The chairman of Wuliangye, China’s second-largest baijiu producer, is under investigation for suspected serious violations of discipline and law, Chinese authorities said.
State media reported that Zeng Congqin, chairman and Communist Party secretary of Wuliangye, is undergoing disciplinary review and supervisory investigation by the Yibin Municipal Commission for Discipline Inspection and Supervision.
Zeng, 56, has served as Party secretary and chairman of Wuliangye Group Co., Ltd. and Wuliangye Yibin Co., Ltd. since February 2022. His investigation means he was removed while still in office.
Wuliangye, headquartered in Yibin, Sichuan province, is one of China’s most prominent premium baijiu producers. The company is known for its strong-aroma baijiu distilled from five grains — sorghum, rice, glutinous rice, wheat and corn. Along with Kweichow Moutai, it has long dominated China’s high-end baijiu market.
Shares of Wuliangye briefly fell about 1% in the next trading session following news of the investigation. The company later said its production and operations remain normal.
Growth during Zeng’s tenure
During his time leading the company, Zeng promoted policies aimed at improving investment returns, product quality and employee income.
At Wuliangye’s 2024 shareholder meeting, he said he still had four years remaining in his term and pledged to focus on the company’s long-term development.
Under his leadership, Wuliangye experienced strong financial growth between 2022 and 2024, with both revenue and net profit rising steadily.
In 2024, the company reported revenue of 89.175 billion yuan (US$12.3 billion) and net profit of 31.853 billion yuan, pushing the company’s market capitalization briefly above 1 trillion yuan.
Industry observers attributed that growth to Zeng’s efforts to optimize the company’s product structure, reform marketing channels and expand the brand internationally.
However, performance weakened in 2025 as consumer demand slowed.
In the first three quarters of 2025, Wuliangye reported revenue of 60.945 billion yuan, down 10.26% year-on-year, while net profit fell 13.72% to 21.511 billion yuan.
The company expects full-year net profit of about 26.8 billion to 26.9 billion yuan, a decline of roughly 15% from the previous year.
Series of corruption cases
Just days before the investigation was announced, Zeng attended a post-Lunar New Year company meeting on Feb. 24, where he urged employees to uphold what he described as “three bottom lines”: safety, integrity and risk control.
Within days, he himself became the subject of an investigation.
Zeng is also not the first senior executive at Wuliangye to face corruption probes.
On Jan. 10, 2025, his predecessor Li Shuguang was investigated for suspected disciplinary violations, becoming the first former chairman of the company to fall under investigation.
Other cases have involved senior executives at different levels of the company.
In July 2018, Zhang Hui, a Wuliangye director and chairman of Yibin State-owned Assets Management Co., was investigated for suspected disciplinary violations. In August the same year, Yu Mingshu, a former Party committee member, trade union chairman and supervisory board chairman, was expelled from the Communist Party and removed from public office for accepting gifts and bribes.
In January 2019, Pan Zhong, director and general manager of Wuliangye Group Xianlin Fruit Wine Co., was also investigated.
The series of cases highlights long-standing governance challenges within one of China’s most influential baijiu producers.
For Wuliangye, the leadership investigation comes at a time when the baijiu industry is facing slowing growth and shifting consumption patterns, raising questions about how the company will maintain stable performance while strengthening internal governance.
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