Changyu Pioneer Wine Company saw its net profit collapse 76% in 2025, tumbling to just RMB 71 million (US$9.9 million), the lowest since it went public more than 20 years ago.
The company’s net profit plunged 76.64% year-on-year to RMB 71.29 million (about US$9.9 million), marking the first time in more than two decades since its listing that annual net profit fell below RMB 100 million, the lowest level on record.
Revenue for 2025 declined 8.81% to RMB 2.99 billion (about US$415 million), while net profit attributable to shareholders dropped 76.64%. The fourth quarter posted a loss of RMB 116.22 million (about US$16.15 million), significantly weighing on full-year results.
As China’s largest domestic wine producer, Changyu operates wineries in Yantai, Ningxia and Shaanxi, with flagship products such as “Noble Dragon” and premium label “Longyu Estate”. The company also owns overseas winery assets in France, Spain, Australia and Chile, and has expanded into brandy production.
By segment, wine, which accounts for more than 70% of total revenue fell 12.25% to RMB 2.14 billion (about US$297 million). Brandy sales rose 2.55% to RMB 759 million (about US$105 million), but were insufficient to offset the broader decline.
Listed on the Shenzhen Stock Exchange in October 2000,Changyu has never before recorded annual net profit below RMB 100 million.
The company blamed falling sales volumes and a “complex” market — but even its scaled-back targets proved too optimistic. Changyu had already lowered its 2025 revenue goal to RMB 3.4 billion, down from RMB 4.7 billion a year earlier. It still missed and actual revenue came in at at RMB 2.99 billion.
At the company’s shareholder meeting in May last year, general manager Sun Jian acknowledged the challenges more bluntly, saying that the company’s “efforts to move upward cannot offset the downward momentum of the industry” and admitting it had “failed to capture consumers’ hearts.”
“We’re growing more and more distant from our consumers,” he said. “We haven’t created products that genuinely meet their needs, or consumption scenarios they enjoy, or delivered emotional value that resonates with them.”
Changyu’s push into higher-end products continues to face recognition barriers in premium business dining settings.
In China’s banquet culture, brands such as Moutai, Penfolds and DBR Lafite carry clear status signals, while Changyu’s Longyu Estate often requires additional explanation, reflecting weaker brand equity.
Meanwhile, mid-range products such as Noble Dragon, once widely used in wedding banquets, are losing ground amid intensifying competition and weakening value-for-money perception.
The company has attempted to reposition itself in recent years. In 2025, it launched a new white wine brand, “Long Tailed Cat”, targeting younger consumers and new retail channels.
At the 2026 China Food and Drinks Fair in Chengdu, Changyu further introduced canned wines and ready-to-drink products, and signed actor Yu Shi as a brand ambassador, in a bid to strengthen its appeal among younger consumers.
At the same time, its outlook remains cautious. For 2026, the company has set a revenue target of no less than RMB 3 billion (about US$417 million).
On the cost side, Changyu plans to tighten spending further, aiming to keep total operating costs — including cost of goods sold and selling, administrative and financial expenses — below RMB 2.7 billion (about US$375 million).
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