The profitability of Chinese baijiu makers recovered last year, according to a report published by the World Alcoholic Beverage Alliance on Monday.

The gross margin of baijiu, or "white liquor," producers' main business grew to 33.1 percent in 2015 from 32.1 percent in 2014, said the Development Report of Global Alcohol Industry of 2016, which was issued at the ongoing International Alcoholic Beverage Expo held in Guiyang, capital of southwest China's Guizhou Province.

Their net profit margin increased to 14.85 percent from 13.68 percent in 2014, said the report.

However, the industry's sales revenue dropped to around 512 billion yuan (US$76.5 billion) from 528 billion yuan in 2014.

China's baijiu producers have experienced a downturn since 2012 due to a national frugality campaign restricting government spending on banquets. In 2012, the industry's gross margin stood at 37.9 percent.

The producers have tried to cope with the challenge by diversifying products and embracing e-commerce.

Several baijiu giants reported remarkable sales growth this year. Among them, Kweichow Moutai, dubbed the "national liquor," saw its January-August net profits rise nearly 6.7 percent year-on-year to 16.4 billion yuan.

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