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on september 26, liquor stocks continued to rise. kweichow moutai's share price rose by 9.29% to close at 1,529 yuan per share, returning to the 1,500 yuan mark, with a turnover of 14.269 billion yuan and a total market value of nearly 2 trillion yuan. since september 24, kweichow moutai's turnover has exceeded 10 billion yuan for three consecutive days.

heavy buyback

on the evening of september 20, kweichow moutai issued an announcement:the company will use its own funds to repurchase shares, which will be used to cancel and reduce the company's registered capital. the repurchase amount shall not be less than rmb 3 billion (inclusive) and not more than rmb 6 billion (inclusive).the repurchase price is capped at rmb 1,795.78 per share (inclusive), the number of repurchased shares is between 1,670,583 and 3,341,164 shares, and the proportion of repurchased shares to the company's total share capital is between 0.1330% and 0.2660%. this is the first time that kweichow moutai has implemented a cancellation-style repurchase in its 23 years of listing, and it is also the second major announcement of kweichow moutai one month after it announced its three-year cash dividend plan.

the announcement also revealed that the controlling shareholder, actual controller, directors, supervisors and senior management have no plans to reduce their holdings in the company's shares in the next three months or the next six months.

"this time, kweichow moutai has put out real money to implement the repurchase and cancellation, which is a proactive response to investors' demands and a powerful measure to manage market value. on the one hand, it reflects substantial support and sharing of operating results; on the other hand, it consolidates the position of controlling shareholder, helps to enhance the value of moutai and increase shareholder returns, and promotes win-win results for all parties. this is the first time that kweichow moutai has implemented cancellation and repurchase in its 23 years of listing, and it has become another practical measure to create a benchmark for market value management." a relevant person in charge of kweichow moutai told a reporter from china securities journal.

after the share repurchase and cancellation, the company's share capital will be reduced. under the condition that the current profit and dividend ratio remain unchanged, financial indicators such as earnings per share, return on net assets per share, and dividends per share will increase, which will theoretically help increase distributable profits per share. "for enterprises, cancellation-style repurchases mean relatively higher costs." industry observers said that kweichow moutai's first implementation of cancellation-style repurchases not only set an example in market value management, but also helped stabilize the capital market.

cicc believes that moutai's pre-repurchased share cancellation is a multi-pronged approach to increase shareholder returns, increase actual returns and enhance confidence for long-term investors. in the long run, the leading liquor companies' operational capabilities will continue to improve and there is still room for them to increase their market share.

many well-known investors have expressed their confidence in moutai. on september 18, the well-known writer zijin chen posted his replenishment, adding two more positions, totaling about 636,000 yuan. duan yongping, a senior entrepreneur and investor who has long held moutai, also said on social media recently that "this may be an epoch-making event." the price of moutai has been changing, but its value has always been there. "looking back 20 years later, moutai should be much better than gold."

continuously optimize investor relations

"since the beginning of this year, kweichow moutai has continued to optimize investor relations through a combination of market value management measures, including strengthening the frequency of communication between senior executives and investors, implementing a three-year dividend plan and this repurchase and cancellation," said a relevant person in charge of kweichow moutai.

on september 23, kweichow moutai held an investor exchange meeting in shanghai. at the meeting, zhang deqin, chairman of kweichow moutai, said that moutai will strengthen the reform of the marketing system in the future, provide good product services, actively promote the "transformation from selling wine to selling lifestyles", deepen the transformation from "drinking with friends" to "drinking with friends", and "work hard" on innovating consumption scenarios. in terms of relations with relevant parties, zhang deqin said that as a state-owned enterprise,moutai will continue to abide by the principles of rule of law and marketization, find the "balance point" based on the needs and interests of all parties, and continue to create value returns for investors.this is the first time that kweichow moutai has communicated with investors again after holding an earnings briefing two weeks ago.

the fixed dividend ratio also gives investors peace of mind.as of now, kweichow moutai has distributed cumulative cash dividends exceeding 270 billion yuan, accounting for approximately 56% of its cumulative net profit since its listing.according to kweichow moutai's "2024-2026 cash dividend return plan", from 2024 to 2026, the total amount of cash dividends distributed by the company each year will not be less than 75% of the net profit attributable to the parent company in that year. in principle, dividends will be distributed twice a year, and the dividend yield will exceed 3.5%.

at the performance briefing on september 9, kweichow moutai's management made it clear that it would ensure that the annual 15% total operating revenue growth target would be achieved as scheduled. in the face of fluctuations in the liquor market this year, moutai's management has repeatedly stated that the basic attributes of moutai liquor have not changed, and the basic demand has not changed. over the past few decades, the liquor industry has undergone several rounds of adjustments. each time, moutai has smoothly crossed the cycle with strong determination and strength, and achieved better development. kweichow moutai has the confidence, strength, and ability to cross this cycle.