Analysis of the Strategic Impact of Sun Yinong's Joining Dayao

Now I have collected sufficient information to conduct a systematic analysis for you.

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Mr. Sun Yinong, born in 1969, holds a Bachelor of Science in Electronic Engineering and Automation from Zhejiang University (1991) and a Master of Business Administration from China Europe International Business School (CEIBS) (2008), with over 24 years of extensive experience in the food and beverage industry[1][2]. His career trajectory covers several well-known FMCG enterprises:

• Coca-Cola Period (1999-2016)
  : Held various key positions at The Coca-Cola (China) Beverages Ltd. and Coca-Cola Enterprise Management (Shanghai) Co., Ltd., including serving as Marketing General Manager from October 2012 to August 2015, and Regional General Manager from September 2015 to April 2016. He was referred to by Nestle as “a recognized expert in China’s beverage industry”[1][3].

• Yinlu Food Period (2016-2021)
  : Joined Xiamen Yinlu Food Group in May 2016, serving successively as Chief Commercial Officer, Chief Operating Officer, and assumed the role of Chief Executive Officer starting January 1, 2020. He made significant contributions to business improvement and organizational stability during the Nestle-Yinlu integration process[1][2].

• Weilong Food Period (2021-2025)
  : Joined Weilong as Special Assistant to the President in September 2021, promoted to Chief Executive Officer in December 2021, and became an Executive Director starting April 27, 2022. During his tenure, he led the completion of the Hong Kong IPO, promoted product structure transformation, and led Weilong to achieve dual growth in revenue and net profit in 2023 and 2024. His compensation at Weilong was RMB15.88 million in 2022 and RMB23.49 million in 2023[2][4]. He resigned as Weilong’s CEO on March 27, 2025, and has served as an advisor to Weilong since then[5].

Dayao Jiabin Beverage Co., Ltd. is undergoing profound capitalization changes. In July 2025, the State Administration for Market Regulation approved the acquisition of 85% equity in Vision International Co., Ltd. by KKR, a leading U.S. private equity firm. KKR completed the acquisition through its newly established special purpose vehicle, Dynamo Asia Holdings II Pte. Ltd.[6][7]. On December 16, 2025, founder Wang Qingdong officially stepped down as legal representative and chairman, replaced by Dai Cheng, who has an international private equity background and also concurrently serves as Chief Financial Officer[6][7]. Dai Cheng played an important role in KKR’s acquisition of NVC Lighting’s China business in 2019, and his appointment marks the official entry of Dayao into the “Dai Cheng Era”[6].

As a “national soda” brand originating from Inner Mongolia, Dayao has actively promoted the “1+2+N” product strategy and brand rejuvenation strategy in recent years[8]. The company has built a product matrix covering carbonated drinks, fruit juices, plant-based proteins, light health drinks and other categories, including classic products such as Dayao Jiabin, Dayao Chengnuo, Dayao Li’ai, as well as new products like Yaoguoli Fruit Juice, Prebiotic Fruit Juice Soda, the “Chayuanxiang” series of sugar-free tea and fruit tea, and the “Yiyangshuo” plant-based protein drinks[8][9].

Dayao’s core competitive advantage lies in its unique channel network: over 85% of its sales come from the catering channel, particularly scenarios such as barbecue stalls, hot pot restaurants, and food stalls[6][7]. This differentiated channel strategy has enabled it to grow against the trend in the carbonated beverage market dominated by Coca-Cola and PepsiCo. Its sales reached approximately RMB3 billion in 2023, and its offline retail channel market share reached 2.64% from January to May 2025, ranking third in the carbonated beverage category[6][7].

Dayao’s capitalization process is accelerating. In January 2025, market rumors emerged that Dayao was preparing for an IPO in Hong Kong as early as the second half of 2025, with a projected fundraising scale of up to US$500 million. At that time, the company responded that “IPO matters are not under consideration for the time being”[6][7]. With KKR’s entry and the founder’s resignation, analysts generally believe that a Hong Kong or U.S. IPO will become a high-probability event[6][7].

Sun Yinong’s joining will significantly strengthen Dayao’s management team. As a senior professional who has served as CEO in multinational enterprises and listed companies such as Coca-Cola, Yinlu, and Weilong, Sun Yinong has rich experience in FMCG operation, market foresight, and international vision[1][2][3]. The industry evaluates him as “pragmatic and capable” with outstanding professional leadership[3]. His partnership with Dayao’s current chairman Dai Cheng (with KKR background) will form a complementary “capital + operation” pattern.

