Personnel turmoil. Facing compliance pressure, Kweichow Moutai's stock price has fallen by about 17% this year.

Since 2026, against the dual backdrop of the implementation of new regulatory rules and the adjustment of industry consumption, Kweichow Moutai Co., Ltd. (hereinafter referred to as "Kweichow Moutai") has faced dual tests in its governance structure and business performance.

The company is under pressure to rectify compliance issues due to the concurrent occupancy of financial and board secretary positions. Coupled with the controversy over internal control triggered by the investigation of core senior executives, the company's business data in 2025 showed a double - decline for the first time since its listing. Problems such as a slowdown in peak - season performance and high inventory levels have emerged prominently. With multiple variables intertwined, the company's stock price has also been under pressure.

There is a need for compliance rectification in concurrent position occupancy

On April 24, 2026, the China Securities Regulatory Commission issued the "Regulatory Rules for the Board Secretary of Listed Companies", which officially came into effect on May 24, with a transition period until December 31, 2027. The rules clearly define the restrictions on appointment. The board secretary shall not concurrently serve as the company's manager, deputy manager in charge of operations, or financial officer, so as to ensure the independent operation of information disclosure and avoid compliance risks caused by the concentration of position power. The board secretary is required to perform duties full - time and fulfill responsibilities related to information disclosure and internal compliance supervision.

(Source: China Securities Regulatory Commission)

According to reports from media such as China Fund News, Wind statistics show that a total of 899 listed companies in the A - share market have a model where the chief financial officer concurrently serves as the board secretary, including Kweichow Moutai. On March 13, 2026, Jiang Yan, then a member of the Party Committee, deputy general manager, chief financial officer, and board secretary of Kweichow Moutai, was under disciplinary review and supervision and investigation for suspected serious violations of discipline and laws. The position of board secretary was vacant for more than two months.

(Source: Website of the Guizhou Provincial Commission for Discipline Inspection and Supervision)

It is reported that during Jiang Yan's tenure, she coordinated the company's financial accounting, information disclosure, and some business - related work, and was a core management personnel of the enterprise. The investigation of this senior executive may affect the market's judgment on the stability of the company's management and the level of internal control construction.

As of now, the law - enforcement department has not disclosed specific details of the case, the amount involved, and information about related personnel. The subsequent progress of the case remains uncertain.

On April 14 of the same year, the company appointed Yu Siming as the chief financial officer and simultaneously asked him to perform the duties of the board secretary on a temporary basis. On May 21, Yu Siming was officially employed as the board secretary, forming a structure where the financial officer concurrently serves as the board secretary, which does not meet the requirements of the current regulatory rules.

(Source: Announcement)

In response to this appointment arrangement, Moutai announced that it will adjust the position settings during the transition period to eliminate the concurrent position situation and make the personnel appointments comply with regulatory requirements. This personnel appointment arrangement has also sparked discussions in the market about the operation of the company's internal control system.

Public information shows that Yu Siming has professional qualifications as a certified public accountant and a senior - level certified accountant. He has long served in Moutai Group's financial system and has work experience in auditing and discipline inspection. At a stage when the original core financial senior executive is under investigation and the internal control mechanism needs to be improved, the setting of the concurrent position of financial officer and board secretary will inevitably trigger market discussions on position checks and balances and the effectiveness of internal supervision.

In this regard, Zhan Junhao, a well - known strategic positioning expert and the founder of Fujian Huace Brand Positioning Consulting, said: "After the new rules for the appointment of board secretaries came into effect, Moutai still has the financial officer concurrently serving as the board secretary. Coupled with the previous investigation of core senior executives, it exposes the deficiencies in the company's internal governance. The core of the new rules is to strengthen the independence of the board secretary and the professionalism of information disclosure. The concurrent position model is likely to cause confusion in rights and responsibilities and is difficult to form effective checks and balances. It may not only weaken the transparency of communication with the capital market but also magnify internal control risks. The market's concerns about the company's governance compliance will still persist."

At the same time, Bai Wenxi, the chief economist of the China Region of the China Enterprise Capital Alliance, said: "The concentration of financial and information disclosure functions is likely to exacerbate the risk of information asymmetry during the period of performance pressure and drastic adjustment of channel reform. Moutai needs to complete the separation of positions as soon as possible during the transition period to rebuild investors' trust in its governance transparency."

Behind the various problems revealed in the company's internal control and governance, there have also been obvious changes in many core business data on the company's business operation side.

Business data declined during the peak season

The 2025 annual report disclosed by Kweichow Moutai in April 2026 shows that the company's operating income in 2025 was approximately 168.838 billion yuan, a year - on - year decrease of approximately 1.21%. The net profit attributable to shareholders of the listed company was approximately 82.321 billion yuan, a year - on - year decrease of approximately 4.53%. This was the first time that the company's annual operating income and net profit both declined year - on - year since its listing in 2001.

