• Yuyuan proposes to acquire 29.9% stakes in Jinhui Liquor at the price of RMB 1.83 billion
  • Release Time: May 28, 2020
  • On May 27, Yuyuan (Stock Code: 600655.SH) announced its proposed acquisition of 29.9% stakes in Jinhui Liquor Co., Ltd (hereinafter referred to as “Jinhui Liquor”) from Gansu Yate Investment Group Co., Ltd. for the total price of RMB 1.83 billion. Upon completion of the equity transfer, Yuyuan will become the controlling shareholder of Jinhui Liquor, holding 29.9% stakes of Jinhui Liquor. The addition of this company brings the number of time-honored brands under Yuyuan to 17, reflecting the company’s plan to expand its catering and food industry cluster by developing its presence in the liquor industry.

    • Jinhui Liquor is one of the oldest Chinese time-honored distillers in China. Its predecessor, a large liquor company based in Gansu Province, was founded on the basis of several distillers like Kangqingfang and Yongshengyuan. Jinhui Liquor was listed on the Shanghai Stock Exchange in 2016. Jinhui Liquor originated in the south of the Qinling region, which is the geographical dividing line between Northern and Southern China. This birthplace of Jinhui Liquor, a part of the Jialing River basin located in the upper reaches of the Yangtze River, is known as a northern land as enchanting as those south of the Yangtze River. This land nourishes the grains for liquor, which is also a part of the corridor along the Yangtze River and home to many premium liquor brands such as Wuliangye, Jiannanchun, and Luzhou Laojiao. Boasting four distinct seasons and a warm climate, this incredibly beautiful land is also a paradise for microbial communities. Additionally, the Longnan region has gathered a galaxy of talents in history. Li Bai, a famous Tang Dynasty poet, described the area in his masterpiece Hard Road to Shu. A legend of Song Dynasty went that Wu Jie, a respected general who led his army to fight against the invading Jin army, rewarded his victorious warriors with “Jinkui Liquor”. This legend can be deemed the earliest reference to the distillation of Jinhui Liquor in history.

    Currently, Yuyuan has rich industry resources evidenced by 16 time-honored brands, multiple historical and cultural brands and several world-renowned brands. The recent years have witnessed Yuyuan’s vigorous implementation of its strategy “Cultural Revival + Timeless Fashion”, with a focus on interpreting Chinese traditional culture with a twist of modernity. Yuyuan is striving to promote its industrial sectors to lead the trend of Chinese cultural revival and innovation. It will continue to drive the diversification of its product portfolios by the two engines of “Industrial Operations + Industrial Investment”.

    Relying on its profound industrial operating capabilities, Yuyuan has formed an industrial cluster with unique competitive advantages, which includes jewelry and fashion, culture-commerce projects and smart retail, cultural catering, food and beverage, beauty and health, and Chinese fashion watches. Orientated towards building itself into a “family happiness consumption industry group”, Yuyuan embarks on strategically developing its business presence in the liquor industry, aiming at forming a food and beverage industrial chain ecosystem in which the segments empower each other and achieve scale effect.