Luzhou Laojiao Company Limited (000568.SZ) has disclosed its 2026 interim results, revealing a sharp downturn in financial performance. The company reported total operating revenue of RMB 10.472 billion, marking a 36.35% decrease year-on-year, while net profit attributable to shareholders of the listed company stood at RMB 4.339 billion, down 43.37% compared to the same period last year. The company attributed the decline primarily to reduced product sales volumes during the reporting period.

In a separate announcement, Luzhou Laojiao Company Limited stated that it will not distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the interim period. This decision comes as the company navigates a challenging market environment.

Quarterly data reveals a stark contrast between the first and second quarters. In Q1, net profit reached RMB 3.708 billion, but Q2 net profit fell to just RMB 631 million, representing a staggering 82% quarter-on-quarter decline. This sequential drop highlights the accelerating pressure on the company's profitability amid weakening demand.

Adding to the concerns, the national stabilization fund, represented by Central Huijin Investment, has reduced its stake in Luzhou Laojiao Company Limited by 31.22% during the period. This move by a key state-backed investor signals potential caution regarding the company's near-term outlook and may further weigh on market sentiment.