Wuliangye Group coaching: no real progress has been made in property rights reform

Recently, the 85th executive meeting decision was publicly announced on the website of the Sichuan Provincial Government: Tangqiao was the chairman of Sichuan Yibin Wuliangye Group Co., Ltd., Liu China was the general manager, and Wang Guochun was no longer the chairman.

Since the inspection and public announcement in March, the news that Tangqiao became the successor of the Wuliangye Group has finally settled. According to the organizational procedures, notice of appointment and dismissal has not yet been issued to the SASAC of Yibin City. However, local SASAC personnel are already aware of it.

If Wang Guochun, who served as Wuliangye winery director since 1985, pushed Wuliangye shares to "China Liquor King", Wuliangye won the No.1 national brand value; two heavy-duty Tangqiao members had new ones. Task: During the 12th Five-Year Plan Period, according to the planning of the Yibin Municipal Government, the Wuliangye Group and Wuliangye shares must reach 100 billion yuan in output value.

Prudent investment "exit is to free up capital for other industries."

On July 7, relevant persons from the Southwest United Exchange in Chengdu told this reporter that the 50% stake in Mianyang Xinchen Power Machinery Co., Ltd. (hereinafter referred to as Xinchen Power) held by the major shareholder Wuliangye Group had been delisted. Department approval, if not approved will be announced.

As the equity changes hands, Wuliangye Group will withdraw from the automotive engine sector. This is a signal that Wuliangye Group’s complex and diversified investments are being substantially cleared according to operating conditions.

The hawker’s announcement was posted two months ago at the Institute and the listing price was 355 million yuan. Asked the seller to ask, the transferee has more than 10 years of investment management experience in the automotive engine manufacturing industry. In the previous year, it had a production and sales scale of more than 300,000 vehicles. In Sichuan Province, there is a vehicle investment holding project, and the transferee must also have Foreign car manufacturer cooperation projects.

"The withdrawal is to free up funds for other industries." On July 7, the Push Group official told the reporter on the phone.

Entering the automotive sector, especially vehicle production, has always been the dream of Wang Liangchun, former chairman of Wuliangye Group. Since 1997, Wuliangye Group has been involved in the automotive industry with its Push Group as a platform to produce parts and components. Five years ago, with the opportunity of the Huachen Group building a southern base in Sichuan, Push Group took shares in the Brilliance Group’s Xinchen Power, holding 46.5% of shares and investing 384 million yuan, and jointly produced engines with the Brilliance Group. After the transfer of shares, Push owns 50% of the shares.

"Some models of Xinchen Power's engines have not been sold well in recent years and the technology is relatively backward. Wuliangye's withdrawal is a wise choice," said Zhang Zhengzeng, president of Sichuan Chengdu Automobile Association.

“Wang is a strategist and pays more attention to macroscopic issues; Tang is more meticulous and runs many times in the market.” According to an insider of Wuliangye, the multivariate investment is more likely to be attributed to industrial deputy mayors and government officials. Be cautious, because the government has an accountability system, and companies are more collectively determined, and individual responsibility is not the same.

Wuliangye Co., Ltd. has been in charge of the style of prudent investment for four years. "The stock companies have so far had no major moves in capital operations. If they have any moves, they must consider them well." At the shareholders meeting, Tang Qiao said.

Earlier this year, Tangqiao asked that the company’s budget for the entire year be made. In 2010, Wuliangye supplemented and improved the "Plant Accounting Management System", "Pre-finance and Final Account Management System for Construction in Progress," and major project arrangements and the use of large-value funds. An independent director from a financial college also sent a book entitled "Comprehensive Budget Management" and "Comprehensive Budget Management of Alcoholic Businesses" to Wuliangye executives.

Wuliangye's 2010 annual report shows that a high-end printing and packaging printing system for printing services has been filled in with technological innovation, with a planned investment of 150 million yuan, and a spending of 50 million yuan has completed 95% of the project's progress, and another five-zone packaging production line technology The project was originally planned to invest 16 million yuan, and the result was less than 10 million yuan.

At the shareholders' meeting in 2011, there were investors who suggested that Wuliangye used its spare cash to invest in the securities industry, resulting in more losses. With 9 stocks down, Wuliangye initially invested 12 million yuan, and it lost half of it at the end of last year.

There are also investment in Agricultural Bank of China. Wuliangye once thought to invest in the name of Wuliangye Investment Company and take a share in Agricultural Bank of China. The independent director of Wuliangye stated that at that time, the book of the Agricultural Bank was unfavorable to Wuliangye and he stopped it.

Wuliangye Group had previously blossomed into various industries, including pharmaceuticals, machinery, automobiles, electronics, shampoos, chemicals, and garments. It has been criticized by many people for its loss due to many projects.

