Kweichow Moutai (600519) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached RMB 89.39 billion, up 9.10% year-over-year; net profit attributable to shareholders was RMB 45.40 billion, up 8.89% year-over-year.

• Core business remains the production and sales of Moutai and series liquors, with a stable domestic and international market presence across 64 countries and regions.

• Production of base liquor for Moutai and series liquors increased, with quality and output both improving.

• The company continued to deepen reforms, enhance digitalization, and promote innovation in production and management.

Financial highlights

• Operating income: RMB 89.39 billion, up 9.10% year-over-year; total profit: RMB 62.78 billion, up 9.03%.

• Net profit attributable to shareholders: RMB 45.40 billion, up 8.89% year-over-year.

• Basic and diluted EPS: RMB 36.18, up 9.01% year-over-year.

• Operating cash flow: RMB 13.12 billion, down 64.18% year-over-year, mainly due to reduced deposits and increased statutory reserves.

• Gross margin remained high, with main cost increases driven by higher sales volume and production costs.

Outlook and guidance

• The company expects continued stable growth, supported by strong brand, product quality, and expanding sales channels.

• The liquor industry faces both macroeconomic and structural adjustment pressures, but positive factors outweigh negatives for the sector.