On May 21, Shanxi Fenjiu opened 2% lower in the morning.Bingomenow.11%, at 258.99 yuan, with a total market value of 315.96 billion yuan.
On the face of the news, Shanxi Fenjiu was announced on the evening of May 20, under China Resources.BingomenowHuachuang Xinrui (Hong Kong) Co., Ltd. (hereinafter referred to as "Huachuang Xinrui") plans to reduce its holdings of no more than 8 million shares through block trading. Previously, Huachuang Xinrui had reduced its holdings of 2.7 million shares of Shanxi Fenjiu in the third quarter of 2023.
China Resources plans to reduce its holdings of no more than 8 million shares
Shanxi Fenjiu announced on the evening of May 20 that as of the date of the announcement, Huachuang Xinrui held 136 million shares in the company, accounting for 11.16% of the company's total share capital, making it the company's second largest shareholder. Among them, China Resources Venture holds 80.62% of Huachuang Xinrui's shares, while China Resources Entrepreneurship and Fund I (limited partnership) (hereinafter referred to as "Lianhe Fund") holds 19.38% of Huachuang Xinrui's shares.
According to the relevant cooperation agreement of Lianhe Fund, it is faced with the arrangement of fund expiration and withdrawal and needs to reduce its indirect holdings of shares in the company. As a result, Huachuang Xinrui plans to reduce its holdings of no more than 8 million shares through block trading, which will be implemented within 3 months (including the expiration of 3 months) within 15 trading days from the date of public disclosure of the reduction plan.
As of May 20, Shanxi Fenjiu shares closed at 264.57 yuan per share. It is estimated that the market value of 8 million shares is about 2.117 billion yuan.
Six years' floating profit exceeds 30 billion yuan, making a big profit of 6 times.
This is the second reduction after Huachuang Xinrui strategic investment in Shanxi Fenjiu. Huachuang Xinrui reduced its stake by 2.7 million shares in the third quarter of 2023, from 11.38 per cent to 11.16 per cent, according to Shanxi Fenjiu's third quarterly report in 2023.
However, before the disclosure of the three quarterly reports, Shanxi Fenjiu did not announce the relevant reduction plans of China Resources. The reason for the lack of disclosure may be related to the way Huachuang Xinrui reduced its holdings.
According to the relevant rules of the Shanghai Stock Exchange, major shareholders with a shareholding ratio of more than 5% are required to fulfill their trust obligations by means of centralized bidding or agreed transfer, and those reducing their holdings by bulk trading do not need to be disclosed in advance.
However, according to the new rules related to the reduction of holdings on the Shanghai and Shenzhen stock exchanges, the reduction of holdings through bulk trading also needs to be disclosed in advance after September 2023.
At present, the market value of Huachuang Xinrui's stake in Shanxi Fenjiu is more than 36 billion yuan, plus the 2.7 million shares cashed out in the third quarter of 2023. Compared with its total investment of 5.16 billion yuan in 2018, Huachuang Xinrui's current investment in Shanxi Fenjiu is more than 30 billion yuan, making a big profit of about six times.
China Resources shares, channel reform
Public information shows that Huachuang Xinrui is a subsidiary of China Resources Entrepreneurship in cooperation with Fenjiu. China Resources Entrepreneurship is mainly engaged in beer, food and beverage business of China Resources Group.
For a large stake in Shanxi Fenjiu, Huachuang Xinrui said that it fully recognizes the past operating performance and future development plans of listed companies, and takes a fancy to the long-term growth of listed companies. Through this investment, it hopes to bring collaborative value to listed companies in terms of marketing and company operation. Fenjiu Group said that the transaction is to introduce strategic investors who have international vision and experience in M & An integration and can optimize the governance structure of listed companies for Shanxi Fenjiu, so as to promote the governance structure, decision-making system and incentive mechanism of Shanxi Fenjiu to be more scientific. Shanxi Fenjiu will become a leading listed company with international influence in the liquor industry.
In retrospect, China Resources has indeed brought a lot of changes to Shanxi Fenjiu after taking a stake. On the one hand, directors and executives from the China Resources department have been stationed in Shanxi Fenjiu one after another, on the other hand, with the help of the huge channel network of the China Resources department, the sales revenue of Shanxi Fenjiu has increased rapidly.
In 2019, the revenue of Shanxi Fenjiu was 11.89 billion yuan, breaking through the 10 billion yuan mark for the first time. "(the company) actively promotes strategic coordination with China Resources, and the two sides have made important progress in talent exchange, resource sharing and coordinated development, which has fundamentally stimulated the endogenous driving force." Shanxi Fenjiu said in its 2019 annual report.
In 2021, the revenue of Shanxi Fenjiu was 19.97 billion yuan. In 2022 and 2023, the company's revenue has exceeded 25 billion yuan and 30 billion yuan one after another. In 2023, the net profit of Shanxi Fenjiu exceeded 10 billion yuan to 10.438 billion yuan.
This article synthesizes China Fund News, Securities Times e Company and public information.