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Kweichow Moutai predicts surging 2017 profit

Xinhua | Updated: 2018-01-31 15:26
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BEIJING - China's leading liquor maker Kweichow Moutai predicted surging profit for 2017 thanks to increasing sales.

The listed company is expected to rake in net profit of about 26.4 billion yuan ($4.18 billion) in 2017, up 58 percent year-on-year, according to a statement released on the Shanghai Stock Exchange.

The company attributed the expected profit hike mainly to growing sales compared with 2016.

Moutai is a sorghum-based spirit and is China's top brand of baijiu (white alcohol). The liquor, often served on official occasions and at state banquets, is considered a luxury item that has long been a popular gift.

The liquor maker giant saw its share price more than double over the past year. Its share closed at 742.08 yuan per share on Tuesday, the most expensive stock on the Chinese A-share market.

The company said Monday that it would moderately shrink the production capacity of middle-and-low-end liquor, enhance sales promotion and promote the integration of its liquor businesses.

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