Mengniu's Chairman Resigns In China

Niu Gensheng, founder of Mengniu, has resigned his position as chairman of the board of directors.

According to a report published by Inner Mongolia-based Mengniu Dairy, Ning Gaoning, chairman of Cofco, has been appointed new chairman of Mengniu.

Mengniu's report stated that Niu plans to spend most of his time in charity-related work. Therefore, he resigned his position as chairman effective from June 10, 2011. He will hold the position of non-executive of Mengniu and will continue to participate in the strategic planning of the group.

In addition, Mengniu's board of directors announced a few other appointments, including appointing deputy chairman, non-executive director and chairman of Cofco Ning Gaoning as chairman of Mengniu; and appointing non-executive director Yu Xubo as deputy chairman of Mengniu.

In July 2009, Cofco Group set up a new joint venture, in which Cofco holds a 70% stake. The JV then became the largest investor of Mengniu and Cofco gained three non-executive positions in the board of directors of Mengniu.

Public documents show that Niu founded Mengniu in 1999 and he established a foundation engaged in social welfare charity in 2004. In January 2005, Niu donated all his shares of Mengniu; in February 2006, he resigned his position as president of Mengniu Group to focus more on charity work; and in August 2009, he resigned his position as chairman of Mengniu Group and became a full-time philanthropist.