Kweichow Moutai's first-half performance growth rate is low

On August 31, Kweichow Moutai issued a semi-annual report. According to the report, in the first half of the year, the company produced a total of 35,000 tons of Maotai wine and a series of base wines; its operating income was 14.128 billion yuan, an increase of 6.51%; its operating profit was 10.4 billion yuan, an increase of 6.1% year-on-year; and net profit attributable to shareholders of listed companies was realized. The profit was 7.248 billion yuan, a year-on-year increase of 3.61%, which was the lowest since the company went public in 2001.

It is noteworthy that the advance receipts of Kweichow Moutai continued the downward trend in the first quarter. In the first half of the year, Kweichow Moutai’s advances were 835 million yuan, a year-on-year decrease of 83.60%. Analysts said that the precipitous drop in advance accounts shows that the willingness of dealers to make advance payments has decreased, which is a dangerous signal.

Despite the drop in advance payment, Maotai’s profitability remained strong. Kweichow Moutai's gross profit rate of alcoholic products for the first half of the year was as high as 93.4%, an increase of 1.39% year-on-year.

In the first half of the year, the growth rate of net profits of many liquor companies, including Wuliangye, Jiujiu, and Luzhou Laoji, both declined significantly. Brokerage analysts said that currently there is a clear oversupply of liquor in the market and it takes time to digest large quantities of inventory. With the advent of the Mid-Autumn National Day and other consumer peak seasons, product sales performance is expected to increase.