Moutai chairman warns of growth slowdown

Kweichow Moutai, the well-known Chinese liquor manufacturer, expects to see a slowdown in its growth rate this year, as a result of the central government's planned crackdown on spending and extravagance.

Yuan Renguo, Kweichow's chairman, said the company expects annual revenue of 41.6 billion yuan ($6.8 billion) by the end of 2013 — an 18 percent year-on-year rise, but still well down on its expected targets.

Yuan said the group's production capacity hit 33,000 tons last year, realizing total revenue of 35.2 billion yuan. It paid 11.5 billion yuan in tax, and exported $160 million worth of product.

According to the company's original targets, the group will realize its goal of 50 billion yuan sales by the end of 2015 and 100 billion yuan in sales by 2017.

Figures show the group produced 30,026 tons of Moutai liquor in 2011, a 14.2 percent rise, which generated sales of 23.7 billion yuan, up 52.2 percent.