AGSW(SH:600199) Jin Rong Jie·2025-07-08 02:32Core Viewpoint - The resignation of He Xiuxia, the general manager of Anhui Jinzhongzi Liquor Co., indicates ongoing management turmoil and reflects the broader challenges faced by the company in a competitive market [1][6]. Company Overview - Anhui Jinzhongzi Liquor Co., established in July 1998, is a subsidiary of Anhui Jinzhongzi Group and primarily produces various types of liquor, including the Jinzhongzi series and other regional brands [1]. - The company was listed on the Shanghai Stock Exchange on August 12, 1998, becoming the eighth liquor company and the second in Anhui to go public [2]. Financial Performance - Jinzhongzi Liquor experienced significant growth from 2008 to 2012, with revenue increasing from 662 million to 2.294 billion [2]. - However, after a marketing and expansion misstep in 2013, the company faced a dramatic decline, with revenue and profit dropping by 9.32% and 76.22% respectively, leading to five consecutive years of financial losses [3]. - The company reported net losses of 187 million, 22 million, and 258 million for the years 2022 to 2024, with a 29.41% decline in revenue in Q1 2025 [4]. Management Changes - He Xiuxia's resignation is part of a broader management shake-up, with 70% of middle management replaced during her tenure, indicating instability within the company [6]. - Liu Fubi, the deputy general manager appointed by China Resources, is temporarily overseeing operations, while Zhang Guibo has been appointed as the new head of marketing [1][6]. Market Challenges - The liquor industry is facing a cooling market, with 77% of companies reporting a downturn, reflecting a persistent pessimism compared to 80% the previous year [6]. - Jinzhongzi's struggles are attributed to an imbalance in product structure, with a high proportion of low-end products leading to lower profit margins compared to industry averages [4].