Amidst stock price fluctuations and a low-price controversy, Kweichow Moutai's newly appointed chairman, Chen Hua, made his highly anticipated debut at the company's shareholders' meeting.
On November 28, Kweichow Moutai held its first interim shareholders' meeting of 2025 at the Moutai International Hotel in Moutai Town. The event drew around 260 shareholders in attendance, marking Chen Hua's first official appearance as the newly appointed Party Secretary and Chairman of Kweichow Moutai Group, a key moment in his first month in office.
The meeting reviewed and approved six proposals, including the "Election of Directors Proposal" and the "2025 Interim Profit Distribution Plan." However, the market's primary focus remained on how the new leader would steer the company through the industry's cyclical challenges.
**First Month in Office** Chen Hua took the helm as the liquor industry entered a phase of structural adjustment, with companies facing pressures such as high channel inventory and price inversions. The sector has fully transitioned into an era of "stock competition."
Chairman Chen acknowledged the challenges, stating, "Problems and difficulties objectively exist, and no liquor company, including Moutai, can avoid them." However, he emphasized that these issues are not insurmountable, noting that "crisis and opportunity often go hand in hand." He expressed confidence in Moutai's prospects, citing China's vast domestic demand, the liquor industry's deep-rooted strengths, and Moutai's inherent resilience.
In his first month, Chen Hua conducted internal assessments and external engagements with efficiency. He visited key subsidiaries, including Moutai's sales company, sauce-flavor liquor company, and health liquor business, and participated in the inauguration of Kweichow Moutai's biotech R&D company. His activities highlighted three priorities: corporate foundation, industrial ecosystem, and social responsibility. Ahead of the shareholders' meeting, Chen also held small-group discussions with investors, with one shareholder describing him as "down-to-earth."
**Addressing the Low-Price Controversy** Recent discounts on Moutai products on Douyin (China's TikTok) sparked market concerns. During the "Double 11" shopping festival, some merchants sold Feitian Moutai at prices as low as 1,288 yuan—below wholesale rates—leading to widespread delistings of third-party product links.
In response, Kweichow Moutai Vice President Zhang Xu stated that the company maintains an open stance toward emerging sales channels, "neither outright rejecting them nor allowing unchecked expansion." Zhang revealed that Moutai is actively developing an e-commerce strategy, exploring ways for traditional distributors to operate compliantly on online platforms. After multiple rounds of discussions, the initiative is expected to launch next year.
**Beyond Short-Term Metrics** Chen Hua outlined Moutai's future direction, stressing adherence to the "Four Subordinations": production, cost, profit, and speed must all align with quality.
"We will not prioritize short-term gains at the expense of long-term development, force targets against market logic, or harm the interests of investors, distributors, or consumers," Chen affirmed.
Acting General Manager Wang Li added that product distribution would be adjusted based on market conditions, with maintaining channel resilience and market stability as top priorities.
**Five Strategic Pillars** Chen Hua detailed Moutai's roadmap across five dimensions: strengthening quality foundations, advancing marketing transformation, enhancing cultural branding, driving corporate evolution, and implementing ESG principles.
For marketing transformation, Moutai will adopt a consumer-centric approach, integrating channels and accelerating digitalization. Chen pledged to make purchasing Moutai products more convenient, efficient, and authentic, addressing long-standing accessibility issues.
To navigate industry cycles, Moutai will adopt a "dual-track, integrated development" strategy: stabilizing its core liquor segment while improving the resilience of its series liquor business. Chen vowed to build a company that "delights consumers, inspires employee pride, earns shareholder trust, fosters partner success, and garners societal recognition."
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