Pursuits
China’s Liquor Giant Reveals Record Deliveries Without Cash
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China President Xi Jinping’s crackdown on corruption and extravagance has cut into demand for luxury goods throughout the economy. Now, the campaign is bruising the balance sheets of some of China’s biggest companies.
In the latest example, Kweichow Moutai Co., the $37.9 billion maker of a fiery liquor long used at political celebrations, has seen a spike in unpaid bills as distributors delay payments. Prices for Moutai have tumbled, cutting distributor profits and forcing them to buy on credit. Payments due to the company, what accountants call receivables, almost quadrupled at the end of September, the most recent quarter available.