After the market closed on October 28, Shede Wine Co., Ltd. (600702.SH, hereinafter referred to as “Shede Wine”) disclosed its third quarter report for 2026. In the first three quarters, the company achieved operating income of 3.096 billion yuan and net profit attributable to shareholders of the listed company of 195 million yuan.
The core focus of this report card is the marginal repair of operating quality. Revenue in the third quarter was 809 million yuan, a decrease of 9.22 percentage points narrowed from the previous quarter; net profit attributable to the parent company was 49.55 million yuan, a significant year-on-year increase of 72.44%.Turning losses into profits compared with the second quarter; The gross profit margin in the third quarter increased by 4.7 percentage points year-on-year; operating cash flow continued to turn positive in the second quarter, with a net inflow of 176 million yuan, an increase of 132.81% from the second quarter.
At the same time, the company continued its strategy of controlling the pace of shipments and supporting dealers in destocking, and the prices of core large items remained stable due to their taste. Data shows that the number of the company’s dealers showed a net growth in the third quarter of this year, and the restoration of the channel ecology in mature markets is taking shape.
The day after the third quarterly report was disclosed, the Shede Winery 2026 Dealer Summit with the theme of “Breaking the Situation, Strengthening and Writing a New Chapter Together” was held in Chengdu. More than 400 dealer partners from all over the country gathered in Chengdu. Faced with the realistic test of the industry’s “momentum transformation, pressure on volume and price, and intensified differentiation,” Sheshe Wine Industry has clarified the “five focus, three innovations” business philosophy and “extreme four forces” governance framework, and launched the 25th anniversary commemorative edition of Taste Sheshe, releasing a clear signal that manufacturers are united and proactively adjust to cross the cycle.
Q3 net profit increased by 72.44% year-on-year, and revenue decline narrowed
In the first three quarters, the company achieved operating income of 3.096 billion yuan and net profit attributable to the parent company of 195 million yuan. Looking at the third quarter alone, revenue was 809 million yuan, a decrease of 9.22 percentage points narrowed from the previous quarter; net profit attributable to the parent company was 49.55 million yuan, a year-on-year increase of 72.44%; gross profit margin increased by 4.7 percentage points year-on-year.
For liquor companies that are in a period of deep adjustment, the substantial recovery in profits and the narrowing of revenue declines have occurred simultaneously, which means that the company’s early proactive adjustments, controlling the pace of shipments, and ensuring the health of prices and channels are gradually taking effect.
Structural highlights also deserve attention.
In the first three quarters, the growth of popular wine represented by Tuopai Super T68 has driven the sales revenue of ordinary wine to slightly increase by 0.34% year-on-year; from January to July this year, the number of bottles opened of Tuopai Special T68 increased by 55% year-on-year.
E-commerce channels maintained steady growth, achieving sales revenue of 498 million yuan, a year-on-year increase of 10.63%.
Against the backdrop of sub-high-end pressure, Popular Liquor and e-commerce channels provided structural support for overall revenue, and also reflected the company’s continued investment in dual-brand synergy and channel structure optimization.
In terms of core single products, in the first three quarters, the company continued to control the pace of shipments and support dealers’ strategies to destock. At the same time, it increased market investment and consumer cultivation, effectively driving channel sales, and the taste of core single products was willing to keep prices stable.
Q3 cash flow increased by 132.81% month-on-month, and operating quality was marginally restored
Judging from the data of the three quarterly reports, the business trajectory of Sheshe Wine Industry in the first three quarters echoes the rhythm of the industry’s “bottom gradually becoming clearer”.
Sheshe Liquor Industry faces cyclical challenges head-on, continues to proactively adjust to ensure the health of prices and channels, and stabilizes its basic business operations. At the same time, it increases the cultivation of the consumer market and accumulates development momentum. Thanks to comprehensive policies, the company’s performance has shown a positive trend of recovery, especially in the third quarter, which achieved a substantial year-on-year increase in net profit and continued positive growth in operating cash flow, which has consolidated certainty for steady operations throughout the year and the start of the coming year.
The simultaneous improvements on the expense side and asset side further confirmed the improvement of operating quality.
In the first three quarters, Shede Winery’s management expenses dropped by 26% year-on-year, the management expense rate dropped year-on-year, and the effect of lean management was significant; operating costs dropped by 11.53% year-on-year; total assets increased to 12.885 billion yuan, and the operating chassis continued to grow.
In terms of cash flow, the sales to cash ratio in the first three quarters increased by 10.94 percentage points year-on-year. In the third quarter, operating cash flow continued to turn positive in the second quarter, achieving a net inflow of 176 million yuan, an increase of 132.81% from the second quarter.
Cash flow continues to grow positively, indicating that the quality of channel receivables has improved, channel confidence has recovered, and the company’s fundamental stability has been further clarified.
