Langjiu and Guotai liquor companies are still on their way to IPO. Another sauce liquor company is trying to “knock on” the capital market with a faster speed. This enterprise is Guizhou Maotai Shengjiao liquor industry Co., Ltd. (hereinafter referred to as “Shengjiao liquor industry”). In the evening of October 14, Yuancheng gold (600766. SH), which is engaged in gold deposit custody and other businesses, issued a plan for issuing shares, paying cash to purchase assets and raising matching funds and related party transactions (hereinafter referred to as the “plan”), and the company plans to acquire 100% equity of Shengjiao liquor. After the completion of the transaction, Shengjiao liquor industry will become a wholly-owned subsidiary of the listed company, and the business of the listed company will be expanded to liquor brewing and sales. Boosted by the news, on October 15, Yuancheng gold stock resumed trading, and the stock price was up and down. < p > < p > the above plan shows that Shengjiao liquor industry is mainly engaged in the R & D, production and sales of Maotai flavor liquor, and its main business is “Shengjiao” series Maotai liquor. It is one of the key liquor making and liquor storage enterprises in Maotai town. At present, it has two natural person shareholders, namely Liu Jian and Liu liangyue. In addition, Shengjiao liquor industry has been awarded the titles of “China’s top 100 most competitive medium-sized enterprises”, “top 10 most influential brands in China’s liquor industry” and “top 30 enterprises in China’s liquor industry”. < / P > < p > according to the open plan, the total assets of Shengjiao liquor industry is about 300 million yuan, and the annual business income scale is less than 100 million yuan. In the first eight months of 2018, 2019 and 2020, the company’s revenue is 810900 yuan, 28331200 yuan and 339494400 yuan respectively. Referring to liquor enterprises listed in a shares, the top ten enterprises with the largest revenue in 2019 all have more than 4 billion yuan. According to these data, Shengjiao liquor was once listed as “the top ten most influential brands in China’s liquor industry”, which seems to be untenable. < / P > < p > in addition, the first financial reporter also inquired about the information of member enterprises shown on the official website of Zunyi liquor industry association, and did not see Shengjiao liquor industry listed among them. Many senior people in the liquor industry told the first financial reporter that they had not heard of the enterprise. At the same time, the plan shows that “Shengjiao”, “Yugong Shengjiao”, “Centennial Shengjiao” and other Maotai flavor liquor products of Shengjiao liquor industry have been awarded “Gold Award of the first international popular Chinese liquor evaluation activity in 2012”. However, what makes people feel strange is that Shengjiao liquor industry was officially established on June 30, 2011. Looking back, Shengjiao distillery was founded on November 17, 2008 in Maotai Town, Renhuai City, Guizhou Province. In the liquor industry, Maotai flavor liquor is famous for its complex brewing technology and long production cycle. Generally speaking, the production cycle of high-quality Maotai flavor liquor takes one year, which involves complex processes and processes such as making koji in Dragon Boat Festival, Xiasha in Chongyang, twice feeding, nine steaming, eight fermentation and seven liquor taking. It takes at least five years for the new wine to enter the market for sale. For example, Guizhou Maotai (600519. SH), the leader of sauce liquor industry, usually has a production cycle of 5 years, and it will take about 4 years from base liquor to finished liquor. < p > < p > the plan also shows that Shengjiao liquor also adheres to the brewing process of “Dragon Boat Festival koji making, Chongyang Xiasha, nine times cooking, eight times fermentation and seven times liquor taking” and the traditional brewing techniques of “four high and two long” (high temperature koji making, high temperature stacking, high temperature fermentation, high temperature distilling; long production cycle and long storage time). In other words, when “Shengjiao”, “Yugong Shengjiao”, “Centennial Shengjiao” and other Maotai flavor liquor products of Shengjiao liquor industry were rated as “Gold Award of the first international popular Chinese liquor evaluation activity in 2012”, it seemed that the liquor produced by the company was still difficult to reach the delivery time in a real sense. < p > < p > as to how to obtain various honorary titles of Shengjiao liquor industry, the first finance and economics reporter called the Secretary Office of Yuancheng gold, and the other party replied: “the company’s due diligence on Shengjiao liquor industry is still in progress.” < / P > < p > in addition, the reporter also noted that in the above plan, Shengjiao liquor industry lost 2.7948 million yuan of net profit in 2018, turned the loss into profit in 2019, and realized a net profit of 8.1003 million yuan, followed by a net profit of 10.148 million yuan in the first eight months of 2020. For the fluctuation of net profit growth, there is no explanation in the acquisition plan. < / P > < p > the plan shows that the final transaction price and the number of shares to be issued have not been determined due to the audit and evaluation work involved in this transaction has not been completed. Before the acquisition, Yuancheng gold was mainly engaged in gold custody business and trade business. Among them, the gold trusteeship business is mainly Benxi xiaotaoyu mining and Rushan Jinhai mining, and the trade business is mainly the sales of steel, cable and coal. In addition, in order to seek business growth point, the company has expanded the real estate leasing business. < p > < p > Yuancheng gold said that since 2018, the company’s gold deposit custody income has been declining year by year, the volume of trade business is small, and it is greatly affected by macroeconomic fluctuations, and the gross profit rate is relatively low. The company’s net profit attributable to the shareholders of the parent company in 2017, 2018, 2019 and 2020 from January to June is 2637700 yuan, – 2349400 yuan, 10034900 yuan and – 487200 yuan, respectively. The overall profitability is weak. It is urgent to introduce high-quality assets with broad prospects in the industry, adjust the business structure, expand the business scope, and improve the sustainable profitability of the enterprise. < / P > < p > like Yuancheng gold, there are not a few who cross-border into the Maotai flavor liquor industry. In the 1990s, tianshli Group invested in Guotai liquor industry. Then, in 2007, Hubei Yihua Group acquired jinshajiao distillery. In 2012, Weiwei group reorganized and acquired Guizhou alcohol liquor industry. In 2013, Wahaha also invested in leading sauce national liquor. However, looking back, there are still few successful investments. For example, in 2018, Weiwei announced to divest 55% of the long-term loss equity of guizhouchun liquor industry to the controlling shareholder Weiwei group. < p > < p > a number of Maotai town liquor industry personages told the first financial reporter that the Maotai liquor industry needs to bear a lot of capital pressure due to its large investment, small unit output and long production cycle. < p > < p > from the perspective of Yuancheng gold itself, the asset liability ratio of the company has been hovering around 60% in recent years. In 2019 and the first half of 2020, the net cash flow generated by the company’s operating activities is negative successively, which is – 4.079 million yuan and – 3.707 million yuan respectively. < p > < p > Yuancheng gold said that the transaction intends to issue shares to the controlling shareholder Xu Chengdong to raise matching funds. The mutual preconditions and mutual conditions of raising matching funds, issuing shares and paying cash to purchase assets are mutual preconditions and conditions. If any one of them is terminated or cannot be implemented for any reason, the transaction will be terminated. < / 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.