At the 2026 semi-annual results conference for Kweichow Moutai Co.,Ltd. held on August 21, a shareholder inquiry drew attention to the company's series liquor segment. The investor pointed out that first-half revenue for this category declined 6.02% year-on-year, with net profit plunging 27.84%. Against the backdrop of the baijiu industry undergoing a "clearance and bottoming-out" phase, the shareholder asked how management views current terminal sell-through for series liquors and what specific volume-control and price-stabilization measures are planned for the second half to address price inversions, notably the significant gap between Moutai 1935's market price and its official guidance price.
In response, Kweichow Moutai Co.,Ltd. Director and Acting General Manager Wang Li stated that in 2026, the company has completely abandoned the growth inertia of "channel stuffing to boost sales," pivoting instead to a refined operational model centered on "inventory-driven allocation based on sell-through." During the first quarter, the company capitalized on the peak sales momentum of the Spring Festival and Lantern Festival holidays, achieving year-on-year growth in both series liquor sales volume and revenue. In the second quarter, as the industry entered its traditional off-season, the company proactively executed precise adjustments aligned with its market-oriented transformation goals. While short-term reported figures showed a decline compared to the prior year, terminal sell-through actually grew year-on-year, with channel inventory and inventory-to-sales ratios remaining within a healthy range.
As of now, channel partners for Moutai 1935 have executed nearly 80% of their contracted plans, and terminal sell-through remains robust. Moving forward, the company will judiciously deploy the remaining planned volume based on market conditions, adjust the market policies for Moutai 1935 accordingly, and increase market expenditure directed at end consumers. Additionally, the company will cancel sales incentive policies for channel partners who sell below contract prices, strengthen expense auditing, and rigorously prevent malpractices such as misappropriating funds. These efforts are aimed at continuously enhancing brand reputation and service quality, ensuring the long-term healthy development of the Moutai 1935 market.
Comments