Forging Resilience Amid Industry Headwinds, Driving High-Quality Transformation Through Innovation and Cultural Stewardship

HONG KONG SAR - Media OutReach Neswire - 26 August 2025 - ZJLD Group Inc. ("ZJLD" or the "Company", together with the Company's subsidiaries, collectively the "Group") (SEHK stock code: 06979. HK), an outstanding representative in the Chinese baijiu industry and the first baijiu company listed in Hong Kong Stock Exchange, is pleased to announce its interim results for the six months ended 30 June 2025 ("FY 2025 1H" or the "Period"). Despite persistent macroeconomic pressures and weak consumer demand across the baijiu sector, the Group remained steadfast in its commitment to high-quality development. Through strategic channel innovation and accelerated digital transformation, ZJLD Group has reinforced its operational resilience and laid the foundation for sustainable long-term growth. The key financial and business highlights are as follows:

FY 2025 1H(for the six months ended June 30, 2025)(RMB'000)	FY 2024 1H (for the six months ended June 30, 2024) (RMB'000)	Changed by
Revenue	2,497,106	4,133,191	-39.6%
Gross profit	1,474,284	2,428,682	-39.3%
Gross profit margin	59.0%	58.8%	+0.2 percentage points
Net cash generated from/(used in) operating activities	(322,274)	574,886	-156.1%
Adjusted net profit (non-IFRS measure)	613,202	1,018,123	-39.8%
Adjusted net profit margin (non-IFRS measure)	24.6%	24.6%	—

• During the Period, the Group recorded revenue of RMB 2,497.1 million, representing a year-on-year decline of 39.6%. Gross profit decreased by 39.3% to RMB 1,474.3 million. Notably, gross margin edged up to 59.0%. Adjusted net profit amounted to RMB 613.2 million, down 39.8% year-on-year, in line with the revenue trajectory.
• The baijiu industry continues to grapple with structural challenges, including deteriorating channel pricing systems, compressed distributor margins, mounting financial pressure across the value chain, and sluggish terminal sales. Since Q2 2024, consumer demand has softened significantly, with notable declines in business banquets, gifting occasions, and other offline consumption scenarios. All four of the Group's core brands experienced various degrees of revenue contraction. Flagship brand Zhenjiu, the Group's primary growth engine, saw revenue fall 44.8% to RMB 1,491.7 million (FY 2024 1H: RMB 2,702.2 million), as the Group proactively managed channel inventory and strictly controlled sales pacing to safeguard long-term sustainability.
• The Board of Directors does not recommend the declaration of an interim dividend for the six months ended 30 June 2025 (FY 2024 1H: nil).

Strategic Response: Anchored by the "Premier Retailers Alliance" Model, Driving Channel Innovation and Digital Transformation Against the backdrop of profound market recalibration and rapidly evolving consumer behavior, the Group has positioned the "Premier Retailers Alliance" model as its central strategic framework—driving simultaneous advancement in channel innovation and digital transformation. This dual-pronged approach reshapes brand accessibility and operational efficiency, while fortifying a more resilient market response system. Far more than a vehicle for channel integration, the "Premier Retailers Alliance" model serves as a strategic nexus for deep collaboration, co-creation, and shared value between the Group and its nationwide distributor network. The Group has dismantled traditional tiered distribution structures through this alliance mechanism, enabling streamlined resource allocation, transparent information exchange, and synchronized interest alignment. These enhancements have significantly accelerated channel responsiveness and strengthened control at the terminal level. Alliance members are no longer mere conduits of product delivery; they are empowered co-architects of brand equity and frontline executors of market strategy. Together, they form a multidimensional, interconnected channel ecosystem characterized by vertical synergy and horizontal coordination. Building on this foundation, the Group is advancing its digital transformation to achieve full-chain data integration—from production and distribution to end-consumer engagement. Through intelligent base liquor management, precision allocation and delivery, real-time sales monitoring, and consumer behavior analytics, the Group has significantly enhanced supply chain efficiency while equipping brand strategy with timely insights and data-driven decision support. Upgrades to the CRM system and membership operations framework have enabled more granular audience segmentation and personalized communication, strengthened user engagement and driven higher repurchase...