Based on Sun Yinong’s professional background and Dayao’s current development stage, his joining is expected to have impacts in the following aspects:

1. Accelerated National Expansion
   : Sun Yinong’s experience in national channel construction at Coca-Cola and Weilong will help Dayao break through the bottleneck of the northern market and penetrate the southern market. Data shows that Dayao’s market share in the northern market exceeded 45% from January to May 2025, but its penetration rate in the southern market was less than 10%[6], leaving huge room for improvement.

2. Optimization of Product Matrix
   : Sun Yinong may promote Dayao to accelerate the layout of healthy product lines while maintaining its catering channel advantage. Referencing his experience at Weilong where he promoted vegetable products (konjac jelly) to become the second growth curve, Dayao may increase investment in high-growth categories such as sugar-free tea drinks and plant-based protein drinks.

3. Advancement of IPO Process
   : Sun Yinong once led Weilong’s Hong Kong IPO and has rich experience in IPO processes and capital market operations for FMCG enterprises. His joining is expected to provide professional support for Dayao’s IPO journey.

4. Supply Chain and Management Upgrade
   : Sun Yinong may draw on his experience in supply chain optimization at Yinlu and Weilong to promote efficiency improvement and digital transformation at Dayao’s seven intelligent production bases across the country.

Sun Yinong’s departure is an important personnel change for Weilong. A report from 36Kr points out that the “external professionals” hired by Weilong at high salaries are being cleared out of the core power circle, and Sun Yinong is another professional manager to leave after Hong Xingrong and Li Weihong, who joined in 2022[5]. With the departure of Sun Yinong and others, the “professional manager - management modernization” layout that Weilong previously attempted to build has come to a temporary halt, and the family-owned color has become increasingly strong[5].

:

• Enhanced Strategic Autonomy
  : After founders Liu Weiping and Liu Fuping regain management control, they may more firmly advance the established strategy without needing to balance differences in opinions from external professional managers.
• Improved Decision-Making Efficiency
  : Family businesses have relatively short decision-making chains, which may be more flexible in the face of rapid market changes.

:

• Modern Governance Capability
  : The departure of professional managers may affect Weilong’s capability improvement in corporate governance and international operations.
• Sustainability of Innovation Momentum
  : Sun Yinong led a number of product innovations and channel reforms during his tenure, and it remains to be seen whether the innovation pace can be maintained after his departure.

Despite management changes, Weilong’s performance remains robust. In the first half of 2025, the company achieved total revenue of RMB3.483 billion, a year-on-year increase of 18.5%; net profit was RMB736 million, a year-on-year increase of 18.5%[10]. In its January 2026 research report, Goldman Sachs noted that Weilong’s management emphasized guidance of over 15% year-on-year revenue growth and a net profit margin of 18% to 20% for the 2025 fiscal year, and forecasted steady growth in konjac products, while spicy noodle products will resume growth through the launch of innovative products and channel expansion[11]. Goldman Sachs gave Weilong a target price of HK$13.9 with a “Buy” rating[11].

From the perspective of product structure, Weilong is undergoing profound changes: vegetable products (centered on konjac jelly and Wind-Eaten Kelp) generated revenue of RMB2.109 billion in the first half of the year, surging 44.3% year-on-year, accounting for 60.5% of total revenue, becoming the largest revenue source; revenue from spicy noodle products was RMB1.31 billion, accounting for 37.6%[10]. This structural change indicates that Weilong has shifted from “spicy noodles dominance” to a “multi-driven” development model.

The market size of China’s spicy leisure food market continues to expand, with a compound annual growth rate (CAGR) of 8.7% from 2016 to 2021. The market size reached RMB172.9 billion in 2021, accounting for 21% of the overall leisure food market[12]. The market size of spicy noodle products is approximately RMB50 billion, and konjac products are expected to become a classic large SKU in the leisure food industry due to their “spicy + chewy” product characteristics[12].

1. Weilong’s Advantages and Challenges
   :
   • Advantages
     : Ranked first in the spicy leisure food industry with a market share of 6.2%, exceeding the sum of the market shares of the 2nd to 5th ranked companies; has a first-mover advantage in the konjac products market with a market share of approximately 70%[12]; has a comprehensive omni-channel coverage system, with offline channel revenue accounting for 90.4%[10].
   • Challenges
     : Spicy noodle sales have declined for consecutive years (193,600 tons, 150,600 tons, and 124,400 tons in 2021, 2022, and 2023 respectively)[5]; channel diversion and price chaos need to be resolved; competition in emerging channels is intensifying.

2. Dayao’s Opportunities and Bottlenecks
   :
   • Opportunities
     : KKR’s entry brings capital and management resource support; significant advantages in the catering channel; continuous expansion of the product matrix.
   • Bottlenecks
     : Low penetration rate in the southern market; high transportation costs for glass bottle packaging; increasing pressure on health transformation[6][7].

