(Yicai Global) Jan. 12 -- Shares in Xinjiang Winka Times Department Store hit the exchange-imposed daily limit today on the news that the Chinese department store operator has signed a distribution deal with the country’s leading liquor maker Kweichow Moutai that could boost net profit by over 50 percent.

Winka Times’ stock price [SHA:603101] soared 10 percent to CNY5.09 (USD0.79), giving it a market valuation of CNY2.15 billion (USD333 million).

The contract, worth a maximum of CNY240 million (USD37 million), is expected to bring in net profit of around CNY41.7 million (USD6.4 million) this year, 50 percent more than in 2019, and gross profit of CNY30 million, the Urumqi-based firm said yesterday.

The retailer, which runs six department stores, three shopping centers and 13 supermarkets across the Xinjiang Uyghur Autonomous Region in northwest China, will sell a selection of Kweichow Moutai’s flagship product, Moutai Flying Fairy, which is renowned for its limited supply, high price and potent effects.

Last year, Winka Times bought CNY212 million worth of Moutai products from Kweichow Moutai, accounting for 76 percent of its total Moutai purchases, it said. Direct purchase from the maker helps reduce costs and boost sales of the company’s liquor products, Winka Times said.

The firm posted its first deficit since going public in 2016 in the first three quarters last year, losing CNY3.54 million (USD534,000) as the Covid-19 pandemic greatly reduced footfall to shopping malls. The company's stock lost a quarter of its value in 2020.

Kweichow Moutai [SHA:600519], the world’s most valuable distiller, reached a record high of CNY2,160.90 (USD334) today, giving it a market valuation of CNY2.63 trillion (USD407 billion). Its stock gained 70 percent last year, the best performer in the country’s liquor sector.

Editor: Kim Taylor