LIQUOR giant Kweichow Moutai Co.’s net income rose 13 percent in the first half of 2020 as China’s recovering economy boosted demand for its ultra-premium line of baijiu, China’s national drink, although growth has not yet returned to pre-pandemic levels.

Earnings for the first six months of the year was 22.6 billion yuan (US$3.2 billion), the company said in a statement to the Shanghai Stock Exchange on Tuesday.

Revenue for the period jumped 11 percent to 45.6 billion yuan. For the comparable period a year ago, it reported a 26 percent rise in net income and 17 percent rise in revenue.

Moutai has shown exceptional resilience in the past few years, making it an investor darling and China’s biggest stock. Demand for its fiery baijiu — scarce in supply and highly coveted by the Chinese elite — has survived a local economic slowdown, U.S.-China trade tensions, and more recently, the coronavirus pandemic.

The baijiu maker saw buoyant first quarter earnings when the virus was spreading in China during that period, forcing the government to impose strict social distancing measures including a lockdown in some places and a ban on all public gatherings.

There are signs, however, that the liquor maker may be facing pressure over its high prices. Moutai saw a record US$25 billion wipeout in its market valuation July 16 after the People’s Daily took aim at its price tag, saying that the alcohol is often used in corruption cases.

The distiller, which makes baijiu out of sorghum and wheat, could see demand weaken in the usually buoyant autumn months if Chinese consumers shun socializing amid resurgences of the coronavirus outbreak.

China’s new cases of infection this week were the most in over four months as the country battles outbreaks in its northeastern and western regions. (SD-Agencies)