In 2002, Yanghe Distillery ushered in a new era of shareholding, becoming a state-owned holdings with foreign capital participation. Now the liquor firm was on track to become a market-oriented modern company. On December 26, 2002, Jiangsu Yanghe Distillery Co., Ltd. was formally established. Its strategic transformation and repositioning led in two directions: an upgrade of the original Yanghe brand and a range of new products. 2003 was also the first year of liquor industry recovery. As consumer demand for mid-to-high-end liquor and responsible drinking began to grow, an alternative path gained quick results. Yanghe Distillery became a dark horse of the “white liquor” (baijiu) sector.