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State Taiwan issued a prospectus to raise capital and expand production, accelerating the second share of sauce wine

State Taiwan issued a prospectus to raise capital and expand production, accelerating the “second share” of sauce wine
Sauna Night News (training reporter Xue Chen) Guizhou Guotai Liquor Co., Ltd. (hereinafter referred to as “Guotai Liquor”) is stepping up towards the Shanghai Stock Exchange.On May 22, the website of the China Securities Regulatory Commission published a prospectus for Guotai Liquor’s initial public offering of shares.The prospectus shows that Guotai liquor will achieve revenue in 201918.8.8 billion, with a net profit of 3.7.4 billion US dollars, when anticipating the need to raise funds, Guotai Liquor hopes to raise funds through listing to expand production capacity and seize the market’s potential for expanding tolerance.However, behind the rapid development, the issues of Guotai Liquor’s debt, chaotic prices in the end market, and weak brand appeal are also worthy of attention.Entering the listing “sprint” period of the Taiwanese liquor prospectus shows that this issue does not exceed 4282.10,000 shares, accounting for no less than 10% and no more than 10% of the total share capital after the issue.5%, this issuance is limited to the issuance of new shares, and no issuance of old shares.The face value of the issued stock price is 1 yuan, but the final issue price has not yet been determined.According to the plan of Guotai Liquor, the funds raised will be used for the technological transformation and expansion project of an annual output of 6,500 tons of sauce-flavor liquor, in addition to supplementing working capital.According to the data disclosed by Guotai Liquor, the total investment of the project reached 25.200 million US dollars, including 2 billion US dollars to be raised.From the perspective of shareholding structure, the top five equity holders of Guotai Wines are Guotai Group, Jinchuang Partnership, Tasly Health, Co-creation Partnership, and Co-creation Partnership, each with a shareholding ratio of 50.58%, 10.09%, 8.02%, 7.55%, 5.89%.It was followed by more than ten funds and enterprises such as Jinhui Fund and Central Enterprise Fund.The schematic diagram of the property rights structure of Guotai Liquor itself is that among the property rights structure of Guotai Group, the largest shareholder, Tasly Health accounted for 79%.02%; Jinchuang Partnership, the second largest shareholder, is still the largest group of state-owned companies.The important role played by Tasly Health in Guotai liquor also allows to control Tasly Health73.The 5% stake in Tasly executives Yan Xijun, Wu Naifeng, Yan Kaijing and Li Jiuhui became the actual controllers of Guotai Liquor. These four people controlled 84% of the shares of Guotai Liquor through direct and indirect methods.It is reported that at present, these four people always hold important positions in Tasly. Yan Xijun is also the chairman of Guotai liquor, Wu Naifeng is the vice chairman of Guotai liquor, and Yan Kaijing is the director of Guotai liquor.The announcement of the prospectus of Guotai liquor’s equity control relationship shows that Guotai liquor’s listing plan has entered the sprint stage.In fact, the lighthouse sauna, Yewang also communicated with the relevant person in charge of Guotai liquor that they learned that promoting the listing of Guotai liquor is one of the most important tasks for enterprises in 2020.Industry insiders also have a positive attitude towards the listing of Guotai Liquor. Liquor marketing expert Cai Xuefei said that from the perspective of the current corporate behavior and promotion plan of Guotai Liquor, the steps for the listing of Guotai Liquor are significantly accelerated.To be sure, under the blessing of the local government, and the concept of complication sauce wine continues to heat up, the listing of Taiwan should be steadily in progress.The large-scale overweight sauce wine main business, the sauce wine boom, brought not only the determination of Guotai liquor to go public, but also the movement of Guotai liquor to greatly expand the scale of the enterprise.Simultaneously with the submission of listing counseling materials by China Taiwan Wine in 2019, there is also the acquisition of Huaijiu incident that also occurred in mid-2019.15 acquirers, including Guotai Liquor and Tianchuang Partners, jointly acquired 100% equity of Huaijiu.In this transaction, until January 2020, both parties of the transaction signed the “Equity Transfer Contract” and started the corresponding delivery procedure before they fell.According to the explanation of Guotai Liquor, the reason for the decision to acquire Huaijiu is also because the business of both camps is the same. What is more important is that in the rapid development stage of Guotai Liquor, the liquor production cycle replaced by sauce flavored liquor and the expansion of base wine production capacity competitionIt has severely restricted the growth of base wine production and reserves in the short term, so it is necessary to acquire existing companies to ensure the development of the business.Guotai Liquor has an urgent need to expand the base wine production capacity.At present, the two bases of Guotai Liquor and Guotai Winery, which belong to Guotai Liquor, have a production capacity of 1,800 tons and 3,500 tons in the 2019 season, and their production reached 2003, respectively.91 tons and 3970.77 tons.The capacity utilization rates of the two major bases were 111.33% vs. 113.45% has shown the situation of overload operation.This state of overloaded operation is closely related to the rapid development of Guotai Liquor in recent years. From 2017 to 2019, the performance of Guotai Liquor has been singing all the way, and the operating income in 2017 was only 5.7.3 billion yuan, this figure will increase to 18 in 2019.8.8 billion yuan; In 2017, 2018, and 2019, the net profit attributable to the owners of the parent company showed a multiple growth trend, which was 7067.230,000 yuan, 2.4.7 billion and 3.7.4 billion.According to the industry views listed in the financial data of Guotai Wine in recent years, benefiting from the market’s pursuit of sauce wine products, it is foreseeable that Guotai Wine will continue to maintain a relatively fast performance growth rate in the short term.Through the listing financing to accelerate the speed of technological transformation projects and the addition of Huaijiu, the current situation of insufficient production capacity of Taiwanese