Luxury-alcohol Business Rebounds from Slump
(Beijing) — China's luxury-alcohol makers are seeing business rebound after a sales decline of over three years that began with the central government's crackdown on extravagance and corruption. But analysts warn the good times may not continue as the economy stalls.
Major high-end distillers, including Kweichow Moutai Co. and Wuliangye Yibin Co., have released strong first-half results. Moutai said its sales revenue rose 15 percent to 18.2 billion yuan (US$ 2.72 billion) in the first six months, with net profit rising 12 percent to 4.9 billion yuan. The company had 11.5 billion yuan in advance receivables from distributors by the end of June 30, a record high.
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