Leading Chinese liquor producer Kweichow Moutai Co. has posted slower net profit growth for 2012.

The company's net profit increased 51.86 percent year on year to 13.31 billion yuan ($2.12 billion) last year.

The growth rate is eye-catching but still much lower than the 73.49-percent increase seen in 2011, partly due to relatively weakened demand, affected by the Central Government's stricter control over spending on official banquets. Spirits made by the company are regarded as favorites at high-end government banquets paid for by the public purse.

Moutai forecasts a 20-percent profit growth this year. The company admits that its liquor supplies have surpassed demand in recent years and that fierce competition has started to diminish its profit margin.