Caixin
Sep 21, 2016 04:57 PM
SOCIETY & CULTURE

Mengniu Reshuffles Leadership as Profits Sour

(Beijing) — China Mengniu Dairy said it has replaced its CEO and three board members because its largest stockholder, COFCO Corp., was unhappy with the company's first-half performance.

The country's second-largest milk producer said last week that CEO Sun Yiping had resigned due to "personal reasons." Lu Minfang, who headed the company's baby-formula subsidiary, Yashili International, was named the new CEO on Sept. 15.

Niu Gensheng, the company's founder and former chairman who retired in 2011, has rejoined the company as a member of its strategy team.

Mengniu Chairman Ma Jianping had told an investor meeting on Monday that the reshuffling was due to pressure from company stockholders, including state-owned food conglomerate COFCO Corp., after Mengniu's profits fell nearly 20 percent, several participants at the meeting revealed.

France's Danone SA is Mengniu's second-largest shareholder. Lu has worked for Danone for over a decade and was part of its infant formula business in China.

Three board members — Ding Yubo, Liu Ding and Liao Jianwen — also left the company last week.

Mengniu's shares dropped 1.8 percent to close at HK$14.04 on Tuesday.

Contact reporter Han Wei (weihan@caixin.com); editor Poornima Weerasekara (poornima@caixin.com)

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code