Xinyang Maojian gave up the "National Dragon Maotai" and changed his name

The Paper's reporter Wang Qifan

After causing huge controversy in the market, Xinyang Maojian Group Co., Ltd. (0362. HK, abbreviation: Xinyang Maojian) gave up the "rubbing Maotai heat" and proposed to change its name to "Guolong Liquor".

On the evening of February 22, Xinyang Maojian issued an announcement saying, "After careful consideration, the company will inevitably cause confusion and misunderstanding in market information, and decided to change the company's English name from "Xinyang Maojian Group Limited" to "China DragonWines Group Limited", and adopted "China Guolong Liquor Group Co., Ltd." as the second name of the company's Chinese to replace the existing name "Xinyang Maojian Group Co., Ltd."

Why did a chemical company change its name cause such a big heat and once appear on Weibo hot search?

This was due to an announcement by Xinyang Maojian on the evening of February 16, when the board of directors recommended that the company's English name be changed from "Xinyang Maojian GroupLimited" to "China Dragon Moutai Group Limited" and that "China Guolong Moutai Group Co., Ltd." be adopted as the company's Chinese second name to replace the existing name "Xinyang Maojian Group Co., Ltd."

There is no business dealing with Moutai, but it is necessary to hang the name of the A-share stock Wang Moutai, which has triggered a hot discussion in the market and is considered to be suspected of rubbing the heat of Moutai.

Although the desire to change the name "Moutai" failed, on February 17, Xinyang Maojian's stock price rose by more than 20% due to this wave of heat, and the stock price once rushed to a maximum of HK$0.63, but then fell back quickly. As of the close of trading on February 22, Xinyang Maojian closed at HK$0.34 per share, down 17.07% from the previous session.

Xinyang Maojian was formerly known as China Tian Chemical Group Co., Ltd. (0362. HK, abbreviated as China Tian Chemical), is principally engaged in the manufacture and sale of coal-related chemical products, as well as the production and supply of electricity and thermal energy. Although the main business is a chemical company, Xinyang Maojian has always been engaged in side business "with heart and mind", and it is not the first time in recent years that the company's name has been changed.

In January 2018, China Tian chemical announced on the Hong Kong Stock Exchange that it had acquired tea marketer Xinyang Maojian from two investors for HK$85.8 million and proposed to change its name to "Xinyang Maojian Group Co., Ltd.". At that time, the company's board of directors said that the name change was that it believed that the Chinese tea business would become one of the main sources of revenue and profit for the group in the future, and hoped to achieve green transformation.

In November 2018, the company officially changed its name to Xinyang Maojian and used the previous stock code "0362". It is worth noting that from the financial report, the tea business is not the main business.

The tea business did not succeed, and Xinyang Maojian looked at the hot liquor business in recent years. The surging news reporter flipped through the financial report of Maojian in Xinyang and found that there was indeed a liquor sales business in its business sector. In 2020, Xinyang Maojian's revenue in the liquor sales sector was 0.69 billion yuan, accounting for about 30% of its annual revenue.

Xinyang Maojian said in the financial report, "Since 2018, the Group has been actively exploring business opportunities. In the past five years since 2015, China's alcohol market has maintained a rapid growth of 5% to 7.1%. As of December 31, 2019, the annual revenue of China's liquor market was 562 billion yuan. Therefore, with the continuous development of China's economy, the alcohol market is expected to grow steadily. The Group seized the huge market opportunity and expanded its beverage division through the sale of alcohol at the end of 2020. ”

Not only is a new "beverage department" established in the company's business, Xinyang Maojian's determination to do alcohol business is very firm. Just in February this year, Xinyang Maojian announced that Mudanjiang Longjin Liquor, an indirect wholly-owned subsidiary of the Company, had acquired a 100% stake in the Mainland liquor business from an independent third party--- Beijing Yaolailong Micro Liquor for a consideration of RMB80 million, including RMB5 million in cash, and payment by issuing RMB75 million of one-year zero-interest acceptance notes.

In the "name change announcement" on the evening of February 22, Xinyang Maojian also pointed out that the company will vigorously expand the liquor market business in the future, and it can be seen that the liquor industry revenue will become the main benefit of the company in the future.

This issue is edited by Xing Tan