Bossing Moutai is heady stuff

The market development in recent days in which the mainland's small investors and tycoons alike are most interested is the leadership change at Kweichow Moutai, with Ding Xiongjun taking over from Gao Weidong as chairman and director.

The clout this A-share company commands in the mainland stock market can be seen from the adoption by various sectors of the character "Mou" in its name as a synonym for No 1. For example, leading cooking oil manufacturer Jinlongyu is called "Oil Mou."

Although Gao was at the helm for hardly a year and a half, the trials and tribulations he faced were numerous.

The toughest challenge was the pandemic's impact on operations in areas including the sourcing of ingredients and sales.

But despite strong headwinds, the company managed to up profit last year as market capitalization surged to 3.3 trillion yuan (HK$3.97 trillion) - a size that rivals mega techno enterprises.

It is noteworthy that while Moutai makes liquor, its heads have been appointed from among the upper echelons of government: Gao and Ding were directors of the Guizhou provincial departments of the transportation and the energy bureau respectively.

Running a firm of such mammoth value apparently requires not only being able to gain a specialized knowledge of the alcoholic beverage industry, but also general prowess in management.

The top position at Moutai is seen to be the hottest seat among state enterprises not only because the company is a key revenue generator for Guizhou, but also because the company's products have been in short supply constantly - a situation that could easily give rise to corrupt practices.

So its head must manage production and market development efficiently while ensuring myriad interests are handled properly.

No wonder a former temporary chief heaved a sigh of relief when his care-taking stint was over and cautioned his successor with eight characters: zhan zhan jing jing, ru lv bo bing - "fidgety as if walking on thin ice."

Clearly, being the head of this A-share supremo is a position in which it's hard to excel and hard to retain.

Siu Sai-wo is publisher of Sing Tao Daily