Fuling Zhacai, the listed maker of the ubiquitous Chinese pickled mustard often dubbed the country’s "pickles champion," has replaced its chief executive twice within five months, underscoring mounting pressure on the company as revenue growth slows and diversification plans falter.
On February 13, 2026 the company’s board nominated and appointed Xia Qiangwei as general manager after receiving a personnel notice from its controlling shareholder, the Chongqing Fuling District State-owned Assets Supervision and Administration Commission. The announcement followed a February 24 investor update reiterating that appointments were made in accordance with company law and the articles of association, and that the management team would diligently lead the firm.
The change marked a second leadership shift since late September 2025, when former general manager Zhao Ping resigned for personal work reasons and Gao Xiang was appointed. Gao’s tenure as CEO lasted less than five months; under the latest arrangement he will remain party secretary and chairman while Xia takes on the general manager role and deputy party secretary duties.
The personnel churn comes as Fuling Zhacai confronts a clear growth bottleneck. For the first three quarters of 2025 the company posted only marginal increases: operating revenue of Rmb1.999 billion, up 1.84% year-on-year, and net profit attributable to shareholders of Rmb673 million, up 0.33%. The core pickled-mustard product still accounts for more than 80% of sales, but volumes have drifted down—from 117,800 tonnes in 2022 to 111,400 tonnes in 2024—and fell 1% year-on-year to 59,300 tonnes in the first half of 2025.
Management has sought to broaden the product mix with radish pickles, kimchi and ready-to-eat condiments, but these categories remain minor contributors. In the first half of 2025 radish and kimchi generated Rmb33.15 million and Rmb119 million respectively, together accounting for little more than 11% of total revenue, while other new items contributed less than 3%.
Ambitious acquisition plans intended to accelerate diversification also ran into trouble. In April 2025 Fuling Zhacai announced a proposed deal to acquire 51% of Sichuan Weizimei Foods, a maker of Sichuan-style seasonings and pre-prepared dishes, by issuing shares and cash. The board abruptly terminated the transaction about six months later, citing changed external conditions and failure to reach agreement on key commercial terms with the counterparty.
For investors and market watchers the twin signals of managerial instability and a called-off acquisition raise questions about strategic clarity and execution capacity. The controlling shareholder’s direct intervention in executive appointments is consistent with the governance model prevalent at many Chinese state-influenced firms, but frequent leadership changes can unsettle staff, delay strategic initiatives and reduce investor confidence at a moment when core-product demand is weakening.
If Fuling Zhacai is to reverse its slowdown it will need to make faster progress in building new, higher-growth revenue streams or find alternative routes to scale through partnerships, tighter cost controls or renewed M&A attempts under clearer commercial terms. The company’s retained chairman role for Gao suggests continuity of oversight even as operational leadership changes hands, but the path to restoring stronger growth remains uncertain.