The richest man in liquor is coming to a share! Once close to bankruptcy, now challenge Maotai

category:Finance
 The richest man in liquor is coming to a share! Once close to bankruptcy, now challenge Maotai


In Maotai flavor market, Langjiu is the second largest sauce liquor brand after Maotai. Wang Junlin once called for the market of sauce wine to be expanded together with the eldest brother Maotai.

Langjiu Co., Ltd. plans to issue 70 million shares to Shenzhen Stock Exchange

This is the news that the CSRC disclosed Langjius IPO and listing materials on the evening of May 28, which was received by the CSRC, and once again made clear the listing progress.

According to the contents of the prospectus, Langjiu Co., Ltd. plans to issue no more than 70 million RMB ordinary shares in Shenzhen stock exchange this time. The raised funds will be put into the production capacity construction project of high-quality Maotai flavor liquor, the digital operation construction project of Langjiu, the construction project of Langjiu enterprise technology center and the production capacity construction project of high-quality Luzhou flavor liquor and Jianxiang flavor liquor according to the actual situation according to the priorities. In addition, the raised funds will be used to supplement the working capital.

The prospectus shows that the total use amount of the raised funds of the above projects is 7.454 billion yuan. However, Langjiu also said that if the raised funds can not meet the needs of the project funds, the company will solve the problem by self financing to ensure the smooth implementation of the project.

As one of the few well-known liquor enterprises that can produce Maotai flavor, Luzhou flavor, Luzhou sauce and flavor liquor at the same time, Lang Liquors two production bases are respectively located in Erlang Town, Gulin County, Luzhou City, and Longmatan District, Luzhou City, located in the core area of Golden Triangle of Chinese liquor.

Or become the fifth listed liquor company in Sichuan

As the concept of Maotai flavor liquor continues to heat up, as one of the two major Maotai flavor liquor, the listing plan of Langjiu shares has attracted the attention of the capital market.

According to public information, Langjiu planned to go public as early as 2007, but then it was suspended due to the size of the enterprise, business conditions and other reasons. Two years later, the listing plan was proposed, but it didnt work out.

Until 2019, Guangfa Securities submitted to Sichuan Securities Regulatory Bureau the guidance and registration materials on listing Langjiu, and obtained the acceptance of Sichuan Securities Regulatory Bureau on the same day. Previously, Langjiu also said publicly that it would strive to complete listing by 2020.

Liquor is regarded as the pillar industry and characteristic industry in Sichuan Province. From 1952 to 1989, Sichuan wine accounted for about half of the Chinese famous wine selected by the National Wine Review. In 2019, Sichuan Province produced 3.668 million kiloliters of liquor, a year-on-year increase of 3.6%, accounting for nearly half of the country.

In addition to the flavor of Langjiu, the other five brands are Luzhou flavor liquor. In recent years, the concept of Maotai Xiangjiu has been on the rise, and most market participants hold a positive attitude towards the listing plan of Langjiu.

If it goes well, Langjiu will become the fifth listed liquor company in Sichuan or the 20th listed liquor company in China.

According to the prospectus, Lang brand Langjiu was awarded national famous liquor for two consecutive times in 1984 and 1989, laying an important position in the national liquor industry. At present, the companys main products include Maotai flavor liquor represented by qinghualang and honghualang, as well as Luzhou flavor liquor represented by langpai Tequ, Xiaolang liquor and shunpinlang liquor.

As far as the equity structure is concerned, as of the signing date of the prospectus, Langjiu group, Wang Junlin, chairman of Langjiu and CGL are the top three shareholders of Langjiu, holding 61.7%, 15% and 11.24% respectively.

Wang Junlin, through direct holding and indirect holding through Langjiu group, controls 76.70% of the equity of Langjiu, which is the actual controller of Langjiu. It is worth mentioning that Wang Junlin is the richest liquor producer in China with a fortune of 13.5 billion on the list of top 100 rich people of Hurun in 2019.

At present, Langjiu has 17 wholly-owned and holding subsidiaries, covering liquor production, sales and supporting industry chain, with a total number of nearly 14000 employees.

Net profit keeps three digit growth

Judging from the performance of Langjiu, by the end of 2019, the total assets of Langjiu are about 20.9 billion yuan.

From 2017 to 2019, the operating revenue was 5.116 billion yuan, 7.479 billion yuan and 8.348 billion yuan respectively, with growth rates of 46% and 12% respectively in the last two years; the net profit was 302 million yuan, 726 million yuan and 2.444 billion yuan respectively, with growth rates of 140% and 237% in the last two years, maintaining a three digit growth.

