(Yicai) Feb. 28 -- Shares of Shanghai Bairun Investment Holding Group tumbled after the maker of flavors, fragrances, and pre-mixed cocktails said Chinese authorities have detained and are investigating Chairman Liu Xiaodong on suspicion of bribery.

Bairun [SHE: 002568] closed 9.8 percent lower at CNY19.85 (USD2.76) a share in Shenzhen today.

All directors, supervisors, and senior executives of Bairun apart from Liu, who is also general manager, are working as normal, and the matter will not significantly influence the firm's production and operations, it said yesterday. Bairun’s controller remains the same, the maker of Rio Cocktails added. 

Liu holds 4.3 billion of Bairun's shares, or around 41 percent of the total, making him the largest shareholder, the company disclosed last December. With a personal wealth of CNY14.5 billion (USD2 billion), he ranked 388th in the 2023 Hurun China Rich List released last October.

Sales at the Rio Cocktails drinks business made up 90 percent of Bairun's revenue in the first half of last year, with the rest coming from its flavors and fragrances businesses, according to the company’s latest earnings report.

Bairun's net profit after deducting non-recurring gains and losses likely jumped 50 percent to 70 percent to between CNY730 million and CNY830 million (USD100 million and USD115.3 million) in 2023, it said at the end of last month. 

Editors: Shi Yi, Martin Kadiev