Eternal Asia Announcement said that the company plans to sell 9 subsidiaries each 60% of the equity, and invested 17 million yuan to establish the wine company.
To sell a number of subsidiary equity and investment of 17 million yuan
Crossing into the Liquor Board
On the evening of February 5, Eternal Asia issued a number of announcements, the company plans to transfer its nine holding subsidiaries and a joint-stock subsidiary equity. At the same time, Eternal Asia announced plans to invest in the establishment of a liquor company to enhance the company’s presence in the liquor industry.
According to the announcement, Easia plans to jointly fund the establishment of Guizhou Renhuai Wangjia Shaofang Wine Co., Ltd., with Renhuai Zumi Trading Co., Ltd., Wangchenghui Wine (Henan) Co., Ltd., and Chengdu Tongchuang Win-win Wine Partnership Co., Ltd. The registered capital of the liquor company is 50 million yuan, among which, the company invests 17 million yuan in cash and holds 34% equity of the liquor company.
In addition, Eternal Asia to be listed in the transfer of nine subsidiaries 60% of the equity. The nine companies are: Hangzhou Wanhong Supply Chain Management Co.; Ningbo Junlong Supply Chain Management Co., Ltd. Zhejiang Delai Supply Chain Management Co., Ltd.; Yiwu Junmeng Supply Chain Management Co., Ltd. Shandong Yikun Supply Chain Management Co., Ltd.; Shandong Shunxing Network Technology Co., Ltd. Shandong Yida Xintong Supply Chain Management Co., Ltd.; Xinjiang Eternal Asia Gale Supply Chain Management Co., Ltd.; Shenzhen Xinxing Supply Chain Co., Ltd. The listed reserve prices of 60% equity of the above 9 companies are 15 million yuan, 30 million yuan, 33 million yuan, 11.25 million yuan, 20.64 million yuan, 16.86 million yuan, 24 million yuan, 14.13 million yuan and 6.624 million yuan respectively.
According to the public information, Eternal Asia is a well-known supply chain solution provider in China, with business fields covering FMCG, IT, communication, medical care and other industries, among which, wine business is also one of its FMCG business fields. To put it simply, Eternal Asia is more like a comprehensive service provider of “platform service + brand operation + new retail”.
Since 2019, Eternal Asia has cooperated with Diaoyutai Liquor, Guotai Liquor and Xijiu successively to develop and launch a series of products including Diaoyutai Treasure No.1, Guotai Black Gold Decade and Xijiu Ancient Maotaixiang, which are the general agents of Eternal Asia Liquor. According to its 2019 annual report, its leading liquor product “Diaoyutai” achieved annual sales of nearly 300 million yuan, and in its 2020 half-year report, “Diaoyutai” achieved single product sales of more than 100 million yuan in the first half of 2020.
Frequent transfer of subsidiary equity
Six years of stock prices fell by nearly 90%, the market value of more than 60 billion
Remarkably, the company’s share price has failed to improve at the same time as its liquor push. The company went public in 2007 and its share price has been on a downward slide since hitting an all-time high of 36.11 yuan in May 2015. As of February 5, the market closed at 3.88 yuan, and the company’s share price has fallen nearly 90 percent, losing more than 60 billion yuan in six years.
In recent years, Eternal Asia also intensive release listing transfer announcement. Since September 2020, the company has frequently sold equity in its subsidiaries, and has issued more than 30 equity transfers and related progress announcements.
At the same time of increasing the layout of liquor industry, Eternal Asia Announcement said that Eternal Asia will be listed to transfer the equity of each of the 9 subsidiaries 60%, the total base price of the listing is more than 171 million yuan. As for the frequent transfers of subsidiaries, it said that “the company’s operating situation no longer matches the company’s strategic development plan”. The disclosed performance of the transferred subsidiary shows that the amount of debt is large and the net profit is mostly in loss.
At the end of October last year, the company released the announcement of third-quarter performance, saying that the revenue in the first three quarters of 2020 was about 43.556 billion yuan, down 8.30% year on year; Net profit was about 81.3 million yuan, up 14.38% year on year; Easia previously disclosed the forecast of the business performance of the 2020 year, it is expected that the annual net profit of the 2020 year is 90.1417 million yuan ~ 135 million yuan, with a change range of 0% to 50%.
Listed companies cross into the “liquor bureau” enthusiasm is not reduced
In recent years, listed companies cross into the “wine bureau” enthusiasm is not reduced. According to the China Institute of Commerce, as of January 9, 2021, there were a total of 200,965 enterprises in China whose names/products, brands or business scope contained “baijiu” and were in operation or existing (” baijiu related enterprises “).
So far, three companies have invested in the baijiu industry in 2021, including one company whose acquisition plan has been terminated.
January 31, the United States ecological announcement, the company’s wholly-owned subsidiary of the United States to invest 12 million and a half million yuan in the United States to buy the United States Hall 2.44% of the stock. The main layout of Dendrobium health products, healthy liquor two plates.
January 17, ST YaXing issued a notice on the termination of planning major asset restructuring, the company decided to terminate the acquisition of Jingzhi liquor business control. The two parties failed to reach an agreement on whether the derivative operating assets of liquor business (liquor culture, cultural tourism industry capital, etc.) should be included in the scope of the acquisition, resulting in the termination of the restructuring plan.
On January 5, ST Sede announcement, Yuyuan shares through the implementation of judicial rulings to obtain 70% of the Tuopai Sede Group shares, thereby indirectly controlling 29.95% of the company’s shares.