On August 21, at Kweichow Moutai's 2026 semi-annual results briefing, the company responded to market concerns such as “increase in operating income and decrease in net profit” in the semi-annual report and the year-on-year decline in second-quarter results. Chen Hua, chairman of Kweichow Moutai, said that at the end of 2025, the industry was deeply adjusted, consumer demand was weak, and products such as Kweichow Moutai and sauce-flavored wine all faced market challenges. In order to reverse the unfavorable market situation, after scientific research and analysis, the company began market-based reforms centered on consumers and driven by market demand in 2026. In the first half of 2026, the industry was still undergoing deep adjustments, but because the company initiated and implemented various market-based reform initiatives in an orderly manner, the overall market sales situation was stable, and the “basic market” of the product price system was stable, and sales of Kweichow Moutai and sauce-flavored wines showed a steady and slight increase in revenue, indicating that the reform and transformation achieved certain results and met our expectations. In this round of reform, in order to eliminate the structural contradictions in product categories, price systems, sales channels, etc. accumulated during the rapid growth process in the past, the Kweichow Moutai product structure returned to the “pyramid” system. The sauce wine series focused on “2+N”, and the prices of all products were adjusted “along with the market” to suit actual consumption. The unit price and profit of the product's comprehensive tonne of wine declined year-on-year, but this price system is more suited to market demand and is healthier and more benign for the company's future development. In the past ten years, the company's net interest rate range was 44.65%-51.49%, with an average value of 49.57%. The net interest rate for the first half of 2026 was 49.89%, which is at a reasonable level.
Zhitongcaijing · 2d ago
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On August 21, at Kweichow Moutai's 2026 semi-annual results briefing, the company responded to market concerns such as “increase in operating income and decrease in net profit” in the semi-annual report and the year-on-year decline in second-quarter results. Chen Hua, chairman of Kweichow Moutai, said that at the end of 2025, the industry was deeply adjusted, consumer demand was weak, and products such as Kweichow Moutai and sauce-flavored wine all faced market challenges. In order to reverse the unfavorable market situation, after scientific research and analysis, the company began market-based reforms centered on consumers and driven by market demand in 2026. In the first half of 2026, the industry was still undergoing deep adjustments, but because the company initiated and implemented various market-based reform initiatives in an orderly manner, the overall market sales situation was stable, and the “basic market” of the product price system was stable, and sales of Kweichow Moutai and sauce-flavored wines showed a steady and slight increase in revenue, indicating that the reform and transformation achieved certain results and met our expectations. In this round of reform, in order to eliminate the structural contradictions in product categories, price systems, sales channels, etc. accumulated during the rapid growth process in the past, the Kweichow Moutai product structure returned to the “pyramid” system. The sauce wine series focused on “2+N”, and the prices of all products were adjusted “along with the market” to suit actual consumption. The unit price and profit of the product's comprehensive tonne of wine declined year-on-year, but this price system is more suited to market demand and is healthier and more benign for the company's future development. In the past ten years, the company's net interest rate range was 44.65%-51.49%, with an average value of 49.57%. The net interest rate for the first half of 2026 was 49.89%, which is at a reasonable level.
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