As the first listed company in Yantai, Shandong Province, Yuancheng gold (600766, Yantai Hualian is its predecessor) is no longer the former. After 24 years of listing, along with a series of changes in business from department store business, real estate to today’s custody gold business, Yantai Hualian’s securities abbreviation is also changing again and again. In 2012, Yuancheng gold is not satisfied with the transformation to trusteeship gold business. Since 2015, Yuancheng gold has repeatedly planned to restructure and conduct business transformation. It has successively tried to purchase assets in the fields of mines and environmental protection, but all of them have failed. Now the cross-border merger and acquisition of Guizhou Maotai Town Shengjiao liquor industry Co., Ltd. (hereinafter referred to as “Shengjiao liquor industry”) has also failed. Behind the eager transformation, this paper reveals the dilemma of the old member of A-share. What’s the future for Yuancheng gold, which is even losing after deducting non net profit? Whether the restructuring can take place is a question raised by the market for Yuancheng gold’s acquisition of Shengjiao liquor. The result is also obvious, the cross-border “drinking” business of Yuancheng gold is yellow. On the evening of November 4, Yuancheng gold announced that the company decided to terminate its acquisition of 100% equity of Shengjiao liquor. For the reason of termination, Yuancheng gold said that because the company and the target party could not reach an agreement on the valuation of the target company, it decided to terminate the major asset restructuring. It is understood that Yuancheng gold originally planned to purchase 100% equity of Shengjiao liquor industry held by Liu Jian and Liu liangyue by issuing A-share common shares and paying cash. At the same time, Yuancheng gold raised matching funds from Xu Chengdong, the controlling shareholder and actual controller. Shengjiao liquor is one of the key liquor making and storage enterprises in Maotai Town, focusing on the R & D, production and sales of Maotai flavor liquor. The products of Shengjiao liquor industry are mainly located in medium and high-end Maotai flavor liquor, and four product lines of “Shengjiao” series, i.e. original liquor, finished liquor, bottled liquor and customized liquor, have been formed. < / P > < p > “after the completion of the transaction, Shengjiao liquor industry will become a wholly-owned subsidiary of the company, and its business will be expanded to liquor brewing and sales. With the product and resource advantages of Shengjiao liquor industry, the asset scale and profitability of listed companies are expected to grow significantly Garden City gold has said in the announcement. It can also be seen from the expression that Yuancheng gold has high expectations for this acquisition. < p > < p > Liu Dihuan, director of Niuniu financial research, believes that the popularity of Baijiu is mainly due to the influence of uncertainty such as epidemic situation, and defensive plate can provide certain safety cushion. On the whole, liquor enterprises generally have good cash flow, which can play a role in dispersing risks to a certain extent. According to Zhu danpeng, an analyst of China’s food industry, it is not easy to make Baijiu from the operation side, and Yuancheng gold will face great challenges. A liquor industry personage thinks that the cross-border liquor making cases like Yuancheng gold are not rare, but there are many failures. < / P > < p > the failure of restructuring also hit the gold stock price of Yuancheng. Trading prices show that on November 5, Yuancheng gold shares opened at the limit price. After opening the limit board, the gold stock price of Yuancheng is in a low position. By the end of November 5, Yuancheng gold closed at 7.46 yuan / share, down 7.9%. < p > < p > Yuancheng gold, formerly Yantai Hualian, landed on Shanghai Stock Exchange in 1996. According to wind data statistics, Yuancheng gold is the first listed company in Yantai, Shandong Province. In 24 years of A-share listing, the stock has already changed. From Yantai Hualian to Yantai, to Yuancheng shares, and now to Yuancheng gold, its main business has also experienced a series of changes from department stores, real estate to coal. < p > < p > since 2012, the main industry of gold in Yuancheng has transformed into gold mining and dressing industry, engaging in the operation of gold mineral industry by means of equity participation, cooperative mining, operation trusteeship, purchasing raw materials and entrusted processing. However, Yuancheng gold, which was transformed into gold mining and dressing business, was only a superficial scene. At that time, its business income mainly came from the custody fee income generated by the entrusted gold mine. This situation is the internal reason for the transformation of Yuancheng gold. < p > < p > since 2015, Yuancheng gold has started to promote the acquisition of assets. According to the previous announcement, the company purchased the assets of gold mining industry including Yantai Yuancheng Gold Mining Co., Ltd. from Yantai Shengcheng Real Estate Co., Ltd. Yuancheng gold intends to acquire gold mining assets to own its own mines and concentrators, so as to realize business transformation. Unfortunately, the acquisition did not succeed. < / P > < p > in 2020, transformation seems to be an urgent task for Gold Park City. In March this year, Yuancheng gold disclosed the restructuring plan, which showed that the listed companies planned to purchase 34% of the equity of jintongyuan held by Quanzhou construction, 100% of the equity of Runxiang Jinhua held by Cao Jianshan and 100% of the equity of Nengzhao environmental protection held by Zhang Shengli by issuing shares and paying cash. After the completion of the transaction, Yuancheng gold will hold 100% equity of jintongyuan through direct and indirect means. < p > < p > Yuancheng gold said that the development of environmental protection business such as hazardous waste disposal and utilization with good development prospects through extensive M & A is conducive to completing the business transformation and upgrading objectives of listed companies. Four months later, Yuancheng gold announced the termination of the restructuring because the operating performance of the restructuring target did not meet the expectations and the two parties did not reach an agreement on the main terms and conditions. The two mergers and acquisitions planned by Yuancheng gold this year are cross-border. Bourne, a securities market commentator, points out that cross-border M & A is more difficult than industrial M & A. The value judgment is not necessarily accurate when merging assets in unfamiliar fields. “The problem of acquiring + 1 companies is how to achieve cross-border integration.” Liu Dihuan said so. < / P > < p > the successive failures of mergers and acquisitions, for Yuancheng gold, which is continuously losing net profit after deducting non profits, how to solve the problem of profit is an urgent problem to be solved. < p > < p > in 2016, Yuancheng gold ushered in a new controller, Xu Chengdong. After Xu Chengdong became the leader, looking at the performance in recent years, the gold performance of Yuancheng has not changed. The data shows that the revenue and net profit of Yuancheng gold decreased in 2016. In 2017, the attributable net profit of Yuancheng gold decreased from 3145900 yuan in 2016 to 2637700 yuan. In 2018, Yuancheng gold once again increased its income but did not increase its profit. In the current period, the operating income was about 12.079 million yuan, with a year-on-year increase of 8.78%; the corresponding attributable net profit was about 2.3494 million yuan, from profit to loss on a year-on-year basis. In 2019, although the attributable net profit of Yuancheng gold turns from loss to profit, the net profit after deducting non-profit in the current period is negative. < p > < p > in the view of investment and financing expert Xu Xiaoheng, from the current situation, it is difficult for Yuancheng gold to rely on the current business to reverse the performance decline, and it is not ruled out that there is the possibility of further M & A. < / P > < p > will the company have other M & A and transformation plans in the future? With this question, a reporter from Beijing business daily interviewed a relevant person of Yuancheng gold securities department, who said: “there is no way to answer this question at present. If there is a plan in the future, the company will disclose it.” < p > < p > Yuancheng gold has also experienced frequent personnel unrest since this year. Liu Changxi, former Director Secretary of Yuancheng gold, and Xu Jiafang, chief accountant, all resigned due to personal reasons. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.