Key Points
- Adjusted Growth Target: Kweichow Moutai (贵州茅台) is shifting to “high-quality development” and set a lower revenue growth target of around 9% for 2025, the first single-digit target since 2017.
- Strong Recent Performance: Full Year 2024 revenue grew +15.66% to ¥174.144 billion RMB, meeting its target, while Q1 2025 revenue grew +10.54% to ¥50.601 billion RMB.
- Maotai 1935 & Series Liquors: The company is focusing on actual consumption and velocity for Maotai 1935 (茅台1935) and saw series liquors revenue grow +18.3% in Q1 2025, outpacing flagship Moutai.
- Channel Focus: Direct sales, including the iMaotai (i茅台) platform (which has generated over ¥60 billion RMB in sales since launch), remain crucial, adapting sales mix based on demand and strategy.
- International Expansion: Overseas markets contributed ~3% of total revenue (£5.19 billion RMB) in 2024, with a strategy of tiered expansion across 64 countries and regions.
China’s premium liquor giant, Kweichow Moutai (Guizhou Maotai 贵州茅台), just wrapped its annual earnings call, dropping insights on everything from celebrity endorsements to its international playbook.
Let’s dive into what the leadership team shared about product competition, channel shake-ups, and future growth.
Setting Sights on 2025: From High Speed to High Quality
Moutai is shifting gears.
The company acknowledges it’s moving from a phase of “high-speed growth to high-quality development.”
What does that mean in numbers?
For 2025, they’ve set a revenue growth target of around 9%.
This target considers:
- The current state of the liquor industry.
- Moutai’s own production capacity.
- The overall market environment.
- The company’s long-term strategic goals.
We’ll get the final, official 2025 financial budget after the shareholders’ meeting gives the nod.
Wang Li (Wang Li 王莉), Deputy Party Secretary and Acting General Manager, emphasized a consumer-centric approach.
The focus is on:
- Aligning channels with consumption patterns.
- Matching products to consumer needs.
- Tailoring services for better engagement.
Moutai aims to resolve supply-demand imbalances, expand its market reach (especially overseas), and boost internal efficiency.
They’re leaning on their “4+6” channel system (a mix of self-operated and partner channels) to grow their customer base and navigate the current industry cycle towards sustainable, high-quality growth.
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Financial Snapshot: Strong Performance & Adjusted Expectations
Let’s look at the recent performance:
Q1 2025 Highlights:
- Revenue: ¥50.601 billion RMB ($6.999 billion USD)
- Year-over-Year Growth: +10.54%
- Net Profit (Attributable to Parent): ¥26.847 billion RMB ($3.713 billion USD)
- Year-over-Year Growth: +11.56%
Full Year 2024 Performance:
- Revenue: ¥174.144 billion RMB ($24.086 billion USD)
- Year-over-Year Growth: +15.66% (Meeting the ~15% target)
- Net Profit (Attributable to Parent): ¥86.228 billion RMB ($11.926 billion USD)
- Year-over-Year Growth: +15.38%
Moutai consistently hit or exceeded its operating targets from 2015 to 2024.
Notably, the revenue growth targets for 2022, 2023, and 2024 were all set around 15%.
The 9% target for 2025 marks the first time since 2017 that the company has aimed for single-digit revenue growth, signaling a strategic adjustment.
Alongside the revenue target, Moutai plans ¥4.711 billion RMB ($651.6 million USD) in fixed asset investment for 2025.
Market Check: As of May 12 close, Kweichow Moutai (Guizhou Maotai 贵州茅台) shares (600519.SH) traded at ¥1604.5 RMB ($221.92 USD) per share, up 0.84%.
Hot Topics Addressed: Hong Kong Listing, Celebrity Spokespersons
Hong Kong Listing? Not Right Now
Speculation about a potential Hong Kong stock market listing has been circulating.
Jiang Yan (Jiang Yan 蒋焰), Party Committee Member, Deputy GM, CFO, and Board Secretary, put the rumors to rest during the call:
“Currently, there are no such plans.”
Celebrity Marketing: A Calculated Approach
Moutai Culture & Tourism recently named pop star Zhang Yixing (Zhang Yixing 张艺兴) as its spokesperson.
This sparked questions about whether the main listed company (Kweichow Moutai) would follow suit.
Jiang Yan clarified:
- Zhang Yixing’s role is specifically tied to Moutai Culture & Tourism, a separate entity under the Moutai Group.
- He’ll appear at the ‘2025 Guizhou Huangguoshu & Xijiang T² Music and Art Festival’ (May 17-18), promoting the integration of Guizhou’s liquor and tourism scenes.
