NEWS
KWEICHOW MOUTAI POSTED SLOWEST GROWTH IN A DECADE AT 9.16% IN H1 2025
By Tony Zhu
18-8-2025
Source: Kweichow Moutai
China’s leading baijiu maker Kweichow Moutai reported a 9.16 percent rise in profit to RMB91.09 billion (USD12.68 billion) in first half of 2025, the weakest growth for the company in a decade.
During the period, wholesale price of the company’s baijiu brand kept falling due to sluggish decmand.
The company’s best known label Feitian Moutai’s wholesale price has fallen sharply, slipping below RMB 2,000.
Feitian Moutai’s official retail price is RMB1,499 yuan per bottle, but wholesale prices have soared as high as RMB 3,400 yuan before it started to fall last year.
Adding to the pressure on falling wholesale prices, the Chinese government in May expanded its ban on alcohol, cigarettes, and lavish dishes at official functions.
This latest round of austerity push looks set to further erode Moutais’s demand at government banquets and corporate events.
In the first half of 2025, Kweichow Moutai’s sales expenses surged 24.56 percent to RMB3.26 billion, driven by heavier advertising and promotional expenses.
Receivables doubled to RMB38 million, mainly due to unpaid bills at a majority-owned subsidiary.
(the writer can be contacted at: info@thewinechronicle.com)
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