Wang He, the son of a senior BYD executive, plans to become the largest shareholder of China Tontine Wines Group, deepening his investment in a loss-making wine producer whose push into baijiu and other spirits faces an industry-wide downturn.
Wang has offered HK$0.20 a share for approximately 56.32 million shares, valuing the proposed purchase at about HK$11.26 million. If completed, the partial offer would increase the combined stake held by Wang and parties acting in concert with him from 11.22% to 29.9%, making him Tontine’s largest single shareholder.
The offer price is sharply below the level reached by Tontine’s shares after the announcement. Following the resumption of trading, the stock climbed as high as HK$0.595 on Aug. 28, nearly three times Wang’s offer.
The investment extends a bet Wang first placed two years ago: that a company rooted in northeastern China’s sweet wine industry could build a broader business in baijiu and distilled spirits. But those markets are now grappling with many of the same demand pressures that have weighed on wine.
Wang is the son of Wang Nianqiang, an executive vice president of BYD, according to Chinese newspaper 21st Century Business Herald. He founded Bohan Investment (Shenzhen) Co., Ltd. in 2017, with investments spanning semiconductors, new energy, advanced materials and medical technology.
His interest in Tontine marks a departure from that technology-focused portfolio.
Founded in 2001 and based in Tonghua, Jilin province, Tontine produces sweet and dry wines under its namesake brand, primarily using local grape variety called, Amur grape. It listed on the Hong Kong Stock Exchange’s main board in November 2009.
The company describes itself as one of China’s major sweet wine producers. Its wine industry park is a national 4A-rated tourist attraction, and it operates a designated site for preserving Jilin’s intangible cultural heritage through continued production.
Wang first launched a partial offer for Tontine in June 2024, seeking approximately 30.16 million shares at HK$0.60 each. The roughly 10% stake made him its third-largest single shareholder. His latest offer is priced at one-third of that earlier bid.
In disclosures accompanying the 2024 investment, Wang expressed confidence in China’s alcoholic drinks industry and Tontine’s plans to diversify into baijiu and other spirits. He said he hoped the transformation would eventually place the company among China’s top 20 baijiu producers.
Tontine has since broadened its offerings beyond wine. According to its website, the company has introduced Amur grape-based brandies containing 38% to 40% alcohol and a grape spirit at 52%. In 2025, a Yantai subsidiary launched a range of spirits in 50-milliliter bottles, while the group also added products including Japanese sake.
The strategy echoes that of Yang Lingjiang, founder of drinks retailer 1919, who acquired control of fellow listed producer Grace Vineyard last year. Grace Wine subsequently began exploring baijiu, spirits and sake.
Diversification, however, offers no assured escape from the pressures facing China’s wine industry.
The baijiu market is undergoing a prolonged adjustment, with some leading producers facing mounting inventories, pricing pressure and strained distribution networks. In the first half of 2026, 11 of 14 listed baijiu companies recorded year-on-year revenue declines. Imported Cognac brands have also struggled in China.
Tontine’s sales have recovered, but profitability remains elusive. Revenue rose 47.6% to 159 million yuan (US$23.7 million) in 2025. Interim results released Aug. 31 showed a further 25.23% increase to 74.755 million yuan (US$11.1 million) in the first half of 2026, alongside a loss of approximately 4.801 million yuan (US$0.72 million).
The company reported total comprehensive losses attributable to its owners of 80.199 million yuan (US$12.0 million) in 2023, 321 million yuan (US$47.8 million) in 2024 and 8.43 million yuan (US$1.26 million) in 2025.
Shen Yi, a former executive at a listed wine company, said the wider drinks industry remained in a period of adjustment, making a substantial turnaround within five years difficult for both wine and baijiu.
He also questioned whether Wang’s technology background offered the same strategic advantages as an investor with an established drinks distribution business.
“An investor from a technology background acquiring Tontine is different from the founder of 1919 acquiring Grace Wine,” Shen said. “The latter can integrate agricultural production, manufacturing and distribution, whereas the connection between BYD and the drinks industry is not obvious.”
Shen suggested that Wang’s increased investment could involve a shorter-term financial strategy or an attempt to draw on the platforms and sales channels of large companies such as BYD to sell alcoholic beverages. Those possibilities remain his assessment, rather than confirmed plans announced by Wang.
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