# Jiangsu Yanghe Brewery Joint-Stock (002304.SHE)

Canonical: https://gigainvestors.com/s/002304.SHE

Analysis as of: 2026-10-16T07:36:17.109Z. Financial observations: FY2006–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 37.24 per share; close as of 2026-10-15.

Estimated value: low CNY 45.02 per share, central CNY 49.54 per share, high CNY 55.55 per share. Buy at or below the central value CNY 49.54 per share. Valuation as of 2026-10-16T07:36:17.109Z; scenarios are not confidence intervals.

Expected annual return: 13.6% at the stated quote. About 13.6% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 4 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.45×

- FY2017: 0.44×

- FY2018: 0.45×

- FY2019: 0.42×

- FY2020: 0.47×

- FY2021: 0.39×

- FY2022: 0.42×

- FY2023: 0.40×

- FY2024: 0.32×

- FY2025: 0.17×

### moat: pass

- ROIC, median of available years: 48.5%

- ROIC, second-lowest year: 28.8%

- Typical minus recent gross margin: 0.9 pp

- Typical gross margin (annual median): 72.5%

- Recent gross margin (lower of latest and 3-year median): 71.6%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.9%

- ROIC including acquisitions, ten-year median: 47.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 40.8%

- FY2017: 46.8%

- FY2018: 66.6%

- FY2019: 52.9%

- FY2020: 45.0%

- FY2021: 73.2%

- FY2022: 63.3%

- FY2023: 50.1%

- FY2024: 28.8%

- FY2025: 8.1%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 36B

- Net income, five-year total: CNY 36B

- Return on incremental invested capital: -31.8%

- Working capital / revenue, annual change: 2.5 pp

- Working capital / revenue, change between three-year averages: 16.7 pp

- Working capital / revenue, final three-year average: 75.5%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 1.02×

- FY2023: 1.00×

- FY2024: 0.88×

- FY2025: 1.02×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 46.8% vs 28.8%

- Per-share earnings: 3.87 to 4.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.0%

- Ordinary dilution, 5-year annual growth: 0.1%

- Market cap gain: CNY -15B

- Cumulative retained earnings: CNY 21B

- Diluted shares, 10-year annual growth: 0.0%

- Diluted shares, 5-year annual growth: 0.1%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 1.7%

- Per-share value change: CNY 0.56

- Per-share value, starting three-year median: CNY 3.87

- Per-share value, ending three-year median: CNY 4.43

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.3%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 272M

- Cumulative net income, 10 years: CNY 71B

- ROIC, first three-year median: 46.8%

- ROIC, last three-year median: 28.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 3.87

- FY2017: CNY 4.40

- FY2018: CNY 5.39

- FY2019: CNY 4.90

- FY2020: CNY 4.99

- FY2021: CNY 5.01

- FY2022: CNY 6.23

- FY2023: CNY 6.65

- FY2024: CNY 4.43

- FY2025: CNY 1.46

### accounting: fail

- earnings not backed by cash

- Sloan accruals: 5.1%

- Receivables to sales index (DSRI): 0.01×

- Restructuring years, last five: 0

- Earnings backed by cash: No

- Operating cash / earnings: -0.35×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.04×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.1%

- FY2017: -0.6%

- FY2018: -1.9%

- FY2019: 1.1%

- FY2020: 6.5%

- FY2021: -11.5%

- FY2022: 8.4%

- FY2023: 5.6%

- FY2024: 3.0%

- FY2025: 5.1%

## Holders

## Price story

Down 80% since Oct 2021 · sales -33.5%

Story as of 2026-10-16T10:00:07.146Z; price observation 2026-10-15.

Price needs cash profits to shrink 4.1% a year for ten years

### Sales · FY2024–2025

sales -33.5%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 17B 

- FY2017: CNY 20B 

- FY2018: CNY 24B 

- FY2019: CNY 23B 

- FY2020: CNY 21B 

- FY2021: CNY 25B 

- FY2022: CNY 30B 

- FY2023: CNY 33B 

- FY2024: CNY 29B 

- FY2025: CNY 19B 

### Gross margin · FY2025

gross margin 71.6%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 63.7% 

- FY2017: 66.2% 

- FY2018: 73.5% 

- FY2019: 71.1% 

- FY2020: 72.0% 

- FY2021: 75.1% 

- FY2022: 74.5% 

- FY2023: 75.1% 

- FY2024: 72.9% 

- FY2025: 71.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in beverages wineries & distilleries; annual sales are CNY 19.2 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2025: revenue 19211057613.05; grossProfit 13755534676.62; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002304.SHE: Jiangsu Yanghe Distillery Co., Ltd. engages in the production and sale of Chinese liquor. It offers liquor and wine, including dream blue, sujiu, sky blue, zhenbaofang, ocean blue, yanghe daqu, shuanggou daqu, guijiu, and sidus wine under the Yanghe, Shuang Gou, Noble Wine, and Pear Blossom Village brands. The company was formerly known as Jiangsu Yanghe Brewery Joint-Stock Co., Ltd. and changed its name to Jiangsu Yanghe Distillery Co., Ltd. in June 2024. Jiangsu Yanghe Distillery Co., Ltd. was founded in 2002 and is headquartered in Suqian, China.