(Source: Financial report)

The annual performance showed a characteristic of phased differentiation. In the first three quarters of 2025, the year - on - year growth rates of operating income and net profit were both maintained above 6%. However, in the fourth quarter, the traditional peak consumption season for white liquor, the business data showed an obvious decline. The operating income in the fourth quarter was approximately 40.384 billion yuan, a year - on - year decline of approximately 19.43%. The net profit attributable to shareholders of the listed company was approximately 17.693 billion yuan, a year - on - year decrease of approximately 30.34%.

(Source: Financial report)

In this regard, Zhan Junhao pointed out: "In 2025, Moutai's operating income and net profit declined for the first time, and there was a significant decline in the peak season of the fourth quarter, mainly due to multiple pressures. On the one hand, the recovery of high - end white liquor consumption scenarios fell short of expectations, government consumption continued to tighten, and business demand became more rational. On the other hand, there was an overstock of channel inventory and the price system was loosened. The company actively controlled the quantity to stabilize the price, which dragged down short - term shipments. Coupled with the adjustment of the base liquor reserve and production capacity release rhythm, there was insufficient impetus for peak - season sales, ultimately leading to a phased weakening of performance."

In addition, the net cash flow generated from the company's operating activities in 2025 was approximately 61.522 billion yuan, a double - digit decrease of 33.46% compared with approximately 92.464 billion yuan in 2024, and the scale of the enterprise's capital recovery shrank.

On the consumer market level, in recent years, the consumption scenarios for high - end white liquor have decreased, and the demand for business and government consumption has tightened. According to the survey data of the China Alcoholic Drinks Association in the first half of 2025, the average inventory turnover days in the white liquor industry reached 900 days, a year - on - year increase of 10%.

Kweichow Moutai was also affected by the industry environment. In 2025, the company's inventory was approximately 61.427 billion yuan, a year - on - year increase of approximately 13.04% compared with 54.343 billion yuan at the end of 2024, with an increase of approximately 7 billion yuan.

(Source: Financial report)

Perhaps in response to the market situation, the company introduced a product price adjustment plan, which further changed the market price trend of the products. On March 31, 2026, the company raised the ex - factory price of 53% vol 500ml Kweichow Moutai (2026) from 1,169 yuan to 1,269 yuan, and set the recommended retail price at 1,539 yuan. After the price adjustment, the product price system fluctuated.

(Source: Announcement)

On the day the announcement was released, the market price of the 2026 Feitian Moutai in the original box (53 degrees/500ml) rose from 1,655 yuan the previous day to 1,720 yuan, and the price of single bottles rose from 1,545 yuan to 1,630 yuan. As of May 23, 2026, the market price of this specification of Feitian Moutai declined. The market price of the original box stabilized at 1,685 yuan, and the price of single bottles stabilized at 1,655 yuan.

(Source: Today's Liquor Price)

In this regard, Bai Wenxi believes: "This pricing strategy is essentially a means of profit preservation under performance pressure. According to industry insiders, non - standard products priced above 3,000 yuan are seriously unsalable, with sales only one - twentieth of the past. Raising the price of Feitian Moutai has become the only way to increase profits. However, the 13.04% year - on - year increase in inventory shows that channel inventory is still accumulating, and terminal sales have not improved synchronously with the price increase. The safety margin between the wholesale price and the ex - factory price is narrowing, and the price system faces the implementation risk of 'policies from above and countermeasures from below'."

Perhaps affected by various events such as the investigation of senior executives, performance changes, and product price fluctuations, the company's stock price in the secondary market showed a phased decline. As of the close on May 22, 2026, the stock price dropped to 1,290.2 yuan per share, a decrease of approximately 17.71% compared with the highest price of 1,568.00 yuan per share on February 6, 2026. Compared with the peak of 2,303.42 yuan per share on February 18, 2021, it was almost halved, and the company's total market value shrank significantly.

(Source: Xueqiu APP)

In this regard, Zhan Junhao said: "The continuous decline of the stock price from the peak is a concentrated reflection of governance flaws, performance pressure, and the downward trend of the industry cycle. In the future, if Moutai wants to stabilize and develop, it needs to implement the new rules for the appointment of board secretaries as soon as possible, optimize the senior management structure to reshape governance credibility, reasonably regulate the rhythm of production capacity release, accelerate the clearance of channel inventory, stabilize the price system, and at the same time speed up the layout of series wines and cultural and creative products, enrich the income structure, weaken the dependence on a single product, and restore the confidence of the capital market through stable operation."

Bai Wenxi further said: "Generally speaking, Moutai is experiencing a painful period of returning from the 'financial attribute' to the 'consumer attribute'. Its brand moat is still deep. The operating income in the first quarter of 2026 has increased by 6.54% year - on - year, achieving a turnaround. However, investors need to adapt to the logical transformation from a growth stock to a value stock. In the short term, whether the wholesale price can stabilize at the 1,600 - yuan mark and whether the channel inventory can be effectively reduced are the key signals to judge whether the inflection point has arrived."

This article is from the WeChat official account "Dawang Financial News", author: Dawang Financial News. Republished by 36Kr with authorization.