---
title: "Former Chairman Yuan Renguo Removed from Provincial CPPCC Positions; Kweichow Moutai Distributor Reshuffle Continues"
description: "On May 5, 2019, according to Guizhou Radio and Television's \"Dynamic Guizhou\" report, the 10th meeting of the Standing Committee of the 12th Guizhou Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) decided to remove Yuan Renguo from his positions as Standing Committee member, Deputy Director of the Economic Committee, and member of the Provincial CPPCC. Previously, on May 11, 2018, the listed company announced that Yuan Renguo had stepped down as Chairman, Director, and legal representative of Moutai Group."
author: "梅岭"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2019-05-06"
language: "en"
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# Former Chairman Yuan Renguo Removed from Provincial CPPCC Positions; Kweichow Moutai Distributor Reshuffle Continues

> On May 5, 2019, according to Guizhou Radio and Television's "Dynamic Guizhou" report, the 10th meeting of the Standing Committee of the 12th Guizhou Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) decided to remove Yuan Renguo from his positions as Standing Committee member, Deputy Director of the Economic Committee, and member of the Provincial CPPCC. Previously, on May 11, 2018, the listed company announced that Yuan Renguo had stepped down as Chairman, Director, and legal representative of Moutai Group.

On May 5, 2019, according to Guizhou Radio and Television's "Dynamic Guizhou" report, the 10th meeting of the Standing Committee of the 12th Guizhou Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) decided to remove Yuan Renguo from his positions as Standing Committee member, Deputy Director of the Economic Committee, and member of the Provincial CPPCC. Previously, on May 11, 2018, the listed company announced that Yuan Renguo had stepped down as Chairman, Director, and legal representative of Moutai Group.

Image source: VCG

Since Yuan Renguo stepped down as Chairman of Moutai Group, Kweichow Moutai (600519.SH) shares have risen 49.42%, with the highest price reaching 990 yuan per share. In terms of performance, after the leadership change, Kweichow Moutai disclosed its 2018 annual report on March 28. During the period, Kweichow Moutai achieved operating revenue of 73.639 billion yuan, a year-on-year increase of 26.49%; net profit attributable to shareholders of the listed company reached 35.204 billion yuan, up 30% year-on-year; net cash flow from operating activities was 41.385 billion yuan, an increase of 86.82% compared with the same period last year.

In 2018, Kweichow Moutai achieved basic earnings per share of 28 yuan per share, up 30% year-on-year from 2017. In terms of cash dividends, Kweichow Moutai plans to distribute a cash dividend of 145.39 yuan per 10 shares, with a total proposed cash distribution of 18.264 billion yuan (including tax).

According to public information, Yuan Renguo, now 63, joined the Kweichow Moutai Distillery in 1975 and has worked at Moutai for 43 years. He concurrently served as Chairman of Kweichow Moutai Co., Ltd. from 2000 to 2011, and has served as Chairman of Kweichow Moutai for 18 years. On the evening of May 6, 2018, Li Yifei, member of the Standing Committee of the Guizhou Provincial Party Committee and head of the Organization Department, convened a cadre meeting at Moutai Group and announced the provincial party committee's decision: **to nominate Li Baofang, Party Secretary and General Manager of Moutai Group, as the candidate for Chairman of Moutai Group.**

Li Baofang was appointed as Party Secretary and General Manager of Moutai Group and General Manager of the joint-stock company in August 2015. Before joining Moutai, he served as Party Secretary and Director of the Guizhou Provincial Economic and Information Technology Commission (at the department level), and previously as a member of the Standing Committee of the Liupanshui Municipal Party Committee, Deputy Party Secretary and Executive Deputy Mayor of the Municipal Government, and Secretary of the Political and Legal Affairs Committee.

After the leadership change, Kweichow Moutai implemented a series of reforms in 2018, the most prominent being: in 2018, Kweichow Moutai reduced its number of distributors by 437: **starting from the second half of 2018, Kweichow Moutai gradually cut some distributors, converting the extra quotas to direct sales, and meeting market demand through online and supermarket direct supply.** This is reflected in the financial report: during the period, direct sales achieved operating revenue of 4.375 billion yuan, a year-on-year decrease of 29.95%; wholesale achieved operating revenue of 69.189 billion yuan, a year-on-year increase of 33.26%.

According to previously released announcements on production and operation and the 2019 Moutai liquor sales plan, the company plans to increase total operating revenue by 14% in 2019, with the 2019 Moutai liquor sales plan set at approximately 31,000 tons. Among this, the distributor system is based on 17,000 tons, with no increase or decrease, mainly for Feitian Moutai; the remaining 14,000 tons are allocated to ordinary Feitian Moutai and non-standard Moutai (zodiac, vintage, and premium).

Recently, Kweichow Moutai released its 2019 first-quarter report. During the period, the company achieved total operating revenue of 22.481 billion yuan, up 22.21% year-on-year, and net profit attributable to the parent company reached 11.221 billion yuan, up 31.91% year-on-year. According to a research report by Tianfeng Securities: by product, Moutai liquor achieved revenue of 19.498 billion yuan, up 23.68% year-on-year, mainly due to increased placement of non-standard products leading to higher tonnage prices; series liquor achieved revenue of 2.132 billion yuan, up 26.30% year-on-year, continuing its high growth trend.

By channel, direct sales achieved revenue of 1.092 billion yuan, wholesale achieved revenue of 20.538 billion yuan, with direct sales accounting for 5% of revenue. During the reporting period, the number of distributors decreased by 533, mainly due to the company's optimization of marketing layout and enhancement of overall distributor strength, leading to the cleanup and elimination of some sauce-flavored series liquor distributors.

In the first quarter of 2019, Kweichow Moutai reduced its number of distributors by 533, a decrease of 17.8%, with Moutai liquor and sauce-flavored series liquor distributors decreasing by 39 and 494, respectively. Given the current trend, the reshuffle of Moutai distributors is likely to continue.

Source: Jiemian News (ID: wowjiemian)

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