ST Tong Portuguese said that the sauce Jixing wine industry has begun to operate, can "red dye sauce" help it get out of the predicament?

Beijing News (reporter Xue Chen) On December 6, ST Tonglu responded to investors' inquiries on the Shanghai E interactive platform about whether its subsidiary Sauce Jixing Liquor Industry had started business, saying that the Sauce Jixing Liquor Industry had begun to operate at present. The related products of Sauce Jixing Liquor are currently sold on jd.com, Tmall and other platforms.

The Beijing News reporter saw on the Tmall Sauce Jixing Liquor Flagship Store that there are currently three different products on sale in the store, namely Sauce Jixing G15, Sauce Jixing G10 and Sauce Jixing G6, each bottle is 358 yuan, 298 yuan, 198 yuan, and the price after discount is 318 yuan, 258 yuan and 168 yuan. The reporter observed that at present, the sauce Jixing sauce wine products have been sold on the Jingdong platform for a period of time, and there are 2,000 evaluations of the sauce Jixing, but there are also consumers who clearly indicate that they are "gifts" obtained when buying other products.

In addition, the Beijing News reporter also noted that there is an obvious "golden sauce wine industry" on the products sold in the self-operated flagship store of Sauce Jixing Jingdong; the manufacturer on the product packaging is also displayed as Moutai Town Golden Sauce Wine Co., Ltd.

In this regard, when ST Tongguo previously answered investors' inquiries about whether the company directly or indirectly produced liquor, it said that the liquor independent of the company's subsidiary Beijing Jiurunyuan E-commerce Co., Ltd. Sauce Jixing Liquor Industry is currently processed by Jin Sauce Liquor. St. Tong portuguese responded that at present, the company is still an enterprise with fruit dew wine, wine manufacturing and sales as its main business.

Catch the east wind of "sauce and wine fever"

However, since ST Tonglu released the information on the establishment of Sauce Jixing Liquor Industry, there are industry views that ST Tonglu is hoping to take the east wind of "sauce wine fever", try to open up the field of sauce-flavored liquor with higher profits, and seek ways to reverse the performance dilemma.

According to public information, Sauce Jixing Wine was established on May 11, 2021 by Beijing Jiurunyuan E-commerce Co., Ltd., a wholly-owned subsidiary of ST Tong Portuguese, with a registered capital of 1 million yuan. At that time, the establishment of the company was not announced, which once triggered some investors' questioning. ST Tong portuguese responded that "the information disclosure standards stipulated in the Listing Rules are not met, so no information disclosure is made".

In the business scope of the public Sauce Jixing Liquor Industry, there are the sale of pre-packaged food, bulk food, design, production, and advertising; technology development; technical consultation; technology promotion; technical services. It does not explicitly address information related to liquor production. Combined with st. peg's repeated response to the company's current plans for adjusting its main business, acquisition, restructuring and asset injection, some insiders pointed out that ST Tung Portugal's involvement in sauce liquor this time is quite cautious, and liquor production requires enterprises to carry out heavy asset investment, which is not suitable for ST Tong Portugal, which is not currently in a good profitability.

Performance dilemma

According to the third quarterly report of ST Tonglu, from the beginning of 2021 to the end of the reporting period, its operating income was 457 million yuan, an increase of 9.62% year-on-year; the net profit loss attributable to the shareholders of the listed company reached 18.709 million yuan.

St. Tong portugal, which has suffered consecutive losses, has "picked up" in the first quarter of 2021, when ST Tong Portugal achieved operating income of 230 million yuan, an increase of 4.3% year-on-year, and net profit of 601,000 yuan, an increase of 194.85% year-on-year. By the time of the release of the semi-annual report in 2021, the operating income was 347 million yuan, an increase of 11.75% year-on-year; the net profit loss attributable to the shareholders of the listed company was significantly reduced by 80.54% compared with the same period of the previous year, and the loss was 2.354 million yuan, which also seemed to continue its recovery trend in the first quarter.

However, from the perspective of product sales in the semi-annual report, the sales revenue of all grades of products in ST Tonglu has declined, of which the sales revenue of medium and high-end products has fallen by more than 30% year-on-year. On the contrary, Beijing Jiurunyuan E-commerce Co., Ltd., a subsidiary of ST Tongguo, which mainly sells liquor, provides a major source of income for ST Tongguo.

According to the data, Beijing Jiurunyuan E-commerce Co., Ltd. achieved operating income of 326 million yuan and net profit of 13.7371 million yuan in the first half of the year, and its revenue accounted for about 94% of the overall revenue of ST Tonglu, and the net profit filled the huge loss of the parent company. It is also in this way that Beijing JiurunYuandian "Sub-Commerce Co., Ltd. established Sauce Jixing Liquor Company, which is considered to be st. Tonglu's accelerated layout in the liquor field to reverse the decline in performance.

According to st. Tonglu's introduction, Beijing Jiurunyuan E-commerce Co., Ltd., as a professional Internet e-commerce company mainly selling liquor, its main business is to sell alcohol to the Internet platform, and realize part of the online retail through the online flagship store. Jiurunyuan has obtained the qualification of authorized Internet distributor of many distilleries including Su Liquor Trading, Guizhou Xijiu, Side, Jinjiu and other distilleries. Some people believe that the strength of Jiurunyuan in the ST Tong portuguese system is the concrete embodiment of the weak position of wine relative to liquor.

However, according to the announcement released by ST Tonglu on December 3, the company recently received a civil ruling from the Third Intermediate People's Court of Beijing Municipality, saying that Nantong Hongqian Enterprise Planning Consulting Co., Ltd. (hereinafter referred to as "Nantong Hongqian") applied for the preservation of st Tonggui's assets due to an arbitration case with ST Tonglu, and the Third Intermediate People's Court of Beijing Municipality ruled to freeze the equity of Beijing Jiurunyuan E-commerce Co., Ltd. held by ST Tonglu for 2.7764 million yuan.

Although ST Tonglu said that in response to the relevant disputes of Nantong Hongqian, the relevant shareholders of the company have provided effective safeguard measures to avoid the damage to the interests of the company and the freezing of equity, which has not adversely affected the daily business activities of the company. However, ST Tonglu also said in the announcement that this matter may lead to the risk that the company will face the risk of disposing of the equity of the subsidiary held by the company, and if the equity of the subsidiary of the above company is disposed of, it will have an impact on the company's profit in the current period and after the period. Some people point out that this event, which may cause damage to the profits of ST Tong portuguese, may also have an unpredictable impact on the liquor road of ST Tong Portuguese.

Reporter Xue Chen Editor Zheng Mingzhu Proofreader Liu Baoqing

Image Screenshot of Sauce Jixing Tmall flagship store