According to the financial report data of A-share listed liquor enterprises in 2019, the operating revenue of Langjiu Co., Ltd. will rank 8th after Gujing gongjiu; the net profit will climb to 5th, next to Guizhou Maotai, Wuliangye, Yanghe Co., Ltd. and Luzhou Laojiao.

According to the prospectus, Langjiu products are divided into high-end, secondary high-end, middle end and low-end products. The ex factory price is more than or equal to 500 yuan / 500ml, with qinghualang as the core representative; the ex factory price is 300-500 yuan / 500ml, with honghualang as the core representative.

Production capacity of Maotai Xiangji liquor will be expanded to 50000 tons

On the Bank of Chishui River, which is known as Chinas wine River, langjiuerlang sauce flavor production area is only 49 kilometers away from Maotai Town, and it is also the core production area of Chinas high-end sauce wine.

Wang Junlin has publicly stated for many times that, due to the limited natural resources such as the land for the establishment of the plant, the output of sauce wine in Chishui River Basin will be limited to 200000 tons / year for a long time. In addition, sauce wine has requirements for storage life. Whoever has more old wine, large production capacity and long storage time of base wine will be able to gain opportunities and advantages in the future market competition.

According to the prospectus, at present, Langjiu Maoxiang base liquor has a capacity of 18000 tons and a capacity utilization rate of 94%. It is estimated that the new capacity of the raised investment project will be 22700 tons. In addition to other projects under construction such as Wujiagou, the overall capacity of Maoxiang base liquor will exceed 50000 tons. The capacity of Luzhou flavor base liquor has been 18000 tons and the capacity of raised investment project will also exceed 50000 tons.

In terms of base liquor storage, from 2017 to 2019, the ending balance of Maotai flavor base liquor and Luzhou flavor base liquor was 5.037 billion yuan, 5.749 billion yuan and 6.802 billion yuan respectively.

Langjiu was on the verge of bankruptcy

Wang Junlin makes him come back from the dead

The development of Langjiu is not smooth. Langjiu and Maotai are on the same side of Chishui River, and they make the same kind of Maotai flavor wine. Maotai became the representative of high-end liquor, while Langjiu almost closed down.

In Sichuan Province, Wang Junlin is a legend, among which Langjiu is one of several state-owned enterprises that are on the verge of bankruptcy.

Langjiu used to be a state-owned distillery. In 2001, laolang winery, which had lost money for many years, was unable to support the life of 3000 employees. After reform, Wang Junlin became the largest shareholder of laolang distillery and opened a new era of Langjiu. Before that, Wang Junlin was a doctor.

Among all the reform measures taken by Wang Junlin, the most important one is to withdraw all the low-end liquor and push Lang Liquor onto the high-end line.

After one years adjustment, the sales volume of Langjiu rose to 300 million yuan in 2002. In 2005, with Maotai surpassing Wuliangye, there was a nationwide upsurge of Maotai flavor liquor. Langjiu also stood in the air with Maotai. Four years later, the sales volume exceeded 1 billion yuan. In 2012, Langjius sales exceeded the 10 billion mark and successfully entered the 10 billion camp. And Wang Junlins fortune is also rising, and he is listed in Forbes list with 7.5 billion yuan of wealth, becoming the richest man in Chinese liquor industry.

Wang Junlin once called out to Maotai

After successfully saving Langjiu, Wang Junlin took Maotai as his goal. He had publicly called for Maotai to go hand in hand with it.

According to the public information, at the Party of the four major sauce brands in January 2017, Wang Junlin called for expanding the sauce wine market together with the eldest brother Maotai.

Therefore, in June of that year, Langjiu also packaged a brand-new advertising language for its qinghualang, one of the two major Maotai flavor liquors in China, and focused on building it to push it into the ranks of high-end liquors.

In July of the same year, Langjiu changed the original honghualang business department to qinghualang business department, and honghualang, the core product, was the second because of price inversion and serious inventory.

However, there is still a gap between the two. In terms of enterprise scale, Maotais revenue in 2019 is 88.5 billion, while Langjius revenue is only about 8.5 billion, less than one tenth of Maotais.

But as far as Langjiu itself is concerned, it has successfully become one of the camps of high-end liquor in China. With the listing of Langjiu in the future, Wang Junlins personal wealth will also usher in a huge explosion.