Kweichow Moutai’s latest half-year results have deepened concern about weakening momentum at one of China’s most emblematic consumer companies, after net profit attributable to shareholders fell 1.95% to 44.517 billion yuan and Central Huijin Asset Management Co., Ltd. and China Securities Finance Corporation dropped out of its top 10 shareholders list. The stock opened 3.9% lower on Aug. 17 and fell below 1,300 yuan, while year-to-date losses stood at 5.7% as of Tuesday. Revenue in the first half rose 1.47% to 90.703 billion yuan, but the profit decline was notable as it marked the first drop in first-half net profit since 2014 and only the second such decline in data going back to 2002, according to Wind Information. The results followed a 4.5% decline in net profit for all of 2025, the first annual decline on record. Analysts said the weakness reflects not only shareholder repositioning and a transition from wholesale to direct-to-consumer sales, but also broader changes in China’s economy. Moutai, once the largest listed company in mainland China by market capitalization from 2020 to 2023, has long been tied to government and business banquets, real estate-driven wealth and premium baijiu consumption. Fund manager Ye Yuhua said the shift away from real estate toward high-end technology means many participants in the newer economy are less inclined to drink baijiu, calling the saturation trend irreversible. China’s anti-corruption campaign and the property slowdown have also weighed on consumption. Even so, some investors continue to see business-specific support. Citi said sentiment may have bottomed after the state-fund exits from the top 10 shareholder list and maintained a buy rating, arguing the weak numbers were more about channel mix changes than soft demand. Morningstar likewise said direct-to-consumer sales likely distorted reported payment trends and kept Moutai as its preferred pick in the baijiu sector. Both firms pointed to the upcoming Mid-Autumn Festival, recent price hikes and a possible inventory shift into the third quarter as potential support for a second-half earnings pickup. Independent analyst Dongfang Li said Moutai’s role in business negotiations is diminishing, but its roughly 90% gross margin, profitability and stable dividend still make it attractive to institutional funds. Separately, Duan Yongping said on social media on Aug. 13 that he was willing to bet 100 million yuan over 10 years on holding Moutai versus any domestic fund.