Taoli Bread's 91-year-old founder plans to reduce holdings, with the third daughter-in-law planning to liquidate all shares, and the eldest son already sold all his shares and exited last year.

Red Star Capital Bureau, February 26 — Taoli Bread (603866.SH) announced last night that the company’s controlling shareholder and actual controller, Wu Zhigang, along with the controlling shareholder and deemed to be acting in concert, Xiao Shuyan, plan to reduce their holdings. According to the announcement, Xiao Shuyan is Wu Zhigang’s third daughter-in-law. Both parties cited personal funding needs as the reason for their share reductions. Wu Zhigang’s share reduction was acquired before the IPO, while Xiao Shuyan’s was obtained before the IPO and through block trades.

It is understood that the current reduction window is from March 19, 2026, to June 18, 2026. Wu Zhigang plans to reduce no more than 31.9944 million shares via block trades and centralized bidding, representing no more than 2% and 0.62% of his holdings, respectively. Xiao Shuyan plans to “clear out” her holdings through centralized bidding, reducing no more than 6.0174 million shares, representing no more than 0.38%.

On February 26, Red Star Capital Bureau called Taoli Bread’s investor hotline to inquire whether the share reduction would impact the company. Staff responded, “It won’t have much impact. We are all complying with legal requirements for reduction. The former chairman (Wu Zhigang) is no longer involved in operations.”

[Image caption: Photo courtesy of Visual China]

Public records show that Wu Zhigang, born in 1935, is now 91 years old. He founded a bakery workshop in Dandong in 1995, and in 1997 established Shenyang Taoli Food Co., Ltd. (the predecessor of Taoli Bread). In 2015, he led Taoli Bread to list on the Shanghai Stock Exchange, becoming the “Number One Bread Stock” in A-shares, with an issue price of 13.76 yuan per share.

Historically, Taoli Bread’s equity has been highly concentrated within Wu Zhigang’s family. Wu Zhigang and his wife, Sheng Yali, along with his three sons—Wu Xuedong, Wu Xuequn, and Wu Xuliang—are all deemed to act in concert, with frequent internal share transfers. On March 18, 2025, Taoli Bread announced that Wu Zhigang’s eldest son, Wu Xuedong, had解除 the “Deed of Action Agreement” with the other four family members.

On May 30, 2025, Taoli Bread announced that Wu Zhigang, the controlling shareholder and actual controller, transferred a total of 10.3144 million shares, representing 0.64% of the company’s total shares, to his second son Wu Xuequn via block trade. He also transferred 21.6799 million shares, representing 1.36%, to his third son Wu Xuliang.

On November 7, 2025, Taoli Bread announced that Wu Zhigang transferred a total of 31.9943 million shares, representing 2%, to his wife Sheng Yali via block trade. Additionally, Wu Xuedong, Wu Zhigang’s eldest son, sold all 189 shares he held through centralized bidding, accounting for 0.00001% of the company.

According to the latest announcement, Wu Zhigang currently holds 5.47% of the shares, his second son Wu Xuequn holds 24.99%, his third son Wu Xuliang holds 15.71%, and his wife Sheng Yali holds 10.19%.

On February 26, a Taoli Bread staff member confirmed to Red Star Capital Bureau that the current actual controllers are Wu Zhigang, Sheng Yali, Wu Xuequn, and Wu Xuliang. Wu Xuedong has not participated in management. According to Wind data, Wu Xuequn has served as general manager since April 2019 and is 59 years old. Wu Xuliang has been the legal representative, chairman, and head of the strategic committee since April 2019, and is 54 years old.

Taoli Bread’s official website shows that the company’s registered capital is approximately 1.6 billion yuan. It mainly produces and sells bread, pastries, and seasonal products like mooncakes and zongzi. It is a comprehensive bakery company dedicated to baking food production, processing, and sales. To date, the company has 35 subsidiaries and over 310,000 retail outlets nationwide.

From 2021 to 2024, Taoli Bread’s net profit attributable to shareholders declined for four consecutive years. Its 2025 third-quarter report shows total operating revenue of 4.049 billion yuan, down 12.88% year-over-year; net profit attributable to shareholders of 298 million yuan, down 31.49%; and net profit after non-recurring gains and losses of 289 million yuan, down 30.33%.

On February 26, Taoli Bread’s closing price was 5.32 yuan per share, down 2.03%.

Red Star News reporters: Yu Yao, Zhou Yi

Editor: Yu Dongmei

Reviewer: He Xianju