(Yicai Global) Dec. 18 -- The world's largest distiller Kweichow Moutai Group, parent of China's most valuable listed company, has dissolved its e-commerce arm following the arrests of multiple executives for graft.

The listed arm Kweichow Moutai is dissolving Kweichow Moutai E-Commerce, in which it holds a 25 percent stake, the public company said in a statement yesterday, adding that the move will not affect its business development or finances.

Moutai set up the e-commerce arm in 2014 with CNY100 million (USD14.3 million) in registered capital. It is the brand's only authorized online retail outlet and ran flagship stores on Tmall, JD.Com, YHD and Gome until they were shut down in September as the company became mired by corruption at an executive level.

Former Moutai E-Commerce Chairman Nie Yong was the first of the group's executives to face jail time after courts sentenced him to 38 months on Dec. 16 for abusing his position to benefit distributors and accepting CNY490,000 (USD70,000) in bribes from them. He must also pay a CNY200,000 fine and turn in his ill-gotten gains.

His comeuppance was the result of a sweeping investigation that began in May after Yuan Renguo, former chair of Moutai Group, was arrested on suspicious of taking bribes. The probe has resulted in the arrest of eight executives within the group so far, including two others from the e-commerce arm: former General Manager Xiao Hua and Wang Jing, ex-head of its liquor series business.

Maotai's brand is the result of 20 years of marketing strategy, but executives have kept hidden certain information to take advantage of their posts and seek illegal profits, Maotai Group's current Chairman Li Baofang said in May when he took the reins. The firm is reforming its approach to marketing as a result of the arrests, he added.

Editor: James Boynton