In June 2024, Jinling Hotel Corporation (601007) appointed Bi Jinbiao as its chairman with a three-year term set to expire in June 2027. However, after just one and a half years in the role, Bi announced his resignation due to work-related changes.
Despite its name, Jinling Hotel primarily derives its revenue from liquor distribution. Its subsidiary, Jiangsu Sutang Wine & Food Co., Ltd. (Sutang), holds distribution rights for premium brands like Kweichow Moutai (600519) and Wuliangye Yibin (000858) in Jiangsu province. With the ongoing downturn in liquor consumption, Jinling's liquor business has faced increasing challenges.
The company's core operations include hotel investment and management, complemented by commercial complex operations, liquor trading, and property management. By H1 2025, Jinling had signed contracts for 229 chain hotels. During this period, hotel services contributed RMB 260 million (30% of revenue), while commodity trading—primarily liquor distribution—generated RMB 480 million (56%).
Sutang, ranked as Jiangsu's top liquor distributor, saw its revenue surpass RMB 1 billion in 2023 with RMB 50 million net profit. However, 2024 brought a 30% profit decline to RMB 36.71 million despite slight revenue growth. H1 2025 results showed further deterioration: revenue fell 10% to RMB 470 million, while profits halved to RMB 8.13 million.
Gross margins tell a similar story: dropping from 18% to 10.6% in 2023, then to 8.3% in 2024, and just 7% in H1 2025. Liquor trading's profit contribution to Jinling fell from 30% in 2022 to 15% in H1 2025. Consequently, Jinling's net profit hit three-year lows: RMB 33.26 million in 2024 (down 45.8% YoY) and RMB 40.07 million for the first three quarters of 2025 (down 7.9% YoY).
Bi Jinbiao, previously an executive at state-owned Suhao Huihong (600981), became chairman in December 2023. His tenure lasted under two years—far shorter than his predecessors' nine-year terms. Following his departure, President Zhang Shengxin assumed interim chairman duties.
Since 2019, Jinling has seen frequent leadership changes. Zhang became the fourth president since 2019 when formally appointed in January 2024, succeeding three short-lived predecessors. With Bi's exit, the company faces another major executive reshuffle.
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