Kweichow Moutai Posts First Profit and Revenue Drop Since 2001

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Shares in the Chinese liquor giant experienced a decline today after the company reported decreases in both net profit and revenue for 2025 compared to the previous year, marking the first such decline since its IPO in 2001. Despite this, the leading producer of baijiu announced a record-high payout to shareholders.

The company’s stock dropped 3.8 percent, closing at CNY1,407.24 (approximately USD206) per share.

Last year, the net profit attributable to shareholders fell by 4.5 percent from the year prior to CNY82.3 billion (around USD12 billion), and revenue declined by 1.2 percent to CNY168.8 billion (about USD24.7 billion), according to the firm based in Zunyi.

The reduction in revenue mainly stemmed from product mix adjustments within its soy sauce-aromatic liquor series. However, the company did not specify the reasons behind the decrease in net profit nor did it provide forecasts for future earnings.

Despite these challenges, the company announced an anticipated gross cash dividend of CNY27.993 (roughly USD4.10) per share for 2025, setting a new record.

Operating expenses increased by 8 percent year-over-year, reaching CNY14.8 billion (around USD2.1 billion), driven by higher sales volume and rising production costs. Selling expenses also surged by 28.6 percent to CNY7.2 billion, mainly due to increased advertising and marketing efforts.

Net cash flow significantly dropped by 33.4 percent to CNY61.5 billion (about USD9 billion), primarily because the company’s internal financial arm, Kweichow Moutai Group Finance, collected fewer deposits from sister companies and more cash was tied up in deposits at other banks, making it less readily available.

Prepayments from distributors, a form of advance sales, fell 16.5 percent to CNY8 billion (around USD1.1 billion). These advance payments traditionally serve as an indicator of market confidence in the company’s products and expected future revenue.

Meanwhile, liquor sales increased slightly by 0.73 percent to 58,500 tons last year compared to the previous year, while sales of other product series grew by 3.88 percent to 57,700 tons.