(Yicai Global) June 6 -- After Shede Spirits’ stock price sank by the daily trading limit yesterday, the Chinese baijiu distiller released a statement saying that it was operating normally.

Shede is not hiding anything that should have been disclosed, nor has it encountered any difficulties, the Sichuan-based firm said today.

Shede’s shares [SHA: 600702] fell 2.2 percent to close at CNY136.76 (USD19.20) in Shanghai today. Yesterday, they plunged 10 percent.

The shares of other Chinese liquor makers also fell yesterday. Anhui Gujing Distillery [SHE: 000596] closed 4.6 percent down at CNY246.08, while Jiugui Liquor [SHE: 000799] dropped 3.3 percent to CNY91.95 (USD12.94). Luzhou Laojiao [SHE: 000568] ended 2.6 percent down at CNY206.76.

The conditions making liquor stocks a safe haven have weakened, with funds flowing into growth stocks after market sentiment improved with the raising of the US national debt ceiling, Shen Meng, executive director of Chanson Capital, told Yicai Global.

Shede’s earnings growth has slowed this year. The firm reported a CNY570 million (USD80.2 million) net profit in the first quarter, up 7.3 percent from a year ago, while revenue rose by the same to CNY2 billion (USD284.2 million). In 2022, Shede’s net profit climbed 35 percent to CNY1.7 billion on a 22 percent jump in revenue to CNY6.1 billion.

Despite slower growth in the three months ended March 31, some investors that attended Shede's shareholders' meeting were optimistic about the company's future performance.

Editor: Futura Costaglione