ZJLD's revenue dropped nearly 50% last year, as it became cash flow negative and slipped into the red in the second half of 2025 due to an anti-corruption crackdown on lavish government banquets where traditional baijiu spirits are served. The company's core product, Zhen Jiu, saw sales fall 72% year-on-year in the six-month period. Despite these challenges, ZJLD managed to maintain its gross margin last year at 58.5%, roughly unchanged from 58.6% in 2024. Despite this, the company is taking steps to find new customers in China's younger generation and sell down its growing inventory.