Kweichow Moutai Appoints Guizhou Energy Bureau Chief as Fourth Chairman in 5 Years

Select Language:

Kweichow Moutai has appointed Chen Hua, the director of the Guizhou Provincial Energy Bureau, as its fourth chairman in the past five years. The previous chairman, Zhang Deqin, has stepped down and will be replaced by Chen, according to an internal announcement made on October 25. The company did not specify the reasons for the leadership change.

Born in 1972, Chen has held managerial roles at several state-owned enterprises and has experience working within the local government of southwestern Guizhou Province. However, he does not have prior experience in consumer goods companies. He was appointed as the general manager of Panjiang State-Owned Capital Operation in 2017 and became director of the Guizhou Provincial Energy Bureau in 2022.

This leadership change might allow the company to better navigate current macroeconomic shifts, especially amid ongoing adjustments within the liquor industry and the persistent decline in baijiu prices, according to Cai Xuefei, the general manager of Zhiqu Marketing.

The new chairman will face numerous challenges, including stabilizing the prices of flagship products, maintaining good relationships with sales channels, and managing larger sector reforms. Cai emphasized that Chen’s immediate priorities should include halting the downward trend in product prices and restoring confidence among distributors.

Industry insiders expressed surprise over Zhang’s departure, noting that he assumed the chairmanship in April of the previous year and had spent most of his career at the Zunyi-based company. During his leadership, Zhang implemented measures that helped stabilize the company’s operations to some extent.

In the first half of this year, the company’s net profit increased by 8.9 percent compared to the previous year, while operating revenue grew by 9.2 percent. Despite these gains, Chinese distillers are facing difficulties due to declining demand for baijiu, as newer generations of consumers show less interest in strong spirits.

Additionally, the company’s reputation has been marred by corruption scandals among its leadership. Since 2011, three chairmen have been investigated for corruption—Yuan Renguo and Gao Weidong received life sentences, and Ding Xiongjun’s case remains under investigation.