At the age of 60, Li Qiuxi, a key figure in Fenjiu’s revival, chairman and party secretary of Fenjiu Group, resigned from Fenjiu Group.
On December 17, the “Daily Business News” reporter learned that Fenjiu had held an internal meeting to announce that Li Qiuxi had stepped down as the party secretary and chairman of Shanxi Fenjiu Group. This position was formerly held by Shanxi Communications Holding Group Co., Ltd. as party secretary and director. Long Yuan Qingmao took over. The reporter noticed that Yuan Qingmao is currently the party secretary and chairman of Shanxi Road and Bridge, a listed company.
The sudden news of a coaching change also triggered market volatility. On December 16, news of Fenjiu’s coaching change came out in the market. On that day, Fenjiu’s stock price approached its intraday limit, and finally closed at 313 yuan per share, the decline narrowed to 6.57%, and the market value was 371.2 billion yuan. China Food Industry Analyst Zhu Danpeng believes that “Li Qiuxi is the trader who brought Fenjiu into the 10 billion club. The capital market is definitely the most sensitive to Li Qiuxi’s movements.”
Regarding the sudden change of Fenjiu, Baijiu expert Cai Xuefei told the reporter of “Daily Economic News” that this change of Fenjiu should belong to the normal personnel turnover of the company. The new successor has more resources and should be said about the future management of Fenjiu. , As well as the strategic development direction of the enterprise, the integration of state-owned assets and other aspects have important influence.
As a result of the Shuozhou fake liquor case in 1998, the Fenjiu had gradually retreated to the Shanxi market. When Li Qiuxi became chairman of the board for the first time, Fenjiu’s “family background” was not rich. In 2009, Shanxi Fenjiu’s total revenue was only 2.143 billion yuan, with a net profit of 350 million yuan. In contrast, Luzhou Laojiao’s revenue that year was 4.370 billion yuan, and Yanghe’s revenue was 4.02 billion yuan, nearly twice that of Fenjiu.
After taking the helm of Fenjiu, “high profile” and “tough” are the labels that Li Qiuxi has been mentioned frequently for more than ten years, and it is also an important reason why he can lead Fenjiu to run wild and return to public view.
During his time at the helm, Li Qiuxi first set “2015, Fenjiu will achieve the development goal of 10 billion yuan”, and then set a new position for “Chinese wine soul” for Fenjiu, proposing “the source of national wine, the ancestor of fragrance, and the foundation of culture.” After the repositioning, Fenjiu began to push Fenjiu out of the low-end market, opening up the high-end product and national layout.
Picture source: every photo by reporter Zhang Jian
At the same time, Li Qiuxi went from bombarding Maotai’s false propaganda to saying in an interview that “only Fenjiu among Chinese liquor companies can really fly high” and “within 15 years, Fenjiu will surpass Moutai and Wuliangye”, repeatedly speaking boldly. Stuck in controversy, but it seems that it is also helping Fenjiu’s “out of the circle” on the side.
Li Qiuxi’s “tough” style is more reflected in the reform of Fenjiu. Especially in 2017, he signed the “Operation Performance Target Responsibility Letter” of Fenjiu Group, stipulating that Fenjiu Group’s revenue (liquor) growth targets for 2017, 2018, and 2019 are 30%, 30% and 20%; three-year profit (liquor) ) The growth targets are 25%, 25%, and 25%. He also said, “If I can’t complete the target task due to my own reasons, I will take the blame and resign.”
Subsequently, Li Qiuxi’s reforms became more drastic. From the inside, through a series of measures such as contractual management, “cabinet system” employment, simulation of professional managers, and equity incentives, he initiated the reform of the market-based employment mechanism and improved the overall operating efficiency and vitality of the company.
In 2018, under the leadership of Li Qiuxi, the third-party strategic investor China Resources Entrepreneur was introduced and completed the overall listing of Fenjiu Group. At that time, the two parties also established a strategic cooperation leading group to realize the coordinated development of management and marketing. Help Fenjiu learn from China Resources’ operating experience in the consumer goods sector and strengthen its development in product promotion, channels, and brand operations.
From the perspective of performance, Shanxi Fenjiu’s three-year revenue growth rate from 2017 to 2019 was 37.06%, 47.48% and 25.79%, and the total profit growth rate was 50.34%, 56.09% and 27.42%. Successfully complete the business objectives.
Since then, Shanxi Fenjiu has maintained rapid growth all the way. The third quarter report of 2021 shows that in the first three quarters of 2021, Shanxi Fenjiu achieved revenue of 17.257 billion yuan, a year-on-year increase of 66.24%, and net profit attributable to the parent was 4.879 billion yuan, a year-on-year increase of 95.13%, compared with the net profit of Li Qiuxi in 2009 when he took office. , An increase of nearly 13 times.
The former “Boss of Fen”, after several ups and downs, was only one step away from the 20 billion yuan revenue mark, and the key figures left at this time.
Who is the new coach Yuan Qingmao?
After Li Qiuxi retires, the chairman of Fenjiu Group will be succeeded by Yuan Qingmao, who was former deputy director of the Shanxi Provincial Transportation Department.
Public information shows that Yuan Qingmao was born in November 1969, a native of Yingxian County, Shanxi Province. Since January 2007, he has served as the director of the Finance Department of Shanxi Provincial Supply and Marketing Cooperative Union; in August 2011, he has been the deputy director and party member of the Shanxi Provincial Supply and Marketing Cooperative Union; since March 2015, he has been a member of the party group, deputy director and concurrently director of the Shanxi Provincial Transportation Department chief accountant. Since then, Yuan Qingmao has also served as the party secretary and chairman of Shanxi Transportation Holding Group Co., Ltd. (hereinafter referred to as Shanxi Traffic Control Group). In 2020, he became the party secretary and chairman of the listed company Shanxi Luqiao (000755.SZ).
