Navigating Market Cycles with Operational Resilience, Core Business Stabilizes and Rebounds, Marking a Strategic Turnaround and New Growth Phase

HONG KONG SAR - Media OutReach Newswire - 20 August 2026 - ZJLD Group Inc. ("ZJLD" or the "Company", together with the Company's subsidiaries, collectively the "Group") (SEHK stock code: 06979.HK), a flagship enterprise in China's baijiu industry and the first baijiu company listed on the Hong Kong Stock Exchange, is pleased to announce its interim financial results for the six months ended 30 June 2026 ("FY 2026 1H" or the "Period") In the first half of 2026, the broader baijiu industry operated within a demanding macroeconomic environment characterized by structural adjustments and sluggish consumer demand. In response to cyclical headwinds during the Period, the Group proactively optimized its operational strategies, strengthened healthy channel management, and accelerated digital innovation, resulting in comprehensive stabilization and an operational rebound. The year 2026 marks a pivotal strategic inflection point for ZJLD, signaling the completion of a two-year industry-driven consolidation and the onset of a new high-quality growth cycle. The key financial and business highlights are as follows:

FY 2026 1H(for the six months ended June 30, 2026)(RMB'000)	FY 2025 1H (for the six months ended June 30, 2025) (RMB'000)	Changed by
Revenue	2,546,069	2,497,106	+2.0%
Gross profit	1,520,856	1,474,284	+3.2%
Gross profit margin	59.7%	59.0%	+0.7percentagepoints
Profit attributable to equity holders of the Company	580,717	574,771	+1.0%
Net cash generated from/(used in) operating activities	(234,035)	(322,274)	-27.4%
Adjusted net profit (non-IFRS measure)	626,064	613,202	+2.1%
Adjusted net profit margin (non-IFRS measure)	24.6%	24.6%	—

Optimized Product Mix Drives Profitability; Multi-Brand Synergy Amplifies Resilience

• During the Period, the Group recorded revenue of RMB 2,546.1 million, representing a 2.0% year-on-year increase. Gross profit increased by 3.2% to RMB 1,520.9 million, while Adjusted Net Profit reached RMB 626.1 million, up 2.1% year-on-year. Benefiting from an expanded revenue contribution of Sub-premium products and the Li Du brand, alongside streamlined production efficiencies, the Group's gross margin expanded by 0.7 percentage points to 59.7%. Net cash operation cash outflow narrowed significantly by 27.4%, underscoring rigorous cash flow management and prudent risk control.
• Zhenjiu (Flagship Brand): Generated RMB 1,342.4 million in revenue during the Period, accounting for 52.7% of total revenue. The Group exercised disciplined control over channel fulfilment ahead of the launch of the next-generation Zhen 15 to safeguard channel pricing integrity. Meanwhile, the strategic flagship product "Da Zhen" achieved strong growth and explosive nationwide expansion across 31 provinces and 280 cities, driving Zhenjiu's gross margin up to 59.8%.
• Li Du (Second Growth Engine): Accelerated its growth momentum, recording revenue of RMB 788.0 million, sharply up 28.9% year-on-year. Driven by the national expansion of its Sub-premium and Mid-tier product portfolio, such as Li Du Sorghum 1975(李渡高粱 1975), Li Du Sorghum * Changyin Collection Series (李渡高粱酒 · 暢飲珍藏版), and the Li Du King Series(李渡王系列), Li Du demonstrated formidable, explosive market penetration and volume growth.
• Xiangjiao & Kaikouxiao (Regional Powerhouse): Maintained solid market share within Hunan Province, generating RMB 282.8 million, up 2.0% year-on-year, and RMB 81.8 million, up 1.0% year-on-year, respectively in revenue, both delivering sustained market stabilization and modest growth.
• Sub-Premium Baijiu Segment: Delivered exceptional performance, achieving revenue of RMB 1,366.1 million, up 39.1% year-on-year. The segment's contribution to overall revenue surged from 39.3% to 53.7%, reflecting the Group's agile realignment with evolving consumer shifts toward rational spending and banquet occasions (e.g., weddings and celebrations), successfully capturing growth opportunities in the sub-premium segment.
• The Board of Directors does not recommend the declaration of an interim dividend for the six months ended 30 June 2026 (FY 2025 1H: nil).

Strategic Agility: Pioneering Channel Innovation & Digital Synergy as Dual-Engine The Group's proprietary "Premier Retailers Alliance" model and the Monthly Profit-sharing Model ("月月分利模式") designed for the 5th Generation Zhen 15 have effectively resolved...