Kweichow Moutai’s net exceeds 10b yuan in first three quarters

Net profit of Kweichow Moutai Co Ltd grew 58.62 percent year-on-year to 10.42 billion yuan ($1.67 billion) in the first three quarters, overtaking last year’s total net profit, according to the company’s third-quarter report.

A symbol of China’s liquor industry, the company reported revenue of 19.93 billion yuan in the first three quarters, an increase of 46.10 percent over the same period last year.

It reported earnings of 10.04 yuan per share in the first three quarters, the highest among all the companies listed on the A-share market.

The company has been boosted mainly by increased sales and price rises of 20 to 30 percent. Moutai previously raised its prices by about 20 percent on Jan 1, 2011, which resulted in net profit growing 73.48 percent to 8.76 billion yuan that year.

A statement by the company on Friday said it plans to invest 6.3 billion yuan on seven construction projects, including an exhibition center and an appraisal center.

The projects have been approved by the board of directors, but not by shareholders.