VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Tuesday, December 30, 2025
Jiangsu Yanghe Distillery Co., Ltd.
002304.SZ · Shenzhen Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
Jiangsu Yanghe Distillery Co., Ltd. is a major Chinese baijiu producer focused on branded white spirits. A practical segment split is premium baijiu (mid-high to high-end) versus mass-market baijiu, which face different market structures and pricing power. The moat is primarily demand-driven (brand trust) reinforced by a large distribution footprint (offline distributors plus online direct sales), and supported by supply-side scale and aging capacity via large production and base-liquor inventories. Competitive pressure is highest in mass tiers; premium demand is more concentrated but sensitive to macro and channel cycles.
Primary segment
Premium baijiu (mid-high to high-end)
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
2 segments · 4 tags
Updated 2025-12-30
Segments
Premium baijiu (mid-high to high-end)
China premium baijiu (mid-high to high-end price tiers)
Revenue
—
Structure
Oligopoly
Pricing
moderate
Share
—
Peers
Mass-market baijiu (mainstream price tiers)
China mass-market baijiu (mainstream price tiers)
Revenue
—
Structure
Competitive
Pricing
weak
Share
—
Peers
Moat Claims
Premium baijiu (mid-high to high-end)
China premium baijiu (mid-high to high-end price tiers)
Represents higher-ASP baijiu portfolio (e.g., Dream Blue/Mengzhilan and other premium series).
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 4/5 · 1 evidence
Brand equity supports premium positioning and repeat purchase in banquet/gifting occasions; management highlights brand building as a core competitiveness.
Erosion risks
- Premium demand downturn / gifting restrictions
- Brand dilution from discounting and channel price leakage
- Consumer shift to alternative alcohol categories
Leading indicators
- Premium SKU ASP trend
- E-commerce price gap vs official pricing
- Channel inventory days and distributor ordering frequency
Counterarguments
- At the very top tier, Moutai/Wuliangye may hold stronger status-based preference
- Premium consumers may trade down during macro slowdowns
Distribution Control
Supply
Distribution Control
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 3 evidence
Sales rely on a large offline distributor network supplemented by online direct sales; breadth reduces dependence on any single distributor.
Erosion risks
- Distributor destocking cycles and channel conflict with online pricing
- Rising share of e-commerce reduces traditional channel leverage
- Competitive discounting compresses margin
Leading indicators
- Accounts receivable days and aging
- Distributor sell-through vs shipments
- Promotional intensity (rebates/discounts)
Counterarguments
- Distributors can reallocate shelf space to competing brands if sell-through weakens
- Price transparency online can weaken regional price discrimination
Capacity Moat
Supply
Capacity Moat
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
Large designed production capacity and substantial base-liquor inventory support long aging cycles and supply stability for premium products.
Erosion risks
- Overcapacity leading to industry price wars
- Inventory impairment risk in prolonged downturn
- Quality incidents could damage brand
Leading indicators
- Capacity utilization rate
- Base-liquor inventory volume and aging profile
- Capex on warehousing/production
Counterarguments
- Large competitors can invest to expand capacity and storage over time
- Scale without demand can become a cost burden
Mass-market baijiu (mainstream price tiers)
China mass-market baijiu (mainstream price tiers)
Represents mainstream baijiu portfolio where competition is broader and price sensitivity is higher.
Brand Trust
Demand
Brand Trust
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Brand and perceived quality still matter, but differentiation is weaker than in premium tiers.
Erosion risks
- Commoditization in value tiers
- Private-label and local brands gaining share
Leading indicators
- Market share trend in mainstream channels
- Promotion rate and discount depth
Counterarguments
- Value-tier consumers are more price sensitive and switch more readily
Scale Economies Unit Cost
Supply
Scale Economies Unit Cost
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Large-scale production and storage can support lower unit costs and stable supply for high-volume SKUs.
Erosion risks
- Lower utilization in downturn raises unit costs
- Competitors expand capacity, narrowing cost gaps
Leading indicators
- Unit gross margin trend for mainstream SKUs
- Utilization rate and fixed-cost absorption
Counterarguments
- Scale alone does not prevent price-based competition in mass tiers
Distribution Control
Supply
Distribution Control
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence
Broad distributor coverage and online direct sales improve reach, but channel leverage is weaker when consumer demand is soft.
Erosion risks
- Retail consolidation increases buyer power
- Online platforms intensify price competition
Leading indicators
- Sell-through in modern trade and e-commerce
- Distributor churn / active distributor count
Counterarguments
- Channel partners can push competing value brands if margins are better
Evidence
The company has formed unique core competitiveness in natural environment, quality craftsmanship, technical talent, brand building, and marketing network.
Translated from Chinese; management explicitly lists brand building and marketing network as core competitiveness.
Baijiu sales mainly use offline distribution and online direct sales.
Translated from Chinese; discloses the core go-to-market model: offline distributors plus online direct sales.
The company utilizes around 8,800 distributors across China and sells products through traditional channels and direct-to-consumer.
Third-party summary of nationwide distributor scale and multi-channel sales approach.
Top five distributors combined sales were RMB 2.35 billion in 2024.
Translated from Chinese; provides the top five distributor sales figure for assessing concentration.
Designed finished-liquor capacity: Yanghe (including Yanghe and Siyang branches) 222,545 tons; Shuangou 97,040 tons. Semi-finished liquor (including base liquor) inventory 726,907.49 tons.
Translated from Chinese; large designed capacity and base-liquor inventory support scale, supply stability, and aging programs.
Risks & Indicators
Erosion risks
- Premium demand downturn / gifting restrictions
- Brand dilution from discounting and channel price leakage
- Consumer shift to alternative alcohol categories
- Distributor destocking cycles and channel conflict with online pricing
- Rising share of e-commerce reduces traditional channel leverage
- Competitive discounting compresses margin
Leading indicators
- Premium SKU ASP trend
- E-commerce price gap vs official pricing
- Channel inventory days and distributor ordering frequency
- Accounts receivable days and aging
- Distributor sell-through vs shipments
- Promotional intensity (rebates/discounts)
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.