(Yicai Global) Dec. 28 -- China's leading liquor producer Kweichow Moutai Co. [SHA:600519] will raise the factory price of its most popular product by 18 percent next year, it said today. However, its Chairman Yuan Guoren appealed to the dealers, asking them not to add too much to the factory price to protect the interests of the consumers.
Kweichow Moutai's sales volume this year increased by 34 percent year-on-year, with an expected revenue of over CNY60 billion (USD9.1 billion), up 50 percent year-on-year, while the total profit is expected to increase 58 percent year-on-year, the company announced.
At present, the flagship product of Kweichow Moutai sells for CNY1,700. The price hike will take it to CNY2,000, China Securities Journal calculated.
Due to the current limitation on factory price by the company, the demand for Maotai exceeds its supply. Some dealers even deliberately stocked the product to inflate the price. Dealers should rationally set Maotai's price, Yuan warned, saying it is for drinking, not for speculation.
The share price of Kweichow Moutai rose nearly 4 percent to CNY690.78 at 11.05 a.m. in the morning trade today upon the company announcement.