Anhui Kweichow Moutai Co., Ltd. (Kweichow Moutai), one of the three giants of Anhui liquor, saw a decline in both operating income and net profit attributable to the company’s shareholders in 2025, with a staggering 59.32% year-on-year drop in net profit attributable to the company’s shareholders. The company attributed the significant profit decrease to weak consumption in the Baijiu (Chinese white spirits) market.
On April 21, Kweichow Moutai released its “2025 Annual Report.” The report revealed that in 2025, the company achieved a total operating income of 3.991 billion yuan, a 33.65% decrease compared to the previous year, and a net profit attributable to the company’s shareholders of 673 million yuan, marking a 59.32% decline year-on-year.
Furthermore, the report stated that the net profit excluding non-recurring gains and losses attributable to the company’s shareholders was 655,863,872.24 yuan in 2025, a 59.27% decrease from 1,610,182,325.61 yuan in 2024. The net cash flow generated from operating activities decreased by 216,175,036.25 yuan compared to 1,459,249,272.06 yuan in 2024, down by 114.81%.
In addition, Kweichow Moutai reported a 22.19% decrease in Baijiu production, a 19.98% drop in sales volume, and a 6.44% increase in inventory in 2025.
The report attributed the losses to the soft consumption in the Baijiu market during the reporting period, leading to a decrease in revenue from high-end products.
According to Tencent News on April 21, cash flow is the “lifeblood” of business operations, and it appears that Kweichow Moutai’s profit quality is not very good. Additionally, as the “reservoir” for future revenue of Baijiu companies, Kweichow Moutai’s contractual liabilities amounted to 334 million yuan in 2025, a 40.26% decrease from the previous year. This indicates that distributors are no longer actively stocking up, posing potential risks to the company’s future income and performance.
The Southern Metropolis Daily on April 22 also pointed out that Baijiu companies’ contractual liabilities often reflect distributors’ willingness to make payments. A reduction in contractual liabilities may indicate the distributors’ pessimistic expectations for future product sales.
Furthermore, the report showed that in 2025, Kweichow Moutai’s revenue from high-end products was 3.689 billion yuan, accounting for 94.5% of total liquor revenue, a 35.08% decrease year-on-year. Medium-range Baijiu achieved a revenue of 54 million yuan, down by 21.1%, while low-end Baijiu revenue reached 161 million yuan, a 27.43% growth, being the only segment experiencing positive growth. This suggests a decline in demand for high and medium-range Baijiu, while sales of low-end Baijiu increased due to reduced consumer income.
As 2025 concludes, Kweichow Moutai continues to face challenges in 2026. According to its “2026 First Quarter Report” released on April 21, the company’s total operating income for the first quarter was 1.375 billion yuan, down by 24.02% year-on-year, with a net profit attributable to the parent company’s owner of 329 million yuan, a 46.16% decrease. In particular, net profit from high-end Baijiu dropped by 25.38%.
Public records show that Anhui Kweichow Moutai Co., Ltd. (referred to as Kweichow Moutai) was established on December 26, 2002, formerly known as the state-owned Suixi People’s Distillery founded in May 1949. In June 2015, the company went public on the Shanghai Stock Exchange and specializes in the production of strong-flavor Baijiu. Kweichow Moutai, along with Gujing Gongjiu and Yingjia Gongjiu, are known as the three giants of Anhui liquor.