In the first half of 2012, 14 listed Chinese white spirit companies earn a profit of 19.7 billion yuan with average gross profit margin of 66.62%.

The total turnover of the 14 listed companies is 55.1 billion yuan, increasing by 46.26% year-on-year.

In longitudinal comparison, the total profit made by 30 listed wine companies in China is 22.4 billion yuan, in which, profit made by white spirit companies takes 88.3%.

Despite the gratifying overall profit, most profit is divided up by a few of liquor oligarchs. Particularly, Guizhou Moutai and Wuliangye, who are respectively, earned 6.99 billion and 5.046 billion yuan with a net profit growth rate of 42.56% and 50.07%, together takes 60.8% of the overall profit made by the 14 listed companies.

However, the staying power of white spirit industry is in doubt.

According to an analyst from Zhejiang province, it was prevailing a few years ago to rise prices of high-end Chinese white spirits. This year, however, has seen the decrease of prices of these spirits. For example, the price of 53 degree Apsaras Moutai has dropped to 1700 yuan per bottle, decreasing by 20% compared to the highest price point.Consequently, the price reduction at the terminal sales would probably compress the future gross profit margin of white spirits and eventually influence the growth of these white spirits' shares.