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China's 'national liquor' Moutai moves to double output

0 CommentsPrint E-mail Xinhua, March 9, 2010
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China's leading liquor producer Kweichow Moutai reported an output of 23,000 tons of base liquor in 2009 thanks to its efforts to boost production, Lin Shusen, governor of Guizhou Province, where the company is located, said Tuesday.

The Shanghai Stock Exchange-listed company has yet to report its annual results of 2009 to investors and the regulatory commission, which is expected this month.

The advance disclosure by the provincial governor came on the sidelines of the annual session of the National People's Congress (NPC), China's top legislature.

The share price of Kweichow Moutai was flat at 163.17 yuan (23.9 U.S. dollars) on Tuesday.

The Guizhou-based Kweichou Moutai, crowned as "China's national liquor", has worked hard during the recent years to increase its output to meet increasing demands for high-end liquor within the country.

Kweichou Moutai's six-month net profit surged 24.59 percent year on year to 2.79 billion yuan (408.4 million U.S. dollars) in the first half of 2009, according to the company's half-year report to the Shanghai Stock Exchange last August.

The company recorded sales revenue of 10.3 billion yuan (1.5 billion U.S. dollars) in 2008.

Kweichou Moutai, where a large number of taxes and revenues are from for Renhuai city and the province, previously announced plans to invest 20 billion yuan (2.9 billion U.S. dollars) to nearly double annual output within five to 10 years.

Local government has invested more than 3 billion yuan (439 million U.S. dollars) to protect local environment and the Chishui River, the water source for Kweichow Moutai.

Environmental protection measures include relocation of 10,000 local residents, closures of 400 liquor workshops and restraints on development of high-polluting coal and cement industries.

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