Yuan Renguo, the 63-year-old former chairman of Maotai, was opened up and landed.
On the afternoon of May 22, the website of Guizhou Disciplinary Commission released news that Yuan Renguo, former Vice-Secretary and former chairman of the Party Committee of Guizhou Maotai Winery (Group) Co., Ltd., was expelled from the Party and dismissed from public office.
Recently, with the approval of Guizhou Provincial Committee of Discipline Supervision, Guizhou Provincial Committee of Discipline Supervision conducted a disciplinary review and investigation into the serious violation of discipline and law by Yuan Renguo, former deputy secretary of the Party Committee, former chairman of the board of directors and former chairman of Guizhou Maotai Liquor Co., Ltd.
After investigation, Yuan Renguo seriously violated political discipline and political rules, using Maotai liquor management right as a tool to attract relations and exchange interests, to carry out political clinging and to obtain political capital; to engage in power and power-money transactions, to facilitate illegal dealers to engage in Maotai liquor management, seriously undermining the marketing environment of Maotai liquor; to engage in family corruption; to transfer stolen money and stolen goods. Collusion with others to confront organizational censorship. In violation of organizational discipline, it is better to report personal matters. Violating honesty and discipline, engaging in profit-making activities in violation of regulations, illegally obtaining huge profits, and engaging in power and money trading. In violation of the provisions of the laws and regulations of the State, taking advantage of the convenience of ones position to seek benefits for others and illegally accepting other peoples property, the amount is especially huge and is suspected of bribery crime.
As a leading cadre of Party members and the head of key state-owned enterprises in our province, Yuan Renguo regards the management power of state-owned enterprises granted by the Party and the people as a tool for personal and family interests, which seriously violates the Partys disciplines and state laws and regulations, and does not converge or stop after the Eighteenth National Congress. It is of a very bad nature and should be dealt with seriously. According to the relevant provisions of the Regulations on Disciplinary Disposal of the Communist Party of China and the Supervision Law of the Peoples Republic of China, after studying and submitting to the Provincial Committee for approval at the meetings of the Standing Committee of the Provincial Disciplinary Commission and the Committee of the Provincial Supervision Committee, it was decided that Yuan Renguo should be dismissed from Party membership and public office and that his suspected crimes should be handled by the procuratorial organs according to law. The website of Guizhou Disciplinary Commission released the information.
This news is not unexpected.
A year ago, in May 2018, Maotai Group and Guizhou Maotai Liquor Co., Ltd. (600519. SH), a listed company of Maotai Group, changed their command by lightning. Yuan Renguo, then Chairman of Maotai Group and Chairman of Maotai Liquor Co., Ltd. of Guizhou, resigned from office, but his whereabouts have not been announced to the outside world, and the news about his investigation has been circulating among the public. Some media quoted a former Maotai employee in Guizhou as saying, Today in Guizhou, Yuan Renguo has become a sensitive topic, and most people avoid talking about it.
In early May 2019, the clue was revealed. On May 5, the 10th meeting of the Standing Committee of the 12th Guizhou Provincial Committee of the CPPCC decided to remove Yuan Renguo from the post of Standing Committee of the 12th Guizhou Provincial Committee, Vice-Chairman of the Economic Committee and Member of the Provincial CPPCC.
Then on May 6, CCTV microblog published the news entitled Yuan Renguo, former chairman of Maotai: Baochang WatchesWarwolf 2Violating the Press Card for 4 years, during which it mentioned that under the gold-lettered signboard of Maotai liquor, all kinds of violations of discipline around Maotai liquor are also emerging in an endless stream.
Entering Maotai Winery at the age of 19
In 1956, Yuan Renguo was born in Maoba Town, 25 kilometers away from Maotai Town. His father was the head of the local county committee office, and his mother was a cadre of the county agricultural machinery company. In 1973, after graduating from high school, Yuan Renguo responded to the call of going up the hill to the countryside and went to the central town next to Renhuai city to become an educated youth.
