Xinyang Maojian issued an announcement stating that changing the company’s name will better reflect the current status of the group’s business development and its future development direction. Xinyang Maojian (0362.HK) was established in 1989. It is a key leading enterprise in the agricultural industrialization of the Ministry of Agriculture and has long been listed on the Hong Kong stock market. On February 16, 2021, Xinyang Maojian issued an announcement stating that it planned to change its name to China Guolong Moutai Group. The announcement stated that it is recommended to change the company's English name from "Xinyang Maojian Group Limited" to "China Dragon Moutai Group Limited" and adopt "China Guolong Moutai Co., Ltd." as the company's second Chinese name to replace the existing name "Xinyang Maojian Group Co., Ltd." The board of directors believes that the proposed change of the company name will better reflect the current status of the group's business development and its future development direction. The Board of Directors believes that the new name can establish a more appropriate corporate image and identity for the Company, will be beneficial to the Company's business development, and is in the overall best interests of the Company and its shareholders.
Because the name to be changed is similar to Kweichow Moutai, the news of Xinyang Maojian’s name change directly hit the hot search, and many netizens questioned that Xinyang Maojian was suspected of taking advantage of Moutai’s popularity. Information on the official website shows that the company is a full industry chain group company integrating tea planting, processing, sales, tea beverage production, tea culture tourism, and tea deep processing, and does not involve the wine industry. However, the reporter looked through Xinyang Maojian's financial report and found that the tea business is not its main business, and its business segment does include alcohol sales. In 2020, Xinyang Maojian’s revenue from the alcohol sales segment was 69 million yuan, accounting for approximately 30% of its annual revenue.
In fact, no matter how you say it, changing the name is not a good method of corporate governance, because changing the name is just a method that we imagine, and we only imagine that changing the name can have a better effect, and it also I want to change the name to achieve better development for the company, but in fact, changing the name is not very effective, and it is not a better method.
I think corporate governance mainly requires the investment of human, material and financial resources, because only in this way can the company be better governed, and only in this way can the company have better competitiveness. If these human, material and financial resources cannot be invested, it is simply impossible to change the company's name to have better governance.
Of course, corporate governance is also inseparable from a long-term strategic vision. Because if a company does not have a long-term strategic vision, it cannot focus on the future and cannot focus on long-term interests. This is actually not conducive to the development of the company, and it cannot give the company a better future. And name changes are not a panacea for corporate governance.