Dr. Zhao Tao, Chairman of Buchang Pharmaceuticals, was invited to attend the 2021 China Spirits Innovation & Investment Conference, held in Haikou, Hainan Province, from December 10 to 14. The conference was jointly organized by the China Alcoholic Drinks Association, the China Alcoholic Drinks Distribution Association, and the China Light Industry Enterprise Investment and Development Association. With innovative and dynamic formats, rich exchange content, and a gathering of industry elites, the event explored new strategic directions for China’s spirits industry under the concept of common prosperity, working together to implement the new development philosophy, drive high-quality growth, and create a mutually beneficial and cooperative development landscape.

Zhao Tao, Chairman of Buchang Pharmaceuticals

Themed “The Power of Industry”, the event marked the first large-scale spirits investment and innovation conference in Hainan under the dual backdrop of the Hainan Free Trade Port construction and the industry’s push for high-quality, innovation-driven development. By combining in-depth forums with a curated showcase of premium spirits, the conference underscored the role of innovation in driving the high-level, high-quality growth of China’s alcoholic beverage sector and in promoting the nation’s rich cultural heritage. In doing so, it also embraced the vision of common prosperity and the principle of innovation-driven progress.

Main Forum of the 2021 China Alcoholic Drinks Innovation & Investment Conference

On the morning of December 11, during the main forum of the conference, Dr. Zhao Tao was invited as an exemplary entrepreneur to deliver an engaging keynote address.

Zhao Tao, Chairman of Buchang Pharmaceuticals

In 2017, a friend proposed settling a debt by mortgaging Château Lamothe, a legendary Bordeaux estate established in 1135. Covering 2,600 mu (approximately 173 hectares), the estate was awarded the prestigious Cru Bourgeois Supérieur status in 1868.

Château Damo Amour, France

Upon inspection, we discovered that the château had historical ties to the treasure of the medieval Knights Templar. It adhered strictly to traditional Bordeaux winemaking techniques, cultivated vineyards using biodynamic methods, and produced wines of outstanding quality, acclaimed worldwide. After careful consideration, we decided — ‘We’ll take it!’ And so, Buchang Group assembled a professional wine team, marking the beginning of our enduring connection with fine wines.

In the same year, while surveying in Guizhou, our wine team came across a remarkable natural karst cave in Xishui — Guixiandong, a treasure trove for baijiu fermentation and aging. Spanning over 36,000 square meters, it is the largest natural cave-based baijiu storage facility in the world, housing thousands of clay jars of aged spirits, many over a century old. Walking into Guixiandong, one is struck by the sight of neatly arrayed jar ‘army formations,’ the naturally formed stalactite statues of the Four Divine Beasts and the Dragon Turtle, and the rich aroma of alcohol molecules suspended in the air. In 2018, Hong Kong Buchang Group took control of Guoshuai·Guixiandong, making it our strategic core project in the Maotai-aroma baijiu sector.

Guixiandong (meaning: Guixian Cave, or the Turtle Immortal Cave)

Building a New Development Model — Integrating the Baijiu Industry into the Health & Wellness Ecosystem

Dr. Zhao emphasized in his address: Maotai-aroma baijiu culture is a distinguished representative of China’s rich liquor heritage. Buchang Pharmaceuticals’ strategic investment in China’s Maotai-aroma baijiu industry is positioned from multiple dimensions — societal, cultural, industrial, and terroir. We actively pursue the ‘Three-Brand Philosophy’ — entrepreneur brand, corporate brand, and product brand — underpinned by the principles of long-term investment, long-term quality, and long-term operations. We are committed to the terroir strategy, focusing on core production regions, first-tier capacity, and world-class craftsmanship, to further propel the high-quality growth and global recognition of China’s Maotai-aroma baijiu sector.”

Zhao Tao, Chairman of Buchang Pharmaceuticals

Adhering to Three Core Investment Principles in the Baijiu Industry: Three-Brand Philosophy, Long-Termism, and Strategic Industrial Deployment

1. Three-Brand Philosophy

Entrepreneur Brand – Great entrepreneurs create great enterprises. Corporate Brand – Great enterprises produce great products. Product Brand – Great products earn market recognition. The Three-Brand Philosophy is a cornerstone of Buchang Group’s corporate culture, underpinning its position as a leading enterprise in China’s traditional Chinese medicine sector. The Group has applied its 30 years of corporate spirit and the rigorous standards of the pharmaceutical industry to building the Guixiandong baijiu brand, laying a solid foundation for its growth.

2. Long-Termism

Investment Long-Termism – Committing to sustained, long-horizon investments. Quality Long-Termism – Following industry laws, upholding the cave-fermentation process, and maintaining a differentiated path. Operations Long-Termism – Managing with a century brand vision through continuous investment and long-term operational strategies.

