On January 28, Wuliangye Yibin Co.Ltd(000858) issued the announcement of the resolution of the 100th meeting of the Fifth Board of directors, which said that according to the company’s “14th five year plan” strategic development plan, the company will increase the original wine production capacity. In order to meet the demand for capacity growth, the company will expand and transform the koji making workshop, mainly including koji making workshop and relevant supporting facilities, which will be constructed in two phases. The total investment of the project is estimated to be 2.75 billion yuan.
Wuliangye Yibin Co.Ltd(000858) capacity expansion and transformation
It is worth noting that at the end of last year, Wuliangye Yibin Co.Ltd(000858) just announced the workshop transformation plan, with a total investment of about 84.526 million yuan.
On December 27, 2021, Wuliangye Yibin Co.Ltd(000858) announced that it had agreed to carry out capacity expansion and technical transformation of 523 workshop, with a planned land area of 33 mu. The main construction contents are new pits and relevant supporting facilities. The total investment of the project is estimated to be 84.526 million yuan (the investment amount is subject to the project bidding and final settlement).
On June 18, 2021, Wuliangye Yibin Co.Ltd(000858) 2020 general meeting of shareholders mentioned capacity construction, including:
1) increase high-quality production capacity: add 120000 tons of raw wine, with a total production capacity of 250000 tons, and continue to maintain China’s largest solid-state fermentation pure grain wine production base;
2) increase the storage capacity of base liquor: break through 1 million tons during the 14th Five Year Plan period, and continue to maintain the position of the world’s leading base liquor storage base;
3) improve the rate of famous wine: due to process reasons (grading optimization process “cutting the head and eliminating the tail”), at present, only the best part of Luzhou flavor wine is selected, and the rate of famous wine is only about 20%. Therefore, the production capacity of Wuliangye Yibin Co.Ltd(000858) is limited and scarce. (if the rate of famous liquor is increased by 1 percentage point, Wuliangye Yibin Co.Ltd(000858) can increase the supply of 1000 tons of high-quality liquor every year; if it is increased by 10 percentage points, Wuliangye Yibin Co.Ltd(000858) can increase the sales revenue of 230 billion yuan)
According to the previously disclosed data of the third quarterly report, Wuliangye Yibin Co.Ltd(000858) the revenue in the first three quarters of last year was 37.102 billion yuan, an increase of 26.84% year-on-year (compared with the same period in 2020); The net profit attributable to shareholders of listed companies was 12.544 billion yuan, a year-on-year increase of 32.11%; The basic earnings per share is 3.23 yuan.
As of the closing on January 28, Wuliangye Yibin Co.Ltd(000858) was reported at 198.38 yuan / share, down 2.47%.
expansion of production capacity of several Baijiu enterprises
China Baijiu Baijiu Guo Niang has released a trend of decline in liquor production in recent years. In January 19th, the China Liquor Association announced the output data of the national liquor industry in 2020. The data showed that the peak value of liquor production in 2016 was 1358 KL, and then began to decline. 11.98 million kiloliters in 2017, 8.71 million kiloliters in 2018, 7.86 million kiloliters in 2019 and 7.41 million kiloliters in 2020. The output of Baijiu in 2020 dropped by 44% compared with the peak in 2016, almost cutting.
On January 26, Kweichow Moutai Co.Ltd(600519) announced that the company would invest 4.11 billion yuan to implement the phase I construction project of Maotai flavored wine Xishui tongminba in the 14th five year plan, and the required funds would be raised by the company itself. The construction site of the project is located in Tongmin Town, Xishui County, Guizhou Province. After the completion of the project, a series of liquor can be formed, with a liquor production capacity of about 12000 tons, a koji production capacity of about 29400 tons and a liquor storage capacity of about 36000 tons. The construction period is 24 months. Back in September 2018, Kweichow Moutai Co.Ltd(600519) announced that according to the development strategy of the listed company, it was decided to invest in the construction of 30000 ton Maotai flavor series wine technical transformation project and its supporting facilities, and the total investment of the project is estimated to be no more than 8.384 billion yuan.
According to the latest announcement of Maotai, in 2021, Kweichow Moutai Co.Ltd(600519) produced about 56500 tons of Maotai base liquor and about 28200 tons of series base liquor.
At the end of last year, Luzhou Laojiao Co.Ltd(000568) announced that after the decision of the 11th meeting of the 10th board of directors of the company, it was agreed that the wholly-owned subsidiary Luzhou Laojiao Co.Ltd(000568) Brewing Co., Ltd. would participate in the bidding for the transfer of Luzhou natural resources and Planning Bureau at the public auction of Luzhou public resources trading center with its own capital of no more than 570 million yuan, The land use right in Luzhou Baijiu Industrial Park in Sichuan is about 950 mu, and the price per mu is about 600 thousand yuan, which is used for production and construction projects.
It is worth noting that recently, the State Council issued the opinions on supporting Guizhou to break a new path in the western development in the new era (hereinafter referred to as the opinions). The opinion points out that the advantage of Chishui and its main producing areas should be played in the production of Maotai flavor liquor, and the construction of Baijiu Baijiu liquor production base should be built. We will implement the equity and dividend incentive policies for state-owned science and technology enterprises. We will steadily push forward the reform of the marketing system of Baijiu enterprises. Continuously enhance the influence of China international big data industry expo, China (Guizhou) International Wine Expo, China ASEAN Education Exchange Week and other exhibition activities.
