On August 21st, Kweichow Moutai Co.,Ltd. hosted its interim results briefing for the first half of 2026. During this period, the company posted total operating revenue of RMB 92.278 billion, a 1.3% year-on-year increase, while net profit attributable to shareholders reached RMB 44.517 billion, marking a 1.95% decline. Notably, in the second quarter alone, operating revenue and net profit fell by 5.23% and 6.9%, respectively.

Addressing the issue of "rising revenue but falling profit," Chairman Chen Hua explained that at the end of 2025, amid deep industry adjustments and weak consumer demand, products including Moutai liquor and sauce-flavored series faced significant market challenges. In response, the company launched a consumer-centric, demand-driven market reform at the start of 2026. To date, overall market sales and product pricing have remained stable, with sales volumes for both Moutai liquor and sauce-flavored series showing growth. This slight uptick in operating revenue indicates that the reform and transformation have yielded initial results, meeting company expectations.

For the remainder of the year, the company plans to implement refined strategies based on market conditions, aiming to establish a market system for Moutai liquor and sauce-flavored series that is both supply-demand aligned and continuously improving. However, Chen acknowledged that past reforms focused primarily on channel structures, making operational targets relatively straightforward to define and achieve. The current reform, centered on the market side, must also balance the supply-side requirement of preserving traditional craftsmanship, presenting numerous challenges and uncertainties.

Regarding the first-half performance, Chen emphasized that industry development follows cycles, and periodic fluctuations in corporate performance indicators are normal—a point well-demonstrated by Kweichow Moutai's long-term track record. He urged shareholders and investors to adopt a long-term perspective when evaluating the company's progress. As long as operations remain healthy and market fundamentals stay solid, the company can navigate through cycles and achieve high-quality, sustainable growth.

The market-oriented reforms in the first half have already met expectations. Moving forward, Kweichow Moutai will continue to adhere to long-term principles, maintain strategic composure, and deepen its consumer-focused, market-driven reform with greater precision. The company remains committed to advancing all initiatives with high quality, creating more sustainable and valuable returns for shareholders.