### Why customers stay

Margins ranged from 71.6% to 75.1% during 2023–25; it earns 48.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2023: grossProfit / revenue = 75.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2024: grossProfit / revenue = 72.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2025: grossProfit / revenue = 71.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); 10-year return on capital observations [[2016,0.4076562162505482],[2017,0.46840354679414364],[2018,0.6658462231761928],[2019,0.5287582681057589],[2020,0.44972730306882264],[2021,0.7317174151013364],[2022,0.6334738372723292],[2023,0.5007937700024067],[2024,0.2876066043802849],[2025,0.08055980340574943]]; median 0.48459865839827515. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 74% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); Gross margin observations: [[2021,0.7512333049495747],[2022,0.7446440605541371],[2023,0.7508390468739048]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2016: growth capex 0; upkeep 480211104; owner earnings 6072313087. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2017: growth capex 0; upkeep 325345429; owner earnings 6991617959. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2018: growth capex 0; upkeep 471045188; owner earnings 8401406812. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2019: growth capex 0; upkeep 317159366.3; owner earnings 7840731633.7. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2020: growth capex 0; upkeep 353104399; owner earnings 7911847601. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2021: growth capex 0; upkeep 423524255; owner earnings 7831603780.162. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2022: growth capex 0; upkeep 539153153; owner earnings 9575679786.814. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2023: growth capex 413239485; upkeep 698390000; owner earnings 10006188062.824. Growth capex / owner earnings = 0.04129839279508538.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2024: growth capex 0; upkeep 1454019811; owner earnings 5843873191.108. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); FY2025: growth capex 0; upkeep 678481688.46; owner earnings 2243015408.0839996. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); Dividend observations: [[2016,2713462088],[2017,3164678727],[2018,3842822673],[2019,4822361600],[2020,4502746983],[2021,4491980070],[2022,4519335222],[2023,5634104576],[2024,7020034044],[2025,7001938098.4]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 65.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 002304.SHE SharesStats.PercentInsiders = 65.83200000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 4.1% yearly over ten years; actual decline was 8.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:17.109Z); Ten-year compound average after fade. Initial solved rate -0.07085718524735912. Price 37.24; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.5731269527062888 → FY2025 1.488932014984851. Closing-price date 2026-10-15.

