After the cold dew, the days are short and the nights are long. Most parts of China have entered the late autumn and beer sales have entered the off-season. As one of China’s largest beer companies, 40 year old Yanjing beer is experiencing major changes. On the evening of October 8, Beijing Yanjing Beer Co., Ltd. (hereinafter referred to as Yanjing Beer) issued a notice on major issues. Zhao Xiaodong, chairman and general manager of the company, was recently put on file by the relevant departments for investigation and took lien measures due to his suspected duty violation, and was unable to perform his duties normally. < p > < p > analysts said that the incident of the chairman’s being put on file for investigation had little impact on the daily operation of Yanjing Beer, and more worrying was that its main sales areas were facing the squeeze of Qingdao beer, Zhujiang Beer and other brands. In the future, Yanjing beer may further widen the gap with other beer giants. < / P > < p > it is worth noting that on October 9, the official website of Yanjing beer could not be opened. A customer service operator of Yanjing Beer told Zhongxin Jingwei, “the general manager’s office needs to be consulted about the official website, but there is no one in the office now.” < p > < p > as for the investigation of Zhao Xiaodong, chairman of the board of directors, Yanjing Brewery said that the company had made proper arrangements for various work, and the matter had no significant impact on the company’s operation and management. At present, the company’s work is temporarily presided over by Mr. Xie Guangjun, vice chairman and executive deputy general manager, and all business activities are carried out normally. The board of directors and management of the company will ensure the normal operation and standardized operation of the company. According to the financial report, Zhao Xiaodong was born in June 1972 and is 48 years old. He is a doctoral student and senior engineer. He has successively served as deputy general manager of Beijing Feibao consulting company, assistant to general manager of Beijing Yanjing Beer Group Co., Ltd., director, deputy director, deputy general manager, general manager, chairman of Yanjing Beer Co., Ltd., and general manager of Beijing Yanjing Beverage Co., Ltd 。 At present, he is the chairman and general manager of Yanjing Beer, and concurrently serves as the vice chairman and executive director of the board of directors of Beijing Holding Co., Ltd. (the actual controller of the company); and the vice chairman of Beijing Yanjing Beer Investment Co., Ltd. (the company’s controlling shareholder). It can be seen from his performance experience that Zhao Xiaodong is an “old man” who has been in Yanjing Brewery for more than 20 years. In 1998, 26 year old Zhao Xiaodong joined Yanjing Beer, responsible for equipment management and beverage product development. Six years later, he was elected deputy general manager of the company, general manager in August 2012 and chairman of Yanjing Beer in June 2017. According to the information disclosed in the annual report, Zhao Xiaodong’s total pre tax remuneration in Yanjing Beer in 2019 was RMB 708000, and he did not receive remuneration from the company’s related parties. In addition, Zhao Xiaodong has just been re elected in the general election of the company’s board of directors on September 17. Two days later, Zhao Xiaodong appeared at the 29th Beijing International Yanjing Beer Culture Festival, his last public appearance before being filed for investigation. < / P > < p > in the secondary market, the news that the chairman of Yanjing beer was put on file for investigation also touched the hearts of shareholders. Some investors said that “out of respect for thunder, we still reduced the warehouse by half”, while others said that “catching pests is a good thing, in the long run, it is good, which shows that the supervision is effective”. As of the end of October 9, Yanjing Brewery quoted 8.26 yuan per share, down 2.02%, with a total market value of 23.2 billion yuan. Compared with the stock price of 6.61 yuan per share at the beginning of January this year, the market value increased by 4.818 billion yuan. In the market value ranking of A-share beer enterprises, Yanjing ranked third, followed by Zhujiang Beer with a market value of 22.1 billion yuan. The top two are Qingdao beer with a market value of 89.7 billion yuan and Chongqing beer with a market value of 49.8 billion yuan. According to the financial report, in the first half of 2020, the revenue of Yanjing beer was 5.039 billion yuan, a year-on-year decrease of 13.88%; the attributable net profit was only 269 million yuan, a year-on-year decrease of 47.46%. In view of the sharp decline in net profit, Yanjing Beer said that its production and operation in the first half of the year were “affected by the epidemic situation and faced with greater pressure”. In addition, according to public reports, in the first half of this year, Yanjing Beer successively launched medium and high-end products such as Yanjing U8 Xiaodu liquor, Yanjing 7-day fresh wine, Yanjing Bajing cultural and creative products, red can 8-degree refreshing special products and Winter Olympics customized products, and signed a contract with Wang Yibo, a traffic star, as the brand spokesman. However, while the flow stars and new products saved the performance of Yanjing Beer, the old competitors achieved net profit growth. In the first half of this year, the net profit of Qingdao beer increased by 13.77%, that of Zhujiang Beer