The majority shareholder of Henan Liquor Easy Trading Corporation Limited (JBL), one of China’s largest alcohol retailers with annual revenues of 1.7 billion RMB and over 300 physical stores, has reportedly disappeared from public view. This development follows revelations that he had pledged nearly all of the company’s shares for loans, raising significant concerns about JBL’s future operations.
On September 10, Henan Liquor Easy Commercial Co., Ltd. announced that it was unable to reach Yu Zengyun, who controls 52.98% of the company through Henan Qiaohua Business Management Co., Ltd.
Liquor Easy is a specialized chain brand for alcoholic beverages, established in February 2010. It is one of China’s early vertical instant retail platforms for alcohol, operating an integrated online and offline model combining an internet platform, call center, physical stores, and 20-minute delivery. Currently, Liquor Easy has over 300 stores in cities across Henan, Beijing, Shaanxi, and Zhejiang, making it a top retail chain in the country.
The company serves as a distributor for several major wine brands, including Shardi, Concha y Toro, and others. Its WeChat store showcases a variety of wines from well-known brands.
In 2016, Liquor Easy went public on the National Equities Exchange and Quotations, the national over-the-counter market, drawing significant capital interest. By November 2021, Henan Qiaohua acquired all shares from the company’s second-largest shareholder, Joyvio, the wine importing company owned by Lenovo Holdings. Over the following two years, Henan Qiaohua increased its stake to 52.98%, becoming the largest shareholder.
Despite challenges in China’s alcohol market, Liquor Easy has maintained steady growth. Between January and June 2024, it reported revenue of RMB 951 million (US$134.8 million), up 9.6% year-on-year, though net profits fell 48.77% to RMB 11.37 million. In 2023, the company saw a revenue jump of 85.58% to RMB1.745 billion, with net profits of RMB 300 million. However, some board members expressed dissatisfaction with the company’s performance during the review of its 2024 semi-annual report, citing disproportionate increases in expenses compared to revenue.
This is not the first time a board member has raised concerns. Since 2023, three directors have resigned, signaling potential unrest among shareholders regarding management.
The concerns are compounded by Henan Qiaohua’s decision to pledge nearly all of its shares in Liquor Easy for financing. According to a filing by Everbright Securities, Henan Qiaohua holds approximately 39.8 million shares, of which 96.26%—or 38.31 million shares—have been pledged.
Data from Chinese company search site Qichacha shows Henan Qiaohua as a small food sales company with no employees, not the asset-heavy enterprise one might expect for such a major shareholder. Yu Zengyun is also the legal representative of Overseas Chinese Holding Group, which has recently faced issues with customers claiming their financial products.
There is currently no evidence linking Liquor Easy’s pledged shares to the financial troubles at Overseas Chinese Holding Group. Liquor Easy has stated its operations are unaffected, and that Yu does not hold any formal position within the company. However, Everbright Securities has issued a risk warning, noting that Yu’s disappearance and the share pledges could impact the company’s governance and operations, potentially leading to changes in its controlling shareholder.
Discover more from Vino Joy News
Subscribe to get the latest posts sent to your email.
