Kweichow Moutai forecasts profit increase

Kweichow Moutai, China's leading liquor maker, said Friday that its net profits are expected to rise by 50 percent year on year in 2012.

In a statement filed to the Shanghai Stock Exchange, the Guizhou-based liquor maker attributed the projected profit increase to rising product prices and higher sales volume.

The company's net profits hit 8.76 billion yuan (1.39 billion U.S. dollars) in 2011, while earnings per share stood at 8.44 yuan.

Kweichow Moutai aims to generate 40 billion yuan in sales revenue by 2015, according to the company's projected sales figures. This figure is based on the company's goal of producing 40 million liters of Moutai liquor by 2015.

The company's shares fell 3.55 percent to open at 189 yuan on Friday morning.

Hit by a toxic substance scare and the government's escalating anti-corruption campaign, Kweichow Moutai, one of the country's most well-known premium alcohol producers, has seen its share prices fall over 9 percent since November.

The Shanghai Securities News reported earlier this week that Kweichow Moutai was the stock that fund managers sold off the most in 2012.