In 1975, Yuan Renguo entered Maotai Liquor Factory by recruiting workers. First he worked as a liquor maker for one year, then he became a koji maker. The environment of the koji-making workshop is bad, the temperature of the workshop is over 40 C, and there is a lot of heavy manual labor. After a years work in the production workshop, Yuan Renguo was transferred to the Supply Section to become a custodian, and then gradually promoted to a publicity cadre, office secretary and office deputy director.
Some media interviewed the employees who came in with Yuan Renguo at the same time. They recalled that Yuan Renguo was very smart and asked questions after the teacher to get along with them. Ji Keliang, then director of Maotai distillery, sometimes went down to the factory. Yuan Renguo also seized the opportunity to ask for advice. He will show himself very well.
At the age of 30, Yuan Renguo became the youngest workshop director in Maotai distillery. Since then, Yuan Renguo has served as assistant director of Maotai distillery, vice director of Maotai distillery in 1990 and vice secretary, general manager and vice chairman of the Party Committee in 1998. All the way, he has refreshed the youngest record of his post. In 2001, Yuan Renguo became the leader of Maotai.
According to his public resume, Yuan Renguo spent his entire career in Maotai, where he worked for 43 years. Among them, he served as a director of Guizhou Maotai listed companies for 18 years and chairman of Maotai Group for 8 years.
Sales of Maotai Liquor are soaring all the way
Before 1998, Maotai Liquor Factory, as one of the most important state-owned enterprises in Chinese liquor-making enterprises, had been operating in the planned economy system, and few people worried about the marketing of Maotai Liquor. However, in 1998, after the outbreak of the financial crisis in Southeast Asia, many state-owned sugar and liquor companies were affected. It is these sugar and liquor companies that are the sales agents of Maotai distillery. They all suffered from the bank loan crisis, which directly led to the decline in demand for Maotai liquor.
In July 1998, Maotais original plan for annual sales of 2000 tons of liquor was not half completed. Ji Keliang, then chairman of Maotai Group, found Yuan Renguo, then general manager, to discuss countermeasures. They reached a consensus that Maotai needed to find new distributors and build up its own marketing team. After making up his mind, Maotai set up a sales company, and Yuan Renguo set up the first 17-person marketing team in Maotai history to aim at the national market.
With the help of distributors, the sales of Maotai liquor have been soaring all the way. By the end of 1998, Maotai not only fulfilled the sales task of 2000 tons on schedule, but also achieved the best sales performance in Maotais history. Subsequently, Maotai began to expand its sales channels, and with the help of distributors around the country, sales began to rise.
In 2001, Yuan Renguo became the leader of Maotai, which was not the leader of liquor industry at that time. In 2001, Wuliangyes business income was 4.742 billion yuan and Maotais was 1.618 billion yuan, only one third of Wuliangyes.
In 2008, Maotai, Guizhou, achieved 8.242 billion yuan in business income, exceeding 7.933 billion yuan in Wuliangye. Since then, Maotai has gradually opened the gap with Wuliangye. In April 2017, Maotai finally overtook Diageo as the worlds largest liquor maker by market value. According to the 2018 annual report of Maotai, Guizhou, Maotai achieved a revenue of 73.639 billion yuan and a net profit of 35.204 billion yuan last year, with both revenue and net profit reaching new highs.
Also in 2001, Guizhou Maotai was listed on the Shanghai Stock Exchange, and now it is the highest A-share listed company.
Prices soar and channels are in chaos
Maotais dealer team grew rapidly from 17 in 1998 to 553. The customers of distributors and franchised stores have grown from 146 in 1998 to more than 2000 in the Yuan Renguo era, including 104 overseas agents. The market covers 66 countries and regions in the world.
The price of Maotai liquor has been rising all the way, and even there is a shortage of supply and demand. In 2012, Maotai liquor almost reached its peak in history. With the promulgation of the eight regulations, dealers have sold Maotai liquor, and the price of Feitian Maotai has dropped sharply to 800 yuan a bottle. According to media reports at that time, at the Maotai Distribution Conference at the end of 2012, Yuan Renguo once again made a fierce move, demanding that the retail price of 53 degrees Feitian Maotai should not be less than 1519 yuan per bottle, and it is not ambiguous who will ban the low-price liquor sales.
