On May 11th, Kweichow Moutai Co.,Ltd. held its 2025 annual and Q1 2026 performance briefing. During the session, an investor raised a question: Given that Wuliangye Yibin Co.,Ltd. made significant adjustments to its 2025 financial statements, as a peer company, does Moutai also face issues with revenue and profit recognition? Is there a risk of major adjustments to past financial statements in the future? If not, how does the company ensure the authenticity and credibility of its reported performance?
In response, Yu Siming, a member of the Party Committee, CFO, and acting Board Secretary of Kweichow Moutai Co.,Ltd., stated that the company strictly adheres to the requirements of the Ministry of Finance's Accounting Standards for Business Enterprises No. 14—Revenue. Revenue is recognized when the customer obtains control of the relevant goods. Specifically, for direct sales channels (including the i-Moutai platform), revenue is recognized upon customer confirmation of receipt. For the social distribution channel, revenue is recognized upon the distributor's signed acceptance of the goods.
To navigate the cyclical adjustments in the baijiu industry and alleviate financial pressure on distributors, the company's controlling subsidiary, Moutai Finance Company, provides buyer's credit to certain qualified distributors for purchasing the company's products. In 2025, the total amount of buyer's credit extended by the finance company was 4.15 billion yuan, accounting for 2.46% of the company's operating revenue. Within this, the product pledge model accounted for 328 million yuan, or 0.19% of operating revenue.
Upholding the principles of substance over form and prudence, the company only recognizes revenue at the consolidated level after the distributor repays the loan to the finance company and completes the procedures to release the product pledge, thereby obtaining full control of the goods. The company strictly follows the Accounting Standards for Business Enterprises in its accounting recognition, measurement, and reporting practices. The company's financial accounting reports truthfully, accurately, and completely reflect its financial position, operating results, cash flows, and other relevant information. The company's annual financial reports have consistently been audited by financial auditing institutions, which have issued standard unqualified audit opinions.
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