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Consumer Non-Durables

Kweichow Moutai Co., Ltd.

Company Background

Kweichow Moutai is a Chinese state-owned producer of baijiu, a traditional and strong alcoholic spirit made from sorghum, wheat and barley. The company's Moutai baijiu is considered to be China's luxury liquor. The company is known as one of the industry giants, alongside Sichuan-based Wuliangye Group.

Founded in 1999, Kweichow Moutai is based in Renhuai, Guizhou Province. It is headed by chairman Yuan Renguo. The distiller is listed on the Shenzhen Stock Exchange. Baijiu, has an alcohol content of around 40% and is particularly popular in China's cold northeastern and inland areas. China's baijiu market stood at about 10 trillion yen ($80.3 billion) in 2013.

High-end baijiu, ranges from hundreds of dollars to thousands of dollars per bottle, and was often served at banquets and events for, or presented as gifts to, high-ranking government officials and clients. However, its overall consumption is declining because of the current voluntary ban on extravagant banquets in the wake of President Xi Jinping's anti-graft campaign.

Business Summary

Kweichow Moutai Co., Ltd. engages in the operation of wine industries. Its businesses include procurement of raw materials, production, and sale of products. Its Procurement of Raw Materials division involves in the production and sale plan for purchase of products. Its Production division provides storage, blending, and packaging services. Its Sales division distributes wine products. The company was founded on November 20, 1999 and is headquartered in Renhuai, China.

Financial Highlights

Dec 2019 CNYUSD
Revenue76,121.04M11,016.30M
Gross Profit68,102.69M9,855.87M
Operating income59,044.22M8,544.93M
Income before tax58,782.55M8,507.06M
Net income41,206.47M5,963.43M
EBITDA60,287.70M8,724.88M
Diluted EPS32.804.74
Dividends Per Share17.022.46
Total Assets183,042.37M26,277.67M
Total liabilities41,165.99M5,909.81M
Total equity136,010.34M19,525.72M
Operating cash flow45,210.61M6,542.91M
Currency in CNYCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 29,997.68M 33,646.15M 52,658.54M 65,910.45M 76,121.04M
Gross Profit 27,041.80M 29,782.16M 46,160.63M 58,825.51M 68,102.69M
Operating income 22,087.85M 24,232.44M 38,884.28M 51,329.90M 59,044.22M
Income before tax 22,001.71M 23,957.88M 38,740.07M 50,827.60M 58,782.55M
Net income 15,503.09M 16,718.36M 27,079.36M 35,203.62M 41,206.47M
EBITDA 22,936.00M 25,166.64M 40,010.11M 52,505.33M 60,287.70M
Diluted EPS 12.34 13.31 21.56 28.02 32.80
Dividends Per Share 6.17 6.78 10.99 14.53 17.02
Total Assets 86,301.46M 112,934.53M 134,610.11M 160,152.17M 183,042.37M
Total liabilities 20,051.72M 37,020.42M 38,574.91M 42,514.38M 41,165.99M
Total equity 63,925.97M 72,894.13M 91,451.52M 113,067.87M 136,010.34M
Operating cash flow 17,440.20M 37,451.24M 22,153.03M 41,385.23M 45,210.61M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 4,772.81M 5,064.47M 7,791.77M 9,960.75M 11,016.30M
Gross Profit 4,302.51M 4,482.86M 6,830.29M 8,890.04M 9,855.87M
Operating income 3,514.30M 3,647.51M 5,753.62M 7,757.26M 8,544.93M
Income before tax 3,500.60M 3,606.18M 5,732.28M 7,681.35M 8,507.06M
Net income 2,466.63M 2,516.47M 4,006.87M 5,320.16M 5,963.43M
EBITDA 3,649.25M 3,788.12M 5,920.21M 7,934.90M 8,724.88M
Diluted EPS 1.96 2.00 3.19 4.23 4.74
Dividends Per Share 0.98 1.02 1.62 2.19 2.46
Total Assets 13,290.23M 16,250.74M 20,671.08M 23,326.41M 26,277.67M
Total liabilities 3,087.92M 5,327.06M 5,923.66M 6,192.28M 5,909.81M
Total equity 9,844.45M 10,489.11M 14,043.53M 16,468.51M 19,525.72M
Operating cash flow 2,774.84M 5,637.22M 3,277.93M 6,254.36M 6,542.91M

Valuation Measures

Dec 2019
PER36.06
ROA24.01%
ROE33.08%
Operating margin77.56%
Profit margin54.13%

Key executives

  • Chairman & General Manager: Bao Fang Li
  • Chief Financial Officer & Deputy General Manager: Ying Zi He
  • Deputy General Manager: Gui Sheng Li
  • Deputy General Manager: Ming Quan Yuan
  • Deputy General Manager: Jia Qi Zhang

Shareholders

  • Guizhou State-Owned Assets Sup. & Admin. Commission (64.2%)
  • China Investment Corp. (Investment Management) (0.8%)
  • E Fund Management Co., Ltd. (0.6%)
  • China Securities Finance Corp. Ltd. (0.6%)
  • E Fund Management (Hong Kong) Co., Ltd. (0.5%)
  • Capital Research & Management Co. (World Investors) (0.5%)
  • China Universal Asset Management Co., Ltd. (0.4%)
  • China Asset Management Co., Ltd. (0.3%)
  • Capital Research & Management Co. (Global Investors) (0.3%)
  • UBS Asset Management (Hong Kong) Ltd. (0.3%)

Contact Details

Related Companies

  • China Kweichow Moutai Winery (Group) Co., Ltd.
  • Chateau Loudenne
  • Kweichow Moutai Factory Import & Export Corp.
  • Kweichow Moutai Factory Sales Corp.
  • Kweichow Moutai Sales Co., Ltd.
  • Production Facilities of Guizhou Renhuai Huaijiu Co Ltd

Competitors

  • China Tontine Wines Group Limited
  • Wuliangye Yibin Co., Ltd. Class A
Last Updated on 3 Jul, 2020

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