increased by 16.04%, and that of Chongqing beer increased by 3.06%. < p > < p > wind data shows that according to the industry classification of Shenyin Wanguo, there are 7 listed companies in the beer industry in a share. In the first half of 2020, Yanjing Beer’s revenue and net profit income ranked the second from the bottom, and Lanzhou Huanghe was the bottom beer company. In addition, the inventory index of Yanjing beer is far higher than that of the top liquor companies in the same industry. According to the financial report, as of June 30 this year, Yanjing Beer inventory reached 3.985 billion yuan, accounting for 20.03% of the total assets. During the same period, the financial reports of other beer enterprises revealed that Qingdao beer inventory was 2.317 billion yuan, Pearl River beer inventory was 499 million yuan, and Chongqing beer inventory was 396 million yuan, accounting for 5.72%, 3.85% and 11.37% of total assets respectively. In fact, the decline of Yanjing Beer has appeared in recent years. From 2017 to 2019, Yanjing Beer achieved revenue of 9.965 billion yuan, 10.214 billion yuan and 10.351 billion yuan respectively, with a year-on-year growth of – 3.26%, 1.32% and 1.09%. The revenue of Qingdao beer increased by 0.65%, 1.13% and 5.3% respectively. Compared with Tsingtao Beer’s running progress, Yanjing Beer’s forward pace is obviously slowed down. According to the financial report, Yanjing beer was established in 1980 and listed on Shenzhen main board in 1997 with a total market value of 23.2 billion yuan. Its headquarters is located in Shunyi District, Beijing. The company’s main beer, liqueur, mineral water, beer raw materials, feed, yeast, plastic box manufacturing and sales. Among them, beer production and sales business accounted for more than 90% of the company’s main business. From the perspective of ownership structure, Beijing Yanjing Beer Investment Co., Ltd. holds 57.4% of shares, which is the largest shareholder of Yanjing beer. Chongyang group and China securities finance are the second and third largest shareholders respectively, holding 3.27% and 3.03% respectively. Beijing Yanjing Beer Group Co., Ltd. holds 1.87% shares, which is the fourth largest shareholder. At present, Yanjing Beer owns 52 subsidiaries, including Yanjing Beer (Guilin Liquan) Co., Ltd. and Yanjing Beer (Chifeng) Co., Ltd., covering 18 provinces (municipalities directly under the central government). Xiao Zhuqing, a Chinese consumer goods marketing expert, told Sinotrans Jingwei client that there are two major schools of Chinese beer: the market-oriented school represented by Budweiser InBev, which aims to cultivate the market and makes market investment beyond short-term profit and loss control. Therefore, the market share of AB InBev beer in medium and high-end beer brands ranks first, and it is also the largest profit per ton in China’s beer industry High beer companies. < / P > < p > “the second major market school is the financial management and control orientation represented by Yanjing beer. In order to complete the financial control indicators, the market investment is determined according to the sales revenue of the payment. This kind of management and control mode has slow market decision-making efficiency, conservative market investment of medium and high-end varieties, market operation is conservative, and is responsible for the assessment indicators during the term of office, and lacks long-term planning for medium and long-term high-end brand cultivation, so it can only operate in the field of medium and low-end varieties with small profits. ” Xiao Zhuqing said. According to Xiao Zhuqing’s analysis, the illegal areas of chairman of Yanjing beer are likely to occur in market policies, market expense approval and power led enterprise infrastructure, enterprise procurement and personnel selection and employment. “At present, the biggest pressure of Yanjing beer is that under the pressure of high-end beer brand Budweiser InBev and China Resources Snow Beer, which has the largest production base and the most perfect layout, the market in Yanjing base area has shrunk, the gross profit per ton of liquor is meager, the promotion of medium and high-end beer new products is weak, and the market position is gradually marginalized. At present, Yanjing beer can’t solve the problem by replacing a chairman. It needs to change the top-level design of the operation decision-making mechanism. ” Zhu danpeng, an analyst of China’s food industry, told the client of Sino Singapore Jingwei that the case of the chairman of the board of directors had little impact on the daily operation of Yanjing beer. “Compared with private enterprises, the state-owned enterprise mechanism of Yanjing Beer determines the echelon of management members, and the risk of management change is within the controllable range. Its main sales areas are in Beijing, Guangdong and Guangdong, Fujian and other places. These regions are facing the squeeze of Qingdao beer and Zhujiang Beer. The performance of Yanjing beer is also declining. The operation effect of high-end and young products launched in recent years is not significant. In the future, Yanjing beer may further widen the gap with other beer giants. ” < p > < p > in addition, on the issue that the inventory of Yanjing beer is far higher than that of peers and the company’s future development plan, Zhongxin Jingwei reporters have called the Secretary of Yanjing beer for many times, but the other party has not responded to the issue. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.