In-Depth Analysis of Executive "Role Swap" at Huangtai Liquor Industry

Based on public information and the latest announcements, I will provide a detailed analysis of the background and underlying reasons for this executive adjustment at Huangtai Liquor Industry.

On January 16, 2026, Huangtai Liquor Industry (000995.SZ) issued an announcement announcing a notable personnel adjustment[1][2]:

The announcement stated that this adjustment is “due to work arrangement adjustments”, and neither executive holds company shares, with no unfulfilled commitments[1][2]. The company emphasized that this adjustment will not affect its daily operations.

The underlying background of this executive adjustment is the severe financial pressure facing the company:

• Operating Revenue
  : RMB 87.08 million, a year-on-year decrease of 23.25%[1]
• Net Profit Attributable to Shareholders
  : -RMB 7.14 million, falling into a loss[1]
• Gross Profit Margin
  : 22.30% (continuously declining)
• Asset-Liability Ratio
  : As high as 69.4%[3]
• Current Ratio
  : Only 0.8, indicating weak solvency[3]
• Cash Flow Status
  : Net cash flow from operating activities remains negative[4]

• Operating revenue in the first half of 2025 was RMB 57.74 million, a year-on-year decrease of 11.85%[4]
• Selling expenses decreased by 22.07% year-on-year, indicating a contraction in market promotion efforts[4]
• Cash flows from investing and financing activities are both negative[4]

To understand this executive adjustment, we need to look back at the historical issues of Huangtai Liquor Industry:

1. Control Rights Struggles
   : Huangtai Liquor Industry has experienced multiple fierce equity disputes and severe internal conflicts since its listing in 2000[5][6]
2. Inventory Liquor Loss Incident
   : An inventory check in early 2018 found that finished liquor inventory worth RMB 67 million was missing[5]
3. Financial Fraud Scandal
   : In 2015, the company was punished by the China Securities Regulatory Commission for falsifying special association subsidies[6]
4. Multiple Failed Restructurings
   : A restructuring with Liuyanghe Liquor failed in 2014, and an attempt to enter the tomato industry also failed in 2015[6]

Combining the company’s financial difficulties and historical background, the following considerations may lie behind this “role swap” adjustment:

Against the background of a RMB 7.14 million loss and a sharp decline in revenue in the first three quarters of 2025, the position adjustment of General Manager Dai Jichen may be related to subpar performance[1][2].

• The promotion of Xiu Weihua from Deputy General Manager to General Manager may indicate that the company will adopt new operational strategies
• The reassignment of Dai Jichen to Deputy General Manager may involve taking on a supportive role or paving the way for subsequent adjustments

The announcement’s emphasis that “it will not affect the company’s daily operations” reflects indirectly that the company needs to stabilize morale to cope with current operational difficulties[1][2].

The company’s controlling shareholder implemented a share increase plan in 2025[3], showing the actual controller’s support for the company, but the continuous performance decline may have prompted the management adjustment.

The “role swap” between the General Manager and Deputy General Manager of Huangtai Liquor Industry appears to be a normal personnel adjustment on the surface, but combined with the severe financial data such as a RMB 7.14 million loss, 23.25% year-on-year revenue decline, and continuous negative cash flow in the first three quarters of 2025[1][4], this adjustment is more likely a response to the company’s operational difficulties.

From a historical perspective, Huangtai Liquor Industry, once a leading liquor enterprise in Northwest China known as “Moutai in the South, Huangtai in the North”[5], has fallen to its current state, exposing deep-seated problems in the company’s strategic planning, corporate governance, and market competitiveness. The top priority for the new General Manager Xiu Weihua will be to reverse the downward performance trend and improve cash flow; otherwise, the company may face “shell protection” pressure again.

[1] Sina Finance - Huangtai Liquor Industry Announces Executive Change: Xiu Weihua Appointed General Manager, Dai Jichen Appointed Deputy General Manager (https://finance.sina.com.cn/roll/2026-01-17/doc-inhhrczr1561925.shtml)

[2] Sina Finance - Executive Change at Huangtai Liquor Industry: Xiu Weihua Appointed General Manager, Dai Jichen Appointed Deputy General Manager (http://finance.sina.com.cn/stock/zqgd/2026-01-16/doc-inhhpfkr5406279.shtml)

[3] Sohu Securities - Huangtai Liquor Industry Stock Profile (https://q.stock.sohu.com/cn/000995/index.shtml)

[4] CNINFO - Gansu Huangtai Liquor Industry Co., Ltd. 2025 Semi-Annual Report (http://static.cninfo.com.cn/finalpage/2025-08-29/1224604357.PDF)

[5] Sina Finance - *ST Huangtai’s Survival Story: How a Once Dominant Liquor Enterprise Fell to This State (https://finance.sina.com.cn/stock/s/2019-01-19/doc-ihrfqziz9080450.shtml)

[6] Jiemian News - Annual Revenue of Only RMB 25.48 Million: What Has Huangtai Done to Survive and Protect Its Shell in Recent Years? (https://www.jiemian.com/article/3038554.html)