At that time, Yuan Renguo also demanded that every dealer must open a micro-blog after returning home, publicize Maotai on micro-blog every day, and fight back against the voice of attacking Maotai on the Internet. However, Maotai will formulate assessment methods, and take the implementation of dealers on micro-blog as one of the important assessment basis. Maotai liquor has been able to stabilize its price.
Until 2019, Maotai liquor was still a scarce product. 500 ml Feitian Maotai with a price of 1499 yuan is hard to find in the market, and its retail price has risen to more than 2000 yuan.
Bribery of Famous Liquors and Resale of Approvals
It is not only market prices and channels but also the relationship between Yuan Renguo and the officialdom that has led to chaos.
Wang Xiaoguang, the former vice governor of Guizhou Province who was arrested last year, was identified by the Central Discipline Commission as morality does not match, honesty and shame. According to CCTV, Wang Xiaoguang is a loyal fan of Maotai. Wang Xiaoguang not only drinks, but also sells, greets relevant institutions and enterprises, runs four liquor monopoly certificates, opens four famous liquor monopoly stores in Guiyang, and handles them to his family. Wang Xiaoguang is in charge of the source of goods and is sold by his family. He also instructed his subordinates to go to his own store to buy when the business of the famous liquor monopoly store was weak. Wang Xiaoguang collects and sells, and pockets huge profits.
On April 23, 2019, the First Intermediate Peoples Court of Chongqing publicly sentenced Wang Xiaoguang, former vice governor of Guizhou Provincial Peoples Government, to bribery, corruption and insider trading at first instance. Wang Xiaoguang was sentenced to 20 years in first instance and fined 173.5 million yuan.
On January 17 this year, the Regulations on Prohibiting Leading Cadres from Using Maotai Wine for Private Interests, issued by the General Office of the Guizhou Provincial Committee of the Communist Party of China and the General Office of the Guizhou Provincial Government, was promulgated.
According to the Regulations, leading cadres are strictly prohibited from participating in Maotai liquor business activities in five aspects: self, spouse, children and their spouses; utilizing the influence of their functions and duties to facilitate other special relatives to obtain Maotai liquor business qualifications, increase Maotai liquor sales indicators, and resell Maotai liquor; approving Maotai liquor business rights in violation of regulations; receiving and delivering Maotai liquor in violation of regulations; Other illegal acts of meddling in and participating in Maotai liquor business. In addition, leading cadres should educate and manage their relatives and staff around them, and strictly prohibit them from participating in Maotai liquor business activities by taking advantage of their functions and powers or the influence of their positions.
Looking back on the relevant reports in Guizhou Province in recent years, we can find that many officialsviolations of discipline involve bribery of Maotai liquor.
On May 25, 2017, Guizhou Discipline Commission reported that Luo Jianqiang, the former standing committee and vice mayor of Bijie Municipal Party Committee, had been opened up for serious violations of discipline. Among its corrupt practices, 26 bottles of Maotai liquor were collected from private enterprise bosses, regardless of the eight regulations of the central government. In February 2018, Zhu Lijun, former Secretary of the Party Group and director of Guizhou Land and Resources Department, violated the regulations in purchasing and using high-grade liquor, and was discharged from the Party. In February 2018, Yang Hongbing, Secretary of the Party Leadership and chief procurator of the Guanshan Lake District Procuratorate of Guiyang City, Guizhou Province, violated the rules in purchasing and using high-grade liquor. He was severely warned and punished by the Party, and the related expenses were reimbursed.
Some local officials still have the problem of reselling batches of Maotai liquor. On December 5, 2018, two cadres in Liupanshui, Guizhou Province, were notified of double opening. Among them, Guo Rui, former Standing Committee and Vice-District Director of Zhongshan District Committee of Liupanshui City, has some problems, such as violating honesty and discipline, borrowing money from management service objects in violation of regulations, and profit from reselling Maotai liquor batches.
Not only officials, but also Tan Dinghua, former deputy general manager and chief financial officer of Guizhou Maotai Co., Ltd., fell out of business in 2016 for serious violations of discipline. Weixingong of Guizhou Discipline Commission said that Tan Dinghua, deputy general manager in charge of finance, material supply and packaging procurement, could become a distributor and supplier of Maotai Company as long as money was sent.
