(Yicai Global) Dec. 29 -- Premium Chinese liquor maker Kweichow Moutai Co. [SHA:600519] has kicked off an extensive technical transformation to raise production by 6,600 tons of base liquor by late 2019.

It will mark up all its products by 18 percent on average next year, the company announced yesterday.

The technical reform program instituted yesterday seeks to scale up Moutai's annual base liquor production to 56,000 tons by 2020, Chinese financial newspaper STCN reported. The total investment in the initiative is projected at CNY3.56 billion (USD546 million).

Constrained by the limited environmental carrying capacity in areas near central Moutai production facilities, the firm has opted not to expand production again in the near term, said Li Baofang, its general manager.

Starting next year, the distiller will jack up its average ex-factory price by 18 percent. The cost of its flagship product is expected to rise from the current CNY1,700 per bottle to around CNY2,000 to curb excess demand.

Its share price rallied 8.21 percent to CNY718.69 on the news yesterday. As of 10:20 a.m. today, the stock slipped by 1.02 percent to CNY711.36 per share after scoring an all-time high of CNY726.5 shortly after market opening.