In the process of the liquor industry shifting from “channel pressure” to “real sales-driven”, improvements in cash collection ratio and cash flow are more valuable than pure revenue figures. It means that manufacturer relationships, channel inventory and terminal sales are adjusting in a healthier direction.
Liquor marketing expert Xiao Zhuqing said that in the face of in-depth adjustments in the industry, Sheshe Liquor Industry has maintained its strategic focus. The new management has clear goals and strategic ideas, showing its determination to innovate and win and its pragmatic and responsible courage. The marginal improvement in operating quality in the first three quarters, the continued restoration of the channel ecosystem, and the continued advancement of new operating initiatives are expected to further translate into positive feedback from the market, providing a solid foundation for this year’s full-year performance and subsequent long-term development.
“Five Focuses” to consolidate existing capacity, “Three Innovations” to expand increments, and “Four Ultimate Strengths” to build an execution framework
The marginal improvement in the third quarter report laid the foundation for the restoration of full-year performance, while the dealer summit provided a battle map for the new business cycle.
At the summit, Tang Hui, chairman and president of Shede Liquor Industry, pointed out that it is necessary to face the problems existing in business operations, and clearly stated that the strategic determination of adhering to long-termism, adhering to quality and brewing good wine, and resolutely promoting the coordinated development of the Tuopai Shede dual brands will be unwavering, establishing a combat framework of “five focuses and three innovations”, and establishing competitive advantages with “four ultimate forces”.
He also pointed out that in the face of shrinking market competition, we must make firm choices, focus on core single products, core markets, core customers, core terminals, and core consumers, and consolidate the existing basic market; in response to the structural opportunities brought about by industry changes, we must innovate and break through, and expand the incremental space around new channels, new groups, and new scenarios.
After the direction is clear, the execution path becomes key.
Tang Hui proposed the ultimate product power, the ultimate brand power, the ultimate channel power, and the ultimate organizational power, and promoted the implementation of the business strategy with the “extreme four forces”.
In terms of ultimate product strength, Tuopai Special Grade T68 focuses on ultimate cost-effectiveness. As the only premium wine in a light bottle with strong fragrance under 100 yuan, its leading performance in the high-end light bottle ration wine track confirms the competitiveness of the leapfrog competition; the Shede brand focuses on the ultimate quality-price ratio, and the “Taste of Shede 25th Anniversary Edition” launched at this summit is another new product that implements this idea.
In terms of ultimate brand power, Sheshe continues to consolidate the differentiated positioning of Sheshe as “China’s No. 1 high-end cultural wine” and Tuopai as “the No. 1 high-quality popular wine brand”. Shede Wine is based on vintage wines and takes Shede culture as its soul. Tuopai focuses on the core areas of 100-yuan light bottles and 100-yuan boxes. It insists on creating the ultimate content, the ultimate experience, and integrating product, performance and sales, focusing on “full-cycle user operations, all-round C”.
Channel power and organizational power directly point to manufacturer relationships and execution efficiency.
In terms of ultimate channel power, the company proposes four channel strategic priorities: “supporting excellent and strong merchants”, “straightening out prices and reshaping the channel value chain”, “keeping prices at the top, and coordinating online and offline development” and “working with channel partners to fully move towards C”, and is committed to “let every customer who is down-to-earth in the market make money.”
In terms of ultimate organizational strength, we promote the conceptual transformation of all employees into a service-oriented organization, implement the mechanism of “front-line service to customers, functional service to front-line, and joint service to consumers”, making the culture and spirit of giving up the real competitiveness of the organization, and practicing the service-oriented marketing concept of “selling wine is to provide emotional value”.
From the “five focuses” to the “three innovations” and then to the “four force improvements”, Sheshe Winery attempts to link strategic choices, structural opportunities and organizational capabilities into an executable business chain.
Since being integrated into Fosun, with the guidance of the industry, the escort of local governments and the support of Fosun, Sheshi Winery has adhered to its strategic focus and strived for development. Compared with the end of 2020, the company’s operating income in 2025 increased by 63.5%, total assets increased by 95.5%, and net assets increased by 90.4%. The total tax payment in the five years was 9.583 billion yuan. Its products have reached 43 overseas countries and regions, creating a new “Sheshe”. During the period of deep adjustment in the industry, the company achieved revenue of 3.096 billion yuan and net profit of 195 million yuan in the first three quarters of this year. In the third quarter, net profit surged 72.44% year-on-year, demonstrating its strong ability to resist risks and sufficient confidence for development.
The fourth quarter is a window period for the liquor industry to seize sales and restore confidence. It is also a key node to gather momentum for a new round of development. Shede Liquor Industry announced and implemented the Spring Festival promotion policy at the summit to help connect the end of the fourth quarter of marketing with a good start to next year.
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