Abstract
A notable company based in Anhui province, Gujing Group was the first listed Chinese liquor (baijiu) company in the stock market. The business’ fast growth in the 1990s and funding raised from listing on the stock market paved the way for diversification. Yet deviating from Gujing Group’s core business introduced difficulties for the company, and even the profit from its liquor business could not offset the losses from diversification. Eventually, Gujing Group was labeled with “ST (Special treatment)”. Moreover, the then chairman and other senior executives were investigated and punished over serious breaches of discipline. The new CEO, Mr. Cao Jie, and the young top management team have struggled to lead the company to recovery. This case will analyze the diversification trap and how to improve asset efficiency.
| Translated title of the contribution | Anhui Gujing Distillery Company Limited |
|---|---|
| Original language | Chinese (Simplified) |
| Number of pages | 25 |
| Publication status | Published - 30 Apr 2015 |
Case number
FIN-14-264Case normative number
FIN-14-264-CCCase type
图书馆案例Update date
2016-06-17Published by
中欧国际工商学院Keywords
- 复兴
- 多元化
- 资产重组
Case studies discipline
- Accounting
- Finance
Case studies industry
- Manufacturing