BEIJING -- Leading Chinese liquor producer Kweichow Moutai Co has posted surging but slower net profits growth for 2012.

The company's net profits increased 51.86 percent year on year to 13.31 billion yuan ($2.12 billion) last year, according to an annual financial report filed with the Shanghai Stock Exchange on Friday.

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 banquets,especially that paid for by government budgets which play an important role in Chinese people's social activities.

The company's annual business revenue increased 43.76 percent from one year earlier to 26.46 billion yuan while earnings per share stood at 12.82 yuan.

Moutai forecast a 20-percent profits growth for this year, with the company already having been been troubled by overstocking due to rapid business expansion.

It also admitted that liquor supplies have surpassed demand in China in recent years, and fierce competition has started to contract the company's profit margin.

The A-share price of the liquor maker closed at 168.86 yuan per share on Friday, up 1.22 percent from the previous close.