(Yicai Global) Oct. 25 -- Kweichow Moutai logged a 12.4 percent leap in net profit in the third quarter from the same period last year, nearly double its growth rate in the first quarter, as the Chinese distiller bounces back with a new chair at the helm and existing investors buy in.

Kweichow Moutai raked in CNY12.6 billion (USD2 billion) in net profit in the three months ended Sept. 30, according to its latest financial report released on Oct. 22. Revenue was up 9.9 percent to CNY25.6 billion (USD4 billion). In the first three quarters, net profit gained 10.2 percent to CNY37.3 billion while revenue grew 11.1 percent to CNY74.6 billion

A new chair was appointed in September to tackle stalling sales growth and a sinking stock price. Ding Xiongjun, former director of the Guizhou Energy Administration, vowed to introduce new retail channels and clamp down on the market speculation that has driven up pricing and badly damaged the brand’s image.

The highly sought-after liquor Moutai has huge cultural cache in China and can change hands at prices far above the market price. Last month, former Chairman Yang Guoren was sentenced to Life in jail for accepting CNY113 million (USD17.5 million) in bribes during his time in office. Yuan was found guilty of taking advantage of his position to help others secure distribution rights and increase the allocation of the popular alcohol.

Ding’s appointment must have instilled confidence in investors. Four of its ten biggest shareholders jacked up their holdings in the third quarter. The China Merchants Fund boosted its stake to 0.6 percent, becoming the seventh largest stakeholder. Private equity firms Shenzhen Jinhui Rongsheng Wealth Management and Zhuhai Ruifeng Huibang Asset Management were close behind, increasing their equity to 0.5 percent and 0.4 percent respectively, to be the eight and nineth biggest shareholders. While China Asset Management’s Shanghai Stock Exchange 50 Index Fund rose to 10th with a 0.4 percent stake.

Zunyi, southwestern Guizhou province-based Kweichow Moutai’s share price [SHA:600519] closed down 1.32 percent today at CNY1,876 (USD294), giving it a market valuation of CNY2.4 trillion (USD376 billion). The stock has gained over 10 percent since Ding took office.

Editors: Dou Shicong, Kim Taylor