Industry Turnover:

• Alcoholic beverages: 95%
• Other: 5%

TOP 3 Markets:

1. China: 85%
2. Southeast Asia: 8%
3. North America: 4%

Luzhou Laojiao Co., Ltd is mainly engaged in the production and distribution of alcoholic beverages, especially Baijiu, a traditional Chinese liquor. The majority of the turnover comes from the Chinese market, reflecting the strong local market presence and popularity of the product.

In recent years, the company has expanded its international presence, with Southeast Asia and North America emerging as important export markets. These markets offer growth opportunities as interest in traditional Chinese spirits increases worldwide.

Main production site: Luzhou, Sichuan, China

Luzhou Laojiao Co., Ltd mainly produces its products in Luzhou, a city in the province of Sichuan, China. This region is known for its long tradition in the production of Baijiu, a Chinese spirit, which is the company's main product. The geographical and climatic conditions in Luzhou are ideal for the fermentation and aging of Baijiu, contributing to the high quality of Luzhou Laojiao's products.

Revenue growth: 18.5% (2024)
Profit growth: 14.2% (2024)

Luzhou Laojiao Co., Ltd pursues a strategy that focuses heavily on expanding its product range and tapping into new markets. The company is introducing new premium spirits to meet the growing demand for high-quality alcoholic beverages.

Another key focus is on internationalization. Luzhou Laojiao plans to strengthen its presence in overseas markets, particularly in Southeast Asia and Europe, to capitalize on the increasing demand for traditional Chinese Baijiu.

Furthermore, the company is investing in digital transformation and e-commerce platforms to enhance direct consumer access and increase brand awareness. This is intended not only to improve the customer experience but also to enhance the efficiency of distribution channels.

Main raw materials: Sorghum, wheat, water

Import countries: China (local procurement), limited imports from neighboring Asian countries

Luzhou Laojiao Co., Ltd., a leading Baijiu manufacturer in China, sources most of its raw materials locally. Sorghum and wheat, the main ingredients for Baijiu production, are predominantly grown in China. However, due to high demand and quality assurance, there may be limited imports from neighboring Asian countries to meet production requirements.

Water, another essential component, is sourced from local springs in the Sichuan province, known for its excellent water quality. Dependency on imports is low as the local availability of raw materials in China is very high.

Market share: 8% (2024, estimated)
Gross margin: 76% (2023)
Research and development ratio: 2% of sales (2023)

Luzhou Laojiao Co., Ltd is one of the leading companies in the Chinese Baijiu industry, one of the largest spirits markets worldwide. The company's competitive advantage lies in its strong brand awareness and the high quality of its products, supported by traditional manufacturing processes.

The high gross margin of 76% indicates that the company is able to sell its products at a premium price, suggesting strong brand loyalty and an effective pricing strategy. Additionally, Luzhou Laojiao continuously invests in research and development to drive product innovation and differentiate itself from competitors.

The market share of approximately 8% in 2024 underscores the company's significant position in the domestic market. Despite intense competition in the industry, Luzhou Laojiao remains competitive through its strong brand presence and continuous product innovations.

Institutional investor share: approx. 35% (2025, estimate based on historical trends)

Insider purchases/sales: No significant transactions in the last year (2025, estimate)

The institutional investor share in Luzhou Laojiao Co., Ltd is estimated to be around 35%. This figure is based on historical trends and the typical participation of institutional investors in large Chinese companies.

In 2025, there were no significant insider purchases or sales indicating a change in the management's confidence in the company's future development. This suggests a stable assessment of the company's situation by the management.

Market Share of Luzhou Laojiao: 10% (estimated, 2025)

Main Competitors and Their Market Shares:

1. Kweichow Moutai Co., Ltd.: 30%
2. Wuliangye Yibin Co., Ltd.: 25%
3. Luzhou Laojiao Co., Ltd.: 10%
4. Yanghe Brewery Joint-Stock Co., Ltd.: 8%
5. Shanxi Xinghuacun Fen Wine Factory Co., Ltd.: 6%
6. Jiangsu King's Luck Brewery Joint-Stock Co., Ltd.: 5%
7. Anhui Gujing Distillery Co., Ltd.: 4%
8. Sichuan Swellfun Co., Ltd.: 3%
9. Tonghua Grape Wine Co., Ltd.: 2%
10. Beijing Shunxin Agriculture Co., Ltd.: 2%

Moat of Luzhou Laojiao:

Luzhou Laojiao has a significant moat, mainly attributed to its long tradition and high quality of products. The company is known for its distinctive Baijiu varieties, which generate strong brand loyalty among consumers.

However, compared to its competitors, especially Kweichow Moutai and Wuliangye Yibin, Luzhou Laojiao has a less pronounced moat. Kweichow Moutai enjoys immense brand recognition and prestige, making it one of the most valuable spirit brands globally. Wuliangye Yibin also has a strong market presence and a wide product portfolio.

While Luzhou Laojiao is able to differentiate itself through its quality and tradition, they must continuously invest in marketing and product innovation to maintain or increase their market share. The competition in the Baijiu market is intense, and companies with a broader international focus or stronger brand presence could have a long-term advantage.

Revenue Growth: 10.5% (2024) Profit Growth: 8.9% (2024) Market Share in the Spirits Industry: 12% (2024)

Luzhou Laojiao Co., Ltd recorded solid revenue growth of 10.5% in 2024. This indicates strong demand for their products, especially in the premium segment of the spirits industry. The company benefits from its established brand and the high quality of its products, leading to a stable customer base.

The profit growth of 8.9% during the same period suggests that the company is operating efficiently and managing its costs well. This is a positive sign for investors as it indicates sustainable profitability.

The 12% market share in the spirits industry shows that Luzhou Laojiao holds a significant position in this sector. This market position provides the company with a solid foundation for further growth, especially in emerging markets and through the introduction of new products.

Overall, Luzhou Laojiao Co., Ltd appears to be a stable and potentially high-growth investment based on current operational metrics and market position. However, investors should also consider external factors such as economic conditions and regulatory changes that could impact future performance.

Dividend yield: 2.5% (2025, estimated)
Dividend history: Continuous distribution over the past 5 years

Luzhou Laojiao Co., Ltd has regularly distributed dividends to its shareholders in recent years. The dividend yield is currently around 2.5%, which can be considered solid compared to other companies in the industry.

The reliability of the distribution is supported by the company's stable financial performance. With a strong market position in the spirits sector and continuous revenue growth, Luzhou Laojiao is expected to maintain a reliable dividend policy in the future as well.