In February 16th, Anhui Baijiu Anhui Golden Seed Winery Co.Ltd(600199) (600199.SH) announced that the company received the notice from its controlling shareholder, Anhui Golden Seed Group Co., Ltd., to promote the deepening reform and quality development of state-owned enterprises. Fuyang Investment Development Group Co., Ltd. (hereinafter referred to as Fuyang investment and Development Group), an investment platform under the state owned assets supervision and Administration Commission of Fuyang City, 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 in accordance with the measures for the supervision and administration of enterprise state owned assets transactions and other laws and regulations. Fuyang investment and Development Co., Ltd. and China Resources war investment signed the equity transfer agreement on Anhui Golden Seed Group Co., Ltd. on the same day.
After this transaction, China Resources war investment only participated in the golden seed group, and the actual controller of Anhui Golden Seed Winery Co.Ltd(600199) is still Fuyang SASAC. According to the semi annual report, golden seed group holds Anhui Golden Seed Winery Co.Ltd(600199) 27.1% equity and is the largest shareholder. Before China Resources Group became a shareholder, Fuyang investment and Development Co., Ltd. wholly held the golden seed group. After the equity transfer, Fuyang investment and Development Co., Ltd. held 51% of the golden seed group.
This is the second group of Baijiu listed companies that Huarun shares after Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) .
However, unlike Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) (600809. SH), the performance of Anhui Golden Seed Winery Co.Ltd(600199) under golden seed group is not satisfactory. On January 29, Anhui Golden Seed Winery Co.Ltd(600199) issued a performance pre loss announcement. Last year, the company expected an annual loss of 150 million yuan to 180 million yuan. Compared with the loss of 97 million yuan in the first half of last year, the loss further expanded.
Anhui Golden Seed Winery Co.Ltd(600199) as a regional brand, the product has two well-known Chinese trademarks of “golden seed” and “Zui Sanqiu” and a “Chinese time-honored brand” – Yingzhou. The main products of Baijiu liquor include Luzhou Baijiu, series of wine, series wine, Hetai series, drunk three autumn series and Yingzhou series liquor, mainly in Anhui province and Anhui rim market. With the consumption upgrading and product iterative upgrading, the company disclosed in the semi annual report that the new product golden seed fuhexiang is attracting investment and promotion in the national market, and the medium and low-end products are facing the risk of high-end brands squeezing the market.
In the pre announcement, Anhui Golden Seed Winery Co.Ltd(600199) said that the main reason for the loss was Baijiu product structure in the adjustment period, the second high-end products sales accounted for relatively low, the overall sales margin was lower. 2020 annual report shows that Anhui Golden Seed Winery Co.Ltd(600199) ‘s medium and high grade Baijiu liquor is mainly composed of gold seeds, golden seed Fu Xiang Xiang, drunk three autumn 1507, etc. ordinary liquor is Xianghe series, seed wine series and Yingzhou fine wine. The overall gross profit margin of liquor products was 42%, a year-on-year decrease of 15%, mainly due to the large decline in the gross profit margin of medium and high-grade liquor, which was 53%, a year-on-year decrease of 10%.
Anhui Baijiu liquor listed companies get together and compete fiercely. Under the strong pressure of leading enterprises and the offensive of real estate wine, new products are still in the promotion and cultivation period, and the competitiveness of low and medium-sized products is reduced. As a result, the sales expense rate of Anhui Golden Seed Winery Co.Ltd(600199) is as high as 23% in the 2021 semi annual report.
In contrast to the poor performance of Anhui Golden Seed Winery Co.Ltd(600199) , last year, Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) net profit attributable to shareholders of listed companies is expected to be 5.2-5.5 billion yuan, a year-on-year increase of 70% – 80%.
For the introduction of strategic investors, Anhui Golden Seed Winery Co.Ltd(600199) announced 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 obtaining the approval of relevant departments.