- Regarding the listed company using spokespeople: “Currently, the listed company has no related considerations.”
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Deep Dive: Maotai 1935’s Market Position and Strategy
Addressing the “Thousand-Yuan Price Band” Chatter
There’s been talk (including comments from competitor Wuliangye’s (Wuliangye 五粮液) earnings call) that Maotai 1935 (Maotai 1935 茅台1935), initially aimed at the premium ¥1,000 RMB ($140 USD) segment, has seen its market price dip closer to ¥700 RMB ($96.82 USD), effectively “drifting” from that tier.
Wang Li addressed this head-on, emphasizing collaboration over pure competition:
“In this period of deep industry adjustment, Moutai firmly believes that ‘a single flower does not make a spring, but a hundred flowers blooming brings spring to the garden.’ We are willing to work alongside other peer liquor companies… breaking through with ‘coopetition’ and achieving success through ‘collaboration.'”
The goal, she stated, is to build a rational Baijiu (白酒) consumption ecosystem, explore different paths, offer varied price points and flavors, and drive the whole industry forward.
Maotai 1935 Performance & Future Focus
So, how is Maotai 1935 actually doing?
Wang Li reported:
- The focus is squarely on the consumer, improving sales velocity, bottle openings, and actual consumption.
- Since H2 2024, initiatives like brand culture building (“Joy” core), quality upgrades, scenario transformation, and channel optimization have paid off.
- Sales velocity showed significant year-on-year growth during the key Spring Festival period.
- From January to April 2025, market performance was stable, and sales velocity met expectations.
What’s next for Maotai 1935 (a 53% vol. sauce-aroma Baijiu)?
Wang Li outlined the 2025 strategy:
- Continue market efforts focusing on:
- Strengthening the brand
- Establishing it as a key single product
- Assisting channel partners
- Consolidating the market foundation
- Enhancing service
- Improve Maotai 1935’s ‘product power, channel power, brand power, and terminal control.’
The Rise of Series Liquors
Maotai 1935 is a core part of Moutai’s broader “series liquors” portfolio.
This segment is becoming increasingly important:
- Q1 2025 Series Liquor Revenue: ¥7.022 billion RMB ($971.2 million USD)
- Year-over-Year Growth: +18.3% (outpacing the flagship Moutai liquor’s 9.7% growth in Q1)
This reflects Moutai’s strategy to build a wider product matrix beyond the ultra-premium flagship Moutai.
By leveraging the Moutai brand halo, these series liquors target mid-to-high-end segments, expanding market coverage during a period of industry adjustment.
Explaining the Jump in Accounts Receivable
Eagle-eyed investors noted a huge spike in accounts receivable notes in the 2024 report – from ¥13.93 million RMB ($1.927 million USD) in 2023 to ¥1.9844 billion RMB ($274.5 million USD) in 2024.
Wang Li explained this was primarily due to increased sales settled via bank acceptance bills by the subsidiary handling sauce-aroma series liquors.
The rationale? To manage channel distributor pressure, allocate more resources to market expansion, and navigate the industry adjustments collaboratively with partners.
- Q1 2025 Direct Sales Mix: ~45.89% of total revenue
- Q1 2025 iMaotai Revenue: ¥5.87 billion RMB (+9.86% YoY)
- Q1 2025 iMaotai Share of Direct Sales: 25.28%
- FY 2024 Direct Sales Growth: +11.32% YoY
- FY 2024 Direct Sales Mix: 43.8% of total revenue
- FY 2024 iMaotai Revenue: ¥22.374 billion RMB (+88.29% YoY vs 2023)
- FY 2024 iMaotai Share of Direct Sales: 33.28%
- FY 2024 iMaotai Gross Margin: 94.50% (-1.59 percentage points YoY)
Operational Insights: Production Capacity and Channel Dynamics
Moutai Liquor Production Fluctuations
The 2024 annual report showed a slight dip in Moutai liquor production:
- Production Volume (2024): 56,272 tons (-1.63% YoY)
- Sales Volume (2024): Increased by +10.22% YoY
Was this a deliberate move to control output?
Wang Li stated: “The production of Kweichow Moutai (Guizhou Maotai 贵州茅台) base liquor involves traditional solid-state open fermentation, and fluctuations in output are within the normal range.”
Future Capacity Expansion Plans
Moutai isn’t standing still on production capabilities.
