On the evening of August 14, Kweichow Moutai Co.,Ltd. released its first-half financial report for 2026, marking the first semi-annual results since the company embarked on market-oriented reforms earlier this year. The report, the first among listed Chinese baijiu firms, highlights a focus on channel restructuring and price liberalization, including adjustments to the pricing of its flagship Feitian 53%vol 500ml Moutai and other non-standard products.

After a period of single-digit growth in the first quarter, the company's second-quarter performance attracted significant market attention. For the first half of the year, Kweichow Moutai reported total operating revenue of 92.278 billion yuan, a year-on-year increase of 1.3%, while net profit attributable to shareholders reached 44.517 billion yuan, down 1.95% from the same period last year. Direct sales revenue surged 29.87% to 51.962 billion yuan, accounting for 57.31% of total revenue, up from prior levels. Notably, the iMoutai platform generated 40.26 billion yuan in pre-tax alcohol sales, a dramatic 274.18% increase, representing 43.63% of the company's total operating revenue.

A key development in the shareholder register has drawn widespread attention. Both Central Huijin Asset Management Co., Ltd. and China Securities Finance Corporation Ltd. have exited the top 10 tradable shareholders list. Data shows that Huijin and Zhengjin first entered the top 10 in the third quarter of 2015, holding 10.7873 million and 37.5631 million shares, respectively. Over the subsequent decade, Zhengjin gradually reduced its stake. As of the first quarter of 2026, Huijin held 10.3971 million shares, while Zhengjin's holdings had fallen to 4.0375 million shares. These changes in major institutional holders, combined with short-term earnings pressure, have reignited debate about the pace of Moutai's reform and its long-term value proposition.

The second quarter is a traditional off-season for baijiu consumption, but Moutai did not slow its reform efforts. In mid-March, the company announced a consignment sales policy for several non-standard Moutai products, including aged Moutai (15 years), premium Moutai, zodiac Moutai (classic and gift box versions), and various small-capacity Feitian Moutai items. On March 30, Kweichow Moutai announced an increase in the contract price (ex-factory price) for Feitian 53%vol 500ml Moutai (2026) from 1,169 yuan to 1,269 yuan per bottle, and raised the retail price in its self-operated system from 1,499 yuan to 1,539 yuan. This marked the first price adjustment in 2.5 years and effectively ended the 1,499 yuan "guidance price" that had been in place for 8 years, signaling a shift toward a market-driven pricing model.

On May 16, further price adjustments were implemented for self-operated retail channels. The price for aged Moutai (15 years) rose from 4,199 yuan to 4,279 yuan; premium Moutai from 2,299 yuan to 2,359 yuan; zodiac Moutai (Year of the Horse) special edition from 2,499 yuan to 2,699 yuan; and the 1kg Moutai from 2,989 yuan to 3,119 yuan. Over the past six months, Kweichow Moutai has built a "self-sales, distribution, and consignment" multi-dimensional sales system, where revenue from self-sales and consignment channels is directly attributed to the direct sales segment. Combined with the two rounds of price hikes, this has boosted direct sales revenue and its share of total income. In the second quarter alone, direct sales revenue reached 22.458 billion yuan, up 33.77% year-on-year. For the first half, iMoutai contributed 40.26 billion yuan in pre-tax alcohol sales, up 274.18%, or 43.63% of total revenue. Earlier data from shareholder meetings indicated 7.13 million orders on iMoutai from January to May, and distributor feedback suggests terminal sales have improved both sequentially and year-on-year.

In July and August, Kweichow Moutai raised prices on additional non-standard products. On July 17, the company announced that the retail price of Feitian Moutai (2026) on the iMoutai platform would rise from 1,539 yuan to 1,639 yuan per bottle, and the contract price from 1,269 yuan to 1,369 yuan, effective July 18. In August, multiple price adjustments occurred at self-operated stores, with Feitian Moutai's price reaching 1,753 yuan per bottle, and the zodiac Moutai (Year of the Horse) classic version rising to 1,951 yuan, 52 yuan higher than on iMoutai. Some distributors then raised the price of premium Moutai under the consignment model to 2,410 yuan per bottle, above the iMoutai price of 2,359 yuan. Based on first-half trends, the price increases are expected to further boost direct sales revenue in the second half of the year.

The first half of 2026 was the first time in nearly a decade that Kweichow Moutai reported a decline in net profit despite rising revenue. While the sales model shift has altered channel structure, the "price increases plus consignment" strategy has stabilized Moutai-branded product performance. The overall profit decline stems primarily from pressure in the series wine segment. In the first half, Moutai Alcohol Sales Co., Ltd. reported revenue of 76.482 billion yuan, up 5.29%, and net profit of 24.869 billion yuan, up 1.79%. In contrast, the Moutai Sauce-flavor Liquor Marketing Co., Ltd. saw revenue fall 7.41% to 12.661 billion yuan, and net profit drop 27.84% to 2.711 billion yuan. The flagship series product, Moutai 1935, has seen persistently weak wholesale prices, with third-party platforms quoting 615-650 yuan per bottle, significantly below the iMoutai retail price of 688 yuan. Market reports indicate that in January, the payment price for Moutai 1935 was cut from 798 yuan to 668 yuan per bottle.

Changes in the number of series wine distributors also reflect channel adjustments. As of the end of the first half, the company had 2,307 domestic distributors, with 220 added and 266 removed, primarily affected by series wine distribution changes. The company has stated that iMoutai's operations will not increase total supply. With total product supply unchanged, the sharp rise in direct sales revenue directly corresponds to a decline in wholesale channel revenue. Wholesale and agency channel revenue fell 21.58% to 38.697 billion yuan in the first half. Contract liabilities dropped 60% from the end of last year to 3.178 billion yuan, attributed to the market-oriented reform and changes in the sales model, which adjusted prepayment policies.

Since iMoutai began selling Feitian Moutai earlier this year, speculation has arisen about whether the company is moving away from its distributor network. Chairman Chen Hua has stated that the company will not sacrifice long-term gains for short-term results, nor will it force tasks against market rules. General Manager Wang Li has emphasized that direct channels serve as a "market stabilizer," while social channels act as an "amplifier and converter," extending brand service and consumer experience. The company has clarified that the reform aims to eliminate outdated business models, not distributors themselves. Whether wholesale channels will face further compression and whether distributors will encounter greater pressure to adapt remain key industry focal points.