Moutai's main drive for transformation in Moutai will promote the upgrading of the product structure and demonstrate a decisive change in strategy.

Euan McLeish+81 3 5962 9611Hao Wang, CFA+852 2123 2627 APAC Food & Beverages Kweichow Moutai Co Ltd Rating Price Target 600519.CH 2,000.00 CNY Moutai's major i-Moutai pivot driving mix upside anddemonstrating decisive change in strategy Close Date according to last night’s official WeChat post. This implies that up to 4,290 tons of regular 600519.CH Close Price (CNY)1,427.00Price Target (CNY)2,000.00Upside/(Downside)40%52-Week Range1,657.99/1,322.01ASIAX1,707.21FYEDecDiv Yield3.6% Fetien were sold in the month (Exhibit 1), just over 9% of the total amount of Fetien sold in2024 as a whole. We estimate that full year 2026 i-Moutai sales of 500ml Fetien could reach20-36m tons or 43-77% of total Fetien volumes, assuming a moderated release rate for therest of 2026. If all incremental i-Moutai Fetien volumes are re-allocated from the distributorchannel, this will translate into a 7.6% -13.6%pts of overall Moutai revenue upside in 2026 12 bottles per day, but this was swiftly reduced to 6 bottles. Daily i-Moutai active users have spiked from c. 2m to 10-12m (Exhibit 6), and we have still been unable to successfullyprocure the product. Combined with the healthy Fetien channel margins (see Moutai'snew RTM - taking control of the value chain) and improving wholesale price (Exhibit 7), thisapparent i-Moutai scarcity indicates that demand for regular Fetien remains strong. The pace The Fetien ex-factory price via i-Moutai is c. 28% higher than the Distributor channel, so weexpect this channel pivot to drive significant positive mix. We are currently modeling c. 40%of regular Fetien sales being made via i-Moutai in 2026, and last night’s release significantpotentially significant incremental channel mix upside. 600519.CH (CNY)68.6470.04 DETAILS EXHIBIT 5:We are currently modelling overall flat Fetien sell in volumes yoy with i-Moutai sales accounting for40% of total for the full year … the January run rare suggests that there could be upside to this estimate