As soon as the annual report season was over, there was one news after another about the reduction of shareholders' holdings of listed companies.
On the evening of May 6, Jinhui Liquor announced that Jinan Tiesheng No. 3 Investment Partnership (Limited Partnership) (hereinafter referred to as "Tiesheng No. 3") would reduce its stake in the company by 3%.
As an investment fund of Shandong State-owned assets Supervision and Administration Commission, Tiesheng was transferred in July 2023 to 5% of Jinhui Liquor held by Yuyuan, a listed company in the compound system, at a transfer price of 23.Cryptoplayinggames.61 yuan per share. But as of May 7, the share price of Jinhui Liquor was 22.Cryptoplayinggames.12 yuan per share, which is lower than the cost price of the transferred shares.
Paradoxically, why is tie Sheng No. 3, who has been in the game for less than a year, in such a hurry to get rid of it?
Shandong state-owned assets were eager to exit, and had helped Li Ming to stabilize the control.
In July 2023, Tiesheng 3 acquired a 5% stake in Jinhui Liquor from Yuyuan shares, a listed company in the Fufu galaxy, at a consideration of 599 million yuan per share.
In the announcement, Tiesheng said on the 3rd that the company's concession of Jinhui Liquor shares is mainly based on the optimism of Jinhui Liquor management ability, development planning and performance growth prospects. However, the company also said that it has no plans to continue to increase its stake in Jinhui Liquor in the coming year, and that if the company reduces its stake within a year, the lowest price will not be lower than a 10% discount on the concession price. According to this calculation, if Tiesheng No. 3 wants to reduce its stake in Jinhui Liquor, the lowest price is 21.25 yuan per share.
As of the close of trading on May 7, the company's share price closed at 22.12 yuan per share, which is lower than the investment cost of Tiesheng 3, which means that if it is reduced at the current share price, Tiesheng 3 will lose money.
It is worth noting that in the ten trading days before Tiesheng announced the sale of its holdings on the 3rd, the share price of Jinhui Liquor rose more obviously. Jinhui Liquor shares rose from the opening price of 19 yuan per share on April 17 to the closing price of 22.52 yuan per share on May 6. After dishing out the first quarterly report that the return mother's net profit increased by more than 20%, the stock price rose by the limit. After pulling up, the share price of Jinhui Liquor exceeded its minimum reduction price. It meets the reduction requirements of Tiesheng No. 3.
With regard to the specific reasons why Tiesheng No. 3 chose to reduce its holdings at this time, Blue Whale Finance contacted Tiesheng No. 3 and its related railway fund companies and Shandong Railway Investment Group, but no reply was received as of press time.
Jinhui Wine told Blue Whale that Tiesheng 3, as a financial investor in Jinhui Wine, made a decision to reduce its holdings according to its own financial planning. And Tiesheng No. 3 is not the controlling shareholder, actual controller or its concerted actor of Jinhui Liquor, and this reduction plan will not lead to a change of control of Jinhui Liquor, nor will it affect the corporate governance structure and future sustainable management of Jinhui Liquor.
Jinhui Liquor is an established liquor-making enterprise in China, which is well-known in Gansu Province. In 2006, Yat, owned by Gansu tycoon Li Ming, invested in Jinhui Liquor and listed it on the Shanghai Stock Exchange 10 years later. At the beginning of the listing, Art Investment held a 55.28% stake in the company.
In 2020, another company controlled by Li Ming, Jinhui shares, was in an emergency. Li Ming, who was in urgent need of funds to fill the hole, transferred a 30 per cent stake in Jinhui Liquor to Yuyuan, a subsidiary of compound Galaxy, for 1.837 billion yuan. In the same year, Yuyuan shares made an offer for Jinhui Liquor and acquired 8% of the company again. As a result, Guo Guangchang replaced Li Ming as the new controller of Jinhui Liquor.
However, as the liquidity of the compound galaxy is under pressure, the golden emblem wine, which was once favored by Guo Guangchang, has also been put on the shelf again.
In September 2022, Yuyuan shares and its concerted actor Hainan Yuzhu transferred a 13% stake in Jinhui Liquor to Yat Investment and its concerted actor Longnan Collett, with a consideration of 1.937 billion yuan. However, with the decline of the company's share price, the two sides signed a supplementary agreement in November 2022, adjusting the trading price from 29.38yuan / share to 27.56yuan / share, and the total trading price was also reduced to 1.817 billion yuan. After two share transfers, Li Ming returned to the position of real controller.
After the equity change, Yat Investment and Longnan Colliter hold a total of 26.57% of the company's shares, while Yuyuan's stake is reduced to 25%. As the shareholding ratio of the two sides is relatively close, Yuyuan shares promised in the equity transfer announcement that Yuyuan shares will continue to reduce more than 5% of the company's shares within six months after the completion of the share transfer in order to consolidate the controlling stake of Yat Investment.
In July 2023, Tiesheng took over the above shares and became the fourth largest shareholder of Jinhui Liquor. The emergence of Tiesheng No. 3 has increased the shareholding ratio between Li Ming and the compound galaxy, which in fact contributes to the stability of Li Ming's control.
