China’s Liquor Retail Shake-Up Continues With Another Control Change

China’s liquor retail industry is seeing a rapid reshuffling of ownership. Just days before boutique wine producer Grace Vineyard disclosed the sale of a controlling stake to the founder of retail chain 1919, another major player has changed hands: Henan Liquor Easy Trading Corporation Limited (酒便利), has sold about 51% of its equity through a court-supervised auction.

The winning bidder is an investment vehicle linked to Jiuxian (酒仙网), one of China’s longest-running liquor e-commerce platforms, marking another consolidation move in the increasingly competitive instant liquor retail market.

From Dec. 8 to 9, Alibaba’s judicial auction platform listed three tranches of shares held by Henan Qiaohua Commercial Management Co., Ltd., together representing roughly 51% of Liquor Easy. All three tranches were sold.

One lot of 2.268 million shares attracted nine rounds of bidding and closed at a 31.7% premium to its starting price. The remaining two tranches were sold at their opening bids. Combined, the lots carried a starting price of 67.14 million yuan (about US$9.5 million), roughly 70% of the appraised value of 95.9 million yuan, and ultimately fetched 68.4 million yuan (US$9.7 million). All shares were acquired by Gongqingcheng Chuangdongfang Huake Equity Investment Partnership (Limited Partnership).

Founded in 2010 in Zhengzhou by Wang Xue, Shen Libo and Zhang Li, Liquor Easy built its early reputation by experimenting with an O2O model combining online ordering and 20-minute local delivery, well before instant retail became a mainstream concept in China’s liquor trade.

The model attracted investor interest. Between 2015 and 2018, the company completed seven funding rounds, including a major strategic investment from Legend Holding, a major Chinese investment company and owner of Lenovo, in 2016. Liquor Easy later listed on China’s New Third Board, becoming the second liquor retail chain to do so after 1919. At its peak, the company expanded into multiple provinces and grew its store network to nearly 400 outlets by 2024, with more than 6 million registered members.

From expansion to financial stress

The company’s fortunes shifted after Henan Qiaohua acquired a 29.8% stake from Legend Holdings in November 2021 for 298 million yuan (about US$42.3 million), later buying additional founder-held shares and gaining control in 2023 with a 52.98% stake.

Financial pressure soon followed. In 2024, 9bianli posted revenue of 1.679 billion yuan (about US$238 million), down 3.9% year on year, while net profit swung to a loss of 109 million yuan (about US$15.5 million). In the first half of 2025, revenue fell 37.1% to 598 million yuan, and losses widened sharply.

By the end of June 2025, cash on hand had dropped to just 14 million yuan (about US$2 million), while total liabilities climbed to 330 million yuan, pushing the company’s debt ratio close to 74%.

Governance issues compounded the strain. In November 2024, Yu Zengyun, the ultimate controller of Henan Qiaohua and Liquor Easy, was placed under police investigation on suspicion of fundraising fraud and remains unaccounted for. Nearly 40 million shares held by Qiaohua have since been frozen.

Buyer already embedded in liquor retail

The buyer, Gongqingcheng Chuangdongfang Huake, is already active in the sector. It holds a 4.66% stake in Jiuxian (酒仙) and controls 60% of Jiukuaidao(酒快到), an instant liquor retail platform promising delivery within 19 minutes.

Founded in 2009, Jiuxian was among China’s earliest liquor-focused e-commerce platforms. While it once gained attention for private-label Australian wine brands such as Tingle Tree, its strategy in recent years has shifted toward the much larger baijiu category.

Jiukuaidao, meanwhile, operates a model similar to Liquor Easy’s, combining physical stores with rapid delivery. The platform says it now covers more than 20 provinces, nearly 100 cities, and operates over 500 outlets through a mix of self-run and franchised stores.

With this acquisition, Gongqingcheng Chuangdongfang Huake effectively controls two closely aligned liquor retail chains. How the group will integrate the businesses, reduce overlap and build scale in China’s crowded instant liquor retail market remains to be seen – but the deal underscores how quickly the sector is consolidating under financial and competitive pressure.