The term of office of the 11th Board of Directors of Shede Liquor Industry Co., Ltd. (600702. SH, hereinafter referred to as "Shede Liquor Industry") will expire on September 20, 2026. After the market closed on September 11th, Shede Liquor Industry announced that the company held the 23rd meeting of the 11th Board of Directors on September 11th and approved the "Proposal on the Election of the Company's Board of Directors". The 11th Board of Directors nominated Ye Weiling, Liu Haiying, Chen Chunlin, Chen Yihang, Yu Zhen, Zhou Bo, Tang Yue, Huang Zhen, Xie Youping, and Tan Xiangyang as candidates for the 12th Board of Directors of the company. Among them, Ye Weiling, Liu Haiying, Yu Zhen, and Xie Youping were candidates for independent directors of the 12th Board of Directors of the company. This proposal still needs to be submitted to the company's shareholders' meeting for review and approval.

The two major shareholders are moving in the same direction, working together to orderly promote the election of the board of directors

Among the nominated candidate directors, Yu Zhen, Zhou Bo, Huang Zhen, and Xie Youping are members of the 11th Board of Directors, while Ye Weiling, Liu Haiying, Chen Chunlin, Chen Yihang, Tang Yue, and Tan Xiangyang are newly nominated directors. Regarding the arrangement of the new board of directors and management team, Shede Liquor Industry stated that the company will fulfill its information disclosure obligations in a timely manner in accordance with relevant regulations. Until the relevant procedures are completed, the current board of directors will continue to perform their duties normally, and the company's production and operation will be normal.

It is reported that this election has received unanimous recognition from the two major shareholders of Shehong Municipal Government and Fosun, and is a carefully planned and orderly arrangement aimed at the long-term development of the company. Both sides will continue to firmly support the development of Shede Liquor Industry as always.

Alcohol critic Xiao Zhuqing stated that this election is a normal procedure for the expiration of the term of office of the board of directors of Shede Liquor Industry. The candidate list for the new board of directors of Shede Liquor Industry includes representatives from Fosun and local state-owned assets, indicating that the two major shareholders have a consensus on personnel arrangements. From the perspective of personnel structure, the representative seats of Fosun and State owned Assets have remained consistent with the previous board of directors, and the number of representative seats has not changed. In the current industry's deep adjustment cycle, the firm support and empowerment of the two major shareholders will provide a solid backing for the development of Shede Liquor Industry.

Alcohol analyst Cai Xuefei believes that based on the background of the candidate directors' resumes, the newly nominated director Tang Yue has served as the President of Shede Liquor Industry for nearly three years, is familiar with the company's production and operation system, and is a high-level talent with experience as a senior executive in the Greater China region of the Procter&Gamble system. He will play an important role in the smooth transition and orderly handover of the board of directors; Tan Xiangyang has served as the Secretary of the Party Group and Director of the Finance Bureau of Shehong City, as well as the Director of the State owned Assets Supervision and Administration Bureau of Shehong City. He has been responsible for the management of state-owned assets for a long time and is a representative candidate for state-owned shareholders, which can further strengthen the company's government enterprise coordination ability; Chen Chunlin is currently the Vice President and Co CFO of Fosun International, with extensive experience in financial governance; Chen Yihang is the president of Yu Garden Garden Co., Ltd., with rich and professional business operation ability.On the whole, the new board of directors of Shede Liquor Industry is a professional combination that understands Shede Liquor Industry and Baijiu industry, reflecting the continuous progress of corporate governance towards specialization.

Face challenges head-on and clarify key work directions

In recent years, the Baijiu industry has entered a period of deep adjustment, with obvious pressure on the secondary and high-end sectors, and Shede liquor industry is also facing phased operating pressure.

To address development challenges, in 2026, Shede Liquor Industry will use lean management as a support to promote the improvement of quality and efficiency of the enterprise. Currently, the lean management of Shede Liquor Industry has achieved phased results. Data shows that in the first half of this year, the total assets of the company increased to 12.936 billion yuan compared to the end of last year, which has accumulated momentum for the company's long-term development; Operating cash flow turned positive in the second quarter, with a net inflow of 75.406 million yuan in Q2, indicating continued improvement in operations under strong destocking efforts; At the end of the reporting period, the contract liability amount was 161 million yuan, which rebounded from the end of the previous year and increased by over 30 million yuan compared to the end of the first quarter, indicating a restoration of channel confidence; In the first half of the year, we continued to promote cost reduction and efficiency improvement, with operating costs and management expenses continuing to decline year-on-year, and the company's lean management capabilities continuing to improve. At the same time, the continuous high growth of Tuopai premium T68 has driven the continuous growth of ordinary liquor business, and the performance of emerging channels such as e-commerce has increased for multiple quarters, becoming a new engine for the company's business growth.

Taking this board change as an opportunity, Shede Winery will continue to deepen lean management and strengthen the company's ability to withstand cycles. In the second half of 2026, Shede Liquor Industry will focus on strengthening its core competitiveness from three aspects and promoting high-quality and sustainable development of the enterprise. One is to focus on building core single products, continuously improving marketing management and the speed of "comprehensive transformation to C"; The second is to consolidate the quality foundation of old wine, actively explore the value of old wine, and build a stable and controllable quality and food safety chassis; Thirdly, we will continue to promote the upgrading of the EHSQ system and enhance the quality and efficiency of enterprises.

At present, the competition in Baijiu industry is shifting from scale expansion to quality cultivation. Chinese food industry analyst Zhu Danpeng believes that this board change is a crucial step for Shede Liquor Industry to cope with the new cycle and continue to promote the professionalization of corporate governance. On the basis of retaining the previous board of directors, the candidates for the new board of directors will further introduce younger and more professional forces, clearly conveying the signal that the company's development strategy is stable and the decision-making mechanism is expected to be more efficient. With the advancement of the succession process and the support of the two major shareholders, Fosun and Shehong Municipal Government, it is worth continuing to pay attention to how the new board of directors will lead the company to respond to industry challenges and seize development opportunities.