## Monthly share-price history (CNY per share)

- 2016-10: CNY 69.65 per share

- 2016-11: CNY 70.50 per share

- 2016-12: CNY 70.60 per share

- 2017-01: CNY 70.22 per share

- 2017-02: CNY 81.04 per share

- 2017-03: CNY 87.38 per share

- 2017-04: CNY 80.00 per share

- 2017-05: CNY 87.20 per share

- 2017-06: CNY 86.81 per share

- 2017-07: CNY 89.40 per share

- 2017-08: CNY 89.35 per share

- 2017-09: CNY 101.50 per share

- 2017-10: CNY 110.24 per share

- 2017-11: CNY 103.97 per share

- 2017-12: CNY 115.00 per share

- 2018-01: CNY 129.95 per share

- 2018-02: CNY 117.99 per share

- 2018-03: CNY 107.99 per share

- 2018-04: CNY 112.16 per share

- 2018-05: CNY 143.68 per share

- 2018-06: CNY 131.60 per share

- 2018-07: CNY 128.35 per share

- 2018-08: CNY 115.33 per share

- 2018-09: CNY 128.00 per share

- 2018-10: CNY 88.39 per share

- 2018-11: CNY 100.18 per share

- 2018-12: CNY 94.72 per share

- 2019-01: CNY 94.50 per share

- 2019-02: CNY 111.05 per share

- 2019-03: CNY 130.42 per share

- 2019-04: CNY 117.20 per share

- 2019-05: CNY 114.36 per share

- 2019-06: CNY 121.56 per share

- 2019-07: CNY 116.51 per share

- 2019-08: CNY 111.98 per share

- 2019-09: CNY 104.00 per share

- 2019-10: CNY 100.79 per share

- 2019-11: CNY 98.19 per share

- 2019-12: CNY 110.50 per share

- 2020-01: CNY 107.32 per share

- 2020-02: CNY 97.38 per share

- 2020-03: CNY 83.80 per share

- 2020-04: CNY 98.45 per share

- 2020-05: CNY 105.26 per share

- 2020-06: CNY 105.14 per share

- 2020-07: CNY 135.11 per share

- 2020-08: CNY 141.68 per share

- 2020-09: CNY 124.58 per share

- 2020-10: CNY 168.00 per share

- 2020-11: CNY 178.00 per share

- 2020-12: CNY 235.99 per share

- 2021-01: CNY 204.01 per share

- 2021-02: CNY 189.00 per share

- 2021-03: CNY 164.70 per share

- 2021-04: CNY 192.50 per share

- 2021-05: CNY 217.80 per share

- 2021-06: CNY 207.20 per share

- 2021-07: CNY 162.99 per share

- 2021-08: CNY 167.54 per share

- 2021-09: CNY 166.08 per share

- 2021-10: CNY 186.18 per share

- 2021-11: CNY 174.30 per share

- 2021-12: CNY 164.73 per share

- 2022-01: CNY 156.35 per share

- 2022-02: CNY 164.70 per share

- 2022-03: CNY 135.63 per share

- 2022-04: CNY 159.06 per share

- 2022-05: CNY 165.00 per share

- 2022-06: CNY 183.15 per share

- 2022-07: CNY 165.20 per share

- 2022-08: CNY 164.46 per share

- 2022-09: CNY 158.15 per share

- 2022-10: CNY 130.65 per share

- 2022-11: CNY 141.38 per share

- 2022-12: CNY 160.50 per share

- 2023-01: CNY 175.60 per share

- 2023-02: CNY 170.01 per share

- 2023-03: CNY 165.46 per share

- 2023-04: CNY 149.70 per share

- 2023-05: CNY 134.24 per share

- 2023-06: CNY 131.35 per share

- 2023-07: CNY 146.64 per share

- 2023-08: CNY 134.20 per share

- 2023-09: CNY 129.40 per share

- 2023-10: CNY 122.10 per share

- 2023-11: CNY 116.63 per share

- 2023-12: CNY 109.90 per share

- 2024-01: CNY 91.31 per share

- 2024-02: CNY 101.00 per share

- 2024-03: CNY 97.65 per share

- 2024-04: CNY 95.07 per share

- 2024-05: CNY 93.33 per share

- 2024-06: CNY 80.74 per share

- 2024-07: CNY 81.80 per share

- 2024-08: CNY 81.88 per share

- 2024-09: CNY 99.19 per share

- 2024-10: CNY 80.39 per share

- 2024-11: CNY 85.75 per share

- 2024-12: CNY 83.53 per share

- 2025-01: CNY 78.40 per share

- 2025-02: CNY 77.36 per share

- 2025-03: CNY 76.25 per share

- 2025-04: CNY 68.60 per share

- 2025-05: CNY 65.70 per share

- 2025-06: CNY 64.55 per share

- 2025-07: CNY 67.46 per share

- 2025-08: CNY 73.91 per share

- 2025-09: CNY 67.94 per share

- 2025-10: CNY 70.80 per share

- 2025-11: CNY 66.20 per share

- 2025-12: CNY 60.74 per share

- 2026-01: CNY 55.32 per share

- 2026-02: CNY 53.20 per share

- 2026-03: CNY 50.74 per share

- 2026-04: CNY 49.23 per share

- 2026-05: CNY 45.39 per share

- 2026-06: CNY 38.15 per share

- 2026-07: CNY 42.90 per share

- 2026-08: CNY 38.64 per share

- 2026-09: CNY 37.25 per share

- 2026-10: CNY 37.29 per share

## Annual estimated value (CNY per share)

- FY2016: low CNY 43.11 per share, central CNY 58.11 per share, high CNY 66.84 per share

- FY2017: low CNY 69.80 per share, central CNY 95.53 per share, high CNY 110.51 per share

- FY2018: low CNY 89.78 per share, central CNY 122.27 per share, high CNY 141.19 per share

- FY2019: low CNY 87.02 per share, central CNY 118.11 per share, high CNY 136.21 per share

- FY2020: low CNY 81.32 per share, central CNY 110.12 per share, high CNY 126.89 per share

- FY2021: low CNY 95.87 per share, central CNY 120.86 per share, high CNY 137.93 per share

- FY2022: low CNY 106.31 per share, central CNY 133.42 per share, high CNY 152.55 per share

- FY2023: low CNY 121.05 per share, central CNY 165.58 per share, high CNY 190.95 per share

- FY2024: low CNY 97.25 per share, central CNY 124.02 per share, high CNY 142.14 per share

- FY2025: low CNY 55.49 per share, central CNY 61.30 per share, high CNY 69.03 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.