State-owned enterprise reform is the key word on the road to Fenjiu’s revival. Whether a sudden change of command will affect the reform process of Fenjiu has also aroused market attention.
Cai Xuefei believes that the replacement of leadership often means the adjustment of internal and external personnel and relationships. It should be said that Fenjiu still needs to go through a certain transition period, but overall, the current development of Fenjiu is in good shape and the reform process will not be affected too much.
However, judging from Yuan Qingmao’s resume, the reform of state-owned enterprises and the capital market should be familiar to this new coach.
The Shanxi Traffic Control Group, which is at the helm of Yuan Qingmao, is regarded as a typical case of resolving the risk of local debt, and is currently pushing forward the three-year action work of state-owned enterprise reform.
According to official website information, Shanxi Transportation Holding Group Co., Ltd. has a registered capital of 50 billion yuan and total assets of more than 500 billion yuan. It is a modern transportation enterprise group with the entire industry chain integrating design, construction, supervision, investment, operation and management. It owns 10 wholly-owned and holding subsidiaries of Luqiao, Huatong Investment, Expressway, and Communications Technology, and a listed company named “Shanxi Luqiao”, as well as 16 expressway branches. It is the main body of investment and financing for major transportation projects in Shanxi Province.
In order to resolve transportation debts, which account for a high proportion of government debts, in 2017, the Shanxi Provincial Government integrated highways and transportation groups into Shanxi Traffic Control Group, with Yuan Qingmao, then deputy director of the Provincial Department of Transportation, as the director. long. Shanxi Traffic Control Group is the fifth specialized large group company established in the wave of state-owned enterprise reform last year, and there are also reports that it is the vanguard of the reform and reorganization of large state-owned enterprises in Shanxi.
In addition, in March 2020, Yuan Qingmao was elected as the chairman of Shanxi Luqiao, a listed company. Shanxi Luqiao is the only listing platform for expressway assets under Shanxi Traffic Control Group.
Compared with Li Qiuxi, Yuan Qingmao seems to be much lower-key, and he has not seen any intersection with the liquor industry before. Before taking over this time, Yuan Qingmao’s only meeting with Fenjiu was in 2020. When he conducted research and guidance on the Xinghuacun Interchange Project in Fenyang City, Li Qiuxi attended as the chairman of Fenjiu Group and accompanied the investigation.
Fenjiu breaks through to be continued
Fenjiu still needs to continue to break through. Li Qiuxi’s goal of returning Fenjiu to the status of “Fenjiu” has not yet been completed.
At the dealer conference in 2021, Fenjiu proposed: “The 14th Five-Year Plan” will be the No. 1 camp in the industry and “One-third of the world“, and 2022-2023 will be the period of transformation and development of Fenjiu reform. In two years, we have achieved high-quality and high-speed development in markets outside the province, achieved a significant breakthrough in the market south of the Yangtze River, achieved continuous improvement in the sales scale and sales quality of Xinghuacun’s personalized brand, actively explored the international market, and achieved new breakthroughs in international market development .
According to the latest data, in the first three quarters, Shanxi Fenjiu completed sales of 10.271 billion yuan in markets outside the province, breaking through the 10 billion mark for the first time, accounting for 60% of total sales; Shanxi’s intra-provincial sales accounted for RMB 6.856 billion, accounting for 40% of total sales. %.
Although nationalization is progressing steadily, it is not easy for Fenjiu to become the first camp.
Among the first-line famous wines, Moutai and Wuliangye have relied on their large single products to occupy the high-end market, while the high-end blue and white wine series of Fenjiu has not yet formed a market scale. The three-quarter report released by Kweichow Moutai showed that in the first three quarters, Kweichow Moutai achieved revenue of 74.642 billion yuan, a year-on-year increase of 11.05%, and net profit attributable to its parent was 37.266 billion yuan, a year-on-year increase of 10.17%.
In the national battlefield where Fenjiu is focusing its efforts, regional wine companies have also continued to move, and the fighting has become more intense. Brands such as Jiuguijiu and Shede are accelerating the nationalization process with one city, one business model. Many wine companies such as Yanghe, Shuijingfang, and Jinshiyuan have adopted equity incentive plans to fully mobilize the enthusiasm of the team and further develop the national market.
Fenjiu is currently implementing a national market layout with the main goal of going south, and the product structure upgrade led by the blue and white Fen series. Baijiu analyst Cai Xuefei believes that “Objectively, Fenjiu has achieved certain success, but it is still facing a delicate fragrance. The quality education and category value enhancement of type liquor, the continuous marketing of new markets, channel construction and other practical problems, while facing the squeeze competition between first-line famous wines and strong regional wines, this may be the main difficulty facing Fenjiu’s future development.”
Zhu Danpeng said that after the new coach took office, Fenjiu mainly faced two problems. The first was how to consolidate the original results, and the second was how to further speed up the nationalization of Fenjiu. He believes that the growth of Fenjiu as a whole is based on the dividend brought by nationalization, but this dividend is short-lived, and the product repurchase rate must be increased. If the repurchase rate does not increase, the entire nationalization may become a flash in the pan.
On December 13, Li Qiuxi said that Fenjiu is currently facing “three major contradictions”: one is the contradiction between the reform situation and the lack of ideological understanding of employees; the other is the rapid development of the marketing side and insufficient support for energy storage at the supply side. Contradiction; the third is the contradiction between the company’s rapid growth in performance and insufficient management capabilities.
A week later, Li Qiuxi stepped down. How to solve the above three contradictions may also become the first problem that the new coach Yuan Qingmao will answer.
(Intern Gao Miaosen also contributed to this article)
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