Sun Yinong’s move from Weilong to Dayao may affect the competitive landscape in the following aspects:

1. Talent Mobility Effect
   : The flow of professional managers across FMCG enterprises helps spread advanced management experience and improve the overall level of the industry.

2. Differentiated Competition
   : Weilong focuses on spicy leisure food, while Dayao focuses on carbonated drinks and beverages. Their direct competition is limited, but there is indirect competition in aspects such as competing for young consumers and brand rejuvenation.

3. Expectations for Capital Operations
   : Dayao’s introduction of KKR and preparation for an IPO may stimulate Weilong to accelerate its capital operation pace, further enhancing industry concentration.

Indicator	Data
Market Capitalization	HK$27.23 billion
Forward Price-to-Earnings Ratio	Approximately 19x
Target Price (Goldman Sachs)	HK$13.9
Rating	Buy
H1 2025 Revenue	RMB3.483 billion (+18.5% YoY)
H1 2025 Net Profit	RMB736 million (+18.5% YoY)
Core Growth Driver	Vegetable Products (Konjac Jelly, etc.)

: Uncertainties brought by management changes, risk of continued decline in spicy noodle sales, intensified channel competition, fluctuations in raw material costs.

Dayao is not yet listed, but it is worth keeping an eye on based on the following factors:

1. Capital Background
   : KKR, a world-renowned private equity institution, provides endorsement for the enterprise’s value through its holding.
2. Growth Potential
   : Huge space for national expansion, continuous improvement of the product matrix.
3. IPO Expectations
   : Expected to complete an IPO within the next 1-2 years, providing an exit channel for investors.

: Uncertainties in corporate culture inheritance after the founder’s resignation, exit pressure from capital parties, to-be-verified effectiveness of southern market expansion.

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[1] Sohu - “Exclusive! Weilong CEO Sun Yinong Joins Dayao, Dai Cheng Has Chosen a Good Partner” (https://m.sohu.com/a/976091333_419768)

[2] Eastmoney PDF - “Long Slope and Thick Snow for Spicy Snacks, Accelerated Growth of the Leading Enterprise” (https://pdf.dfcfw.com/pdf/H3_AP202408181639325211_1.pdf)

[3] NetEase - “Confirmed by Himself! Senior FMCG Veteran Sun Yinong Takes Office as Dayao CEO” (https://www.163.com/dy/article/KJ96M73D05199NHJ.html)

[4] Eastmoney PDF - “WEILONG Delicious Global Holdings Ltd Prospectus” (https://pdf.dfcfw.com/pdf/H2_AN202206280092951300_1.pdf)

[5] 36Kr - “Weilong’s Konjac Jelly Cannot Solve the Spicy Noodle Dilemma, the Richest Man in Luohe Cuts into the Senior Management” (https://m.36kr.com/p/3378589762558086)

[6] Sina Finance - “Dayao ‘Changes Hands’: Founder Wang Qingdong Steps Down, Company Capitalization Accelerates Again” (https://finance.sina.com.cn/stock/marketresearch/2025-12-21/doc-inhcqhhc5418357.shtml)

[7] Sina Finance - “Behind Dayao’s ‘Change of Hands’: How Capital Reshapes the Fate of a National Soda” (https://finance.sina.com.cn/stock/stockzmt/2026-01-01/doc-inheuffx3216498.shtml)

[8] Xinhua News - “Decoding Dayao Beverage’s 2025 Product Strategy: Diversified Matrix Opens New Growth Paths” (http://www.news.cn/food/20251217/93681ad6cb2b40858ae10e1ef52d9eb2/c.html)

[9] Sina Tech - “Dayao Launches a Flurry of New Products in 2025: Accelerated Layout of New Product Matrix” (https://finance.sina.com.cn/tech/roll/2025-12-18/doc-inhceyfp8598250.shtml)

[10] National Business Daily - “Weilong’s Impressive H1 2025 Report: Vegetable Products Revenue Surges 44.3%” (https://www.nbd.com.cn/articles/2025-08-20/4019830.html)

[11] AASTOCKS - “WEILONG (09985.HK) Management Forecasts Steady Growth in Konjac Products This Year, Rating ‘Buy’” (http://www.aastocks.com/tc/stocks/news/aafn-con/NOW.1494994/popular-news/AAFN)

[12] Guosen Securities - “In-Depth Research Report on Weilong Delicious (09985.HK)” (https://pdf.dfcfw.com/pdf/H3_AP202502271643573812_1.pdf)