liquor will also be alleviated to a certain extent.There is a “chaotic phenomenon” in the fast pace. Rongze consulting liquor marketing expert Liu Xiaowei pointed out that the rapid and rapid revenue and net profit growth of Guotai liquor, which is located at the mouth of sauce wine, are its obvious advantages and characteristics.But at the same time, the overall volume of Guotai Liquor is relatively large compared to its competitors, higher resistance, and the product consumer cultivation base is not serious, which is also an objective fact.Sauna and Yewang noticed that, relative to the scale of Guotai liquor’s operating income and net profit, until the end of 2019, Guotai liquor’s interest-bearing debt balance had reached 18.17 trillion, the company’s asset merger corruption rate reached 61.1%.More importantly, these interest-bearing denials will be repaid one after another within the next three years.Guotai Liquor also admitted that the scale of interest-bearing debt has increased the financial burden of the company and reduced the overall profitability, and it has an impact on cash flow to a certain extent.In addition, the current “chaos” in the Taiwanese liquor terminal market has also aroused the attention of industry professionals.Recent public information shows that Guotai Liquor issued fines to notify distributors in Jinan, Qingdao, Hangzhou and other places of default. This is also the replacement of 47 distributors in 2019.The team reorganized.Judging from public information, low-price sales and cross-regional low-price sales are the focus of this round of the National Taiwan Wine.Although the Taiwanese liquor has not yet responded to the inquiry of the sauna and Yewang, but in the opinion of the industry, the existence of chaos is closely related to the sales model of the Taiwanese liquor.Ma Fei, chairman of Nine Degrees Consulting, told Sauna, Yewang that Taiwan ‘s sales model is relatively simple, mainly based on the group purchase model, and there is no sound sales network across the country.The small area and multi-client agency system is also very easy to cause price confusion.And because of the weak customer strength and weak network channels, they often form mutual “crack prices”.Ma Fei further pointed out that if you want to change this situation, you must work hard on the agency model and assessment mechanism. Doubt alone cannot change the essential problem.Consumer base needs to be improved From the current situation, Guotai Liquor still has a long way to go to change the status quo.Although the group-buying model overlaps an extremely important part in the liquor industry, the dependence of Guotai Liquor on this sales model is still distinguished by competitors.The ensuing result is that when the market terminal directly faces consumers, consumers will blur the brand image.The sales channels of Guotai Liquor directly to retail customers are relatively limited. Online sales are mainly through Tmall,, and micro mall self-operated online stores; offline, mainly for Taiwan sales, direct sales to retail customers.In the case of industry giants such as Maotai, who have increased their retail terminals in hopes of directly facing consumers through direct sales, the sales revenue of liquor produced by Guotai Liquor through the direct sales model has generated a proportion of the main operating income from 12 in 2017.64% reduced to the current 2.71%.Revenue of Guotai Liquor and Liquor products by sales model Liu Xiaowei bluntly stated that the performance of the reorganization of the Taiwan and Taiwan has grown rapidly, mainly due to the cooperation with major liquor companies, but in the market and the scale of brand cultivation, the consumer cultivation of Guotai Liquor is obviousLagging, the number of core target consumer groups, brand loyalty and other product consumption bases are relatively weak, resulting in relatively slow and slow product sales.Sauna and Yewang also found in the terminal markets in Beijing, Guizhou and other places that compared with the main competitors of Xitai, Maotai series and other national Taiwanese liquors, national Taiwanese liquor products even appeared in large supermarkets with a far greater frequency.Lower than the above two, in terms of brand recognition in the consumer group, the above relative and main brands such as Langjiu are weak.However, some consumers in Guiyang said that in the local market, in addition to the Maotai series of products, the recognition of Guotai liquor among consumers is increasing.The main characters of the listing prospects to be evaluated pointed out that although there are still distributor problems in Guotai liquor, the brand appeal is still to be cultivated, but it will not affect the listing plan of Guotai liquor.Ouyang Qianli, a researcher in the liquor industry, told reporters that the issue of Guotai liquor is well-prepared, the performance is relatively small, and the low inventory cycle turnover rate is not a big problem. It is a situation that many wine companies currently have.The price chaos is a “common problem” caused by the rapid development, and it is easier to solve it if it is exposed before the sprint.Liquor marketing expert Cai Xuefei also believes that market problems such as chaotic prices and reduced sales of national and Taiwan liquors are the normal problems in the high-end process of regional liquor companies in the past two years, and will not pose a fatal threat to national and Taiwan liquors; the second listingIt is more a question of capital goals. Under the local government ‘s endorsement environment, the national Taiwan wine sorting dealer team and the maintenance of the market price system are also alternatives to actively participate in the listing. The overall situation should be said to be within control.Liu Xiaowei believes that whether the Taiwanese liquor is seriously channeled or the regional distributors are rectified, it is not due to principle problems such as defective product quality and major errors in operation. Therefore, it will not have a decisive impact on the listing of Taiwan.However, the root cause of the problems in the market is still related to the poor sales of national and Taiwan liquor products and the inventory and sales pressures of regional distributors, so investor confidence may be affected.Sauna Night Network trainee reporter Xue Chen pictures the official website of the China Securities Regulatory Commission, screenshot editor of the National Taiwan Wine official website Xu Jingjing proofreading Li Xiangling

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