Google Translated: There is a company listed on the stock exchange and specialized in spirits that has managed to overcome Lvmh by capitalization. It is the Chinese Kweichow Moutai, is controlled by the State and is a producer of the baijiu Moutai, the most drunk grain distillate in the country and therefore in the world.
The overtaking occurred on Tuesday 9 January when, at the end of the stock exchange day, the value of the listed company in Shanghai was calculated by Bloomberg amounting to 151 billion dollars against 149 of the French luxury and champagne giant.
In the last six years, the Chinese company has increased its revenues from 1.77 to 6.68 billion dollars, so much less than what is able to do Lvmh (which closed the first nine months over 30 billion euros ), but at the level of marginality there is no match. Kweichow Moutai's net profits reach around 45% of turnover and generate cash flow of nearly $ 5 billion. This incredible ability to generate cash explains the enormous progress of the stock, which hit its new record on 10 January at 785 renminbi, recording a + 127% increase over a year. In the last five years, the value of the stock has increased by over 700 percent. The last rebound came at the end of December with the announcement of the increase in the sale price, the first applied for five years, for its flagship brand, Flying Fairy 53%, which with the new year has been increased by the 18 percent. The president of Kweichow Moutai, Yuan Renguo, has specified that the increase in the price of the wholesale price varies between 9 and 25%, a range that the same number one of the company has defined as "reasonable". According to what the English specialized magazine The Drink Business reports, 95% of the distillates produced by Kweichow Moutai is destined for the internal market and only 5% takes the route abroad. The distillation activity is pushed to the maximum, with 42,700 tons obtained in the last year (+ 9%), but the demand continues to exceed the supply and the prices of the Moutai increase accordingly. In 2017, according to the latest estimates, the turnover of the strong Chinese spirit should exceed 60 billion renminbi, equivalent to over 9 billion dollars
