Analysis of the Impact of Increased Proportion of Kweichow Moutai's iMoutai Platform and Direct Sales Channels on Gross Profit Margin

According to the latest data, Kweichow Moutai officially launched 500ml Feitian Moutai on the “iMoutai” platform starting January 1, 2026, a move that sparked strong market reactions. Data shows that within just 9 days of launch, the platform gained over 2.7 million new users, with transaction users exceeding 400,000 [1][2]. As of January 4, 2026, the iMoutai APP had risen to the top of the Apple App Store’s Free Shopping Chart, ranking 4th in the overall Free Chart [1].

The iMoutai platform has become the core growth driver of Moutai’s direct sales system since its launch in May 2022:

• 2022
  : Registered users exceeded 30 million, achieving sales revenue of RMB 11.883 billion
• 2023
  : Revenue of RMB 22.374 billion, a year-on-year increase of 88.29%
• 2024
  : Revenue of RMB 20.024 billion
• 2025 First Three Quarters
  : Revenue of RMB 12.692 billion
• As of the end of Q3 2025
  : Cumulative sales exceeded RMB 60 billion [1][2]

Kweichow Moutai’s direct sales channel revenue has shown rapid growth:

The launch of iMoutai directly drove the proportion of direct sales channels to jump from 22.7% in 2021 to 45.67% in 2023, with a slight decline to 43.87% in 2024 [1][2][3].

According to 2024 financial data, there are significant differences in gross profit margins between direct sales channels and wholesale channels [3]:

• Direct Sales Channel Gross Profit Margin
  : 95.33%
• Wholesale Channel Gross Profit Margin
  : 89.42%
• Gross Profit Margin Difference
  :
  5.91 percentage points

This difference mainly stems from profit redistribution brought by reduced channel layers. Under the direct sales model, Moutai does not need to cede channel profits to distributors, and the entire difference between terminal pricing and ex-factory price is included in the company’s gross profit.

Selling Feitian Moutai directly through iMoutai at the official guidance price of RMB 1,499 allows Moutai to increase profit by approximately RMB 330 per bottle compared to the traditional wholesale model (1,499-1,169) [1]. This means the logic of gross profit margin improvement through direct sales channels is clear and quantifiable.

Despite the increase in the proportion of direct sales, Kweichow Moutai’s overall gross profit margin has remained in the range of 91%-92%:

• 2021: 91.62%
• 2022: 91.87%
• 2023: 91.94%
• 2024: 91.50%
• 2025 Q3: 91.28%

The gross profit margin in Q3 2025 was 91.28%, a slight decrease of 0.14 percentage points compared to the same period last year, mainly affected by destocking and promotions during the industry adjustment period [4]. However, the 95.33% gross profit margin of direct sales channels is significantly higher than the 89.42% of wholesale channels. In the long run, the increase in the proportion of direct sales is expected to support the stabilization and recovery of the overall gross profit margin.

Chen Hua, Chairman of Moutai Group, stated that the core purpose of channel reform is to “do everything possible, make every effort to prevent price speculation, which is not only responsible to consumers, but also responsible to Moutai itself” [1][2]. By directly launching Feitian Moutai at the guidance price of RMB 1,499 through the official iMoutai platform, the arbitrage space for distributors and scalpers has been effectively compressed, promoting the return of market transaction prices to the official guidance price.

Moutai is building a “pyramid” product system:

• Base
  : Classic Series (Feitian Moutai)
• Middle
  : Premium Moutai, Chinese Zodiac Series
• Top
  : Vintage Series, Cultural Series
• Supplement
  : Low-alcohol Series

Meanwhile, Moutai has clarified the channel division logic of “online manages efficiency and reach, offline manages conversion and service”, forming an online-offline integrated, consumer-centric channel ecosystem [2].

On December 28, 2025, Moutai announced that starting from 2026, it will no longer use the “distribution method” to wholesale non-standard products to downstream, which is regarded as a major change to the traditional distributor model. Moutai emphasized that the distributor system is still an important force, but the business method needs to shift from “selling to the next tier” to “serving consumers” [1][2].

Based on existing data, the impact of increased direct sales channel proportion on Kweichow Moutai’s financial performance can be analyzed from the following dimensions:

1. Optimization of Revenue Structure
   : For every 1 percentage point increase in the proportion of direct sales channels, it is expected to bring about RMB 700-800 million in incremental revenue (calculated based on 2024 revenue)

2. Gross Profit Margin Improvement Space
   : With a 5.91 percentage point difference in gross profit margin between direct sales and wholesale channels, if the proportion of direct sales increases from the current 44% to 50%, the overall gross profit margin is expected to increase by approximately 0.5 percentage points

3. Profit Thickening Effect
   : Based on the 2.7 million new users and 400,000 transaction users after the launch of iMoutai, assuming each user purchases an average of 2 bottles of Feitian Moutai, it can bring about RMB 120 million in direct sales revenue, corresponding to approximately RMB 110 million in gross profit

1. Short-term Performance Pressure
   : In the first three quarters of 2025, revenue increased by 6.36% year-on-year, and net profit attributable to parent company increased by 6.25% year-on-year, both hitting a new low in the past 11 years [3]
2. Channel Conflicts
   : The expansion of direct sales may trigger interest games with traditional distributors
3. Price Control
   : The price of loose-bottle Feitian Moutai is stable at RMB 1,550 per bottle. Balancing direct sales volume expansion and price stability is a key challenge
4. Supply Restrictions
   : Moutai emphasized that the operation of iMoutai will not increase the total supply, only adjust the channel launch rhythm

Kweichow Moutai’s increase in the proportion of direct sales channels through the iMoutai platform has a significant positive impact on gross profit margin. The 95.33% gross profit margin of direct sales channels is nearly 6 percentage points higher than the 89.42% of wholesale channels, and each bottle of Feitian Moutai can create approximately RMB 330 in additional profit through direct sales. With the launch of Feitian Moutai on iMoutai and the influx of 2.7 million new users, Moutai’s channel reform is reshaping the value distribution chain, which is expected to support the stabilization and recovery of gross profit margin and strengthen profitability in the long run.

[1] In-Depth: iMoutai Restructures Kweichow Moutai - Sina Finance/Interface News (January 12, 2026)

[2] “Regular Feitian” Launched on “iMoutai” for 9 Days, Transaction Users Exceed 400,000! Chen Hua, Chairman of Moutai Group, Interprets It This Way - Sina Finance/NBD (January 10, 2026)

[3] iMoutai’s Parity Feitian “Sold Out in Seconds” for Consecutive Days, Moutai’s New Year Marketing Reform Restructures Channels - The Paper (January 2026)

[4] Why Moutai, Which Could Make Money Lying Down, Is Saying Goodbye to Distributors Completely? - NetEase Finance/BT Finance (January 7, 2026)

[5] Feitian Moutai Launched on iMoutai, Can New CEO Chen Hua’s Bet on “Marketization” Turn the Tide? - Tencent News/Zhentan Finance (January 5, 2026)