Maotai has reorganized its dealers
On the evening of May 10, 2018, the announcement issued by Maotai in Guizhou officially declared the end of the Yuan Renguo era. The chairmanship of Maotai Group and Maotai Listed Companies is joined by Li Baofang, then Party Secretary and General Manager of Maotai Group. Maotai has officially entered the era of Li Baofang.
With the change of commander-in-chief by lightning, Maotai has also undergone a round of personnel changes. In July 2018, Li Guisheng, former deputy general manager of Maotai Co., Ltd., was unable to perform his duties due to illness; in September, Zhao Shuyue, former deputy secretary of the Party Committee of Maotai Group, went through retirement formalities; in October, Yang Jianjun, former chief accountant of Maotai Group, resigned; and in October, Wang Chonglin, former chairman of Maotai Liquor Sales Co., Ltd., was transferred to Guizhou Communications Construction Group Co., Ltd.
From a series of actions taken by Li Baofang last year, it is the main strategic direction of Maotai this year to rectify its dealers and increase the proportion of direct business. At the end of 2018, Li Baofang announced at the dealers fraternity that in 2019, the total amount of Maotai liquor would be 31,000 tons, and the dealer signed a distribution contract in 2019, totaling about 17,000 tons. That is to say, only 55% of Maotai liquor will be sold through distributor channels in 2019.
Meanwhile, the campaign to rectify dealers in Maotai has continued. According to the 2018 financial report of Maotai in Guizhou, the number of dealers in Maotai decreased by 607 last year, including 170 dealers in Maotai liquor series and 437 dealers in Maotai in Guizhou. The first quarter results show that the number of dealers in Maotai is further decreasing. In the first quarter, there were 533 dealers, 494 dealers in Maotai liquor series and 39 dealers in Maotai liquor.
Resume of Yuan Renguo
Yuan Renguo, male, Han nationality, born in October 1956, Renhuai, Guizhou Province, has a postgraduate degree. He took part in work in April 1974 and joined the Communist Party of China in July 1982.
From November 1990 to January 1997, member and deputy director of the Party Committee of Guizhou Maotai Liquor Factory;
From January 1997 to May 1998, members, directors and deputy general managers of the Party Committee of Guizhou Maotai Winery (Group) Co., Ltd.
From May 1998 to August 2004, Vice Secretary, General Manager and Vice Chairman of the Party Committee of Guizhou Maotai Liquor Factory (Group) Co., Ltd., and also General Manager and Chairman of Guizhou Maotai Liquor Co., Ltd.
From August 2004 to October 2011, Secretary of the Party Committee, General Manager and Vice Chairman of Guizhou Maotai Liquor Factory (Group) Co., Ltd. and Chairman of Guizhou Maotai Liquor Co., Ltd.
From October 2011 to January 2017, Vice Secretary and Chairman of the Party Committee of Guizhou Maotai Liquor Factory (Group) Co., Ltd. and Chairman of Guizhou Maotai Liquor Co., Ltd.
From January 2017 to February 2018, Vice Secretary and Chairman of CPC Committee of Guizhou Maotai Liquor Factory (Group) Co., Ltd., Vice Chairman of Finance and Economy Committee of Guizhou Provincial Peoples Congress, and Chairman of Guizhou Maotai Liquor Co., Ltd.
From February 2018 to May 2018, Vice Secretary and Chairman of the CPC Committee of Guizhou Maotai Liquor Factory (Group) Co., Ltd., Vice Director of the Economic Committee of Guizhou Political Consultative Conference, and Chairman of Guizhou Maotai Liquor Co., Ltd.
In May 2018, he was no longer vice secretary and chairman of the Party Committee of Guizhou Maotai Liquor Factory (Group) Co., Ltd. and chairman of Guizhou Maotai Liquor Co., Ltd.
In May 2019, he was removed from the post of Vice-Chairman of the Economic Committee of the CPPCC in Guizhou Province and disqualified as a member of the CPPCC.
Source of this article: Peng Mei News Responsible Editor: Zhang Xianchao_NN9310