Maotai’s stock price falls as results fall short of expectations, market value evaporates $60 billion in one day. (Photo source: Associated Press)
On Wednesday, Guizhou Maotai opened once fell nearly 4%, as of the close fell 2.5%, market value evaporated over 60 billion yuan compared to Tuesday.
In early trading on April 28, Guizhou Maotai shares opened sharply lower by 4%, once again approaching the round number mark of 2,000 yuan per share. As of midday closing, Guizhou Maotai reported 2021.78 yuan per share, down 3.47%.
China Fund News reported on April 28 that Maotai’s stock price plunged, and the results announced on the evening of April 27 were related.
On the evening of April 27, Guizhou Maotai disclosed its quarterly report for 2021, showing that the company’s quarterly revenue was 27.271 billion yuan, up 11.74% year-on-year; net profit was 13.954 billion yuan, up 6.57% year-on-year, less than market expectations. This is the first time in the past seven years, Guizhou Maotai’s first quarter net profit growth rate fell to single digits.
According to Shanghai Securities News on April 28, Guizhou Maotai has repeatedly performed the drama of “sharp low opening the day after the disclosure of regular reports” in recent years.
Statistics show that since the 2017 annual report, Guizhou Maotai’s share price has fallen 8 times on the next day after the disclosure of the last 13 regular reports, with a probability of falling by more than 60%.
On October 29, 2018, Guizhou Maotai’s share price suffered a “one-word drop” due to the three quarterly reports significantly less than expected.
Many investors believe that the record-high amount of taxes dragged down Maotai’s earnings performance. The income statement shows that Guizhou Maotai paid taxes and surcharges of 3.828 billion yuan in the first quarter, up 56.38% year-on-year; the tax and surcharge rate was 13.64%, an increase of 3.96 percentage points.
Guizhou Maotai said in its financial report, “The increase in taxes and surcharges is mainly due to the increase in sales of the company’s headquarters to the company’s holding subsidiary Guizhou Maotai Liquor Sales Co., Ltd. compared with the same period of the previous year, with a corresponding increase in consumption tax and its surcharges.”
According to the statement, in the first quarter of this year, Guizhou Maotai’s direct sales accounted for 17.54%, up from 7.95% in the same period last year.
Analysts said that self-operated channels at the external sales price of 1,499 yuan/bottle of 53-degree Flying Maotai and the wholesale price of social channels such as supermarkets and e-commerce after the release of the volume will increase the taxable price of 969 yuan/bottle of Flying Maotai ex-factory price originally given by Guizhou Maotai to traditional distributors, thus leading to an overall increase in consumption tax, which accounts for the bulk of the taxes and surcharges.
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