium liquors, but considering the product structure of Zhenjiu Li Du—Zhenjiu focuses on sub-premium, Li Du is positioned in the mid-to-high-end and plain bottle market, and Xiangjiao has a regional specialty focus—this gross margin actually reflects its distribution strategy across different price ranges. Not all liquor companies need to push into the thousand-yuan price range; being able to establish solid mid-range products with a stable gross margin above 58% also ensures smooth cash flow.

The strategic plan for 2026 also confirms this thinking. The annual report clearly states that it aims to “deepen market penetration in county and township markets through sub-premium and lower-priced products.” This is not a move toward the low-end but rather a replication of a validated channel model to a broader market. The “Wanshang Alliance” model of Zhenjiu should have been successfully implemented by 2025, with the focus for 2026 being on expansion. Li Du’s ability to account for 30% of revenue indicates that it is not merely “being led,” but rather has its own channels and customer base. The plain bottle market has been highly competitive in recent years, and Li Du’s stability at a revenue of 1 billion yuan relies not just on the resources of Zhenjiu Li Du Group but also on the product strength and channel control of the brand itself.

Although Xiangjiao’s 468 million yuan share is not high, it has a solid foundation in the Hunan regional market. Together, the three brands cover three different segments: sub-premium, mid-to-high-end plain bottles, and regional specialty liquors. This approach is much more stable than betting on a single brand or price range.

If we only look at the numbers in Zhenjiu Li Du’s 2025 financial report, the growth may not be stunning. However, when we analyze the brand structure and strategic direction, we can see a group gradually transforming the “multi-brand” concept into an actual revenue composition. Li Du’s 1 billion yuan is not the end point; if market penetration in county and township areas can be successful, the structure in 2026 may become more balanced.