Employees display products at the exhibition booth of Kweichow Moutai Co during the 8th China (Guizhou) International Alcoholic Beverage Expo starting on Sunday in Guiyang, capital of Southwest China's Guizhou Province. On the opening day, nearly 10,000 visitors lined up in front of Moutai's booth to buy liquor. Each customer was limited to purchasing four bottles at a price of 1,500 yuan ($219) per bottle. Photo: IC

Kweichow Moutai announced a target of double digit revenue growth for 2020 despite the blow from the coronavirus pandemic, said Chairman Gao Weidong.

Gao said during the company's 2019 shareholder meeting on Wednesday that the company plans to achieve 10 percent growth in sales revenue in 2020. It also plans to invest 5.37 billion yuan in capital construction this year, he disclosed. 

Veteran food industry analyst Zhu Danpeng told the Global Times that it would be easy for Moutai to achieve the 10 percent growth as Moutai is often considered more of a financial product than merely a liquor by consumers, thus fueling market demand. 

Moutai announced the growth target at a time when China's consumption sector is still on its way back to full recovery after taking a serious blow from the coronavirus outbreak, with many restaurants and shops being forced to close down for weeks due to restrictions on outdoor activities.

According to Gao, Moutai has encountered some problems with logistics and purchasing, but the company is confident that it can mitigate the impact from the pandemic. 

"We always believe in the resilience and momentum of the Chinese economy. We don't think the Chinese economy's long-term positive trend will be affected by the coronavirus, nor will Moutai adjust its 2020 growth target as a result of the pandemic," he said.  

Gao also noted that the company has more than fulfilled its sales task considering the business performance in the first quarter.  

Kweichow Moutai saw revenue grow by 12.76 percent to 24.4 billion yuan ($3.45 billion) in the first quarter, while its net profit rose by 16.69 percent to 13.09 billion yuan. The company saw its revenue grow 16.01 percent to 85.4 billion yuan in 2019. 

Kweichow Moutai's share price went through some rises and falls in January and February but started a steady climb in the middle of March, reaching 1,423.66 yuan per share on Wednesday, compared with 1,165 yuan two months ago. 

Zhu said that the problem with Moutai is not market demand or brand image, but insufficient production capacity, adding that the company might have intentionally suppressed its sales revenue growth target to give more room for its "Great Moutai" strategy. 

The strategy involves integration of Moutai with the cultural and manufacturing resources of spirits in Southwest China's Guizhou Province, according to media reports. 

About 450 shareholders attended Moutai's 2019 shareholder meeting held in the Renhuai Maotai Hotel on Wednesday.