Author: Wu Yanrui
When it comes to "Moutai Town" and "Sauce-flavored Baijiu", the first reaction of most consumers is Kweichow Moutai.
Guotai Liquor, which is known as "Moutai Town's Second Sauce Flavor Liquor", has the founder of selling medicine. Yan Xijun, chairman of Guotai Liquor, is the developer of compound salvia dripping pills and the founder of Tianjin Tasly Group.
Nowadays, what is the performance of medical experts in selling alcohol?
The founder of Guotai Liquor Industry developed compound salvia dripping pills and established Tasly
Yan Xijun was born in 1953 in a poor peasant family in Yangou Village, Tunzi Town, Zhenyuan County, Gansu Province. When he was 7 years old, his father died and his mother remarried, which made Yan Xijun almost an orphan.
Yan Xijun, who grew up eating hundreds of family meals, the army is the "home" he yearns for, and for this reason, he changed his name to "Xijun".
When Yan Xijun was 16 years old, he chased the conscription team and walked fifty or sixty kilometers. In the end, the leaders of the army were moved by Yan Xijun's persistence and made an exception to let Yan Xijun, who was not old enough, enter the barracks.
During his enlistment, Yan Xijun became a party member and went to university. In 1989, after 30 years in the army, Yan Xijun, who was already a well-known pharmaceutical expert in the army, was transferred to the 254th Hospital of the People's Liberation Army as the director of the Department of Pharmacy and Equipment, responsible for the procurement of medical equipment and drugs and the management of drugs in the hospital.
In order to solve the problem of funds needed for the development of the Department of Medicine and Medical Devices, Yan Xijun decided to develop a modern Chinese medicine - Compound Danshen Dripping Pill after repeated arguments.
At that time, compound salvia tablets were the most used traditional Chinese medicine in hospitals. It is self-evident that the efficacy of a pair of medicines is concentrated on a few dropping pills the size of rice grains. Moreover, Yan Xijun not only had to solve the problem of the pill drug itself, but also the problem of standards and equipment.
After unremitting efforts, Yan Xijun led the scientific researchers to finally develop the compound Danshen Dripping Pill.
In order to transform the developed drop pills into products and bring them to the market, Yan Xijun began to apply for licenses and look for investment to build factories.
Yan Xijun and his wife run between major pharmaceutical companies in Beijing and Tianjin every day, inviting investment and shares. Eventually, a partner was found and the predecessor of Tasly Pharmaceutical Group was established.
In October 1993, Compound Danshen Dripping Pill obtained the new drug certificate, and at the end of the same year, a preparation building was built. In the following year, Tianjin Tasly United Pharmaceutical Company was registered and established. In 1995, the sales revenue reached 16 million yuan, in 1996 it reached 27 million yuan, and in 1997 the sales revenue exceeded 80 million yuan.
In 2002, Tasly was listed on the Shanghai ** Stock Exchange. In 2013, Tasly's revenue exceeded 10 billion yuan, and its net profit exceeded 1 billion yuan for the first time.
Cross-border liquor sales benchmark Moutai
It is rumored that when participating in the wine party, Yan Xijun found that everyone was drinking Moutai. As a doctor of medicine, although Yan Xijun also agrees that Moutai is a good wine, drinking too much still hurts the body. As a result, the idea of inventing a "healthy liquor" germinated in Yan Xijun's mind.
In 1999, Tasly responded to the call of the country's western development and acquired an unknown small distillery in Moutai Town. In 2001, Jinsly Liquor Co., Ltd., Renhuai Moutai Town, Guizhou Province, was registered and established, and in 2019, it was renamed Guizhou Guotai Liquor Co., Ltd
At present, the official website of Guotai Liquor Industry mentions that from 1999 to 2007, Guotai Liquor focused on brewing and storing wine, but did not sell wine. Just to concentrate on learning Xi Moutai and doing a good job in Guotai.
In fact, it is true that the early Kingsley was not put on the market. However, it frequently appeared on the wine table of the national official reception. In 2004, the company was rated as "National Excellent Brand of Healthy Liquor for Official Reception".
In April 2005, Jinsly Liquor obtained the ownership of the "Guotai" trademark from Maotai Guotai Distillery. It is also a sauce-flavored liquor, both located in Moutai Town, and also has the word "Taiwan" in its name. Although infinitely close, in the eyes of consumers, there is only Moutai.
