According to Cai Lian She on November 27 (Reporter Zhu Wanping), at the first temporary shareholders' meeting of Kweichow Moutai (600519.SH) for 2024 held this afternoon, the company's mid-term dividend plan and share buyback plan were approved. This means that the company may start the buyback as early as tomorrow, with a buyback amount of 3 billion to -6 billion yuan, which will support Moutai's relatively weak stock price.

Cai Lian She reporters observed at the scene that the number of attendees at this temporary shareholders' meeting was significantly reduced compared to the annual shareholders' meeting held in May this year, with only about 300 people present. The shareholder communication session was set up quite simply, and the communication time was also short, with the company's management only answering three questions related to channel construction and internationalization.

At the meeting, an analyst from GF Sec stated that Moutai liquor seems to be not as popular as in previous years; how will Moutai "ease difficulties"? She cited an example during her questioning, saying, "Last week, a major dealer in Shanghai proactively sent me a message asking if I wanted a 100ml small Moutai. This is probably the first time in my 10 years in the industry that a dealer proactively contacted me to ask if I wanted to buy liquor."

In response, Kweichow Moutai's general manager Wang Li stated that currently there is no need for Moutai to "ease difficulties," and the issue facing Moutai is how to achieve supply and demand matching. Wang Li believes that the basic demand for Moutai liquor has not changed, and in the future, the company should first consider increasing consumer reach before addressing the conversion issue.

In terms of increasing consumer reach, the company proposed to build a "4+6" channel system. Among them, in self-operated channels, the construction of private domain channels will be further strengthened in addition to self-managed stores, i Moutai, and group buying; in the dealer channels, in addition to strengthening the traditional dealers, supermarkets, e-commerce channels, dining channels, tobacco channels and other six channels, it should also consider the advantages and disadvantages of these channels, how they can complement each other, and how to improve conversion rates.

In Wang Li's view, many Moutai shareholders are potential customers of the company and belong to private domain traffic, which has potential for exploration in the future. At this shareholders' meeting, Moutai also provided attendees with a small benefit; at the self-managed store located in the meeting venue—hk&s hotels, shareholders can purchase the Year of the Dragon Moutai zodiac liquor and 1L bottles of Moutai at the market guide price (2499 yuan/bottle) with their ID cards, with a maximum purchase of one box per person.

Currently, the actual market price of the Year of the Dragon Kweichow Moutai zodiac liquor is not much different from its market guidance price, with almost no premium space. However, on the iMoutai APP platform, ordinary users applying for the Year of the Dragon Kweichow Moutai zodiac liquor at the guidance price still have a very low winning rate, less than 1%. The Financial Association reporter noted on site that despite the lack of premium, many shareholders chose to purchase boxes of 'Dragon Moutai' and 1L bottles of Moutai liquor for considerations such as 'authenticity'.

Regarding the issue of internationalization, Wang Li stated that the company plans to implement its global strategy through 'six systems', including branding, regulations, products, channels, pricing, and sales policy systems, with the goal of becoming an international company by 2035.

During this shareholders' meeting, the Financial Association reporter communicated with several company shareholders, and one of their major concerns was the company's earnings guidance for next year. Some pessimistic shareholders believe the company's earnings growth rate will drop to single digits next year; while some shareholders believe that even if the company's earnings growth slows down next year, it can still achieve at least double-digit growth. Last year and in the first three quarters of this year, Kweichow Moutai's net income growth rates were 19.16% and 15.04%, respectively.

As of November 27, the sse composite index has risen by 11.26% this year, while the stock price of Kweichow Moutai has dropped by 10.39%. Both the company's stock price and liquor price have declined this year. Currently, Kweichow Moutai is choosing to support its stock price through share repurchases and increased dividends, which has received positive feedback from investors. Regarding liquor prices, the company has also implemented measures multiple times this year to maintain the stability of Moutai liquor prices.

However, Yang Delong, chief economist at Qianhai Kainuo, who has been keenly monitoring Kweichow Moutai, suggested in an interview with Financial Association reporters that the company's major shareholder, Kweichow Moutai Group, could consider using a special shareholding loan for increasing shareholding. Currently, Kweichow Moutai has a dynamic dividend yield of approximately 3.29%, while the interest rate for special shareholding loans is generally not more than 2.25%. If Kweichow Moutai Group chooses to increase its shareholding at this time, the dividends it receives each year could cover the financing interest.

Yang Delong believes, 'If the major shareholder Kweichow Moutai Group could use a special shareholding loan for increasing shareholding, it would greatly enhance investors' confidence.'