Kweichow Moutai First-Half Revenue Up 1.3% to RMB92.28 Billion, Net Profit Falls 1.95%

Kweichow Moutai held its 2026 semi-annual results briefing on August 21. Wang Li, a company director acting in the capacity of general manager, said prices are determined by the market and price adjustments are influenced by changes in market supply and demand. Since the start of 2026, Moutai has conducted five price adjustments under the principles of "following market trends, maintaining relative stability, matching supply with demand, and balancing volume and price." The company has established a demand-driven pricing framework covering both the consumption and supply sides, along with a dynamic price adjustment mechanism, forming a comprehensive per-tonne selling price for all Moutai products oriented toward real consumer demand and bringing Moutai's selling prices in line with actual market transaction prices.

Chairman Chen Hua said that since 2026 the company has established and refined the dynamic price adjustment mechanism, with retail prices now aligned with prevailing market retail levels. Moutai's core products are currently open for sale to the public on the "i Moutai" platform, and the full product range is available at 43 company-owned stores nationwide, with a pricing system and mechanism tailored to genuine consumption and designed to prevent speculative intermediation now in place.

At the briefing, the company disclosed first-half 2026 financial data: total operating revenue of RMB92.278 billion, up 1.3% year on year; net profit attributable to shareholders of RMB44.517 billion, down 1.95% year on year. In the second quarter alone, operating revenue fell 5.23% year on year and net profit attributable to shareholders declined 6.9%. Addressing the "revenue growth without profit growth" in the first half, the company said that following the deep industry adjustment and weak consumer demand at the end of 2025, it launched a consumer-centric, market-demand-driven reform in 2026. Overall market sales conditions are currently stable, the product pricing system is steady, sales volumes of both Moutai liquor and sauce-flavour series liquor have grown, and operating revenue has risen modestly. The company believes the reform and transformation have achieved initial results, and the interim performance fluctuation is a normal phenomenon.

Responding to the decline in base liquor production in the first half, the company said that Moutai base liquor output reached 41,000 tonnes in the first half of 2026, down approximately 2,700 tonnes from 43,700 tonnes in the same period of 2025. The change reflects a temporary statistical difference arising from different production scheduling progress. Moutai liquor production follows the traditional brewing rhythm of "following nature and the seasons," and the timing of annual raw material input is not identical each year; cumulative full-year output will not be affected by this difference.

For the series liquor segment, Kweichow Moutai Sauce-Flavour Liquor Sales Co. recorded revenue of RMB12.661 billion in the first half of 2026, down 7.41% year on year, with net profit of RMB2.711 billion, down 27.84%. The company said that in 2026 it abandoned the growth inertia of "channel stuffing for volume" and switched to a "sell-through-driven allocation" model. In the first quarter, series liquor sales volume and revenue grew year on year. In the second quarter, entering the industry's off-season, the company proactively exercised precise adjustments; terminal sell-through grew year on year, and channel inventory and the inventory-to-sales ratio remained within a healthy range. To date, contract execution for Moutai 1935 liquor channel distributors has exceeded 80%, with sound terminal sell-through. The company will use remaining planned volume judiciously based on market conditions, adjust market policies, increase market spending directed at end consumers, cancel sales incentive policies for channel distributors who sell below contract prices, and strengthen expense review.

On shareholder returns and market capitalisation management, Chairman Chen Hua said the company is strictly implementing cash dividends in accordance with the "2024-2026 Cash Dividend Return Plan," with the interim cash dividend plan to be reviewed and disclosed in the fourth quarter as customary. The company is currently systematically formulating a comprehensive market-capitalisation management plan for the next three years (2027-2029), which will include continuously enhancing value-creation capability, strictly adhering to information disclosure principles, using market-capitalisation management tools in a lawful and compliant manner, and maintaining regular communication with investors.