On the evening of August 29, Kweichow Moutai Co.,Ltd. announced that its controlling shareholder, China Kweichow Moutai Distillery (Group) Co., Ltd., officially launched a plan to increase its holdings in the company's shares.
Previously in April this year, Kweichow Moutai Co.,Ltd. had announced that Moutai Group had begun drafting an increase holding plan. Moutai Group currently holds 54.07% of Kweichow Moutai Co.,Ltd.'s total share capital.
According to the announcement, Moutai Group will increase its holdings in the company's stock through centralized auction trading within 6 months from the announcement date (September 1, 2025 to February 28, 2026), with a planned purchase amount not less than 3 billion yuan (inclusive) and not more than 3.3 billion yuan (inclusive). The announcement clarifies that Moutai Group will use its own funds and self-raised funds to complete this share purchase.
This will be another round of holdings increase by the controlling shareholder Moutai Group after a gap of two and a half years. From the end of 2022 to the first half of 2023, Moutai Group and its affiliated company Moutai Technology Development Company invested a total of 1.745 billion yuan to increase holdings in Kweichow Moutai Co.,Ltd.
The new round of controlling shareholder's share purchase will significantly exceed the previous amount, demonstrating the controlling shareholder's positive attitude. The announcement also mentioned that this share purchase is mainly based on recognition of the company's long-term value and confidence in future development, to further support the company's high-quality sustainable development.
In recent years, the government has repeatedly emphasized the importance of healthy development of capital markets. Since the launch of the new "National Ten Articles," regulatory authorities have encouraged listed companies and major shareholders to actively adopt market value management tools to boost investor confidence and optimize investor returns, including measures such as increasing dividend rates, increasing dividend frequency, company buybacks, and major shareholder holdings increases. Relevant departments and institutions jointly established stock buyback and holdings increase re-lending facilities, guiding financial institutions to provide loans to listed companies and major shareholders, with an initial total quota of 300 billion yuan for re-lending, aimed at encouraging listed companies to further maintain stable operation of capital markets and boost market confidence through holdings increases and buybacks.
Before this controlling shareholder's share purchase initiation, Kweichow Moutai Co.,Ltd. has intensively adopted market value management measures such as increasing dividend rates, increasing dividend frequency, and company buybacks in the past two years to send positive signals to investors, creating a demonstration effect in the liquor industry.
Among these measures, the cancellation-type buyback that officially started at the beginning of this year was the first in Moutai's history.
On the evening of August 29, Kweichow Moutai Co.,Ltd. simultaneously announced that starting from the first buyback on January 2, 2025, the company had completed share buybacks within 8 months, with actual buyback shares of 3.9276 million shares, accounting for 0.3127% of total share capital, with a buyback price range of 1408.29 yuan/share to 1639.99 yuan/share, using a total fund amount of 6 billion yuan. The company is expected to cancel the 3.9276 million shares bought back on September 1, 2025.
This means that Kweichow Moutai Co.,Ltd. has completed its buyback plan as scheduled and in full amount. Its buyback amount also ranks among the top among A-share listed companies.