Kweichow Moutai Co.,Ltd. reported an operating revenue of 172.054 billion yuan for 2025, a year-on-year decrease of 1.2%, and a net profit attributable to shareholders of 82.320 billion yuan, a year-on-year decline of 4.53%. This marks the company's first simultaneous decline in both revenue and profit since its listing.
In the first quarter of this year, the company achieved an operating revenue of 54.703 billion yuan, a year-on-year increase of 6.34%, and a net profit attributable to shareholders of 27.243 billion yuan, a year-on-year growth of 1.47%.
The year 2026 is designated as the inaugural year for the company's market-oriented reform. The current progress of this reform and the setting of the annual operational tone have become the core issues of greatest concern to investors.
On May 11, Kweichow Moutai held its 2025 Annual and 2026 First Quarter Earnings Briefing. Among the executives attending were Acting General Manager Wang Li, who had returned from training, and the newly appointed CFO, Yu Siming.
Prior to the meeting, Wang Li had collectively responded to nine pre-submitted investor questions. During the meeting, approximately 85 questions were received, with the company providing targeted responses to about 30. The focus was on the performance decline and the direction of the market-oriented reform.
Public data shows that in the fourth quarter of 2025, Kweichow Moutai achieved an operating revenue of 41.15 billion yuan, a year-on-year decrease of 19.35%, and a net profit attributable to shareholders of 17.693 billion yuan, a year-on-year decline of 30.34%. It is well known that the fourth quarter is traditionally the primary source of annual performance for baijiu companies. In 2025, Moutai experienced its first simultaneous quarterly decline in both revenue and net profit, with significant drops, drawing widespread investor attention.
Management did not shy away from this at the earnings briefing. Wang Li stated that while facing challenges such as a deep industry adjustment, weak consumer demand, and reduced consumption scenarios, the company fully respected market principles, adhered to a "non-indicator-centric" approach, proactively scaled back to maintain channel resilience and market stability. Consequently, both revenue and profit saw substantial declines in the fourth quarter of last year.
In 2026, the inaugural year of the company's market-oriented reform, a series of measures have been intensively implemented. These range from launching the Feitian 53%vol 500ml Kweichow Moutai on the "i Moutai" platform, to coordinating national market distribution plans through a "self-sales + distribution + consignment" sales model, and to fully implementing a market-oriented retail pricing mechanism for the self-operated system. According to relevant securities firm research reports, following the market-oriented reform, sales of standard Feitian have continued to improve, with overall sell-through achieving double-digit growth.
Some investors noted that, based on actual performance, the company's first-quarter revenue was approximately 53.909 billion yuan, a year-on-year increase of 6.54%, and net profit attributable to shareholders was about 27.243 billion yuan, a year-on-year increase of 1.47%. The first-quarter performance was not as strong as the sell-through data suggested, especially with profit growth significantly lagging behind revenue growth.
Wang Li responded that in the first quarter, the company steadily advanced market-oriented reforms around the product system, pricing mechanism, and operational model. Kweichow Moutai liquor returned to a "pyramid" product structure, with product allocation focusing on Feitian 53%vol 500ml Kweichow Moutai based on market demand. Considering the capacity of social channels, other products like premium and aged varieties were primarily allocated through self-operated channels. Due to product structure adjustments and a pricing system that "follows the market," revenue per ton of liquor returned to a level suitable for market demand. Simultaneously, the company continued to increase investment in brand building and marketing expenses, continuously widening the brand moat and expanding consumer reach. Therefore, while revenue and profit per ton of liquor decreased, this is healthier and more sustainable for future development. The next step involves continued cost control, investment efficiency, and precise resource allocation.
It is worth noting that in its 2024 annual report, Kweichow Moutai lowered its full-year 2025 revenue growth target to 9%. However, in the 2025 annual report, the company did not set an operational target for the following year as per previous practice.
Regarding this adjustment and inquiries about the overall operational tone for 2026, Wang Li reviewed Moutai's past market-oriented journey. She mentioned that unlike previous reforms centered on channels, this round focuses on being "consumer-centric," with the key being the supply-side's ability to genuinely adapt to the "C-end." Specifically, this involves comprehensive transformation and adaptation in the product system, channel ecosystem, business model, and supply chain organization. This is an unprecedented, in-depth exploration driven by market demand for both the company and the industry. Currently, the overall progress and implementation effects of the company's market-oriented reform and transformation are in line with expectations.
She pointed out that in the past, the company formulated quantitative operational targets primarily based on the certainty of the supply side. However, during the market-oriented reform process, market changes and challenges carry a degree of uncertainty, requiring adaptation to market laws rather than being determined solely by the supply side.
Annual report data shows that in 2025, Moutai's direct sales channels achieved annual revenue of 84.543 billion yuan, a year-on-year increase of 12.96%, with the revenue share exceeding 50% for the first time, surpassing the traditional wholesale and agency channels. In the first quarter of this year, the revenue share of direct sales channels further increased to 54%.
Correspondingly, the revenue share of the wholesale and agency segment has been continuously decreasing. After the launch of Feitian Moutai on "i Moutai" at the beginning of the year, speculation arose in the market about whether Moutai was moving away from distributors. At this earnings briefing, Wang Li provided a detailed response to investor questions about potentially weakening the role of distributors.
In Wang Li's view, the structural changes occurring on the consumption side during this reform pose significant challenges to the traditional "linear" manufacturer-distributor relationship and the channel-centric product operation model, necessitating a profound transformation centered on consumers. The "manufacturer" will gradually evolve from an "upstream" role focused on product supply and policy support to a coordinating role as a "brand operator," driving the construction and synergistic development of the channel ecosystem through product, data, and user operations, thereby continuously improving supply efficiency to adapt to and meet rapid changes on the consumption side. During the reform process, the "manufacturer" needs to enhance brand operation capabilities and coordinate the construction of a synergistic channel ecosystem, while the "distributor" needs to improve capabilities in consumer reach, conversion, and service. The business models linking manufacturers and distributors will also become more diverse. "Distributors," representing just one business model, need to accelerate their adaptation to the new situation and transform into "channel partners."
Furthermore, within the channel ecosystem, online and offline channels are no longer in an adversarial, zero-sum relationship. Integration, synergy, and coexistence are the direction of development. Specifically, online channels are responsible for efficiency and user reach, while offline channels handle transaction conversion and service experience, ultimately creating an integrated, multi-level "interchange" channel structure.
"Moutai and various channel partners have never been in a competitive relationship of one rising as the other falls, nor a trade-off relationship of mutual substitution. Instead, it is a synergistic relationship where each has its advantages, fostering cooperation and mutual benefit—a closely linked community of shared future and interests," Wang Li stated as the answer. She indicated that direct sales channels act as the market's "balancer and stabilizer," maintaining and balancing market order, preventing excessive speculation, and ensuring market stability. Social channels, on the other hand, serve as the market's "amplifier and converter," delivering brand services and consumption experiences to households.
In simple terms, direct sales channels stabilize the overall market, while social channels focus on penetration. The two collaborate and coordinate to build a comprehensive "interchange" system for market channels. Regardless of the channel type, their significance and role lie in their ability to effectively embrace the market. Ultimately, all goals return to being consumer-centric and market demand-driven.
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