Kuaiji Mountain's profits surged significantly, with a net profit of 245 million yuan last year.

（Source: 21Style）

（Shaoxing Mountain’s two youth-oriented products entered Yonghui Superstores across various regions; photographed by 21 reporter）

By Xiao Xia

On the evening of March 31, Shaoxing Mountain released its annual report: in 2025, it achieved revenue of 1.822 billion yuan, up 11.68% year over year; and attributable net profit to shareholders of 245 million yuan, up 24.7% year over year. Its net profit after deducting non-recurring items even rose 32% year over year.

This is Shaoxing Mountain’s third consecutive year of achieving double-digit growth in both revenue and profitability. Its net profit after deducting non-recurring items of 235 million yuan is also a new high since its listing 12 years ago. You have to know that across the entire liquor industry segment, only a handful of companies managed profit growth of over 20% in 2025.

Shaoxing Mountain’s profitability performance is also slightly higher than brokerage firms expected. According to data compiled by Eastmoney, over the past six months, the average forecast by seven brokerages for Shaoxing Mountain’s last year’s attributable net profit was 222 million yuan.

As is well known, in recent years, Shaoxing Mountain has gained attention by breaking out with youth-oriented new products, which has helped bring renewed capital-market attention back to the huangjiu sector. Last year, its stock price even doubled for a time, with the biggest rise among all liquor stocks.

A 21st Century Business Herald reporter reviewing the financial statements can notice that last year, Shaoxing Mountain’s mid-to-high-end liquor maintained single-digit growth. Faster growth came from “ordinary huangjiu and other liquors,” whose revenue surged 21% year over year.

Bubble huangjiu, bubble rice wine, and other youth-oriented new products are classified by Shaoxing Mountain as “other liquor.” Based on the data from the first three quarters last year, other liquor already accounts for about 13% of Shaoxing Mountain’s revenue.

However, a 21st Century Business Herald reporter noted that Shaoxing Mountain’s dividends are clearly less.

The annual profit distribution proposal shows that for fiscal year 2025, Shaoxing Mountain plans to pay 3 yuan in cash dividend for every 10 shares. The total cash dividend decreased from 188 million yuan in the same period of the previous year to 141 million yuan. The dividend payout ratio dropped sharply from 95% last year to 57%.

Profit clearly surged substantially—so why are dividends more cautious?

A 21st Century Business Herald reporter noted that, alongside the youth-oriented new products and other products’ positive embrace of online marketing channels such as livestreaming, Shaoxing Mountain’s advertising investment last year increased significantly, and its operating cash flow was noticeably lower.

The annual report shows that Shaoxing Mountain’s net cash flow from operating activities decreased 27.7% year over year, with the explanation given as “mainly due to increases in payments for advertising and promotional expenses.”

Advertising and promotional expenses are generally categorized under selling expenses.

In 2025, Shaoxing Mountain’s selling expenses rose 42% year over year, clearly faster than the revenue growth rate, reaching 473 million yuan. The selling expense ratio increased to 26%. Compared with other huangjiu stocks, Jinfeng Liquor Industry, whose annual report was disclosed the day before, had a selling expense ratio close to 20% in the previous year, while Guyue Longshan has maintained it around 13% in recent years.

Of course, a higher selling expense ratio can be seen as a reasonable short-term strategy for Shaoxing Mountain to quickly capture the boom dividend of huangjiu trends and accelerate nationwide expansion.

Compared with Guyue Longshan, whose revenue from outside Jiangsu, Zhejiang, and Shanghai accounts for more than 40%, Shaoxing Mountain still has some gap in its nationwide penetration level—less than 15% in the first three quarters last year. If Shaoxing Mountain hadn’t actively marketed and driven its youth-oriented products to go viral across the entire internet, the capital market would not have such high expectations for huangjiu, which has clear regional characteristics.

With Shaoxing Mountain’s recent performance entering a fast lane, the more direct positive for the stock price is its soaring share price—something that the controlling shareholder, China Jianxin, is happy to see.

Shaoxing Mountain’s former controlling shareholder, Jinggong Group, went bankrupt and entered reorganization due to tight funding chains, after having pledged its shares at a large scale.

In 2023, China Jianxin acquired 31.11% of Shaoxing Mountain’s shares held by the former shareholder, Jinggong Group, at a cost of nearly 1.9 billion yuan, becoming the controlling party of Shaoxing Mountain.

About half of this money was bank loans; therefore, after China Jianxin took over, it also immediately carried out high-proportion share pledges.

Since China Jianxin took over, the pledge ratio of its shares in Shaoxing Mountain has stayed in the 70%–80% range. The latest announcement this March shows that after China Jianxin lifted pledges and re-pledged, the pledge ratio of its shares is close to 75%.

With Shaoxing Mountain’s performance growing rapidly and supporting the stock price upward, the benefit is that it thickens the safety cushion and reduces the likelihood of having to supplement the pledged margin—thereby easing the controlling shareholder’s cash flow pressure.

Even performance that slightly exceeds expectations may still boost Shaoxing Mountain’s stock price. It’s just that retail investors hoping to share in the earnings growth dividend will have to wait a bit longer.

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