Delisting Risk Analysis Report of Shanghai Guijiu

Based on the collected information, I provide you with a comprehensive analysis report on the delisting risk of Shanghai Guijiu.

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Shanghai Guijiu Co., Ltd. (stock abbreviation: *ST Yanshi, stock code: 600696.SH) is an enterprise that has been in the capital market for more than 30 years. Its predecessor was Haosheng Co., Ltd., which was listed in 1993, and it has undergone multiple business transformations. It officially entered the liquor track and changed its name to “Shanghai Guijiu” in 2019, but now it is facing the fate of mandatory delisting[1].

According to relevant regulations of the Shanghai Stock Exchange, if the lower of the annual audited total profit, net profit, or net profit after deducting non-recurring gains and losses of a listed company is negative and the operating revenue is less than RMB 300 million, the company’s stock will be delisted. Shanghai Guijiu has clearly triggered this financial delisting threshold[2]:

Indicator	Q1-Q3 2025 Data	2024 Full-Year Data
Operating Revenue	RMB 34.7621 million	RMB 285 million (down 82.54% year-on-year)
Net Profit	-RMB 111.8870 million	-RMB 217 million
Net Profit After Deducting Non-Recurring Gains and Losses	Approximately -RMB 41.34 million (H1)	Sustained Loss

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Shanghai Guijiu’s predicament is not a simple operational failure, but stems from the illegal fundraising case of Haiyin Wealth, an affiliated enterprise controlled by its actual controller Han Xiao.

[1][3]

Time	Event
December 2023	Haiyin Wealth’s capital chain broke due to an illegal fundraising scandal
April 2024	The Shanghai Stock Exchange found that Shanghai Guijiu’s annual reports from 2017 to 2020 contained false records, and publicly condemned the company and actual controller Han Xiao and others
September 2024	Fengxian Branch of Shanghai Municipal Public Security Bureau announced that it has filed a case for investigation into Haiyin Wealth’s suspected illegal fundraising, and Han Xiao has been taken criminal compulsory measures
April 23, 2025	The company was put under delisting risk warning, and its stock abbreviation was changed to “*ST Yanshi”
October 2025	Shanghai Guijiu lost the final judgment in the trademark dispute over “Guijiu” with Guizhou Guijiu, and is prohibited from using the “Guijiu” trademark

1. Equity Freeze:
   217 million shares held by Han Xiao (accounting for 64.80% of the total share capital) have been judicially frozen
2. Collapse of Dealer System:
   The number of dealers plummeted from 4,465 in 2023 to 772 at the end of 2024[3]
3. Liquidity Crisis:
   As of the end of September 2025, the monetary capital is only RMB 13.1397 million, which cannot cover the short-term borrowings of RMB 252 million
4. Brand Trust Crisis:
   The loss of the trademark dispute with Guizhou Guijiu has brought legal compliance issues to the company’s name

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Facing the delisting crisis, Shanghai Guijiu’s management has proposed a series of self-rescue measures, but their effectiveness is in doubt:

• Measures:
  Launched the “Inventory Discount Exclusive Sales Plan” to clear slow-moving non-core brand SKUs and short-dated products that have not sold well in 24 months at a discount
• Results:
  As of the end of September 2025, inventory was RMB 476 million, a decrease of only 9.51% from the beginning of the period, still accounting for 24.31% of total assets
• Evaluation:
  The effect is limited, and the funds recovered from inventory clearance need to be used to repay debts first

• Measures:
  Launched products such as “Corporate Reception Liquor”, “Channel Custom Gift Box”, and “Exclusive Custom Liquor for Shareholders”
• Evaluation:
  Weak brand strength makes it difficult to gain a foothold in the market environment with reduced government consumption

• Measures:
  Focused on platforms such as Douyin and Pinduoduo to build a “Daily Live Stream + Special Session” system
• Results:
  The Douyin account has only over 4,200 followers, and the contribution of online channels is negligible
• Evaluation:
  With damaged brand reputation, live e-commerce is difficult to form effective growth

• Measures:
  The company stated that it is looking for suitable strategic investors
• Progress:
  No substantive progress has been made so far
• Evaluation:
  With the actual controller’s case unresolved and clear delisting risk, strategic investors have extremely low willingness to intervene

• Measures:
  Put the sale of base liquor on the agenda
• Market Environment:
  The current sauce-flavored liquor market continues to slump, judicial auctions of similar base liquor have failed to sell, and the rental price of cellars has halved from the 2021 peak
• Evaluation:
  The path to monetization has become even more difficult

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The “2025 Mid-Year Research Report on China’s Liquor Market” jointly released by the China Alcoholic Drinks Association and KPMG pointed out that the liquor industry is facing a situation of “three overlapping periods”[1]:

• Policy Adjustment Period
• Consumption Structure Transformation and Differentiation Period
• In-Depth Adjustment Period of Stock Competition

The industry as a whole is under pressure of falling volume and prices, and high inventory:

• The average inventory turnover days are as high as 900 days, an increase of 10% year-on-year
• Inventory volume increased by 25% year-on-year
• Price inversion has affected 60% of enterprises

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At the critical moment of self-rescue, the company’s executives have resigned one after another:

Personnel	Position	Situation
Chen Qi	Vice Chairman (Acting Chairman)	Has submitted a resignation application
Sun Wen	Deputy General Manager	Has left office
Liu Zhitao	Deputy General Manager	Has left office

The management vacuum has further weakened the company’s response capabilities.

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1. Insufficient Time Window:
   With less than four months left until the end of the year, the revenue gap is huge (needing to grow from RMB 28 million to RMB 300 million, which is extremely difficult)
2. Capital Chain Breakage:
   Significant short-term debt repayment pressure, unable to carry out effective market investment
3. Collapse of Channel System:
   Large-scale loss of dealers, difficult to recover
4. Loss of Brand Trust:
   Actual controller’s case + trademark dispute loss + financial fraud record
5. Downward Industry Cycle:
   The liquor industry is under overall pressure, with no incremental dividends

Insiders generally believe that against the background of the liquor industry’s accelerated concentration to leading enterprises, coupled with the chain collapse caused by the actual controller’s illegal and criminal acts, Shanghai Guijiu’s financial crisis is difficult to resolve[3].

Once known as the “Unkillable Bird of A-shares”, this enterprise is inevitably moving towards the end of mandatory delisting after more than 30 years in the capital market.

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1. Extremely High Delisting Risk:
   Has clearly triggered the financial delisting threshold
2. Liquidity Risk:
   Severe shortage of monetary capital, huge short-term debt pressure
3. Legal Risk:
   The actual controller’s case is still in judicial process, which may involve more uncertainties
4. Corporate Governance Risk:
   Management vacuum, unsound governance structure

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[1] Time Weekly - “Delisting Threshold Approaching, Multiple Executives Resign, Shanghai Guijiu with H1 Revenue of RMB 28 Million Launches ‘Shell Protection’ Battle” (https://www.time-weekly.com/post/323885)

[2] Nanfang Plus - “2025 Net Profit Expected to be Negative and Revenue Less Than RMB 300 Million, Shanghai Guijiu May Be Mandatorily Delisted” (https://www.nfnews.com/content/X3RvneQD3P.html)

[3] Eastmoney Caifuhao - “The Myth of the ‘Unkillable Bird’ Will End, Shanghai Guijiu Enters Delisting Countdown” (https://caifuhao.eastmoney.com/news/20260114112604958434970)