On February 16, Anhui Golden Seed Winery Co.Ltd(600199) (600199, SH) announced that Fuyang investment development, the sole shareholder of the controlling shareholder golden seed group, planned to transfer 49% of the equity of golden seed group to China Resources Strategic Investment Co., Ltd. (hereinafter referred to as China Resources Investment).
On the same day, Anhui Golden Seed Winery Co.Ltd(600199) raised the trading limit in the afternoon. As of the closing, the share price was reported to 15.75 yuan / share.
The reporter of the daily economic news noted that the overall revenue of Anhui Golden Seed Winery Co.Ltd(600199) has shrunk since 2013, and the deduction of non net profit has recorded a loss of hundreds of millions of yuan for three consecutive years from 2019 to 2021. Among the four golden flowers of Huijiu, Anhui Golden Seed Winery Co.Ltd(600199) has been defeated one after another. After the introduction of China Resources war investment at the level of controlling shareholders, can it catch up?
strategic restructuring of subsidiaries of central enterprises and local state-owned enterprises
According to the announcement of Anhui Golden Seed Winery Co.Ltd(600199) , in order to promote the deepening reform and high-quality development of state-owned enterprises, on February 16, Fuyang investment, the sole shareholder of Anhui Golden Seed Winery Co.Ltd(600199) controlling shareholder golden seed group, plans to transfer 49% of the equity of golden seed group to China Resources war investment by means of non-public agreement transfer.
The company said that this equity transfer is a strategic reorganization between subsidiaries of central enterprises and local state-owned enterprises, which needs to be approved by relevant departments before it takes effect.
According to Anhui Golden Seed Winery Co.Ltd(600199) , after this transaction, the controlling shareholder introduced important strategic shareholders and the two sides conducted long-term joint venture cooperation. This transaction will not lead to the change of the controlling shareholder and actual controller of the company. The controlling shareholder of the company is still golden seed group and the actual controller is still Fuyang SASAC.
According to the data of qixinbao, China Resources war investment was incorporated on September 3, 2008. According to the announcement of listed companies, China Resources war investment is a wholly-owned subsidiary of China Resources (Group) Co., Ltd.
It is worth noting that Huarun is not the first to participate in the strategic investment in equity in Baijiu. In 2018, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) controlling shareholder Fenjiu Group signed a share transfer agreement with China Resources venture holding company Huachuang Xinrui. Since then, Fenjiu and China Resources venture have cooperated in terms of strategic layout, talent exchange, lean management and product linkage, and helped Fenjiu move from regional brand to the whole country through distribution channel advantages.
In the following three years, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) performance continued to grow, and the share price also rose. According to preliminary calculations, Huarun has 11.4% of its equity and can achieve net book profit of over 40 billion yuan. Such a huge investment return provides a practical reference for Huarun to add Baijiu liquor.
Now, China Resources is the next city. In the view of insiders, the introduction of central enterprises by local state-owned enterprises as war investment not only shows the determination to promote the deepening reform of state-owned enterprises, but also may become the future development direction for more and more local liquor enterprises to move closer to central enterprises. Liu Chang, chief analyst of the food and beverage industry, told the daily economic news that as a large central enterprise and one of the world’s top 500 enterprises, China Resources Group is expected to help local enterprises establish a set of long-term development mechanism through professional managers.
war investment or forced listed companies to innovate
Compared with the absolute market advantage of Fenjiu in Shanxi Province, as one of the four golden flowers of Huijiu, Anhui Golden Seed Winery Co.Ltd(600199) seems to have a hard time.
Liu Chang told reporters: “because the local competition in Anhui has been very fierce, Anhui Gujing Distillery Company Limited(000596) has brought the pace of local development very fast in recent years. In contrast, Anhui Golden Seed Winery Co.Ltd(600199) has lagged behind.”
In recent years, the operating revenue of Anhui Gujing Distillery Company Limited(000596) has increased from 6.017 billion yuan in 2016 to 10.292 billion yuan in 2020, Anhui Golden Seed Winery Co.Ltd(600199) is declining against the trend. The operating revenue of Anhui Golden Seed Winery Co.Ltd(600199) was 2.294 billion yuan in 2012 and only 1.038 billion yuan in 2020, which has lost half of the country.
From the perspective of profit performance, from 2013 to 2017 and 2019, Anhui Golden Seed Winery Co.Ltd(600199) net profit deducted decreased year-on-year. The net profit deducted in 2019 and 2020 were RMB 228 million and RMB 114 million respectively. According to the January 28th earnings report, which was disclosed in January 28th, it is estimated that the net profit loss area will be 1.8 to 210 million yuan. The main loss of performance is the adjustment of the Baijiu liquor product structure, and the sales of sub high-end products are relatively low, and the gross sales margin of the company is relatively low.
Previously, market news said that in the process of looking for war investment targets in Anhui market, China Resources had discussed with a number of liquor enterprises, which may mean that China Resources’s entry into the main emblem liquor enterprise has been a public news in the industry, which is also expected in the view of securities companies.
“Huarun’s continued expansion of the Baijiu is no secret, which is what they must do in the course of development.” Liu Chang said that the strategic significance of the Anhui Golden Seed Winery Co.Ltd(600199) introduction of China Resources war investment lies in the cooperation in many aspects, such as channel empowerment, operation and management, stationed directors and so on.
Specifically, on the one hand, Anhui Golden Seed Winery Co.Ltd(600199) can realize complementary advantages with the help of channel resources under China Resources Group to promote the coverage of medium and low-end liquor products in weaker markets; On the other hand, the management experience of China Resources Group in the field of FMCG can help Anhui Golden Seed Winery Co.Ltd(600199) open new ideas for production, operation and distribution management. Liu Chang believes that in the future, listed companies may have adjustments such as employee stock ownership incentive and management change, which will help to improve the management efficiency of listed companies.
