Changyu, China's largest wine producer, has released its 2024 semi-annual report. Data show that in the first half of the year, the company achieved operating income of 1.522 billion yuan, down 22.6% year-on-year; Net profit returned to the mother was 221 million yuan, down 39.17% year-on-year, and revenue and net profit fell into a double decline.

Changyu's decline is not a one-off accident. In 2020, affected by the epidemic and other factors, the company's revenue and net profit had fallen sharply. After 2021, although its performance once showed recovery growth, there is still a certain gap compared with the peak period. In the fourth quarter of 2023, the company's performance erupted again, reaching half of the annual target in one quarter, and even exceeding 55 million yuan. But the burst did not hold, falling again in the first half of this year.

Industry insiders believe that the downward performance of Changyu company is mainly related to the industry contraction. Since the business banquet scene has been reduced, domestic wine consumption is also decreasing, while imported wine, liquor, beer and other similar or different competitors are seizing the alcohol consumption market.

From the current semi-annual report for 2024, among the five A-share wine companies, more than one Changyu company is losing money. The net profit of Mogao shares is expected to lose 8 million yuan to 12 million yuan, ST Tongpu is expected to lose 27.5 million yuan to 24.5 million yuan, and Citic Niya is expected to turn from profit to loss, 4.5 million yuan to 5.5 million yuan.

It is true that the Chinese wine market is not in good shape. According to the data of the China Wine Association, the total sales revenue of wine enterprises above designated size in 2023 is only 9.09 billion yuan, which is 80% lower than the high of 46.454 billion yuan in 2016. At the same time, production is also falling, according to the National Bureau of Statistics data, in the 12 months of 2023, only September wine production increased year-on-year, the remaining 11 months are down.