Shede Spirits to cut capital, abolish supervisory board

Shede Spirits will reduce its registered capital from RMB 33,312.2441 million to RMB 33,275.8879 million following the cancellation of 36.3562 million restricted shares from its 2022 stock incentive plan. The plan's third restriction lift period performance targets were not met, and four incentive participants, including He Min and Jing Leilei, left the company.

In a major governance overhaul, the company will eliminate its supervisory board, with its functions transferred to the board's audit committee. The board of directors will increase from nine to eleven members, adding one independent director and one employee representative director. These changes necessitate amendments to the company's articles of association and other governance policies, which will be submitted for shareholder approval.

For the first three quarters of 2025, Shede Spirits reported a -18.58% decrease in total wine sales revenue, reaching RMB 328,542.85. This decline was primarily driven by a -23.96% drop in mid-to-high-end wine sales, while low-end wine sales increased by 16.46%. Operating cash flow for the period decreased by 69.47%.