(Yicai Global) Oct. 17 -- Kweichow Moutai’s profit and revenue expanded at the quickest clip in more than three years in the first nine months as the leading Chinese liquor maker’s strong emphasis on a direct sales model with a higher profit margin pays dividends.

Kweichow Moutai’s net profit surged 19.1 percent in the nine months ended Sept. 30 from the same period last year to CNY44.4 billion (USD6.2 billion), according to the company’s latest earnings report released yesterday. While revenue soared 16.7 percent to CNY87.2 billion (USD12.1 billion).

Although no reasons were given for the growth spurt, the robust earnings can most likely be attributed to Kweichow Moutai’s direct sales drive, which includes self-operated brick-and-mortar outlets and a new digital retail platform, iMoutai.

The distiller’s direct sales more than doubled in the first three quarters from a year ago to CNY31.9 billion (USD4.4 billion), accounting for over a third of total revenue, the report said. While wholesales slumped 8 percent to CNY55.1 billion.

iMoutai, which only started trial operations at the end of March, accounted for more than a quarter of the Zunyi, southwestern Guizhou province-based firm’s takings from direct sales channels in the first three quarters, raking in CNY8.5 billion (USD1.1 billion).

In the third quarter, Kweichow Moutai logged a 15.8 percent leap in net profit to CNY14.6 billion (USD2 billion) while revenue soared 15.6 percent to CNY29.5 billion.

Many Chinese distillers are predicting bigger profits. Shanxi Xinghuacun Fen Wine Factory, for instance, is anticipating net profit to surge 42 percent in the first nine months from a year ago, while Jiangsu Yanghe Brewery forecasts a 26.5 percent jump.

Unaffected by the news, Kweichow Moutai’s stock price [SHA:600519] dipped 1.1 percent today to close at CNY1,718.50 (USD238).

Editor: Kim Taylor