(Yicai Global) Feb. 12 -- Major Chinese distillers such as Kweichow Moutai, Wuliangye, and Luzhou Laojiao said they are looking at resuming production amid the ongoing novel coronavirus epidemic.

Kweichow Moutai, the world's most valuable liquor maker, expects a net profit attributable to shareholders of its listed company of about CNY40.5 billion (USD5.8 billion) this year, a 15 percent gain from last year, the firm said on its website, adding that it would get back to work tomorrow.

Last year's operating income was about CNY88.5 billion, an increase of 15 percent, and net profit was about CNY40.5 billion, also up 15 percent, the Guizhou province-based company said.

"The plan remains unchanged, tasks are not curtailed, indicators are not adjusted, and income expectation is not reduced," it added.

Wuliangye has been resuming work and production since Feb. 10 under the premise of good epidemic prevention and control. Chairman Li Shuguang said at the company's Feb. 2 to 5 meeting that its overall marketing situation during New Year's Day and the Chinese New Year holiday was good.

The Sichuan province-based company's main indicators, such as channel stocking, liquidity, and inventory, were as expected and sales targets were achieved. The company must promote team transformation and digital transformation so as to achieve more than double-digit annual revenue growth, Li added.

Luzhou Laojiao will fully support its distribution partners to minimize the impact of the epidemic and work with them to complete this year's goals, the company said on WeChat on Feb. 4. However, Luzhou Laojiao has not fully resumed work.

Shede Spirits has gained approval to resume work from Feb. 9, the company said on its website.

CSC Financial's research report shows that, benefiting from the characteristics of pre-holiday demand, high-end white spirit sales during the Spring Festival peak season basically fulfilled the targets and were much less affected by the epidemic than the industrial average. Moreover, business demand is relatively rigid, and the epidemic may only delay consumption time, so, the impact on annual consumption will be limited. Therefore, post-epidemic, the sales of high-end white spirits are expected to recover faster than less high-end and low output brand, it said.

Peng Yanyan, head of the China consumer products industry research department at UBS, believes that high inventories in consumers' hands will affect their appetite in the second quarter, which will have an impact on liquor companies and distributors.

Editor: Peter Thomas