Xifeng Liquor's nearly 500 million yuan capital increase has been completed, and "manufacturer integration" has triggered speculation about listing
2024-08-08
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According to a recent announcement on the Western Property Rights Exchange, Shaanxi Xifeng Liquor Co., Ltd. ("Xifeng Liquor") has completed a capital increase, with old shareholder Changan Huitong Investment Management Co., Ltd. and four other companies investing a total of about 489 million yuan, holding a total of 4.15% of the shares. According to public information, the four new shareholders are all involved in liquor operations, and three of the company affiliates are core distributors of Xifeng Liquor.
Judging from the conditions proposed to investors for this capital increase, Xifeng Liquor intends to consolidate its national and high-end strategy by introducing distributor shareholders. The requirement of "no circumstances that affect or hinder the company's initial public offering and listing" has made the outside world associate it with the listing process of Xifeng Liquor.
Shaanxi Xifeng Liquor Co., Ltd.'s capital increase transaction announcement. Screenshot of the Western Property Rights Exchange.
New dealer shareholders
According to the announcement on the Western Property Rights Exchange Network, in this capital increase of Xifeng Liquor, old shareholder Changan Huitong Investment Management Co., Ltd. invested approximately 131 million yuan, with an additional shareholding of 1.11%; Shaanxi Anxi Investment Co., Ltd. invested 199.92 million yuan, with a shareholding of 1.7%; Yangzhou Huayao Zhitong Equity Investment Partnership invested 76.16 million yuan, with a shareholding of 0.65%; Shaanxi Tianyi Investment Co., Ltd. invested 27.2 million yuan, with a shareholding of 0.23%; Xiamen Jianfa Meijiuhui Wine Co., Ltd. invested 54.4 million yuan, with a shareholding of 0.46%.
Before the capital increase, Changan Huitong Investment Management Co., Ltd. held 15% of Xifeng Liquor's shares, making it the second largest shareholder. After the capital increase, the number of Xifeng Liquor's shareholders increased from 40 to 44. Based on the investment amount and shareholding ratio, Xifeng Liquor's valuation exceeds 11.7 billion yuan.
According to the project information released by the Western Property Rights Exchange in May 2023, Xifeng Liquor plans to raise 27.2 million yuan to about 1.522 billion yuan in this capital increase, which will be mainly used for Xifeng Liquor's 100,000 tons of high-quality base liquor and supporting production projects, Xifeng Liquor's wine brewing industrial heritage group upgrading and transformation projects, Xifeng Liquor Museum, Business R&D Center and other brand promotion projects, and replenish working capital. At that time, Xifeng Liquor had a registered capital of 400 million yuan and a total asset book value of approximately 6.956 billion yuan.
According to public information, three of the five newly added shareholders are core distributors of Xifeng Liquor. Shaanxi Anxi Investment Co., Ltd. was established in 2012 and has long cooperated with Xifeng Liquor. The company's legal representative, Wang Yan'an, is the brand planner and creative operator of Xifeng Liquor's "15 Years and 6 Years Aged". Yangzhou Huayao Zhitong Equity Investment Partnership (Limited Partnership) was established in 2024. The legal representative of the major shareholder, Shaanxi Haida Investment Partnership, Dong Shiyao, is the vice president of Huashan Lunjian Brand Management Co., Ltd., the national operator of Xifeng Liquor's "Huashan Lunjian" series. Shaanxi Tianyi Investment Co., Ltd. was established in 2024. Its legal representative, Lu Hongmei, owns Shaanxi Changyu Wine Co., Ltd., which is the national operation center of Xifeng Liquor 375, Mian Xifeng, and Boutique Mian Xifeng series.
Another new shareholder, Xiamen Jianfa Meijiuhui Wine Co., Ltd., was established in 2013. It is a wholly-owned subsidiary of Jianfa Group and a professional wine supply chain operator.
Listing process draws attention
Official information shows that Xifeng Liquor's predecessor, Shaanxi Xifeng Distillery, was founded in 1956 and was restructured into Shaanxi Xifeng Liquor Co., Ltd. in 1999. It is a representative of Fengxiang-style liquor.
The financial information disclosed on the Western Property Rights Exchange Network shows that Xifeng Liquor's operating income from 2019 to 2022 was approximately 4.676 billion yuan, 4.67 billion yuan, 6.033 billion yuan, and 5.919 billion yuan, respectively; the net profit was 747 million yuan, 673 million yuan, 871 million yuan, and 763 million yuan, respectively.
Historically, Xifeng Liquor has increased its capital and expanded its shares many times. From 2009 to 2010, Xifeng Liquor initiated restructuring and reorganization, and increased its capital and expanded its shares twice. In May 2010, CITIC Industrial Investment Fund acquired a 15% stake and became the second largest shareholder of Xifeng Liquor. In March 2020, the second largest shareholder of Xifeng Liquor was changed to Shaanxi Didian Equity Investment Co., Ltd., and two years later it was changed again to Changan Huitong Investment Management Co., Ltd.
For this capital increase, Xifeng Liquor requires investors to agree with the company's development strategy, have good financial status and payment capabilities, and have complementary business advantages with Xifeng Liquor. It also clearly states that "there are no circumstances that affect or hinder the company's initial public offering and listing."
Conditions for capital increase of Shaanxi Xifeng Liquor Co., Ltd. Screenshot of Western Property Rights Exchange Network.
Since 2010, Xifeng Liquor has attempted IPOs several times and issued prospectuses. In June 2022, the Shaanxi Provincial List of Reserved Companies released a list of 360 provincial-level reserve companies for listing, and Xifeng Liquor was selected for the B-tier. At the same time, news of Xifeng Liquor's backdoor listing came out, and Qujiang Tourism denied the rumors of backdoor listing when responding to investors.
According to Zhang Zheng, chairman of Shaanxi Xifeng Liquor Co., Ltd., at the 10 billion yuan celebration in January this year, Xifeng Liquor's sales revenue in 2023 will be 10.34 billion yuan, a year-on-year increase of 23%, completing the 10 billion yuan target set in 2019. Zhang Zheng also emphasized that Xifeng Liquor's goal of returning to first-class liquor and its high-end and national strategy remain unchanged.
Cai Xuefei, an analyst in the liquor industry, believes that for old famous liquors like Xifeng that are still undergoing nationalization, introducing advantageous distributor shareholders can not only consolidate the existing sales base in the northwest, but also activate the sales potential of distributors, increase the intensity and efficiency of market investment, and promote the nationalization and high-end development of related products. This is in line with the current channel development trend of integrated manufacturers, and will also be beneficial to the future capitalization of Xifeng Liquor. "Objectively speaking, listing is a comprehensive result involving the government, enterprises and the market. The specific results will depend on the overall strategic advancement of Xifeng Liquor and the trend of relevant policies."
Beijing News Chief Reporter Guo Tie
Editor: Qin Shengnan
Proofread by Liu Baoqing