It is worth noting that the reduction of Tiesheng's stake in Jinhui Liquor on the 3rd is at the point where SASAC further regulates the foreign investment of state-owned enterprises.
In September 2023, the State-owned assets Supervision and Administration Commission of the State Council issued the interim measures for the Administration of shareholding of State-owned Enterprises, standardizing the outbound investment behavior of state-owned enterprises. Among them, it is clearly stipulated that, in addition to strategic holding or equity participation during the training period, the investment of state-owned enterprises needs to "withdraw from equity participation investment that is seriously inconsistent with the position of responsibility of state-owned enterprises and does not have competitive advantage, high risk, and difficult to grasp the operating situation." In addition, state-owned enterprises are not allowed to carry out equity participation cooperation by means of stock ownership or real debt of famous stocks.
The major shareholder of Tiesheng No. 3 is the Railway Fund Company, which is an enterprise under Shandong Railway Investment Group and is actually controlled by Shandong State-owned assets Supervision and Administration Commission. After the establishment of the railway fund company, the main tasks are fund-raising, railway investment and capital operation. Its investment holding shares in another listed company, Boshen, covers rail transit equipment parts and components. In contrast, the business of Jinhui Liquor has nothing to do with railway and transportation.
Performance returns to growth, but there is a long way to go.
Rather thanCryptoplayinggamesCompared with his listed liquor company, the development speed of Jin Hui Liquor is not fast. As early as 2013, the company's revenue exceeded 1 billion yuan, but it was not until 2022 that the company's revenue reached 2 billion yuan.
In comparison, Shuijingfang's revenue returned to 1 billion yuan in 2016 and exceeded 2 billion yuan in 2017. Lao Baigan, also a local liquor company, broke through the revenue barrier of 1 billion in 2010 and doubled its revenue five years later.
After changing the main complex galaxy in 2020, Jinhui Liquor expected to achieve rapid growth with the help of the channel advantage of the complex galaxy, but the company's net profit declined due to the epidemic and other factors. In 2021 and 2022, the operating income of Jinhui Liquor is 1.788 billion yuan and 2.022 billion yuan respectively, and the net profit of returning mother is 325 million yuan and 280 million yuan respectively.
As the impact of the epidemic recedes and the original controlling shareholders return, the performance of Jinhui Liquor returns to growth. In 2023 and the first quarter of 2024, Jinhui Liquor achieved business income of 2.548 billion yuan and 1.076 billion yuan respectively, an increase of 26.64% and 20.41% over the same period last year, and a net profit of 329 million yuan and 221 million yuan, up 17.35% and 21.58% respectively over the same period last year.
Even so, Jinhui Liquor has failed to deliver on its previous performance commitments. In 2019, the company signed a reward and punishment plan with the core management team. According to this plan, the company's revenue in 2022 and 2023 needs to reach 2.5 billion yuan and 3 billion yuan, and the net profit needs to reach 470 million yuan and 600 million yuan. If it cannot be achieved, the management will be punished. At the end of 2022, Jin Huijiu revised the plan, delaying the performance target by one year and abolishing the penalty scheme for management. However, judging from the performance in 2023, the company's net profit still failed to reach the target of 470 million yuan.
After Li Ming re-assumed the role of actual controller, the pace of opening up the national market of Jinhui wine also slowed down.
As a regional wine company, the main sales of Jinhui Liquor come from Gansu. Therefore, in order to enhance the performance growth potential, the company is also seeking to enter the national market.
After changing the master of the galaxy, Guo Guangchang expressed his support for Jinhui wine. "Fosun is only a long-term investor and never a short-term speculator." Jinhui Liquor is expected to make full use of the advantages of Fosun's globalization, integrate all parties' resources, strengthen the organization and team, and form ecological fission. "
From the perspective of financial data, the nationalization of Jinhui wine has indeed developed rapidly from 2020 to 2021 when the compound galaxy is in charge. In 2019, the company's non-provincial income accounted for 12.77% of the total revenue. From 2020 to 2021, the company's non-provincial income increased by 38.46% and 35.71% respectively. By 2022, the company's share of non-provincial income has increased to 23.09%.
In terms of the number of dealers, in 2019, the number of non-provincial dealers of Jinhui wine was 163, accounting for 38.44% of the total dealers; by 2022, the number of non-provincial dealers of the company has increased to 496, accounting for 67.39% of the total.
However, after 2022, the development rate of Jinhui wine outside the province slowed down. In 2023, the growth rate of revenue outside the province was 25.87%, which was lower than the growth rate of total revenue, and the proportion of revenue outside the province also dropped slightly to 22.95%. In the first quarter of 2024, the company's revenue growth outside the province fell again to 13.23%.
With regard to the future development plan of business outside the province, Jin Huijiu told Blue Whale Finance that the company currently adheres to the strategic path of "laying out the whole country, deeply ploughing the northwest, and focusing on breakthroughs" and will speed up the development of the northwest market around Gansu, the East China market and the northern market. Among them, the East China market and the northern market are the key nurturing markets of the company, which cultivate consumers by group purchase mode, create a model market, and gradually promote it.
(article sourceCryptoplayinggames: blue Whale Finance)