(Yicai) Aug. 3 -- Chinese liquor giant Kweichow Moutai said net profit jumped nearly 21 percent in the first half of the year thanks to rising sales through direct channels.

Net profit was CNY36 billion (USD5 billion) in the six months ended June 30, the Zunyi-based company said in an exchange filing late yesterday. Revenue also jumped 21 percent to CNY69.6 billion. Both figures were higher than expected.

Between January and June, Kweichow Moutai had USD31.4 billion in sales through direct channels and CNY37.9 billion from wholesale and reseller channels, the firm noted, adding that the two numbers are evening up.

In the second half of 2018, Kweichow Moutai’s sales from direct channels stood at just CNY4.4 billion (USD615.2 million), so the baijiu maker made changes to buoy the figure. By 2020, direct-channel sales had exceeded CNY13.2 billion.

Since the end of August 2021, when Ding Xiongjun was named chairman, the company has stepped up efforts to boost sales through direct channels while weakening the sway of wholesalers.

Last year, direct sales revenue was CNY49.4 billion, making up 40 percent of all business revenue and more than doubling 2021’s total. Zheshang Securities expects direct sales to push past 50 percent this year.

Kweichow Moutai [SHA: 600519] closed little changed at CNY1,878.47 (USD261.48) a share in Shanghai today. The stock is up 8.8 percent since the end of last year. 

Editor: Shi Yi, Futura Costaglione