Jihong shares plans to acquire Guizhou Diaotai Gongjiu Industry!

On June 29, Xiamen Jihong Technology Co., Ltd. issued an announcement on the establishment of a wholly-owned subsidiary.

The announcement stated that based on the overall development strategy plan and the industrial layout in the liquor industry, Xiamen Jihong Technology Co., Ltd. (hereinafter referred to as " Jihong Co., Ltd. " ) established a wholly-owned subsidiary, Xiamen Zhengqi Private Equity Fund Management Co., Ltd. in Xiamen with its own capital of RMB 10 million.

The cross-border e-commerce industry has been very unstable recently, with many big sellers being banned. As an A-share listed company whose cross-border e-commerce business accounts for 57.84% of its revenue, Jihong shares has also witnessed the plight of its peers. Therefore, taking advantage of the liquor craze, Jihong shares wants to "drink a sip".

Jihong shares want to buy "drunk"

Establishing a subsidiary to develop the liquor industry? Many friends may be confused. As one of the well-known cross-border sellers, when did Jihong Co., Ltd. enter the liquor industry?

It all starts on June 28th!

On the evening of June 28, Jihong Co., Ltd. suddenly issued an announcement stating that the company intends to acquire a total of no less than 70% of Diaotai Gong ’s equity through transactions such as acquiring the equity of the original shareholders and increasing capital in Guizhou Diaotai Gong Liquor Co., Ltd. (hereinafter referred to as " Diaotai Gong " ) , and Diaotai Gong will be included in the company's consolidated financial statements.

As early as February 4, 2021 , Diaotai Gong acquired 100% of the equity of Gujiao Liquor for 175 million yuan . In other words, Jihong Holdings holds Gujiao Liquor by holding Diaotai Gong 's equity .

Jihong Co., Ltd. stated that it had obtained a series of liquor operation qualifications at the beginning of this year. This acquisition will use Gujiao Liquor Industry as a starting point to enter the sauce-flavor liquor field, and cooperate with existing channels to expand the company's business scope, in an attempt to create new profit growth points and enhance the company's overall competitiveness and sustainable development capabilities.

Cross-border acquisitions spark controversy

Faced with the constant turmoil in the cross-border e-commerce industry, it is understandable that Jihong Co., Ltd. is seeking new profit growth points, but this acquisition is shrouded in doubts!

First of all, although it is in the most popular liquor industry, the development of Gujiao Liquor Co., Ltd. itself is not very good. Tianyancha shows that at the end of 2020, Gujiao Liquor Co., Ltd. had total assets of 87.5209 million yuan, total liabilities of 86.0014 million yuan, and net assets of only 1.5195 million yuan. In 2020, the total sales volume was only 1.3848 million yuan, and the net profit was -1.7772 million yuan.

Compared with the transaction price of 175 million yuan of Diaotai Gong , the net asset premium rate of Gujiao Liquor at the end of 2020 was as high as 114 times.

Secondly, before the disclosure of this acquisition, Jihong shares had been rising for several consecutive days since June 23 , hitting the daily limit on the 23rd and 28th .

Therefore, on the 29th, the Shenzhen Stock Exchange issued a letter of concern to Jihong Co., Ltd., pointing out many doubts in its acquisition matters and requiring Jihong Co., Ltd. to conduct self-inspection and explanation.

We will continue to pay attention to whether this acquisition will ultimately be successful!

Jihong Shares

Cross-border sales

Acquisition