The story. In the 1980s and 1990s, Gujing Distillery transformed itself from an unknown local distillery into Gujing Group, a multibillion yuan company.

In the 1980s Gujing expanded, funded by debt and helped by China’s transition to a market economy. By 1995 it was the second-most profitable liquor producer in China, with pre-tax profits of 595m yuan. In 1996 it became China’s first publicly listed distiller, with its listing on the Shenzhen Stock Exchange, and it began to diversify into sectors ranging from pharmaceuticals to hotels.

The challenge. The 1997 Asian financial crisis hit the group hard. Investments – both at the distillery and group level – went sour, the group was plagued by allegations of unfair distribution of stock ownership and its consecutive losses placed the distillery in danger of being delisted.