Kweichow Moutai's Q1 Attributable Profit Jumps 12%

By Sherry Qin

Chinese liquor giant Kweichow Moutai's sales growth slowed in the first three months of the year as consumer sentiment in its home market remained weak.

Revenue rose 10.5% to 50.6 billion yuan, equivalent to $6.94 billion, during the first quarter, compared with growth of 18% last year, said Moutai, owner of China's most valuable liquor brand.

Net profit increased 12% to 26.85 billion yuan during the quarter, it said Tuesday, compared with a 16% rise a year earlier.

Moutai's core brand of baijiu--a liquor made from fermented grains--contributed the bulk of its revenue, generating 43.56 billion yuan. Direct sales reached 23.22 billion yuan while wholesale revenue through distributors totaled 27.36 billion yuan.

The company's first set of results for 2025 had been expected to show softer sales after Moutai guided for annual revenue growth of 9%, down from 16% growth in 2024.

OCBC analysts said the conservative guidance likely reflects tepid consumption in China as the country continues to grapple with economic headwinds. Efforts to maintain relatively stable channel inventory levels and wholesale prices were also cited as factors.

First-quarter results from baijiu companies, including Wuliangye Yibin and Luzhou Laojiao, point to similar pressures. Wuliangye Yibin's revenue growth slowed to 6% while Luzhou Laojiao posted a more marginal 1.8% gain.

Beijing's introduction of more fiscal stimulus and policy support for consumers could deliver a welcome boost to the baijiu sector.

The right mix of policies could help buoy both investment sentiment and consumption, the OCBC analysts said.

Moutai's shares are up 1.3% so far this year, recovering some ground after falling 12% in 2024.

Write to Sherry Qin at sherry.qin@wsj.com

Chinese mutual funds' holdings in Tencent outranked that of Contemporary Amperex Technology as of the end of March, the South China Morning Post reported Wednesday, citing TX Investment Consulting.

The rise in Tencent holdings indicates investors' desire for more Hong Kong-listed shares, the report said.

A total of 1,186 Chinese mutual funds held 151 million shares of Tencent worth 69.38 billion yuan, dislodging CATL's 55.37 billion yuan of shares held by 1,267 mutual funds, the report said.

Kweichow Moutai is in third with 746 funds holding 378.62 million yuan of shares, while Alibaba is at fourth with 651 funds owning 33.95 billion yuan of shares, the report said.

Other Hong Kong-listed firms, such as China National Offshore Oil Corporation , China Mobile , Meituan , Pop Mart , Semiconductor Manufacturing International , and Xiaomi , are in the top 50 preferred shares by Chinese mutual funds, the report said.