KWEICHOW MOUTAI(SH:600519) 2 1 Shi Ji Jing Ji Bao Dao·2025-10-25 08:38Core Viewpoint - The recent leadership change at Kweichow Moutai, with Chen Hua replacing Zhang Deqin as chairman, reflects the government's intention to strengthen control over the company during a challenging economic period for the liquor industry [1][4][8]. Leadership Change - Chen Hua has been appointed as the new chairman of Kweichow Moutai, succeeding Zhang Deqin, who held the position for only a year and a half [1][2]. - Chen Hua has a background in engineering and has spent most of his career in the energy sector, previously serving as the director of the Guizhou Provincial Energy Bureau [3][12]. Industry Context - The liquor industry is currently facing a significant adjustment phase, with Kweichow Moutai experiencing slower growth and declining terminal prices [8][10]. - The company has been under pressure to balance government expectations for performance with the need to reduce inventory and adapt to market conditions [4][8]. Strategic Initiatives - Under Zhang Deqin's leadership, Moutai focused on balancing direct sales and distributor channels, achieving a 26.5% year-on-year revenue growth in the wholesale distribution channel in the first half of 2024 [5][6]. - Moutai has also engaged in cultural and tourism initiatives to enhance brand image and connect with younger consumers, although some previous product expansions faced internal resistance [6][7]. Future Challenges - Chen Hua's primary challenge will be to navigate the ongoing adjustments in the liquor market while maintaining performance and price stability [8][9]. - The company still has significant operational flexibility, with its flagship product, Feitian Moutai, remaining a high-demand item despite market fluctuations [10][11].