Core Viewpoint - The sudden leadership change at Kweichow Moutai, with Zhang Deqin replaced by Chen Hua, has sparked significant industry speculation regarding the reasons behind this decision and its implications for the company's future [2][4]. Group 1: Leadership Change - Kweichow Moutai announced a major personnel adjustment on October 25, with Zhang Deqin stepping down as chairman after only 18 months in the role, marking the fourth leadership change in five years [2][4]. - Zhang Deqin, a long-time employee of Moutai, was seen as a knowledgeable leader in the liquor market, yet his abrupt removal surprised many in the industry [2][4]. - Chen Hua, the new chairman, comes from an energy background and has previously held various positions within the Guizhou energy system [4][22]. Group 2: Zhang Deqin's Tenure - During Zhang's leadership, Moutai implemented several bold reforms, including a 15.5 billion yuan investment in production expansion and the launch of the i Moutai app for direct sales [7][10]. - Zhang focused on quality over quantity, emphasizing that production and efficiency should not compromise product quality [10]. - Under his leadership, Moutai's revenue for 2024 reached 174.14 billion yuan, a 15.66% increase year-on-year, while net profit grew by 15.38% [20]. Group 3: Challenges Faced - Despite Zhang's efforts, Moutai struggled with price stability, leading to a series of measures aimed at maintaining product prices, including a share buyback plan of 3 to 6 billion yuan [14][15]. - The price of Moutai's flagship product has seen significant declines, with the price dropping from 2,780 yuan per bottle in April 2024 to 1,755 yuan by October 2025 [18]. - The company's stock price also fell over 10% during Zhang's tenure, resulting in a market capitalization loss of over 300 billion yuan [18][20]. Group 4: Future Outlook - The new chairman, Chen Hua, faces the challenge of stabilizing Moutai's prices and market consumption while developing a clear strategic direction for the company [23][24]. - Industry experts suggest that Moutai must decide between broadening its product range or focusing on core offerings to enhance value [23][24]. - The company is currently navigating a deep adjustment cycle in the industry, requiring a balance between reducing growth rates and meeting performance expectations from local authorities [24].