Analysis Report on Inventory Turnover Days of Kouzijiao's Nianfen Yuanjiang Series

Based on the collected data and analysis, I will provide you with a detailed comparative analysis of inventory turnover days between Kouzijiao’s Nianfen Yuanjiang Series and its competitors.

From 2021 to mid-2025, Kouzijiao’s inventory turnover days showed a continuous worsening trend [1][2]:

Report Period	Inventory Turnover Days	Inventory Turnover Rate
2021 Interim Report	973.5 days	0.185 times
2022 Interim Report	1,188 days	0.152 times
2023 Interim Report	1,048 days	0.172 times
2024 Interim Report	1,243 days	0.145 times
2025 Interim Report	1,586 days	0.113 times

: Inventory turnover efficiency continues to decline, with turnover days increasing from 973.5 days in 2021 to 1,586 days in the first half of 2025, representing a significant growth of .

---

According to data from KPMG’s 2025 Mid-Term Research Report on the Chinese Baijiu Market [3], Kouzijiao’s inventory turnover days are significantly higher than those of major competitors:

Enterprise	Inventory Turnover Days	Gap vs. Kouzijiao	Multiple
Kouzijiao	1,286 days	-	1.00x
Gujing Gongjiu (Nianfen Yuanjiang)	551 days	+735 days	2.33x
Yingjia Gongjiu (Dongzang Series)	550 days	+736 days	2.34x
Shanxi Fenjiu (Qinghua Series)	484 days	+802 days	2.66x
Yanghe Co., Ltd. (Mengzhilan)	650 days	+636 days	1.98x
Luzhou Laojiao (Guojiao 1573)	450 days	+836 days	2.86x
Wuliangye (Pu Wu)	380 days	+906 days	3.38x
Kweichow Moutai	1,090 days	+196 days	1.18x
Industry Average	900 days	+386 days	1.43x

---

As major competitors in Anhui Province, the gap between Kouzijiao and Gujing Gongjiu, Yingjia Gongjiu is particularly obvious [1][4]:

Anhui Baijiu Enterprise	Inventory Turnover Days	Market Share	Core Product
Gujing Gongjiu	551 days	Approximately 30% (No. 1 in the province)	Nianfen Yuanjiang Series
Yingjia Gongjiu	550 days	Approximately 15%	Dongzang Series
Kouzijiao	1,286 days	Approximately 12%	Nianfen Yuanjiang Series

, and its inventory turnover efficiency is only of Gujing Gongjiu’s.

---

Kouzijiao has long adopted the “large distributor system”, where distributors dominate terminal resource development, and the company has low investment and weak control over terminals. In the first half of 2025, although the revenue share of the wholesale agency channel reached 95%, it decreased by 21.26% year-on-year [2].

• As of the end of Q3 2025, Kouzijiao’s inventory reached RMB 6.218 billion, continuing to increase from RMB 5.854 billion at the end of 2024 [5]
• The inventory scale continued to expand from RMB 3.244 billion in 2021 to RMB 5.493 billion in 2024

As Kouzijiao’s core product (accounting for approximately 75% of revenue), the Nianfen Yuanjiang Series faces difficulties in breaking through in high-end positioning. In the first half of 2025, sales of its high-end cellar-brewed products declined significantly [5].

According to data from the China Alcoholic Drinks Association, the industry average inventory turnover days reached 900 days in the first half of 2025, an increase of 10% compared to the same period last year [3]. Kouzijiao’s inventory turnover days are

.

---

Comparison Dimension	Gap (Days)	Gap Multiple
vs. Gujing Gongjiu	+735 days	2.33x
vs. Yingjia Gongjiu	+736 days	2.34x
vs. Industry Average	+386 days	1.43x
vs. Shanxi Fenjiu	+802 days	2.66x
vs. Average of Competitors	+692 days	2.39x

---

, including 735 days (2.33 times) higher than Gujing Gongjiu’s Nianfen Yuanjiang Series, its direct competitor. This gap reflects:

1. Channel sales efficiency is significantly lower than that of competitors
2. There are obvious shortcomings in inventory management capabilities
3. Urgent need to strengthen terminal control and market response capabilities

To alleviate inventory pressure, Kouzijiao has begun to try new channel strategies such as setting up bulk liquor shops, but improving inventory turnover efficiency still faces great challenges in the short term.

---

[1] Eastmoney.com - Kouzijiao Inventory Turnover Data

[2] Debon Securities - In-depth Research Report on Kouzijiao

[3] KPMG - 2025 Mid-Term Research Report on the Chinese Baijiu Market

[4] Huafu Securities - In-depth Research Report on Gujing Gongjiu

[5] Beijing Business Daily - Kouzijiao Performance Analysis