Anhui Golden Seed Winery Co.Ltd(600199) (600199) announced on February 16 that golden seed group, the controlling shareholder of the company, plans to introduce China Resources as a strategic shareholder. According to the announcement, Fuyang investment and development, the sole shareholder of 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 Strategic Investment”), a wholly-owned subsidiary of China Resources (Group) Co., Ltd., by means of non-public agreement transfer.
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 obtaining the approval of relevant departments. 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. It is worth mentioning that Anhui Golden Seed Winery Co.Ltd(600199) rose rapidly after opening this afternoon and finally closed at the limit price of 15.75 yuan.
In terms of performance, Anhui Golden Seed Winery Co.Ltd(600199) is still in the period of strategic adjustment. On January 28, the company disclosed the performance forecast of 2021, and the annual net profit of last year is expected to be – 155 million yuan to – 185 million yuan. The main reason for this loss is that the Baijiu liquor product structure is in the adjustment stage, the sales of the second end products are relatively low, and the gross sales margin is low.
According to the company’s “14th five year plan” development strategic plan, 2020-2022 is the period of strategic adjustment. According to the plan, the company will further accelerate the cultivation progress of the core product market with golden seed fuhexiang as the main body, and comprehensively cut into the mainstream market price of Anhui Province. So, how will China Resources, which has made great achievements in the field of large consumption, empower Anhui Golden Seed Winery Co.Ltd(600199) ?
Today’s company announcement did not disclose the details of the cooperation between the two sides, but simply said that after this transaction, the controlling shareholders introduced important strategic shareholders and the two sides conducted long-term joint venture cooperation. Public information shows that the large consumption sector of China Resources ranks among the top in the country in terms of business scale in the fields of beer, supermarkets and bottled water. Snowflake, Yibao and China Resources Wanjia are all well-known brands in the country. Baijiu, as a blank area of its large consumption sector, has also recently stepped up investment in Huarun.
In August 2021, Huarun (00291) announced that it invested in Jingzhi wine industry in Shandong and entered the Baijiu business. Huarun milepost said that the investment is a significant milestone, which means that the group will enter the Chinese Baijiu market. This will help the group’s potential follow-up business development and product mix and revenue sources diversification. According to the enterprise inspection, in October 26, 2021, the legal representative of Jingzhi Baijiu Liquor Co., Ltd. of Shandong was changed to Hou Xiaohai, chief executive of Huarun beer. Hou Xiaohai also served as the chairman of the company.
