(Yicai Global) March 29 -- Profit at Kweichow Moutai, China’s leading liquor maker, increased at the slowest pace in five years last year.

Net profit rose 12 percent to CNY52.5 billion (USD8.4 billion) in the year ended Dec. 31, according to the Renhuai, Guizhou province-based firm’s 2021 financial report released yesterday. Revenue rose 12 percent to CNY109.5 billion (USD17.2 billion), in line with expectations.

For the first quarter of this year, the company forecast net profit to gain 19 percent to about CNY16.6 billion from a year earlier. Revenue is seen jumping 18 percent to CNY33.1 billion.

Demand for baijiu, a strong Chinese liquor distilled from fermented sorghum, grew solidly in January and February, according to a report by China Galaxy Securities, which added that despite Covid-19 curbing consumption this month, off-season volatility will have relatively little impact on the quarter.

The company also announced yesterday that it will launch a digital marketing app on March 31, with four products on offer. Its renowned half-liter Feitian Moutai will be purchasable from JD.Com, Tmall, and 10 other e-commerce platforms.

Kweichow Moutai produced about 56,500 tons of Moutai base liquor and around 28,200 tons of subline base liquor sets last year.

Shares of Kweichow Moutai [SHA: 600519] finished today 0.4 percent up at CNY1,667 (USD261.70) each. The broader Shanghai market dipped 0.3 percent.

Editor: Futura Costaglione