Abstract

Baijiu has always been a beloved and enduringly popular beverage in China, with Kweichow Moutai standing as a leader in the Chinese Baijiu industry. To assess the company comprehensively, an in-depth financial analysis is warranted. This study delved into three critical aspects disclosed in Kweichow Moutai's annual report - revenue recognition, fixed assets, and construction in progress - to evaluate the reasonableness of the company's accounting practices. Moreover, an exploration of the company's market performance was conducted by calculating the key financial indicators within four domains: liquidity, solvency, profitability, and investment analysis. While Kweichow Moutai exhibits some slight accounting deficiencies, the overall accounting practices remain clear and compliant with international standards. Furthermore, the company's market performance is highly favorable. Combined with insights from leading research institutions, the study concludes that Kweichow Moutai stands as an attractive investment option, supported by its impressive market performance and compliance with established accounting norms.

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