Anhui Golden Seed Winery Co.Ltd(600199) on the evening of February 16, it was announced that Fuyang investment and development, the sole shareholder of the company’s controlling shareholder golden seed group, plans to transfer 49% of the equity of golden seed group to China Resources Strategic Investment Co., Ltd. (hereinafter referred to as “China Resources war investment”) a wholly-owned subsidiary of China Resources (Group) Co., Ltd. The company said that after this transaction, the controlling shareholder introduced important strategic shareholders and the two sides conducted long-term joint venture cooperation. The actual controller of the company is still Fuyang SASAC.
It is worth noting that after the opening on the afternoon of February 16, Anhui Golden Seed Winery Co.Ltd(600199) shares rose sharply and closed at 13:30, closing at 15.75 yuan / share.
Huarun has always been very interested in Baijiu. From 2018, it entered the Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) with its voting status, and then bid for the equity of Shede Spirits Co.Ltd(600702) major shareholders in 2020. We can have a glimpse of one or two. Huarun has made clear the layout of Baijiu in recent years. Huarun executives have revealed that during the 14th Five-Year, the company will explore and focus on and select the limited diversified industries and categories, including the Baijiu industry. Huarun said that it won the first line of Baijiu liquor brand in Shandong in August 2021.
has been in the game for a long time
The reporter of China Securities Journal noted that the rumor of China Resources joining Anhui Golden Seed Winery Co.Ltd(600199) has a long history.
In July 2021, there were rumors of China Resources acquiring Anhui Golden Seed Winery Co.Ltd(600199) on stock bar and other platforms. From September to early November 2021, the acquisition rumors were further fermented in the secondary market, Anhui Golden Seed Winery Co.Ltd(600199) increased by 55.62% in two months. In Anhui Baijiu listed companies, the market value and volume of the liquor companies were much higher than that of their Anhui Gujing Distillery Company Limited(000596) , Anhui Yingjia Distillery Co.Ltd(603198) and Anhui Kouzi Distillery Co.Ltd(603589) shares, and their periods rose by 10.42%, 39.47% and 25.66% respectively.
According to the official website of China Resources, on the afternoon of November 22, 2021, sun Zhengdong, Secretary of Fuyang municipal Party committee, Liu Yujie, mayor, and Hu Mingying, director of the Standing Committee of the Municipal People’s Congress, visited the Shenzhen headquarters of China Resources Group. Wang Xiangming, chairman of the board of directors, presided over the docking meeting for deepening cooperation between Fuyang City and China Resources Group, conducted in-depth exchanges and reached broad consensus on further strengthening cooperation in various fields. The actual controller of Anhui Golden Seed Winery Co.Ltd(600199) is Fuyang SASAC.
Huarun Baijiu layout of liquor
The announcement shows that after this transaction, the controlling shareholders will introduce important strategic shareholders and the two sides will conduct 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.
Anhui Golden Seed Winery Co.Ltd(600199) said that this equity transfer is a strategic reorganization between subsidiaries of central enterprises and local state-owned enterprises. It is proposed to adopt the method of non-public agreement transfer, which will take effect after being approved by relevant departments
source: China Resources official website
As a domestic beer industry leader, Huarun has accelerated the layout of Baijiu business in recent years. Huarun’s earliest layout in Baijiu began with Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) . In 2018, Huachuang Xinrui (Hong Kong) Co., Ltd., a subsidiary of China Resources, transferred 11.45% of the equity of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) and became the second largest shareholder of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) at a cost of 5.16 billion yuan. At that time, Fenjiu Group, the controlling shareholder of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , said that in order to actively promote the work related to the reform of mixed ownership and introduce strategic investors for Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) .
In December 2020, Shede Spirits Co.Ltd(600702) major shareholder Tuopai offered 70% of the equity to auction, with a starting price of 3.99 billion yuan. At that time, China Resources, Fosun and Sichuan liquor group were regarded as potential competitors. However, the final auction results showed that Guo Guangchang became the actual controller of Shede Spirits Co.Ltd(600702) .
After losing the battle, Huarun still actively layout Baijiu industry. In March 22, 2021, Huarun CEO and executive director Hou Xiaohai presented at the performance briefing meeting that Huarun beer will explore and focus on the diversification of industries and categories in the 14th Five-Year period when it is expected to complete the 13th Five-Year targets. Baijiu will enter the industry, including the liquor industry.
In August 26, 2021, Huarun announced that it would enter the Baijiu business through investing in a company that has a long history of famous breweries in Shandong. Target Corp is a wholly-owned Affiliated Companies Jingzhi liquor from Jingzhi Baijiu, and Huarun Baijiu and Jingzhi liquor have signed strategic cooperation on investment matters. Relevant information shows that Jingzhi Baijiu is a leading enterprise in Shandong Province, a key billion cultivation enterprise in Shandong provincial government, China’s sesame flavor liquor leading enterprise, and a national quality award winning enterprise. It has a capacity scale of 20000 tons of raw wine and 100000 tons of storage capacity.
listed companies are expected to usher in a turnaround
Anhui Golden Seed Winery Co.Ltd(600199) was founded in 1949, formerly known as Fuyang distillery. In 1998, the company was listed on the Shanghai Stock Exchange. The company has two well-known trademarks in China, namely “golden seed” and “drunken Sanqiu”, and a “Chinese time-honored brand” – Yingzhou.
However, the development of this liquor enterprise is not smooth, Anhui Golden Seed Winery Co.Ltd(600199) performance entered a downward trend after reaching its peak in 2012. China Greatwall Securities Co.Ltd(002939) research report pointed out that the Baijiu industry has a clear tendency to concentrate on the head, and the smaller enterprises are operating hard. Under the background of consumption upgrading, the company’s product structure adjustment and price management failed to be adjusted in time; The strategic positioning and objectives are not clear and focused enough; The recognition of series products is not high enough, and the research and development of new products is not timely
Anhui Golden Seed Winery Co.Ltd(600199) performance in recent years
The performance in 2021 is even worse. It is estimated that the net profit attributable to the parent company in 2021 will be – 155 million yuan to – 185 million yuan. For this pre performance loss, the company said that the main structure of Baijiu liquor products is in the adjustment period, the sales of sub high-end products are relatively low, and the gross sales margin is relatively low.
It is worth noting that in April 2021, Anhui Golden Seed Winery Co.Ltd(600199) issued the “14th five year plan” strategic plan, which aims to achieve a sales revenue of 5 billion yuan by the end of the 14th five year plan, that is, 2025. The target of 5 billion yuan is divided into three steps: 2020-2022 is the period of strategic adjustment, realizing the sales scale of 1.5 billion yuan to 2 billion yuan; 2022-2024 is a strategic development period, reaching a sales scale of 3 billion yuan; 2024-2025 is the strategic take-off period, achieving the strategic goal of 5 billion yuan.
After joining the Bureau, China resources may effectively help Anhui Golden Seed Winery Co.Ltd(600199) develop.
