The "Kweichow Moutai Co.,Ltd. 2025 Q3 Earnings Conference" was held on November 6. Wang Li, acting General Manager of Kweichow Moutai, independent director Wang Xin, and Jiang Yan, Vice President, CFO, and Board Secretary, attended and addressed investor inquiries.

Investors raised several key questions: 1. The wholesale price of the 25-year Flying Fairy has been declining continuously. What is the primary source of this selling pressure? 2. Has the company conducted research on channel inventories of Moutai liquor across regions (Northeast, East China, Southeast, Southwest, Northwest)? How do current inventory levels compare to normal levels, and is there potential pressure? Could channel inventory pressure eventually impact the company? 3. Regarding the approximately 20,000-ton capacity expansion under the 14th Five-Year Plan technical upgrade, what is the company’s planned release schedule? Additionally, what are the plans for the existing 200,000+ tons of base liquor in storage? 4. What are the company’s future plans for direct sales and channel management? Is there an intention to further increase the proportion of direct sales? What is the current contribution of e-commerce sales, and will this be expanded? Could e-commerce channels potentially harm Moutai’s premium brand image?

In response, Wang Li stated that the "14th Five-Year Plan Technical Upgrade Project" involves an investment of approximately 15.516 billion yuan, including the construction of 68 fermentation workshops, 10 koji-making workshops, 69 storage facilities, and related infrastructure. Upon completion, the project will add an annual production capacity of about 19,800 tons and storage capacity of 84,700 tons. Two workshops have already commenced operations.

Regarding future capacity release, the company will carefully consider industry trends, internal base liquor resource planning, ecological constraints, artisan training, and market conditions to ensure a balanced and scientific approach. Base liquor reserves are critical for sustainable high-quality growth, and the company remains committed to long-term, rational planning to strengthen this foundation.

Thank you!