Jiugui Liquor Company, a well-known maker of the popular Chinese spirit Baijiu, admitted recently that at least 100 million yuan (US$ 16.3 million) was stolen from the bank account of one of its subsidiary companies late last year.
The company stated that the actual amount stolen has not been determined at the moment but they are working with police authorities to determine the amount and ways to find who is responsible.
The funds were stolen from the Jiugui Distribution Company's account at a Hangzhou branch of the Agricultural Bank of China in Zhejiang Province.
The thief apparently withdrew the funds in two withdrawals of 35 million yuan (US$ 5.7 million) and a third withdrawal of 30 million yuan (US$ 4.9 million). The thief left a little over 1,000 yuan in the account. Each withdrawal, sources say, was made by an unknown individual.
The Chinese liquor market as a whole has suffered a recent period of contraction brought on mainly by the new government's regulations calling for cutbacks in its spending on parties, dinners and banquets. Jiugui and other top line baijiu makers have suffered substantial drops in revenue since the regulations were announced. According to company officials, during the first three quarters of 2013, Jiugui revenues declined by over 67% and its profits saw a decrease of over 95% from the previous year.
The company warned that its economic position will only get worse as a result of the stolen 100 million yuan and that investors need to be prepared.
Jiugui Liquor Company is based in Hunan Province and was founded in 1956. It is listed on the Shenzhen Stock Exchange and is known for its Xiang Quan and Feng Tan brand Baijiu liquors.