How can Jinshiyuan, which safeguards Jiangsu's core market, tackle the tough challenges outside the province?

Produced by| Zhongfang Network

Reviewed by| Li Xiaoyan

As a new backbone force in the baijiu industry’s hundred billion club, Jinshiyuan (603369.SH) has a growth story marked by distinct regional characteristics. In 2023, its revenue broke the 10 billion yuan barrier for the first time, reaching 10.098 billion yuan; in 2024, riding the momentum, total revenue climbed to 11.546 billion yuan, surpassing Xifeng Liquor to secure a spot in the industry’s top ten and maintain its leading position in Jiangsu baijiu. Behind this impressive performance lies not only the deep-rooted expertise of a local brand in cultivating its region but also a common developmental proposition in the industry—how to transition from a “regional strong enterprise” to a “national famous liquor,” breaking the natural balance of revenue structures within and outside the province, and achieving high-quality national expansion.

Jinshiyuan’s hundred billion achievement is rooted in its meticulous cultivation of the Jiangsu market. This solid regional foundation provides the core confidence to withstand industry cycles and progress steadily. Jiangsu, as a major province for baijiu consumption in the country, has a market capacity of approximately 60 billion yuan, offering fertile ground for brand growth. Leveraging its deep local heritage, Jinshiyuan has established the Jiangsu market as an unshakable base, reaching an in-province revenue of 10.553 billion yuan in 2024, an increase of 2.21 times from 4.767 billion yuan in 2020, with an average annual growth rate of 18.65%, becoming the core engine driving overall performance.

Deep channel cultivation is the key to its success, with the company achieving a county-level market coverage rate of over 95%. Through a “township precision cultivation” strategy, it has deepened channel penetration, establishing solid consumption barriers in core regions such as Huai’an, Nanjing, and Suzhong. By the first three quarters of 2025, the number of provincial dealers reached 617, forming a tightly linked channel network that supports sustained efforts in the local market. In terms of product matrix, Jinshiyuan precisely positions itself in the mid-range and sub-high-end mainstream price segments, aligning with the quality demands and consumption preferences of Jiangsu consumers, further consolidating its market share—data from the January 2026 investor exchange meeting indicates that products priced over 600 yuan account for over 60% of the Su’nan market, and Nanjing has maintained local brand leadership for three consecutive years, highlighting the dual advantages of product strength and regional consumer recognition.

This “home court advantage” is not just an accumulation of numbers but a triple combination of brand reputation, channel stickiness, and cultural recognition. As a local famous liquor, its predecessor, Gao Gou Liquor, carries the cultural memory of Jiangsu, naturally possessing emotional resonance; precise product layout and refined operations have allowed Jinshiyuan to achieve simultaneous volume and price growth in the provincial market, accumulating sufficient capital, channels, and brand momentum for its national strategy.

Despite the solid base in the province, Jinshiyuan has never stopped at the positioning of “regional famous liquor,” clearly recognizing that nationalization is an inevitable choice in the post-hundred billion era. Since proposing the “cultivate within the province, break through outside the province” strategy at its listing in 2014, the company has consistently advanced its out-of-province layout with determination. Although facing challenges along the way, it has accumulated breakthroughs through continuous exploration, demonstrating marked strategic determination and execution resilience.

Jinshiyuan’s expansion outside the province avoids the rough model of blind point deployment and establishes a core strategy of “surrounding, sectoral focus,” concentrating efforts on key areas around Jiangsu. Targeting major consumer provinces such as Anhui, Shandong, and Zhejiang, as well as potential markets like Henan, Shanghai, and Jiangxi, the company implements a “1+2+4” strategic layout—focusing on Shandong as a model market for breakthroughs, using Beijing and Shanghai as a litmus test for high-end products, and strategically laying out four major markets around Jiangsu: Henan, Anhui, Jiangxi, and Zhejiang, gradually constructing a nationwide market network.

In 2024, the company further refines market classification, anchoring 10 model markets, 8 sectoral markets, 21 potential markets, and 20 opportunity markets in Jiaxing, Hangzhou, Hefei, etc., implementing “one area, one strategy” precise operations, concentrating resources to create core breakthrough points. This strategy of “focusing on key points and radiating from them” aligns with the objective law of nationalization for regional liquor companies and effectively reduces market expansion risks, ensuring precise and efficient resource investment.

After years of deep cultivation, Jinshiyuan has achieved a leap from non-existence to strength in the out-of-province market, with key indicators continuously improving. In terms of revenue growth, from 2020 to 2024, out-of-province revenue increased from 329 million yuan to 926 million yuan. Although there is still room for improvement in its share of total revenue, the growth rate is significantly higher than the industry average. In 2024, out-of-province revenue increased by 27.37% year-on-year; despite a slight increase of 0.06% to 804 million yuan in the first three quarters of 2025 due to industry environmental impacts, market share increased against the backdrop of an overall industry decline, showcasing strong risk resistance capabilities.

Regarding brand breakthroughs, the Guoyuan series, as a pioneer in out-of-province expansion, is experiencing robust growth. In 2024, Guoyuan’s out-of-province revenue growth reached 36.5%, achieving double-digit growth in core markets such as Anhui and Shandong, with Anhui and Shandong setting historical breakthroughs in 2025, becoming core growth poles in the out-of-province market. By the end of 2025, Guoyuan will have over 40 million-tier markets outside the province, initially establishing brand influence outside the province and laying a foundation for subsequent in-depth expansion.

