Date
23 August 2017

Guizhou Maotai in property venture as wine sales dip, paper says

China Guizhou Maotai Group Co. Ltd. unveiled its first property project — the Maotai International Business Center – in Guiyang city recently, after announcing plans to tap into the real estate market in late 2009, the National Business Daily reported Thursday. The business diversification came in the wake of slowing sales of the firm’s signature ‘baijiu’ liquor. For the 11 months to November 2013, the wine producer booked a net profit of 19.14 billion yuan (US$3.163 billion), up just 4.9 percent over a year ago, on revenue of 34.76 billion yuan, up 7.3 percent. It marks the significant slowdown compared to the growth rates of at least 40 percent two years ago. The new property project, which will boast total floor space of 179,000 square meters, is a 700 million yuan investment by the wine maker. In January 2012, Guizhou province had set a target for the Maotai firm to achieve 50 billion yuan in annual sales by end of the 12th Five-Year Plan Period, and 100 billion yuan by end of the 13th Five-Year Plan Period, the report said. China’s 12th plan period runs through 2015.

– Contact HKEJ at [email protected]

EL/AC/RC

 

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