CR BEVERAGE (02460) Change in leadership: veteran returns to lead new chapter

A Chinese beverage giant welcomed a key leadership transition. On January 14th, CR BEVERAGE (02460) announced that former Chairman of the Board Zhang Weitong stepped down due to work adjustments, and the current General Manager of Finance at China Resources Group, Gao Li, succeeded him as Chairman of the Board - a versatile management talent with nearly 20 years of experience in the China Resources system, returning to the front lines of the beverage business where he had served for ten years. CR BEVERAGE, now sailing into 2026, is in a crucial development phase post-listing. Faced with industry challenges and performance pressures, the appointment of Gao Li, a seasoned leader with rich experience in capital markets, strong financial background, and outstanding comprehensive management abilities, at this juncture signals that CR BEVERAGE is poised to enter a new chapter focusing on both scale expansion and quality improvement. It is noteworthy that 2026 marks the beginning of the "14th Five-Year Plan" and coincides with the company's entry into a new phase of "refinement and meticulous work." Gao Li, nurtured within the China Resources system for nearly 20 years, did not come in from outside but is the natural result of internal talent development. This "acquaintance taking over familiar business" model, combined with the well-established corporate governance system of China Resources, ensures a smooth transition of strategy and operations, showcasing the stable yet enterprising management culture within the China Resources system. At 52 years old, Gao Li's career path is a typical one for senior executives within the China Resources system. He joined China Resources in August 2007 and has held important positions in China Resources Pioneer, CR BEVERAGE, China Resources Power, and the China Resources Group Headquarters, acquiring diverse management experience spanning consumer goods, energy, and group control, making him a typical representative of "China Resources' versatile management talent." Of particular importance is Gao Li's role as a core member of China Resources Group's strategic decision-making team. His return to CR BEVERAGE from the heart of the group's finance department to take over as Chairman of the Board not only marks a return to his previous position but also empowers the company strategically. In an industry where competition is increasingly complex and growth relies more on refined operations and cross-sector collaboration, a versatile leader with both group-level vision and industry-specific depth is expected to provide CR BEVERAGE with more efficient resource allocation and inject new management concepts and opportunities in operational management, capital operations, and cross-sector strategic coordination, energizing the business development. From 2012 to 2020, during his tenure as Chief Financial Officer of CR BEVERAGE, Gao Li played a significant role in formulating and implementing the strategies for CR BEVERAGE during the "12th Five-Year Plan" and "13th Five-Year Plan," helping to achieve the strategic goals of transitioning from a single product to multiple products and from regional to national coverage, driving explosive growth through organizational capabilities. He led the transformation of the entire chain cost management system, lean control system for sales expenses, significantly improving resource efficiency. During this period, CR BEVERAGE's profits and shareholder returns saw significant increases. He led the construction of CR BEVERAGE's business systems covering core aspects of the entire value chain from scratch, promoting the extensive application of the terminal management system SUP and the distributor collaborative platform DMS during his tenure. These eight years of deep involvement not only honed his comprehensive financial control abilities but also shaped his comprehensive perspective as a manager who understands business, strategy, and market, laying a solid foundation for taking on broader management responsibilities in the future. From March 2020 to January 2025, Gao Li served as Deputy General Manager of Finance at China Resources Group and Chief Financial Officer of China Resources Power. He led multiple capital operation projects for China Resources Power, a giant in the energy sector with a market value exceeding HK$100 billion, deeply involved in strategic and company operations management. During his tenure from 2022 to 2024, China Resources Power's ROE increased from 1.83% in 2021 to 15.63% in 2024, significantly increasing shareholder returns. His achievements were recognized in the capital market - the company was again included in the Hang Seng Index in 2023 and received awards such as the "Golden Bauhinia Award" in 2024, reflecting market appreciation for his financial management capabilities and quality shareholder returns during his tenure. Currently, the Chinese soft drink industry has moved away from extensive expansion and entered a period of dual consolidation focusing on "existing market competition + high-quality development." The industry faces challenges such as retail landscape reshaping, fragmented consumer preferences, intense brand competition, and fluctuating raw material prices, demanding greater flexibility, refined operations, resource allocation and integration, and outward development. For CR BEVERAGE, the core value of this personnel adjustment is to ensure the extension and deepening of the company's "quality + innovation" dual-driven strategy. The company has already built a product matrix covering various categories such as packaged drinking water, Chinese herbal drinks, and tea beverages, establishing a leading position. Looking ahead, with the rise of healthy consumption, accelerated fragmentation of channels, and expanding markets, CR BEVERAGE is poised to leverage its brand strength, channel and supply chain advantages, refined operations, and capital operations to unlock long-term growth opportunities. Against this backdrop, Gao Li's appointment is seen by the market as a precise match. He not only deeply involved in CR BEVERAGE's strategic formulation and implementation but also has a profound understanding and unique insights into industry development, competitive landscape, and business model, honed outstanding organizational management, financial management, and operational management capabilities in cross-sector management. His versatile background aligns well with CR BEVERAGE's current strategic focus on "dual-driven growth, channel efficiency improvement, asset efficiency optimization, and profit enhancement," and is expected to drive performance development through organizational and capability enhancement, injecting core momentum into the new chapter of CR BEVERAGE's development in the "14th Five-Year Plan." Under Gao Li's leadership, CR BEVERAGE, while adhering to China Resources Group's performance-oriented culture, is expected to lead the company to new breakthroughs in scale, profitability, and shareholder returns improvement. This, indeed, is a true testament to high-quality development.