Yanghe shares planned to purchase 523 million yuan to buy 26.92% stake in Shuanggou Liquor

[Financial Network Special Paper] Reporter Li Shucheng Yanghe (002304.SZ) announced on January 5 that the company intends to participate in the acquisition of Suqian City State-owned Assets Investment Management Co., Ltd. held 26.92% stake in Shuanggou Liquor. The transfer of reference price was about 533 million yuan.

According to the announcement, as of October 31, 2010, Shuanggou Wine Industry had total assets of 720 million yuan and net assets of 412 million yuan, while the net assets assessment value was 1.428 billion yuan, and the aforementioned equity evaluation value was 384 million yuan. The reference price was 5.33. Ten thousand yuan.

Yanghe said that if the above equity is successfully transferred, it will help the company to advance the integration process with Shuanggou Wine and promote the further integration of the two companies. According to statistics, Shuanggou Wine's operating revenue in 2009 accounted for 36.6% of Yanghe's operating income; total profits accounted for 13.99% of Yanghe's total profit. In April 2010, Yanghe Group took over 40.59% of Shuanggou Liquor from Suqian Guofeng Asset Management Co., Ltd.

State Gold Securities analyst Chen Gang believes that the acquisition plan is tailor-made for Yanghe, the company will be interested, while the transfer price is reasonable, "2010 is the integration of Yanghe and Shuanggou, from the regional market, organizational structure, product line design We have completed the combing and integration in many aspects. We think 2011 will be the performance contribution year.

Chen Gang further stated that the effective integration and rapid development of Shuanggou also means that the pace of foreign acquisitions by Yanghe will likely accelerate. Shuanggou integration provided valuable multi-brand operation and management experience for the Yanghe team, which will surely lay a good foundation for Yanghe's future acquisition and management output.

Yanghe shares and Shuanggou wine are all established wine companies in China. They were once listed as “eight famous wines” and “thirteen famous wines”.

Yanghe is a leading enterprise in the Jiangsu liquor industry. It is mainly engaged in the production, processing, and sales of Luzhou Blue Classic, Yanghe Daqu, Dunhuang Ancient Wine and other brands of Luzhou-flavor liquor. After listing on the Shenzhen Stock Exchange in 2009, it quickly became the first high-priced stock in the A-share market.

On January 5, Yanghe shares closed at 232.60 yuan/share, up 3.84%.