The channel network continues to expand; by the first three quarters of 2025, the number of out-of-province dealers reached 695, 78 more than in-province, achieving preliminary coverage in quantity, providing channel support for market penetration. Although individual out-of-province dealers still have room for revenue improvement, the growth in number and optimization of structure indicate that the growth potential of the out-of-province market is gradually being released.

In the face of stage challenges in the expansion of the out-of-province market, Jinshiyuan actively adjusts with an open posture, demonstrating pragmatic development wisdom. Addressing issues such as insufficient brand recognition and differences in consumption habits in the out-of-province market, the company strengthens the dual drive of “quality + culture,” deeply exploring the essence of “Yuan Culture” and precisely reaching target consumers through community marketing and banquet promotion, enhancing brand recognition.

In terms of resource investment, the company demonstrates a long-term strategic vision, clearly preparing to “make continuous investments outside the province for 3-5 years without profit,” shifting resources towards key out-of-province markets and supporting the development of model and potential markets. In 2025, the company further optimizes its sales organizational structure, increases human resources investment outside the province, and promotes the implementation of a “nurture merchants, support merchants, enrich merchants, strengthen merchants” mechanism to build a long-term cooperative ecosystem with manufacturers. At the same time, focusing on the sub-high-end track, it positions core products such as Guoyuan Si Kai in the mainstream price range, using differentiated competition to break regional consumption barriers and achieve precise matching of product strength and market demand.

While recognizing achievements, it is also necessary to objectively view the challenges Jinshiyuan faces in its nationalization process, which is both a common issue in the industry and a necessary path for regional liquor companies to go national. Compared to leading industry brands, Jinshiyuan’s share of out-of-province revenue remains significantly lower. In 2024, the out-of-province revenue share was only 8.01%, increasing to 9.18% in the first three quarters of 2025, still a considerable distance from the 20% target for 2025. In contrast, for brands like Yanghe and Shanxi Fenjiu, when Yanghe reached a hundred billion in revenue in 2011, its out-of-province share was already at 36.0%, and Shanxi Fenjiu reached 50.75% in 2019 when it hit a hundred billion in revenue; Jinshiyuan’s out-of-province expansion is still in the early stages, with a small base and significant growth potential, but this also means it requires longer time for accumulation and investment.

The concentration of brands in the baijiu industry continues to rise, with national brands like Moutai and Wuliangye dominating the high-end market, while regional markets also face competition from strong local brands such as Yanghe and Gujing Gongjiu. In the out-of-province market, Jinshiyuan must deal with local brand channel barriers and consumer recognition barriers, especially in the high-end market, where the thousand yuan price range is occupied by Moutai, and the 800 yuan price range is dominated by Wuliangye and Guojiao 1573, posing intense competition for the high-end series of Guoyuan and making market breakthroughs challenging.

To promote breakthroughs in the out-of-province market, Jinshiyuan continues to increase investment, with out-of-province operating costs growing by 51% in 2024, far exceeding that of in-province and creating some short-term pressure on profitability. However, from a long-term development perspective, this investment is a necessary measure to build national channels, brands, and consumer foundations. As company management states, “The overall share of out-of-province revenue is still very low, and we will further increase investment to achieve market share growth.” Balancing short-term investments with long-term growth is an inevitable choice for the company’s development.

Standing at the new starting point of the 14th Five-Year Plan, Jinshiyuan’s path toward nationalization is filled with opportunities and carries the industry’s expectations. The company has clearly proposed the goal of “two highs”—main economic indicators above the industry average, and out-of-province market growth leading in-province, viewing nationalization as the core growth pole in the post-hundred billion era, with clear strategic positioning and execution paths.

From the perspective of market potential, the surrounding Jiangsu region and the Yangtze River Delta integration process provide Jinshiyuan with a natural market expansion advantage. Markets such as Anhui, Shandong, and Zhejiang have consumption habits similar to Jiangsu and close cultural ties, providing a foundation for rapid penetration; as consumption upgrades continue, the sub-high-end baijiu market space is constantly expanding, and Jinshiyuan’s moderately high-end product positioning aligns with market trends, offering strong competitiveness.

From the perspective of development confidence, Jinshiyuan has a quality base liquor reserve with a storage capacity of 200,000 tons and an annual designed production capacity of 10,000 tons, ensuring outstanding quality; its channel network covers the country, and its provincial cultivation experience can be replicated outside the province; the “Yuan Culture” brand core has unique recognition, making it easy to build emotional resonance. Meanwhile, the company continues to optimize its organizational mechanisms, increasing talent and resource investment to provide comprehensive support for nationalization.

A hundred billion is a starting point, and nationalization is a journey. Jinshiyuan is steadily breaking regional boundaries with a pragmatic strategy and firm determination, moving from “Jiangsu famous liquor” to “national famous liquor.” Although challenges lie ahead, the confidence rooted in the region, the courage to break through, and the determination of long-termism will undoubtedly support its continued progress on the path to nationalization.