# capacity expansion

Can Guo Guangchang Rescue Shede as Management Shuffle Exposes Deepening Strain?

Shede Wine Industry is under mounting pressure as a VP with crucial local-government ties resigns amid falling revenues, weak mid‑to‑high-end sales and ballooning inventories. Fosun retains board control and Guo Guangchang’s personal support offers some hope, but aggressive capacity expansion and high dividend payouts complicate the company’s ability to recover without decisive strategic moves.