(Yicai Global) Oct. 29 -- China's two largest liquor companies lost a combined CNY97 billion (USD14 billion) in market capitalization today after both stocks hit the maximum daily decline allowed in the country's A-share market on the release of disappointing third-quarter results.

Shares in baijiu makers Kweichow Moutai [SHA:600519] and Wuliangye Yibin [SHE:000858] fell 10 percent in trading this morning to CNY549.09 (USD78.97) and CNY48.87 (USD7.03), respectively.

Guizhou-based industry leader Moutai revealed that its annual revenue growth for the first three quarters this year had slumped to around half of the rate posted in the first half.

Net profit at Moutai grew 23.8 percent to CNY24.7 billion for the first nine months, while it grew at 2.7 percent for the third quarter alone. Revenueincreased23.1 percent to CNY52.2 billion in the first three quarters, and by just 3.2 percent in the most recent three-month period.

In stark contrast, the firm's earnings increased at 59.4 percent in the first three quarters last year and 115.9 percent in the third quarter of 2017. It maintained a 40 percent expansion in the mid-year report of this year.

Although Moutai does have capacity shortages, its final output is decided by the market, a senior market observer told Yicai Global. Its overall market supply has slowed since speculation in Moutai decreased this year.

Many factors have led to the cooling in growth and the situation is expected to continue for the final quarter of the year, though the market remains optimistic, he added.

The changing trend in performance of Wuliangye was similar to that of Moutai. Net profit rose 19.6 percent to CNY2.4 billion in the third quarter, while net earnings for the first three quarters expanded 36.3 percent to CNY9.5 billion.

The Yibin-based company posted a revenue increase of 23.2 percent to CNY7.8 billion in the third quarter, while it increased 33.1 percent to CNY29.3 billion for the first nine months.

The overall Chinese consumer market is sluggish, and high-end liquor consumption is in decline, which is typical for famous liquor brands that have been enjoying boom periods. Taking Moutai as an example, although its production and sales are booming, the channels and the market may become cautious since policy risks are getting bigger and the market lacks confidence, famed baijiu-related financial blogger Cai Xuefei told Yicai Global.

The growth of the high-end liquor market will remain at a stable but slightly down since the driving forces of this recent round of expansion were mainly focused on 2017 and 2018, chief consultant at Shangshan Brand Management, Tie Li, said.

Editor: William Clegg