Mengniu’s chief executive, Sun Yiping, has stood down amid a number of board-level resignations at the Chinese dairy giant. 

Sun resigned from her roles as chief executive, executive director and a member of the strategy and development committee. According to Mengniu: “Ms. Sun has tendered her resignation due to personal career development reason.”

Sun will be replaced by Jeffrey Lu, who is currently chairman of Yashili International Holdings, the infant formula group and subsidiary of Mengniu that is also part listed on the stock exchange and in which Danone holds a stake. 

Prior to serving as chairman, Lu was CEO of Yashili and he has also headed up each of Yashili’s business units. Before that, Lu oversaw Danone’s early life nutrition business in China. He worked for Danone for over ten years. 

“During the tenure at the Danone Group, he demonstrated strong strategic business and market planning capabilities. With strong leadership, management skills and in-depth knowledge of markets, Mr. Lu contributed significantly to the success of the Danone Group’s baby nutrition business in China,” Mengniu said in a stock exchange announcement. 

Alongside the departure of Sun, Mengniu revealed a number of other board level exits. Yu Xubo, Liu Ding and Dr Liao Juanwen have all resigned, the company said.  Mengniu said that the resignations will allow the company to cut the size of its board from the current 13 directors. “With a smaller number of directors, the Board may operate more efficiently in its decision making process.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Mengniu stressed that there was no conflict between the board members who resigned and the rest of the board. “Each of Ms. Sun, Mr. Yu, Ms. Liu and Dr. Liao has confirmed that he/she has no disagreement with the board and there is no matter in relation to each of their resignation that needs to be brought to the attention of the shareholders of the company.”

In its most recent results, for the first six months of the year, Mengniu has been able to grow sales by increasing its investment in marketing and brand promotion. The company has also strengthened its product mix, resulting in higher gross profit. But increased expenses and losses from associate companies has, nevertheless, placed net profit under pressure.