3. Strategic Industrial Deployment

Focusing on core production regions and first-tier production capacity is central to Buchang Group’s baijiu strategy. In the Maotai-aroma category, time is the ultimate ally, and the core production regions are its strongest safeguard. Among them, the Xishui production area stands out for its unparalleled advantages in development history, ecological environment, and enterprise scale—making it one of the two major Maotai-aroma production hubs in Guizhou Province. The Group is committed to world-class capacity deployment, world-class craftsmanship investment, and pursuing a differentiated cave-fermentation strategy—mobilizing the full strength of the Group to build Guixiandong into a first-tier brand on par with Xijiu and Moutai.

Guixiandong·Danxia

Buchang Group’s Integrated Wine-Tourism Project

In early 2018, Buchang Group invested in a Wine-Tourism Integration Project in Guizhou, constructing a 10,000-ton Maotai-aroma baijiu production base. In 2021, the Group further invested in the Xishui Economic Development Zone, selecting a site in Xijiu Town. Over the next 3–5 years, the Group plans an additional 15 billion RMB investment, acquiring over 3,000 mu (approx. 2,000,000 m²) of land in a single transaction to build a 40,000-ton capacity Maotai-aroma baijiu technological upgrading and expansion project.

Jointly developed with the Guizhou provincial government, the Wine-Tourism Integration Project is a concrete implementation of the new development philosophy, driving high-quality growth, stimulating domestic demand, and improving infrastructure and ecosystem development in areas such as construction, education, and living facilities. Over the next 8–10 years, the Guoshuai·Guixiandong project is expected to achieve an annual output value exceeding 10 billion RMB and a market valuation surpassing 100 billion RMB.

Promoting the integration of baijiu and tourism is not only an inevitable trend in the development of the health and wellness industry, but also a powerful driver of local economic growth—leveraging wine to boost tourism, and tourism to boost wine. This creates industrial synergy, aligns with China’s cultural revival strategy, and supports the preservation and inheritance of traditional Chinese culture.

On June 16, 2021, Li Bingjun, Deputy Secretary of the CPC Guizhou Provincial Committee and Governor of Guizhou Province, met in Guiyang with Dr. Zhao Tao and his investment delegation. Governor Li fully acknowledged Buchang Group’s role as a bridge and catalyst. The Group has invested in several projects in Guizhou, among which the Wine-Tourism Integration Project has received high recognition from the provincial government, with expectations that it will further embody the high-quality development philosophy and contribute to Guizhou’s economic transformation and upgrading.

Photo: Li Bingjun, Deputy Secretary of the CPC Guizhou Provincial Committee and Governor of Guizhou Province, meets with Dr. Zhao Tao and his investment delegation in Guiyang.

Photo: Li Bingjun (right), Deputy Secretary of the CPC Guizhou Provincial Committee and Governor of Guizhou Province, in discussion with Zhao Tao (left), Chairman of Buchang Pharmaceuticals.

Buchang Group’s Health & Wellness Industry Blueprint

Buchang Group’s Health & Wellness Division comprises four major segments: health products, tea, cordyceps, baijiu, and wine. Health Products: Australian NMN, Buchang medicinal and dietary products, and functional health foods. Tea & Cordyceps: Through Xi’an New Thinking Tea Co., Ltd. and Tibet Shenglong Industrial Co., Ltd., the Group is strategically engaged in the tea and cordyceps sectors. Tea and cordyceps are essential for modern wellness, share the same cultural roots as alcohol, and target overlapping consumer demographics, creating strong industrial synergies. Baijiu: Guixiandong, the flagship Maotai-aroma baijiu project. Wine: Premium Bordeaux wines from France.

Health & wellness is recognized both in China and globally as a “necessity of life.” Originating in the pharmaceutical industry with a mission rooted in medical compassion, Buchang’s vision extends beyond traditional Chinese and Western medicine. The Group embraces its corporate responsibility to improve quality of life and create better lifestyles for consumers. Its health & wellness development plan will guide the company’s diversified growth trajectory well into the future.

Uniting Industry Strength to Advance High-Quality Development

In his address, Dr. Zhao Tao emphasized that achieving common prosperity requires Chinese entrepreneurs to unite with a shared sense of social responsibility—making tangible contributions to local economic development, poverty alleviation, tax generation, and job creation. He called on business leaders to be creators of social wealth, a testament to the innovative spirit of Chinese enterprise. Looking ahead, Buchang Group will continue to actively participate in China’s economic growth, support local governments, and help drive high-quality, leapfrog development at the regional level—thereby contributing to the realization of common prosperity.

Dr. Zhao further stressed that enterprises are one of the pillars of national competitiveness, and brands are the foundation for revitalizing Chinese enterprises and sustaining this competitive edge. The 14th Five-Year Plan clearly calls for the implementation of the China Brand Development Initiative. The 2021 China Spirits Innovation & Investment Conference—centered on innovation, investment, and financing—provides capital empowerment, thought leadership, cutting-edge technology, business case studies, and creative inspiration for the development of China’s spirits industry. Buchang Group will remain committed to the China Dream, striving to create more social wealth to provide material satisfaction for the people, and fostering joyful lifestyles to meet spiritual needs. The Group will continue to align its corporate growth with national prosperity, the rejuvenation of the Chinese nation, and the well-being of the people—working tirelessly to build social wealth, create jobs, promote economic and social progress, and enhance China’s overall national strength.