From 2017 to 2019, the official data of Guotai Liquor shows that the company's operating income was 57.3 billion yuan, 117.6 billion yuan, 188.8 billion yuan, and the net profit attributable to the parent company was 07.1 billion yuan, 24.7 billion yuan, 37.4 billion yuan.
In the following two years, Guotai Liquor Industry ushered in explosive growth. At the National Distributor Conference of Guotai Liquor at the beginning of 2022, Yan Xijun announced that the sales of Guotai Liquor in 2021 will exceed 10 billion yuan including tax, and the brand value will exceed 100 billion yuan.
Guotai Liquor submitted a draft prospectus in May 2020 to be listed on the main board of the Shanghai Stock Exchange.
In November of the same year, the regulatory feedback raised 47 questions, requiring Guotai Liquor to make further explanations on matters related to the acquisition of Huaijiu Liquor, intra-industry competition of affiliated enterprises of the actual controller, related party transactions of the actual controller, shareholding of distributors, and ownership of the "Guotai" series of trademarks.
Without waiting for Guotai Liquor's reply, Guotai Liquor took the initiative to apply for termination of the review of the IPO in June 2021. In this regard, Yan Xijun has publicly stated that he plans to report the IPO at the end of October of that year at the latest after the adjustment.
Since then, Yan Xijun has not been as keen as usual to participate in the activities of Guotai Liquor. At the 2023 dealer conference, Yan Xijun was directly absent. At the same time, Guotai Liquor did not announce the company's sales and sales targets as in previous years.
In order to sell wine, Yan Xijun has always been keen to stand up for Guotai Liquor. In contrast, Tasly, as early as March 2014, Yan Xijun resigned as chairman of Tasly and was replaced by his son.
It all depends on dealers to fight the world
The failure of Guotai Liquor to go public is the result of a combination of internal and external factors.
From the perspective of the entire liquor industry, since the IPO of Jinhui Liquor in 2016, there has been no successful listing of liquor companies.
Langjiu and Guotai Liquor submitted listing applications almost at the same time, and Jiannanchun, Xi Liquor and Jinsha Liquor also made public their listing plans, but none of them were successful. Except for Shanghai Guijiu, whose main business has been transformed, there has been no new A-share liquor company.
In addition, the sales volume of Guotai Liquor is doubtful, and the inventory pressure is obvious.
According to the data disclosed in the prospectus, from 2017 to the first half of 2020, the inventory of Guotai Liquor was 110 billion yuan, 121.3 billion yuan, 138.5 billion yuan, 197 billion yuan, accounting for the current assets. 95%。
The carrying value of inventory has always accounted for more than 50% of Guotai Liquor's current assets, and the products for which Guotai Liquor has recognized revenue may become distributor inventory.
From 2017 to the first half of 2020, the proportion of Guotai Liquor's distribution revenue was as follows. 18%, which is almost all of the company's revenue.
At the same time, since the cooperation model between Guotai Liquor and the distributor is a buyout, the risk of the remaining products that have not completed the sales task shall be borne by the distributor. The remaining products of the dealer due to the revocation of the distribution right do not belong to the category of returnable goods agreed in the distribution contract, that is, the risk of the remaining products when the dealer is revoked shall also be borne by the dealer.
Guotai liquor distributors are divided into shareholding distributors, affiliated distributors and ordinary distributors. As of June 30, 2020, Guotai Liquor had a total of 755 distributors. Among them, 75 are shareholding dealers, 6 are affiliated dealers, and 675 are ordinary dealers.
In the second half of 2016, when the liquor industry recovered, the management of Guotai Liquor decided to seize the opportunity of the development of the industry and realize the deep integration and development of the company and distributors through the way of high-quality distributors investing in the company, and the corresponding preparatory work was started in the third quarter of 2016, and 103 shareholding dealers were introduced for the first time in April 2018.
Shareholding Dealers and Affiliated Dealers have a lower ** at the time of purchase and remain the same, but are not entitled to quarterly or annual sales task achievement rewards (i.e., rebate support). Ordinary dealers have relatively high purchases**, but they can enjoy rebate support, same-batch support and write-off support (such as product fair support, store decoration subsidies, etc.).
