Moutai posts rare profit drop as China shifts to tech

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Summary · why it matters

Kweichow Moutai reported a rare 1.95% drop in first-half net profit to 44.5 billion yuan, its first such decline since 2014, as China's economy pivots from real estate to technology. The baijiu maker's full-year 2025 net profit fell 4.5%, its first annual decline on record, and shares have now fallen for four consecutive years. State funds Central Huijin and China Securities Finance exited the top 10 shareholders in the second quarter, while Citi and Morningstar maintained positive ratings, citing a shift to direct-to-consumer sales and expected Mid-Autumn Festival demand. Analysts noted that tech industry participants are less inclined to drink baijiu, making the premium spirits market saturated.

Impact on assets 3

Digital Finance & Tokenization▲
Financials▲
Others▼
Kweichow Moutai Co Ltd
600519
▼ NegativeDemandrelevance

Moutai's first-half profit drop and annual decline reflect weakening demand as tech workers drink less baijiu.

Off-coverage companies 2

Central Huijin Investment Ltd.i
Private▼ NegativeCapitalrelevance

Central Huijin exited top 10 shareholders, signaling reduced state fund support.

China Securities Finance Corporationi
Private▼ NegativeCapitalrelevance

China Securities Finance exited top 10 shareholders, signaling reduced state fund support.