Several big Anhui Baijiu enterprises race each other, and Anhui Golden Seed Winery Co.Ltd(600199) (600199.SH) of the past emblem “Four Golden Flowers” has finally acted.
After hours on February 16, Anhui Golden Seed Winery Co.Ltd(600199) announced that Fuyang investment and development, the sole shareholder of Anhui Golden Seed Group Co., Ltd. (hereinafter referred to as “golden seed group”), the controlling shareholder, intends to transfer 49% of the equity of golden seed group to China Resources war investment, a wholly-owned subsidiary of China Resources (Group) Co., Ltd., by means of non-public agreement transfer.
On February 17, Anhui Golden Seed Winery Co.Ltd(600199) opened with a word limit, and the share price closed at 17.33 yuan / share, with 493800 orders sealed on the trading board. On the previous day, Anhui Golden Seed Winery Co.Ltd(600199) shares had “changed” before the news, and quickly rose to the limit in the afternoon.
Anhui Golden Seed Winery Co.Ltd(600199) has been reformed for many years
According to the third quarterly report of 2021, golden seed group owns Anhui Golden Seed Winery Co.Ltd(600199) 27.1%. After the equity transfer, the actual controller of golden seed group is still Fuyang SASAC, while China Resources war investment holds about 13.279% of the shares of Anhui Golden Seed Winery Co.Ltd(600199) through golden seed group.
This equity transfer is a strategic reorganization between central enterprises and local state-owned enterprises. A Baijiu researcher told reporters that Huarun’s stake in the company was not a sudden change. The news of Anhui Golden Seed Winery Co.Ltd(600199) ‘s introduction of external capital has been circulating for more than half a year. It was just “don’t know when to land.”
As one of the “Four Golden Flowers” of Huijiu in the past, the development of Anhui Golden Seed Winery Co.Ltd(600199) has lagged behind in calling for reform and practicing reform for many years.
As early as 2016, a Anhui Golden Seed Winery Co.Ltd(600199) executive said in an interview with the media that the company’s leadership and thousands of employees wanted reform, were eager for reform, and had been trying to promote it. Only the three reform plans and schemes made in recent years were not followed after they were reported.
In November 2017, Anhui Golden Seed Winery Co.Ltd(600199) launched a fixed increase fund-raising of 690 million yuan. One of the objectives of the additional issuance is to promote the shareholding of excellent dealers and consolidate sales channels.
The additional issuance was completed in April 2019. Shanxi niushanfu Xiaotong and its controlled Shanxi Liulin Wine Co., Ltd., as well as two asset management plans of Xinhua fund held by some excellent dealers of the company, were finally allocated.
In October 2019, director Jia Guangming, who has just been in office for half a year, took over as the chairman of Anhui Golden Seed Winery Co.Ltd(600199) . After taking office, Anhui Golden Seed Winery Co.Ltd(600199) quickly formulated the goal of developing a liquor enterprise with Anhui as the center and surrounding the surrounding Baijiu in five years, and creating a national brand Baijiu enterprise within ten years. At the same time, it was designated as the “first year of reform” in 2020.
At the 2021 Huizhou merchants high quality development forum held at the end of November last year, Jia Guangming also said in the keynote speech entitled “driving high quality development with category innovation”, that “only reformers can advance, only innovators can be strong, and only innovators can win”.
This time, holding hands with trillion central enterprises, Anhui Golden Seed Winery Co.Ltd(600199) has undoubtedly taken a big step in system reform.
On the other hand, after taking nearly half of the stake in the gold seed group, Huarun’s Baijiu layout is also added to Hangzhou Xzb Tech Co.Ltd(603040) .
Baijiu is one of the new target industries that China’s beer tap Huarun has been aiming at in recent years. At the March 22, 2020 performance briefing, Huarun CEO and executive director Hou Xiaohai once suggested that Huarun beer will explore and focus on the diversification of industries and products and enter the Baijiu industry in 14th Five-Year, when it is expected to complete the 13th Five-Year targets.
high-end Baijiu profit weak
Prior to this Anhui Golden Seed Winery Co.Ltd(600199) , Huarun’s first investment in Baijiu was completed in 2018.
In February of that year, China Resources’s Huachuang Xinrui (Hong Kong) Co., Ltd. transferred 99.15 million non tradable shares of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) (600809. SH) with a total amount of 5.16 billion yuan, becoming its second largest shareholder with a shareholding ratio of 11.45%.
After taking part of the equity of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) , China Resources and Fenjiu carried out all-round cooperation. The advantages of China Resources in channels and other aspects have become an important driving force for the rapid development of Fenjiu in the next few years.
At the same time, China Resources’s Huachuang Xinrui Co., Ltd., with a total amount of 5.16 billion yuan, transferred 99.15 million non tradable shares of Shanxi Xinghuacun Fen Wine Factory Co.Ltd(600809) (600809. SH), becoming its second largest shareholder with a shareholding ratio of 11.45%.
In the past two years, Huarun has been in the Baijiu industry constantly. In December 2020, China Resources participated in the 70% equity auction of Tuopai shede group, the major shareholder of Shede Spirits Co.Ltd(600702) (600702. SH), and finally lost to Fosun Group.
In August 2021, Huarun beer Affiliated Companies and Shandong Jingzhi Baijiu reached investment agreement, and the transaction will be 40% stake in Jingzhi baijiu.
Can Anhui Golden Seed Winery Co.Ltd(600199) with the foreign aid of China Resources replicate the success story of the former?
The Baijiu investment researcher said in an interview that he was cautious about the future of Anhui Golden Seed Winery Co.Ltd(600199) and Huarun cooperation, and that the development of Anhui Golden Seed Winery Co.Ltd(600199) , which had obviously lagging behind, might be “hard to get back”.
Before reaching the cooperation agreement with China Resources, Anhui Golden Seed Winery Co.Ltd(600199) just released the pre loss announcement at the end of January. The company expects to lose 150-185 million yuan in 2021. After deducting the impact of non recurring gains and losses, the net profit loss attributable to the parent company is about 180-210 million yuan.
In fact, this is not the first time that Anhui Golden Seed Winery Co.Ltd(600199) has suffered a loss in recent years.
From 2013 to 2017, Anhui Golden Seed Winery Co.Ltd(600199) suffered losses for five consecutive years, and the company’s net profit attributable to the parent decreased from 561 million in 2012 to 08 million yuan in 2017.
Its 2021 earnings announcement shows that the main reason for the loss is the adjustment of the Baijiu product structure, the lower sales of the secondary products and the lower gross sales margin.
The medium and high-grade products of Anhui Golden Seed Winery Co.Ltd(600199) are mainly golden seed, golden seed fuhexiang and Zui Sanqiu 1507. According to the 2020 annual report, the gross profit margin of Anhui Golden Seed Winery Co.Ltd(600199) medium and high-grade liquor is only 53.18%, which is far lower than that of the same grade products of major competitors in the region such as Anhui Yingjia Distillery Co.Ltd(603198) (603198. SH).
In the current high-end Baijiu leading industry competition, the weak high-end Baijiu layout is the main reason for Anhui Golden Seed Winery Co.Ltd(600199) growth stall and competition. How to improve the profitability of medium and high-end liquor is also the first big problem for China Resources and new Anhui Golden Seed Winery Co.Ltd(600199) in the future.
On February 17, Anhui Golden Seed Winery Co.Ltd(600199) relevant people told the 21st Century Business Herald that the specific form of cooperation between the two sides remains to be announced later. It is still unknown whether China Resources will participate in the company’s daily operation and sharing channels.
