A news of shareholder reduction triggered a fall in the share price of Shanxi Fenjiu.
On May 20th, Shanxi Fenjiu announced that the company's second shareholder, Huachuang Xinrui (Hong Kong) Co., Ltd. (referred to as "Huachuang Xinrui"), intends to reduce its holdings by block trading of no more than 8 million shares, accounting for no more than 0% of the total share capital.Scratchmoneyclicker.66%. Previously, Huachuang Xinrui had reduced its holdings in the third quarter of 2023.ScratchmoneyclickerShanxi Fenjiu 2.7 million shares.
After the sale of the plan, Shanxi Fenjiu's share price fell on May 21, falling more than 3% at one time. By the close, its share price was 261.33 yuan per share, an one-day drop of 1.22%. The total market capitalization of the company is about 318.813 billion yuan, compared with the day before. The total market capitalization has shrunk by about 3.953 billion yuan.
For Huachuang Xinrui's reduction, Shanxi Fenjiu explained that the reason for the reduction was "fund withdrawal at maturity", and stressed that "China Resources Entrepreneurship will continue to hold shares in the company through Huachuang Xinrui, and there are no plans to reduce its shareholdings."
Previously, China Resources invested more than 5 billion yuan in Shanxi Fenjiu in 2018, becoming its second largest shareholder, with a market value of more than 35.5 billion yuan. Since 2018, the total market value of Shanxi Fenjiu peaked in July 2021, and its total closing market value once exceeded 456.5 billion yuan.
An announcement on the reduction of holdings
The market capitalization of the company has lost nearly 4 billion in a single day.
On the evening of May 20, Shanxi Fenjiu issued an announcement on the plan for shareholders to transfer shares through block trading. Huachuang Xinrui intends to reduce its holdings of no more than 8 million shares through block trading. It will be implemented within 3 months (including the expiration of 3 months) within 15 trading days from the date of public disclosure of the reduction plan.
As of the date of the announcement, Huachuang Xinrui held about 136 million shares of Shanxi Fenjiu, accounting for 11.16% of the company's total share capital and more than 5% of the company's shareholders. Among them: China Resources Entrepreneurship Co., Ltd. (referred to as "China Resources Entrepreneurship") holds 80.62% shares in Huachuang Xinrui, and China Resources Entrepreneurship and Fund Phase I (limited partnership) (referred to as "Lianhe Fund") holds 19.38% shares in Huachuang Xinrui.
China Resources Entrepreneurship is the strategic business unit of China Resources Group's integrated consumer goods and retail services, and its main business includes beer, food and beverages. Lianhe Fund, established in 2016, is a private equity fund management platform launched by China Resources Entrepreneurship and focused on investing in large consumer sectors.
Based on the closing price on May 20, the total market capitalization of Shanxi Fenjiu with 8 million shares is about 2.117 billion yuan.
With regard to the impact of the second shareholder reduction plan, Shanxi Fenjiu said, "it will not change China Resources's firm confidence in the company's future development prospects and its high recognition of the company's long-term value. China Resources Entrepreneurship will continue to hold shares in the company through Huachuang Xinrui, and there is no plan to reduce the company's shares."
According to Shanxi Fenjiu 2023 annual report, Huachuang Xinrui is the company's second largest shareholder, also reduced its holdings of 2.7 million shares in 2023. On the whole, among the top ten shareholders of Shanxi Fenjiu in 2023, 4 increased their holdings and 2 reduced their holdings.
After the sale of the plan, Shanxi Fenjiu closed on May 21, its share price fell 1.22% to close at 261.33 yuan per share, and the total market value shrank by about 3.953 billion yuan in one day.
Hold shares for nearly 6 years
"Synergy" with Shanxi Fenjiu Huarun system investment surplus exceeds 30 billion
In 2018, through share transfer, Huachuang Xinrui bought about 99.1545 million shares of Shanxi Fenjiu from Fenjiu Group, the controlling shareholder of Shanxi Fenjiu, at a transfer price of 52.04 yuan per share, with a total price of about 5.16 billion yuan.
Over the next five years, Huachuang Xinrui's shareholding in Shanxi Fenjiu was relatively stable, increasing by about 39.6618 million shares in 2021, but still holding 11.38%, until it began to reduce its holdings in 2023, reducing its holdings by 2.7 million shares in the third quarter. the shareholding will reach 11.16%.
"it is hoped that through this investment, it will bring collaborative value to listed companies in terms of marketing and company operation." This is the original intention of China Resources Department to buy shares in Shanxi Fenjiu. Holding shares for nearly 6 years, Huachuang Xinrui has made a good return on its investment in Shanxi Fenjiu. Based on the closing price on May 21, 2024, Huachuang Xinrui's stake in Shanxi Fenjiu has a market value of about 35.571 billion yuan.
After China Resources bought shares, it did bring a lot of changes to Shanxi Fen Liquor.
In 2018, shortly after China Resources bought a stake in Shanxi Fenjiu, Hou Xiaohai and Chen Lang had a seat on the board of Shanxi Fenjiu. Hou Xiaohai became the director of Shanxi Fenjiu on September 4, 2018. at that time, Hou Xiaohai was also the general manager of China Resources Snow Beer (China) Investment Co., Ltd. Chen Lang, who became vice chairman of Shanxi Fenjiu on the same day, is also the executive director of China Resources Entrepreneurship, Deputy General Manager of China Resources (Group) Co., Ltd., director of China Resources Corporation. Chairman of China Resources Snow Beer (China) Investment Co., Ltd., China Resources Yibao Kirin Beverage (Holdings) Co., Ltd.
In recent years, there have been China Resources people in the senior management team of Shanxi Fenjiu. According to the 2023 annual report of Shanxi Fenjiu, Chen Ying is currently assistant general manager, secretary of the China Resources Entrepreneurship Party Committee, CEO and vice chairman of Shanxi Fenjiu.
"actively implementing the strategic coordination between Fenjiu and China Resources" continues to appear in the annual reports of Shanxi Fenjiu in 2018 and 2019. In 2023, Shanxi Fenjiu also held a "Special Workshop on Digital talents" and organized the math commissioners of various units of the company to study in China Resources.
With the help of Huarun system, the performance of Shanxi Fenjiu has increased steadily.
Shanxi Fenjiu's performance in recent years, Beijing News Shell financial reporter drawing.
On May 20 this year, at the performance presentation meeting, Zhang Yongyi, deputy general manager of Shanxi Fenjiu, also expressed his approval for the assistance of China Resources, saying: "since the strategic cooperation between Fenjiu Group and China Resources in 2018, China Resources has enabled Fenjiu with its advanced corporate governance experience, strong market operation ability and excellent human resources advantages, good products superimposed good channels, good management to help good brands. It has greatly promoted the promotion of Fenjiu management, the expansion of the market and the optimization of corporate governance, and promoted the healthy and stable development of the company. "
Yan Xia, a shell financial reporter from Beijing News.
(source: Beijing News)