Breaking Down Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. Financial Health: Key Insights for Investors

From its founding in 1949 in Fenyang, Shanxi, Shanxi Xinghuacun Fen Wine Factory Co., Ltd. (600809.SS) has grown into a global ambassador for Fenjiu, boasting a market capitalization of ¥219.72 billion as of December 12, 2025, and reporting ¥36.01 billion in revenue for 2024 (up 12.79% year-over-year) with net income of ¥12.24 billion (up 17.29%), underpinned by a robust 76.64% gross margin and a 34.00% net margin; the company's mission fuses craftsmanship, ethical practices and technological innovation-evidenced by a ¥30 million R&D investment in 2024 and a new premium product line-while its vision targets expanded premium-market share and deeper penetration into tier-2 and tier-3 cities, and its core values manifest in a 95% customer satisfaction rate (2022), zero-tolerance ethics enforcement that led to 15 dismissals in 2023, ¥10 million invested in local education benefiting over 5,000 students, an 18% reduction in carbon emissions versus 2021, and a public commitment to achieve 100% recyclable packaging by 2025.

Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (600809.SS) - Intro

• Market capitalization (as of 12 Dec 2025): ¥219.72 billion
• Revenue (2024): ¥36.01 billion - +12.79% YoY
• Net income (2024): ¥12.24 billion - +17.29% YoY
• Listing: Shanghai Stock Exchange, ticker 600809

• Protect and pass down Fenjiu intangible cultural heritage and traditional distillation techniques.
• Produce consistent, premium products that meet rising domestic and international quality standards.
• Drive shareholder value via disciplined growth, operational efficiency, and profitable product mix optimization.

• Top-tier market position domestically across premium and mainstream segments.
• Expanded international footprint with targeted export growth and brand partnerships.
• Leadership in sustainable production and modernization of traditional processes.

• Heritage & Craftsmanship - respect for time-honored distillation methods and continuous quality control.
• Integrity & Compliance - strict adherence to regulatory, environmental, and food safety standards.
• Innovation & Efficiency - process improvements, product R&D, and supply chain optimization.
• Customer Centricity - aligning product portfolios with consumer trends and premiumization.
• Shareholder Responsibility - disciplined capital allocation, margin expansion, and transparent governance.

• Heritage production bases in Fenyang with protected raw material supply chains.
• R&D centers for flavor profiling, aging technique optimization, and quality consistency.
• Integrated sales channels: flagship retail, distributors, e-commerce, and export partners.
• Capital reinvestment strategy focused on capacity upgrades and premiumization initiatives.

Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (600809.SS) - Overview

• Produce high-quality Fenjiu rooted in traditional distillation techniques, with strict sensory and chemical quality controls across product lines.
• Maintain ethical business conduct and transparency across procurement, production, marketing, and investor relations.
• Drive innovation in production efficiency, product development, and supply-chain traceability using automation, digital monitoring, and data analytics.
• Support local communities through employment, cultural preservation, and targeted social-investment programs.
• Reduce environmental impacts across water, energy, and waste streams; commit to 100% recyclable packaging by 2025.

• Be a leading premium-baijiu brand showcasing Shanxi's Fenjiu heritage while achieving sustained, profitable growth in domestic and selective export markets.
• Combine centuries-old fermentation craftsmanship with modern food-safety systems and R&D to expand premium offerings and consumer recognition.
• Establish a circular, low-carbon production footprint in line with national carbon-reduction pathways and industry best practice.

• Craftsmanship - preserving traditional fermentation and aging techniques as a competitive differentiator.
• Integrity - adherence to ethical standards in sourcing, safety, and corporate governance.
• Innovation - continuous process and product improvement via technology and R&D.
• Community - prioritizing local employment, cultural heritage, and social contribution.
• Sustainability - measurable targets for resource efficiency, emissions reduction, and recyclable packaging.

• Quality control: multi-stage QA including raw-material testing, fermentation monitoring, and finished-goods chemical and organoleptic panels.
• Procurement: long-term contracts with sorghum growers in Shanxi, traceability initiatives, and supplier code of conduct enforcement.
• R&D: investments into yeast strain optimization, aroma profiling, and shelf-life studies to expand premium SKUs and limited editions.
• Corporate governance: listed-company compliance with Shanghai Stock Exchange rules, independent board oversight, and periodic investor disclosures.

• Wastewater management: staged upgrades to treatment plants reduced COD discharge intensity by an estimated 18% since 2020.
• Packaging: pilot programs (bottle-lightweighting, mono-polymer labels) aimed at achieving the 100% recyclable packaging goal by 2025.
• Energy: incremental electrification and waste-heat recovery projects targeting the stated 20% energy-intensity reduction.
• Community: vocational training programs have certified several hundred local employees in modern production and safety practices annually.

Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (600809.SS) - Mission Statement

• Produce authentic Fenjiu that upholds traditional craftsmanship and consistently meets rigorous quality standards.
• Balance a diversified product portfolio spanning ultra-premium, premium, and mass-market segments to capture varying demand and optimize profitability.
• Expand distribution deeply into tier-2 and tier-3 cities to leverage rising per-capita alcohol consumption outside top-tier urban centers.
• Maintain operational excellence reflected in strong margins and disciplined cost control.
• Embed sustainability and resilience into growth plans to withstand economic cycles and protect brand equity for future generations.

• Target an expanded presence across China's lower-tier cities through a strengthened distributor network and localized marketing.
• Pursue a diversified portfolio strategy to serve collectors, gifting markets, everyday consumption, and new consumption scenarios.
• Drive margin preservation and improvement via supply-chain optimization, mature aging inventories, and premiumization.
• Commit to long-term value creation through steady profitability, cash-generation, and prudent capital allocation.

• Brand stewardship: deepen cultural storytelling and traceability to reinforce premium positioning.
• Channel development: expand distributor partnerships and modern retail penetration in mid-tier cities.
• Product mix management: scale limited-edition, aged, and flagship SKUs while maintaining accessible lines for broader consumption.
• Operational efficiency: preserve high gross and net margins through cost control, production planning, and aged-inventory management.
• Financial discipline: allocate capital toward high-return initiatives and maintain robust cash flows to support long-term plans.

Shanxi Xinghuacun Fen Wine Factory Co.,Ltd. (600809.SS) - Vision Statement

• Customer-first quality systems with 95% satisfaction (2022).
• Zero-tolerance ethics enforcement; 15 dismissals in 2023 for violations.
• Innovation investment: ¥30 million in R&D (2024) and a new premium product launch.
• Community investment: ¥10 million (2023) benefiting 5,000+ students.
• Environmental targets: 100% recyclable packaging by 2025 and 18% CO2 reduction vs. 2021.

• Elevate product quality through expanded sensory labs and tightened supplier controls to sustain ≥95% satisfaction.
• Strengthen compliance frameworks and employee ethics training to prevent misconduct and reinforce integrity.
• Scale R&D initiatives (¥30M in 2024) to accelerate premium product development and enhance margin profiles.
• Deepen community programs with multi-year investments to broaden educational impact beyond 5,000 students.
• Execute a packaging transition plan to meet the 100% recyclable goal by 2025 and continue reducing carbon intensity (18% reduction achieved vs. 2021).