Zhang Yongyong Appointed Chairman of Fenjiu Sales Company: What Challenges Lie Ahead?

Deep News11-25

Zhang Yongyong has officially taken over as Chairman of Fenjiu Sales Company, a subsidiary of Shanxi Xinghuacun Fenjiu Distillery Co., Ltd. (Shanxi Fenjiu). The announcement was made in the company's notice regarding the Q3 2025 earnings briefing, where Zhang was listed among key management attendees.

**A Veteran Leader in Fenjiu’s Revival** At 52, Zhang Yongyong boasts over 30 years of experience at Fenjiu, having held pivotal roles across sales and marketing. His career trajectory includes leadership positions such as Deputy General Manager of Fenjiu Sales Company, Director of the Fenjiu Marketing Center, and Chairman of Shanxi Xinghuacun Zhuyeqing Industry Co. Currently, he serves as Vice President of Shanxi Fenjiu and Chairman of Fenjiu Sales Company.

Zhang’s tenure aligns with Fenjiu’s resurgence. He spearheaded the brand’s nationwide expansion, boosting non-Shanxi market share to over 62%. Notably, he drove the "Blue & White Fenjiu" series to sales exceeding ¥12 billion and ¥15 billion in 2022 and 2023, respectively, with mid-to-high-end products generating ¥26.53 billion in 2024. His compensation—¥3.02 million in 2024, nearly triple that of Fenjiu Group’s Chairman—underscores his strategic importance.

**Navigating a Triple Challenge** Amid industry-wide headwinds—policy shifts, consumption downgrades, and intensified competition—Shanxi Fenjiu’s Q1-Q3 2025 revenue grew 5% YoY to ¥32.92 billion, but challenges persist:

1. **Inventory Pressure**: Fenjiu’s inventory reached ¥13 billion by Q3 2025, with turnover days up 8.23% YoY to 425.73 days, signaling slower digestion. 2. **Dealer Confidence Erosion**: The dealer network shrank by 194 to 4,359, while contract liabilities (advances) plummeted 33.34%, reflecting channel hesitancy. 3. **Premiumization Hurdles**: Fenjiu’s per-ton price lags behind rivals like Moutai and Wuliangye. Zhang must elevate brand equity to compete in the ¥1,000+ segment and fortify Fenjiu’s position among the "Big Three Aromas" (sauce, strong, and light aroma).

As Zhang steps into his expanded role, his ability to tackle these challenges will shape Fenjiu’s next chapter.

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