In the first half of 2020, Guotai Liquor's shareholding distributor revenue accounted for 3194%, and the revenue of affiliated dealers accounted for 114%, and the revenue of ordinary dealers accounted for 6692%。
Under such a policy, shareholding dealers, as shareholders, need to purchase more to improve the company's performance, and ordinary dealers need to use real money to purchase goods in order to obtain rebates and subsidies for exceeding the task.
The dealers of Guotai Liquor basically adopt the settlement mode of payment before goods, and give a certain credit period and credit amount to a small number of dealers with strong financial strength and good reputation.
In addition, with the high-end strategy of many liquor brands in recent years, the price of Guotai liquor products is also **. Shareholding dealers with purchase price advantages are also willing to stock up and wait for the price to rise.
The failure of the listing of Guotai Liquor Industry has revealed contradictions
With the listing of Guotai Liquor being pressed the pause button, the relationship between Guotai Liquor and distributors has also changed.
The Guotai liquor in the hands of the dealer has changed from a wealth management product "Xiao Tiantian" to an inventory "Mrs. Niu" that occupies the funds. Shareholding dealers rely on the advantage of low prices at the time of purchase and low prices, which leads to the upside down of Guotai Liquor.
At the end of May 2023, Guotai Liquor officially issued a solemn statement. Guotai Liquor said that the company recently found that there were counterfeit "Guotai" registered trademarks of "Guotai Liquor", "Guotai Treasured Liquor" and "Guotai Ten-Year Aging" products on e-commerce platforms such as "Douyin" and "Kuaishou", which were not produced by the company, and the products had not yet been identified.
According to ** reports, as early as May 6, 2023, a KOL on the Douyin platform sold 599 yuan boxes of Guotai wine. The next day, the official *** of the State Taiwan replied under **, "This product is not produced by our company, and it is being prepared to send a letter." The above statement was issued by Guotai Liquor on May 26.
If the dealer's sales are not satisfactory and he wants to stop the loss in time and terminate the cooperation, Guotai Liquor will also buy back the dealer's inventory wine, but the product should be lower than the purchase price, which will also cause losses.
It has been reported that the sales of Guotai Liquor in Henan Province in 2018, 2019 and 2021 will be 200 million yuan, 400 million yuan and 1 billion yuan respectively. As of 2022, there are 73 Guotai liquor distributors in Henan, and 30% of the distributors choose to terminate cooperation with Guotai Liquor.
In the Tianyancha data, the information involved in the case of Guotai Liquor in 2022 is much higher than that of other years. In 2020, Guotai Liquor had 41 related cases, ranking first. Only nine cases were tied for second place, in 2021, 2022 and 2017.
Data**: Tianyancha.
In 2020, there were many disputes over the confirmation of the rights and interests of corporate investors in the relevant cases, and the relevant case number of the relevant cases began with (2020) Yu Min.
It is worth noting that Guotai Liquor has also been included in the list of abnormal operations. On November 16, 2021, Guotai Liquor was included in the list of abnormal operations by the Market Supervision and Administration Bureau of Renhuai City, Zunyi City, for concealing the true situation and falsifying corporate information.
At the same time, enterprises that have been included in the list of abnormal business operations in accordance with Article 8 of the "Measures for the Administration of the List of Abnormal Business Operations" shall apply for removal after correcting the information disclosed by them.
According to the system of the National Enterprise Credit Information Company, Guotai Liquor was removed from the list of abnormal operations on November 18, 2021.
At present, the sales promotion activities of Guotai Liquor are still continuing. On August 23, 2023, the 2023 Brand Promotion Activity (Guangdong Station) of the Main Producing Area of Origin of Sauce-flavored Baijiu was held in Guangzhou.
It was mentioned in the event that Guangdong has become the "largest market" of Guotai Liquor. According to the Guangdong Liquor Industry Association, in 2022, the scale of the Guangdong liquor market will reach 30.8 billion yuan. Among them, soy sauce wine accounts for half;Among the 8 liquor companies with sales of more than 1 billion yuan, Guizhou liquor occupies 3 seats, and Guotai liquor is on the list.
Previously, it was reported that after Guotai Liquor withdrew its A-share listing application, it intended to sprint to Hong Kong stocks. But since then, there has been no action, what is the future development of Guotai Liquor?The Chief Consumer Officer will continue to pay attention.