• Yuyuan purchased more Jinhui Liquor shares to complete the tender offer and increase its shareholding ratio to 38%
  • Release Time: Oct 20, 2020
  • On October 20, 2020, Yuyuan Tourist Mart announced that its subsidiary, Hainan Yuzhu, completed the tender offer with the acquisition of an additional 8% of shares in Jinhui Liquor Co., Ltd. The transaction was conducted to increase shares after Yuyuan acquired 29.99% of shares in Jinhui Liquor Co., Ltd. on August 3, 2020. Yuyuan and its main subsidiary now hold 38% shares of Jinhui Liquor and have further optimized the shareholding structure of the listed company. On the same day, Jinhui Liquor reached the limit-up and closed at RMB 23.84 per share.


    As a large baijiu (Chinese distilled liquor) enterprise which was established through the restructuring of many distilleries such as Kangqing Distillery and Yongshengyuan in Gansu province, Jinhui Liquor Co., Ltd. is one of the earliest Chinese time-honored baijiu manufacturing enterprises. In 1960, Jinhui Liquor became the first nationally approved and registered baijiu brand. In 2016, Jinhui Liquor was listed on the Shanghai Stock Exchange.


    According to local records, Jinhui Liquor was first invented in the Western Han Dynasty and become popular in the Tang and Song Dynasties, and the place became the famous "Home of Western Chinese Liquor" in the Ming and Qing Dynasties. The home town of Jinhui Liquor is located in the south of Qinling Mountains, which is part of the line that divides North and South China. Reputed as beautiful Jiangnan in Gansu Province, it is also a place famous along the Jialing River, which is in the upstream sector of the Yangtze River, for its alcohol. Jinhui Liquor, together with Wuliangye, Jiannanchun, Luzhou Laojiao, and other famous Chinese baijiu brands, are all distributed in the corridor areas of the Yangtze River basin where many types of well-known liquor are made. With four distinct seasons, a warm and humid climate, and beautiful mountains, it is a paradise for the growth of microbial flora. The Longnan region has been the home of many literati since ancient times. Li Bai wrote the famous poem "The Hard Road to Shu" when he visited this place. In the Song Dynasty, there was a legend about "golden helmet liquor", which was rewarded to Wu Jie, a famous general in the war against Jin. It can be said that the area produces many stories and legends in Chinese history about the development of Jinhui Liquor.


    As the flagship platform of Fosun's entertainment sector, Yuyuan Tourist Mart has developed a comprehensive business layout in household entertainment in recent years. The alcohol industry is a high-quality sector of the domestic food and beverage industry with great development prospects. Apart from that, the deployment in the baijiu industry is expected to generate synergistic effects with existing industrial clusters of Yuyuan, including catering, food, commerce, and cultural creativity sectors and accelerate the scale effect of the company's catering and food business group.


    Jinhui Liquor is a vital new member of Yuyuan's household entertainment consumption ecology. As the 17th Chinese time-honored brand, Jinhui Liquor is also highly consistent with Yuyuan's core value of "good industry, good product". After the completion of the tender offer, Yuyuan Tourist Mart can further strengthen Jinhui Liquor's operating activities, promote the ecological coordination and integration of Yuyuan and Fosun, and help Jinhui Liquor enhance its competitive edge and corporate value to further expand the market and deliver more high-quality products.