Wuliangye informed sources explained that Wuliangye Group has a large variety of stalls and is deeply involved. It is doomed to be impossible. The biggest pressure on companies comes from government assessments. Taking 2010 as an example, Wuliangye Co., Ltd. achieved sales revenue of 15.5 billion yuan. The Push Group has exceeded 10 billion yuan for the first time. It is the only company with an output value of 10 billion in Wuliangye Group, accounting for 1/4 of the total sales revenue of the group, but these add up. There is still a considerable distance from the 100 billion group required by the Yibin Municipal Government. In addition to wine, Wuliangye Group had to find another way to make money.

Peer competition can not be ignored, because it is located in China's largest liquor province in Sichuan, liquor Jinhua (Luzhou Laojiao, Langjiu, etc.) to catch up with the pressure than Kweichow Moutai is even worse.

The sales decentralization starts with the sales right, and after the split sales right is centralized and multivariate investment, liquor is after all the main business of Wuliangye. This is where Tangqiao spends most of its energy.

In 2011, Wuliangye's sales revenue and net profit all increased by more than 30% over the previous year. In spite of this, Wuliangye's "White Wine King" hat has loosened and its sales revenue still maintains the national championship, but the profits and taxes have been greatly exceeded by Guizhou Maotai.

Tang Bridge, who shoulders the government's mission, is undoubtedly a tremendous pressure. This year, Wuliangye proposed to maintain a 20% increase in liquor sales revenue and net profit.

“Wang is a director of the stock company and Tang has always respected the king.” According to informed sources, even when he was chairman of Wuliangye for four years, Tangqiao was not completely independent.

With time, Tangqiao first took the sales right.

The sales right of Wuliangye was first split. In order to solve the problem of interest transfer between Wuliangye Group and Wuliangye, in 2009, Tangqiao took Wuliangye as its major shareholder, Wuliangye Group held 20% of its shares and established Yibin Wuliangye Liquor Sales Co., Ltd., which originally passed Yibin, Sichuan Province. The domestic sales and export wine products sold by Wuliangye Group Import & Export Co., Ltd. (hereinafter referred to as “Import and Export Company”) are all categorized into the unified management and sales of liquor sales companies. To completely resolve the related transactions with the import and export companies.

Tang Qiao concurrently serves as chairman of the liquor sales company, and vice presidents are Liu Zhongguo, Zhu Zhongyu and Liu Youjin. Under the grasp of Tangqiao, the power of sales achieved checks and balances.

At the sales level of the group, the reporter noted that Liu China, the vice president of Wuliangye and the current president of the Wuliangye Group, has been the legal representative of the import and export company. He is the chairman and general manager of the import and export company, but since June last year, he has No longer serves as the general manager of the group's import and export company.

Split the sales right and then concentrate. On October 13, 2010, Wuliangye decided to set up a marketing center in East China, which was led by Zhu Zhongyu.

Guochun Junan food industry researcher Hu Chunxia said that the marketing center will use in-depth distribution in the future, as Wuliangye operates a mid-range wine marketing pilot.

Mid-range wine is part of the "1+9+8" brand strategy. Wang Guochun had identified this strategy and used it so far. Its content includes 1 world brand, 9 national brands and 8 regional brands.

From the 2010 point of view, in addition to Wuliangye's insufficiency of supply, there has been a breakthrough in sales of Wuliangchun, which has reached several hundred tons. Wuliang Alcohol has grown steadily and there are several thousand tons of sales each year. Another hexahedron did not reach the expected growth rate.

As for entering the sauce wine industry in 2010, targeting high-end and increasing sales volume, it has become a new profit growth point for Wuliangye. "In the brand strategy later, it is still not '9' or '8', which is hard to say," said an insider of Wuliangye.

After the chairman of the Wuliangye Group, will Tangqiao completely cut off the related transactions between Wuliangye and Wuliangye Group?

At the 2011 general meeting of shareholders, Tang Qiao also admitted that at present, the Group and Wuliangye still have related transactions such as trademark and logo licensing, land lease, and comprehensive services. The two parties are now negotiating and negotiating on market principles. “Especially last year, according to the relevant regulations of the country, the land use standard has been increased, and the land lease fee for Wuliangye shares has also increased substantially,” Tang Qiao said at the meeting.

"Associated transactions will eventually find a solution. Now Wuliangye's stock price is the cheapest among the top brands in the liquor industry, which also affects the corporate image. The city has listed the market value as one of the objectives of executive assessment," he said.

However, as far as our reporter understands, there has been no substantive progress in the property rights reform of Wuliangye and Wuliangye Group.