Liquor industry welcomes deep adjustment as multiple listed liquor companies expand production against the trend.

In 2025, all annual reports of A-share liquor companies were disclosed, and "deep adjustment" became the common keyword in all company annual reports. According to data from the National Bureau of Statistics, in 2025, the total output of liquor companies above a certain scale in the country was 3.549 million kiloliters, a year-on-year decrease of 12.1%. This was the ninth consecutive year of production decline in the industry, with a cumulative decrease of nearly 74% compared to the historical peak of 13.584 million kiloliters in 2016. Journalists found in the annual reports of 19 listed liquor companies that 18 companies had a year-on-year decline in operating income, with net profits generally showing a double-digit decline, and Wuliangye, Yanghe, and Shuijingfang's net profits attributable to mothers declining by more than 50%. In contrast to the overall pressure on the industry, many listed liquor companies are expanding their production capacity against the trend. Leading companies are investing heavily in high-quality production capacity, and some liquor companies with low capacity utilization rates are also pushing for capacity expansion or ramping up technological renovation projects. In the view of industry insiders, this counter-cyclical production capacity competition in the liquor industry is not only a microcosm of the industry's intensifying differentiation but also an early layout by major liquor companies for the next industry cycle.