Ask AI · Can Gu Yu, as an outsider chairman, turn around Yanghe’s declining performance?

Author: Pan Yan

Source: Global Finance Stories

Yanghe is going through a “wealthy-induced coma.”

It clearly holds the largest global reserve of base spirits—nearly 700,000 tons—earning it envy as the liquor industry’s “hidden tycoon,” yet Yanghe shares is also the only leading liquor company that has turned “blood loss” into a continuous storyline.

Since 2023, whenever it reaches the fourth quarter, Yanghe shares has recorded net losses every time. By 2025, even the third quarter—normally a peak season—has not been spared. Despite the boost from the Mid-Autumn Festival and National Day holidays, it still posted a single-quarter loss of 369 million yuan, becoming the only company among the Baijiu TOP6 that “turns red” in the third quarter.

These glaring figures are, in fact, the “pause button” Yanghe shares pressed itself. Faced with industry price inversion and elevated channel inventory, starting in 2024 Yanghe actively managed supply and worked to reduce inventory. But the price paid—sacrificing short-term performance—to loosen up the channels has been severe.

After both profit and revenue declines in 2024, and with its industry ranking slipping from third to fifth, in the first three quarters of 2025 the revenue gap between Yanghe shares and No. 6—Gujinggongjiu—was already under 1.7 billion yuan, and the industry ranking could fall again. According to Yanghe shares’ forecast, the company’s net profit attributable to shareholders in 2025 is expected to decline year over year by 62.18%-68.30%.

If it guards a mountain of gold yet cannot mine a gold mine, when will the comatose Yanghe finally wake up?

Breach of trust: dividend cut by 4 billion, core employees left trapped

At present, Yanghe has staked its hope of waking itself on a person who has never sold liquor.

In December 2025, Zhong Yu, the former general manager who had served for 11 years, announced his retirement. Gu Yu took over. At that time, only five months had passed since he assumed the chairmanship.

As Yanghe’s first leader in history to simultaneously serve as “Chairman + CEO,” Gu Yu has no prior experience operating a business. Before this, he worked for a long time in local government. He previously served as director of the Yanghe New District management committee, and mayor of Sucheng District, among other roles. His résumé looks impressive, but you can hardly smell “baijiu fragrance.”

A similar script had played out four years earlier as well: the previous chairman Zhang Liandong was brought in from the local government. During his four years at the helm, Yanghe shares’ stock price fell by more than 60%, and market capitalization was wiped out by more than 200 billion yuan. Even in Jiangsu—the stronghold market—latercomer Jinshiyuan was already at the gates.

Now, Gu Yu is also taking over in an “outsider” capacity. Before his operating answers are even written, he first issued a dividend plan that chills shareholders.

In January 2026, on the same day the performance forecast was disclosed, Yanghe shares released the 《2025-2027 Cash Dividend Payout Plan》，promising that dividends each year would be no less than 100% of the company’s net profit attributable to shareholders for that year.

On the surface, it is “generously distributing all profits to shareholders,” but in reality it is “a dividend缩水.” In Yanghe shares’ 2024 dividend plan, it had previously promised that from 2024 to 2026, dividends each year would be no less than 7 billion yuan.

If the estimated net profit under the 2025 performance forecast—2.116 billion to 2.524 billion yuan—is used as the basis, then under the new plan the dividend amount would be more than 4 billion yuan lower than the original commitment.

When the 7 billion yuan minimum guaranteed dividend disappears overnight, enraging investors, that question cuts straight to Yanghe: “Can a management team that lacks integrity and contract spirit manage a company well?”

Image source: Choice

If this “breach of trust” is what Gu Yu personally signed, then the “trapping” of another group of people is an old account he must take over.

In August 2021, Yanghe shares launched its first core management and employee shareholding plan. At a price of 103.73 yuan per share, nearly 5,100 core employees subscribed to about 1 billion yuan worth of the company’s stock.

At that time, the baijiu industry was in