Consecutive Failure to Meet Annual Targets: Yingjia Gongju Liquor General Manager Resigns Early

On the evening of March 10th, Yingjia Gongjiu, “Hui Liquor Top Scholar,” released a personnel change announcement. The company’s General Manager Qin Hai has applied to resign due to “work adjustments,” nearly six months earlier than his original term ending on September 8, 2026. Nominated by Chairman Ni Yongpei, the company appointed veteran sales executive Yang Zhaobing as the new general manager.

As a long-time employee who grew up with Yingjia Gongjiu from its predecessor, Foziling Distillery, Qin Hai witnessed the company’s product restructuring and high-end branding efforts during his tenure.

Behind the leadership change is Yingjia Gongjiu’s undeniable performance anxiety. After a stellar 2023, Yingjia Gongjiu faces the challenge of failing to meet annual operational targets in 2024 and 2025 for two consecutive years. The once confident “100 billion yuan sales target” has now been quietly removed in internal meetings.

In the face of a severe situation where the core trademark “Eco Cave Storage” was invalidated and revenue and net profit declined for four consecutive quarters, this dark horse, once hopeful to challenge the leading position in Hui Liquor, is now in pain.

Frequent Leadership Changes

Both successors are veteran figures with deep “Yingjia gene.”

Qin Hai, born in 1968, started as an ordinary workshop worker at Foziling Distillery, gradually promoted to workshop director, and officially became Yingjia Gongjiu’s general manager in September 2023. According to the 2024 annual report, his pre-tax annual salary was 571,800 yuan, and he did not hold shares in the listed company.

According to the announcement, Qin Hai did not completely leave the core management after stepping down as general manager. He remains a director, member of the Compensation and Assessment Committee, Strategic Committee, and also serves as the chairman of the group’s labor union.

Yang Zhaobing, who takes on the new responsibilities, also rose from grassroots. Born in 1976, he initially worked in the workshop at Foziling Distillery, then shifted to core frontline sales roles. From local office director and regional manager, he advanced to General Manager of Anhui Sales Region and Executive Vice President of the sales company. From December 2020 to March 2026, Yang Zhaobing served as General Manager of Yingjia Sales Company, and since September 2023, he has been Deputy General Manager of the listed company.

In terms of compensation, this “post-75” sales veteran’s package is quite notable. Financial reports show that in 2024, his pre-tax annual salary reached 845,100 yuan, far surpassing his predecessor Qin Hai, and making him one of the highest-paid executives in Yingjia Gongjiu besides Chairman Ni Yongpei. Just four days before his official appointment as general manager, Yang Zhaobing delivered a work report at the 2025 annual summary and commendation conference of Yingjia Gongjiu as General Manager of the sales company, and signed a “responsibility letter” for the 2026 target assessment with business leaders.

The frequent leadership adjustments reflect Yingjia Gongjiu’s market-driven anxiety. Over the past two years, as the Baijiu industry entered a deep adjustment period, the company’s senior management team experienced a series of changes. On October 30, 2025, Yingjia Gongjiu announced the appointment of Australian-born Zhang Dandan as Vice Chairman. On November 18, 2025, the company announced that Ni Yang would no longer serve as an independent director and would instead become a worker representative director.

Whether these personnel changes are normal handovers or reactive replacements due to market pressure, the frequent “horse racing” indicates that the company is seeking tactical breakthroughs. Promoting experienced terminal sales experts like Yang Zhaobing to the forefront is a clear signal that Yingjia Gongjiu is trying to stabilize its fundamentals by strengthening channel execution amid intensifying external competition.

Revenue and Net Profit Decline for Four Consecutive Quarters

The direct catalyst for the leadership change is that Yingjia Gongjiu has already sounded alarms in its financial reports.

In May 2025, Yingjia Gongjiu announced its financial budget for the year, setting a target of 7.6 billion yuan in revenue (up 3.49% year-on-year) and 2.62 billion yuan in net profit (up 1% year-on-year).

However, this “conservative” target now appears out of reach.

In the first three quarters of 2025, Yingjia Gongjiu achieved revenue of 4.516 billion yuan, a sharp decline of 18.09%; net profit attributable to the parent was 1.511 billion yuan, down 24.67%; and non-recurring net profit was 1.474 billion yuan, down 26.16%. As a result, the company has experienced four consecutive quarters of declining revenue and net profit.

Particularly in the third quarter of 2025, the performance deterioration intensified, with quarterly revenue of 1.356 billion yuan, down 20.76%; net profit attributable to the parent was 381 million yuan, a plunge of 39.01%. To meet the full-year target, the company would need to generate over 3 billion yuan in revenue in the fourth quarter—almost 70% of the total revenue for the first three quarters. Given the late Spring Festival timing and overall weak Baijiu consumption, this is nearly impossible.

This is not the first time Yingjia Gongjiu has missed its annual goals. In 2024, the company set a revenue target of 8.064 billion yuan and a net profit of 2.866 billion yuan. But actual results fell far short, with a revenue shortfall of over 700 million yuan and a net profit shortfall of nearly 300 million yuan. Compared to the stellar performance in 2023, with revenue of 6.72 billion yuan and exceeding targets, Yingjia Gongjiu’s slowdown is particularly stark.

Faced with continuous performance decline, the management’s confidence has subtly shifted. Over the past two annual meetings, management repeatedly emphasized the “100 billion sales goal”—2024 was dubbed “a critical year to hit 100 billion,” and 2025 was to be “a steady push toward 100 billion.” However, at the 2025 summary meeting led by Yang Zhaobing, the once passionate “100 billion dream” was no longer mentioned.

The collapse of performance largely stems from a trademark loss. As Yingjia Gongjiu’s core flagship product, the “Eco Cave Storage” series (including Cave 6, Cave 9, Cave 16, etc.), launched in 2015, saw sales grow from 50 million yuan to over 4 billion yuan, accounting for nearly 60% of the company’s total revenue. With the explosive growth of the Cave series, Yingjia Gongjiu overtook Kouzi Jiu in 2023 to reclaim the “second place” in Hui Liquor.

However, due to long-standing disputes with Linshui Distillery, in 2024 the State Intellectual Property Office invalidated Yingjia’s “Eco Cave Storage” trademarks. After losing in administrative litigation at both first and second instance, Yingjia Gongjiu was forced to rename its “Cave Storage” products to “Gongjiu.” This product name change directly dealt a blow to the company. Consumer confusion, dealer inventory issues, and the huge costs of re-establishing market recognition have hurt sales. In the third quarter of 2025, sales of mid-to-high-end Baijiu dropped 21.78% to 1.014 billion yuan, becoming a major drag on overall performance.

Internal trademark losses combined with the broader Baijiu industry environment have cast a shadow over Yingjia Gongjiu’s channels. As of the end of September 2025, contract liabilities (prepayments) — seen as a future performance “reservoir” — fell from 578 million yuan at the start of the year to 482 million yuan, indicating waning downstream dealer willingness to pay.

Inventory turnover days soared from 881 days in Q3 2024 to 1,106 days, reflecting significant sales pressure. The net cash flow from operating activities in the first three quarters was only 789 million yuan, a sharp decline of 38.13% year-on-year.

In the capital market, investor sentiment has turned pessimistic, reflected in the stock price. As of the close on March 11, Yingjia Gongjiu was trading at 35.74 yuan per share, roughly back to August 2021 levels. With Gujing Gongjiu continuing to squeeze provincial market share and external expansion failing to generate a second growth curve, entrusting the veteran sales leader Yang Zhaobing may be the only card Yingjia Gongjiu currently has.