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Chinese alcohol brand Kweichow Moutai rose as much as 2.5 per cent on Tuesday after the company reported a 25 per cent jump in net profit for the first quarter.
Moutai, which is best known for grain liquor baijiu, reported first quarter net profit at Rmb6.1bn ($886m), coming in above the company’s forecast of 15.9 per cent growth in net profit.
The liquor brand was hit by Chinese President Xi Jinping’s anti-corruption campaign as the crackdown on spending by officials saw the number of banquets and gifting of premium liquor fall.
Demand for baijiu now looks to be returning with Li Baofang, Moutai party secretary and general manager, saying in March the company would begin producing baijiu year-round to maintain price stability amid surging demand.
Earlier this month, Moutai overtook Diageo Plc, maker of Johnnie Walker as the world’s most valuable liquor company.
Moutai was up 2.1 per cent at Rmb407.07 a share in Shanghai. The benchmark Shanghai Composite index was flat.
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