Chinese Liquor Firm ST Yeedao Seeks New GM After 16-Month Vacancy

Embattled Chinese liquor producer ST Yeedao (600238.SH) has launched a public search for a new general manager to steer its turnaround, a critical leadership position that has been vacant for 16 months amid persistent financial losses.

The move follows the Sept. 3 announcement that former general manager Ma He had resigned from his remaining position as a company director, severing his final ties with the firm. The general manager role has been empty since Ma stepped down in April of last year, with Chairman Duan Shouqi serving in an interim capacity, according to a report from Times Weekly.

A Challenging Turnaround

ST Yeedao, a producer of health-focused liquors, is in a precarious financial position. The "ST" or "Special Treatment" designation on its stock indicates it faces the risk of delisting due to financial distress, having recorded five consecutive years of losses through its most recent fiscal year.

Despite its struggles, the company has shown signs of a potential recovery. In its last full-year report, revenue doubled to 371 million yuan, and its net loss narrowed to 34 million yuan. This momentum continued in the first half of the current year, driven by a staggering 1,079.83% year-over-year sales increase in its Deer & Turtle Wine series. However, the company has yet to return to overall profitability.

Legacy Issues for a New Leader

Ad

An incoming executive will inherit the remnants of past strategic missteps. Under Ma He, the company attempted to enter the competitive *baijiu* market with a new herbal variant. The venture failed to gain traction, generating just 2.23 million yuan in revenue last year before the company divested its stake in the Guizhou-based project.

Corporate governance has also been a concern. The Shanghai Stock Exchange previously criticized the company for failing to promptly disclose an incident of employee embezzlement that occurred while Ma He was also serving as acting chief financial officer. Reflecting these challenges, ST Yeedao's public job posting emphasizes the need for candidates familiar with the operational standards and capital market rules for publicly listed companies.

An Unconventional Search

The decision to publicly recruit a group-level general manager via its official WeChat account is unusual in China's state-influenced liquor industry, where top leadership is typically appointed internally or by government bodies. The high-profile search underscores the urgency for ST Yeedao to find what the source material described as a "turnaround specialist" to restore profitability and stabilize its governance.