Price, Capacity, Stock Split: Moutai Responds to Hot Topics at Earnings Meeting

At the earnings conference of Kweichow Moutai on September 12, multiple investors raised questions on hot topics such as price declines, capacity release, channel management, and stock splits. The relevant responsible person of Kweichow Moutai responded accordingly. It was mentioned that during the industry cycle adjustment, the company would scientifically and precisely implement product distribution, proactively maintain the resilience of the channel ecosystem, and ensure overall market stability and healthy synergy within the channels. Regarding the future pace of capacity release, the company stated it would proceed scientifically and orderly.

The decline in the batch price of Moutai 1935 and its product planning were also issues of concern to many investors. In response, Wang Li replied that Moutai 1935 is a strategic product in the sauce-flavor series. Faced with market pressure from cyclical adjustments, the company will further align with consumer demand under the trend of rational consumption through innovative marketing models, expanding consumption scenarios, increasing market investment, and upgrading the product system.

Regarding the progress of technical renovation and capacity expansion, Moutai introduced that the "Moutai Liquor 14th Five-Year Plan Technical Renovation Project" plans to invest approximately 15.516 billion yuan. The project includes the construction of 68 liquor production workshops, 10 fermentation workshops, 69 storage warehouses, and related supporting facilities. Upon completion, it will add an actual annual production capacity of about 19,800 tons of Moutai liquor and a storage capacity of about 84,700 tons. For the future specific pace of capacity release, the company will fully consider factors such as ecological carrying capacity, artisan training, and market conditions to proceed scientifically and orderly.

Additionally, according to Wang Li, with the approach of the traditional Double Festival (Mid-Autumn Festival and National Day), terminal market sales in August showed recovery compared to June and July. Since the end of August, terminal sales have increased significantly month-on-month, and the market trend is expected to further improve.

Furthermore, in response to whether the company is considering a stock split, Wang Li stated that shareholders' opinions are not entirely unified at present—some are in favor, while others are opposed, but all from the perspective of Moutai's development. "Whether to split the stock or not, based on existing cases, has its pros and cons. Given the opportunity, we are willing to explore this topic with shareholders."