China’s Listed Wine Companies See Diverging Fortunes as Industry Restructures

China’s listed wine producers reported sharply divergent performances in 2024, highlighting the industry’s uneven recovery and ongoing structural challenges as domestic brands struggle to compete with imports and adapt to a shifting consumer landscape.

Changyu, the country’s largest wine producer, posted a steep drop in revenue and net profit, missing its annual targets. Meanwhile, Grace Vineyard recorded its largest loss since going public, underlining the pressure on domestic wine sales. At the same time, three companies—Grand Dragon, Citic Niya, and Dynasty Wines—managed to buck the trend, posting profits and signaling potential paths forward for local producers.

Changyu Net Profit Plunges 42.7%, Falls Short of Annual Target

According to its 2024 report, Changyu posted revenue of RMB 3.28 billion (approx. US$ 449.2 million), a year-on-year decline of 25.3%. Net profit attributable to shareholders fell 42.7% to RMB 305.2 million (approx. US$ 41.8 million).

Founded in 1892, Changyu is China’s largest wine producer. Its flagship label, Changyu Noble Dragon, has sold over 680 million bottles globally. The company operates wineries across key wine regions such as Ningxia, Xinjiang, Shaanxi, and Beijing, including Chateau Changyu–Moser XV and Longyu Estate in Ningxia. In recent years, Changyu has also acquired a few wineries in Australia, Chile, France, and Spain, building a diverse global portfolio. It also produces a brandy under “Koya.” 

Despite these assets, 2024 marked Changyu’s weakest performance in recent years—worse even than during the initial pandemic years—highlighting the challenges it faces. The company acknowledged in its report that results were “unsatisfactory” and fell significantly short of its revenue target of RMB 4.7 billion, achieving only 70% of the goal.

Mounting Losses Among Domestic Wine Producers

Changyu was far from alone in reporting losses. Grace Vineyard, a Hong Kong listed Chinese winery, saw revenue plunge 46.8% year-on-year to RMB 34.55 million (approx. US$ 4.76 million), while its net loss widened to RMB 41.02 million (approx. US$ 5.65 million)—its biggest since going public.

Founded in Shanxi in 1997 by Hong Kong businessman Chan Chun Keung, the Shanxi-based winery has previously reported modest losses in 2020 and 2022, but the scale of the 2024 shortfall was its worst on record.

Other domestic producers, including China Tontine Wines Group, Tonhwa Winery, and Gansu-based Mogao Industrial Development, also reported losses. While Tonhwa and Mogao have yet to release their full-year results, performance forecasts suggest losses in excess of RMB 10 million.

Domestic Brands Struggle 

Weaker consumer demand, low brand recognition, and high production costs continue to weigh on Chinese wine producers. Imported wines still dominate in premium consumption scenarios, such as gifting and business entertaining, industry insiders said.

Chen Xun, founder of Domaine, a Chengdu-based wine company engaged in both wine education and importing, noted that although his company carries several quality domestic labels, customer demand remains tepid. “Annual sales are only about 20 to 30 cases,” he said.

Pan Liu, marketing director and chief wine taster at Wintek (Shenzhen) Import & Export, added, “Imported brands enjoy stronger recognition. Consumers tend to choose imported wines for premium occasions—especially gifting and business settings. Domestic brands still have a long way to go in building trust.”

Cost disparities also present major challenges. Many Chinese vineyards are located in high-latitude regions like Ningxia and Xinjiang, where vines must be buried in winter to survive harsh conditions, driving up labour and production costs. 

Although some Chinese wineries have introduced stable offerings in the RMB 200–300 range, imported wines at similar price points often offer more perceived value. “Some domestic wines cost over RMB 100 just at wholesale,” Chen said. “That’s close to the retail price of certain Médoc Cru Bourgeois wines.”

Three Wineries Defy the Downturn

A few Chinese producers, however, bucked the trend by tightening operations and sharpening brand focus. Among listed companies, Grand Dragon (Weilong) and Citic Niya both posted profits in 2024 and even achieved year-on-year growth in net income.

Grand Dragon attributed its growth to improved cost control and a 3% increase in gross margins. Citic Niya reduced its product range to focus on core SKUs, improving profitability through efficiency.

Both companies have clear brand identities: Grand Dragon has long championed organic wines, while Citic Niya has built a reputation for premium offerings from Xinjiang.

Another bright spot was Dynasty Wines, which benefited from the rising popularity of white wine in China. In 2024, white wine sales for the group surpassed red for the first time, accounting for 56% of the company’s revenue versus 41% for red. A year earlier, the ratio was 44% white to 52% red.

As previously reported by us, younger Chinese consumers increasingly favour white and sparkling wines—especially in summer—thanks to their lighter, more refreshing profiles. This trend is mirrored in rising imports from New Zealand and Germany, as well as strong demand for Italian Prosecco.

Smaller boutique producers are also turning the corner. Ian Dai, founder of the boutique label Xiaopu Brewing, previously told Vino Joy News that the company broke even in 2024 after seven years of operation. Operating under a “light asset” model, Xiaopu partners with vineyards and winemakers to produce terroir-focused wines, with annual output of 40,000 to 50,000 bottles.

Separately, online wine retailer and influencer Xiaopi said sparkling wines from Silver Heights are seeing increasing sales and positive feedback—further evidence of the momentum behind lighter wine styles.

With consumer sentiment still fragile, Chinese wine companies will need to pursue innovation, streamline operations, and build stronger brands to survive what some have called an industry winter. That transformation, while gradual, is already underway.