The “Moutai Liquor 14th Five-Year Plan Technical Upgrade Construction Project” is underway:
- Planned Investment: ~¥155.16 billion RMB ($21.46 billion USD)
- Scope: 68 distillery workshops, 10 Qu-making workshops, 69 wine cellars, supporting facilities.
- Expected Output Increase: ~19,800 tons/year of actual Moutai liquor production capacity.
- Expected Storage Increase: ~84,700 tons of liquor storage capacity.
Capacity release will be managed carefully, considering ecological impact, training craftsmen, and market conditions.
Navigating Channel Adjustments: Direct Sales vs. iMaotai
There’s been a shift in Moutai’s direct sales channel performance.
Q1 2025 Observations:
- Direct sales revenue grew faster overall than revenue specifically from the iMaotai (iMaotai i茅台) digital platform.
- Why? Wang Li explained that product allocation to Moutai’s self-operated stores increased significantly year-on-year during Q1 to meet Spring Festival demand, boosting the overall direct sales figure.
- Direct Sales Mix: Accounted for ~45.89% of total revenue in Q1 (a significant share).
- iMaotai Revenue (Q1): ¥5.87 billion RMB ($811.9 million USD) (tax-exclusive), +9.86% YoY.
- iMaotai Share of Direct Sales (Q1): 25.28% (down from the previous year).
Looking back at Full Year 2024:
- Direct Sales Growth (2024): +11.32% YoY (slower than 2023’s 36.16% and 2022’s rate).
- Direct Sales Mix (2024): 43.8% (down from 45.67% in 2023).
- Reasons for the shift (per Jiang Yan):
- The November 2023 price hike for flagship Moutai increased the *proportion* of wholesale revenue.
- Strong growth in series liquors (primarily sold via wholesale) boosted the wholesale channel’s share.
- iMaotai Revenue (2024): ¥22.374 billion RMB ($3.095 billion USD), +88.29% YoY vs 2023. (Note: The source text seems contradictory here, first stating iMaotai revenue *decreased* 10.51% YoY in 2024, then stating it *increased* 88.29% YoY. The 88.29% increase figure aligns with the 2023 report comparison mentioned. We’ll assume the 88.29% increase for 2024 vs 2023 is correct based on context).
- iMaotai Share of Direct Sales (2024): 33.28% (calculation based on the 88.29% increase figure).
- iMaotai Gross Margin (2024): 94.50% (-1.59 percentage points YoY), mainly due to product mix adjustments on the platform based on market demand.
The Future of iMaotai
Despite fluctuations, iMaotai remains crucial.
Wang Li emphasized:
- iMaotai is a key part of Moutai’s digital marketing and the “4+6” channel layout.
- It provides a fair, authentic, and convenient way for consumers to buy genuine products.
- Since launch, it has generated over ¥60 billion RMB ($8.3 billion USD) in tax-exclusive sales.
- Registered users exceed 76 million.
- Future strategy: Align with market dynamics, maintain its core channel role, and use scientific product allocation.
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Going Global: Moutai’s International Expansion Update
- Overseas Market Revenue (2024): ¥5.19 billion RMB ($717.8 million USD)
- Share of Total Liquor Revenue: ~3%
- Global Reach: Distributed across 64 countries and regions
Current Overseas Performance
Moutai’s international footprint is growing, but still represents a small slice of the pie.
- Overseas Market Revenue (2024): ¥5.19 billion RMB ($717.8 million USD)
- Share of Total Liquor Revenue: ~3%
- Global Reach: Distributed across 64 countries and regions.
Wang Li noted that policy changes in any single overseas market have a limited overall impact due to this diversification.
Navigating Global Trade Dynamics
Regarding US-China relations and their impact:
Wang Li expressed confidence in the long-term trend of mutual benefit in global trade.
“Historical experience repeatedly verifies that unilateralism and protectionism are ultimately unsustainable.”
Moutai plans to follow China’s national strategy of openness and international cooperation, leveraging its brand and market insights to seek steady growth internationally.
Targeting International Markets
Moutai has tiered its international markets:
- Core Markets
- Key Markets
- Focus Markets
- General Markets
Expansion strategies differ based on factors like spirits market size, potential customer growth, consumption scenarios, and cultural factors.
The 2025 plan features “overall advancement, key launches, and focusing on increments.”
Q1 focus was primarily on East Asian and South Asian markets, yielding positive results.
In summary, Kweichow Moutai is navigating a complex market by focusing on consumer needs, optimizing its channel mix, strategically developing its product portfolio (especially series liquors), and cautiously expanding its international reach, all while adjusting its growth expectations for a new phase of development.
