Wuliangye Yibin Co., China's second-largest baijiu producer, reported its chairman, Zeng Congqin, has been placed under detention by Sichuan provincial authorities. The company disclosed this in a filing to the Shenzhen stock exchange, noting the detention and subsequent case filing without providing specific reasons. Wuliangye stated all other board members and executives are performing normally and expects no major impact on production or operations. Shares fell 1% in early Monday trading.

This incident adds to Wuliangye's recent challenges, including slowing sales growth over the past two years due to weakening demand for its traditional liquor, partly driven by economic uncertainty and a crackdown on lavish government banquets. The company is now promoting a milder version of its product to attract younger, lighter drinkers.