(Yicai Global) Oct. 28 -- Shares of Bright Dairy and Food slid after the Chinese dairy giant said its chairman had resigned, without giving a reason.

Bright Dairy [SHA: 600597] closed 1.6 percent lower today at CNY12.87 (USD2), with a market cap of CNY15.8 billion (USD2.5 billion). The broader Shanghai market also went south, losing 1.2 percent.

Shanghai-based Bright Dairy announced yesterday that Pu Shaohua had submitted his resignation as chairman after trading company Bailian Group said on its website on Oct. 25 that he had been nominated as the group’s president.

Bright Dairy and Bailian are both state-backed firms under the Shanghai government, and their leaders’ appointments are decided by the state-owned enterprises regulator.

Pu became Bright Dairy’s chairman in 2018 and promoted a product diversification strategy, making big changes to milk sources and industrial planning. Under his leadership, revenue increased by double-digits in the past two years to CNY22.6 billion (USD3.53 billion) and CNY25.2 billion, respectively. In the first half of this year, it jumped 17.4 percent to CNY14.3 billion.

Bailian was formed in April 2003 through the merger and reorganization of four state-owned companies, including department store operator Shanghai Yibai Group and supermarket chain Hualian Group.

The firm had registered capital of CNY1 billion and total assets of about CNY95.9 billion at the end of 2020. Its listed arm, Shanghai Bailian Group, has a total market value of CNY23.5 billion.

Editor: Peter Thomas