Summary of Key Points
Recently, assets of several liquor companies (such as base wines and equity) have been sold at low prices or have not found buyers: The base wine from Guizhou Gaojiangjiu Industry was sold for as little as 12.6 yuan per jin (less than the cost of a cup of milk tea), the raw wine from Anhui Wuziguniang for 3.7 yuan per jin (below cost), and the equity of the established Shuanglunjiu Company has failed to find buyers on two occasions. These phenomena indicate that the liquor industry is entering a downturn, with companies facing high debts and a growing gap between the book value of their assets and their actual realizable prices. The once-promising capital stories (such as *ST Rock's attempt to change its name to capitalize on market trends) have ultimately resulted in significant losses.
I. The Low Sale of Gaojiangjiu Industry Base Wine: Behind the 12.6 Yuan per Jin Price Lies a Mountain of Debt
Gaojiangjiu Industry is a subsidiary of the delisted company *ST Rock (formerly known as Shanghai Guiju), which was once the core producer of soy sauce-flavored liquor in Maotai Town. However, following the parent company's bankruptcy and delisting, Gaojiangjiu owes nearly 477 million yuan in debts—including 290 million yuan to China Construction Fourth Engineering Bureau, over 65 million yuan to China Construction Third Engineering Bureau, and more than 57 million yuan to equipment suppliers. To repay these debts, the company had no choice but to auction its base wine.
Since May this year, 1,400 tons of Gaojiangjiu base wine have been sold, with a total transaction amount of 54.39 million yuan, only 80% of the estimated value. Of these, 600 tons were sold in three batches; the first two batches were sold at the reserve price, and the third batch was sold for only 37,000 yuan more than the reserve price per ton. This means the lowest price for the base wine was 12.6 yuan per jin, which is cheaper than a cup of milk tea. These base wines, essential for soy sauce-flavored liquor production, have now become cheap assets used to settle debts.
II. It's Not Just Guizhou: Liquor Companies in Anhui Are Also Selling Off Assets
Gaojiangjiu is not the only case; companies in Anhui are facing similar difficulties:
- Wuziguniang: 91 tons of its strong-flavor raw wine failed to find buyers after five auctions and was finally sold for 680,000 yuan, resulting in a price of 3.7 yuan per jin—although the cost of producing this type of raw wine is at least 15 yuan per jin, indicating a loss-making sale.
- Shuanglunjiu: Once one of the "Four Great Anhui Liquor Companies" alongside Gujinggong, it has been the top seller in Anhui for four consecutive years. However, it now owes a total of 800 million yuan in debts, and its facilities are old and its distribution channels are disorganized. When its equity was auctioned in June, no one bid in the first round; even after the price was reduced to 603 million yuan in the second round, it still did not find a buyer.
III. The Downward Trend of the Liquor Industry: Which Assets Can Be Sold?
In this difficult market for liquor, the rules for asset liquidation are clear:
- Light assets are more sought after: Assets such as trademarks, patents, and low-priced finished products attract many bidders and are easier to sell. For example, some low-priced finished products from liquor companies can still be sold on platforms.
- Heavy assets struggle to find buyers: Equity in companies, factory buildings, land, and large quantities of raw wine either fail to find buyers or are sold at a significant discount. Examples include the equity of Shuanglunjiu and the bulk base wine of Gaojiangjiu.
Why is this? During a downturn, companies are all short of money. Light assets can be quickly liquidated with lower risks, while heavy assets require substantial capital and involve ongoing operations (such as maintaining factory buildings and blending base wines), making it difficult for buyers to take on such liabilities.
IV. *ST Rock's Absurd Capital Game: From P2P to the Soy Sauce-Flavored Liquor Dream, Only Chaos Remains
The dire situation of Gaojiangjiu is inseparable from the tumultuous history of its parent company, *ST Rock. This company has left a trail of absurd headlines in the A-share market:
- Name changes to capitalize on trends: It was once called "Pituopi" (to tap into the P2P boom) and later changed to "Shanghai Guiju" (to ride the wave of soy sauce-flavored liquor popularity), boasting plans for a 50-billion-yuan investment in a 100,000-ton soy sauce-flavored liquor industrial park.
- Frequent changes in capital managers: In 2017, the "Haiyin Group" took control and tried to sell its liquor business, but related company Haiyin Fortune went bankrupt, leading to *ST Rock's delisting in June this year.
Despite various name changes and ambitious claims, what remains are the subsidiary's debts, unfinished technological upgrades, and the auctioned base wine—a classic example of a capital game that went awry, with the real consequences borne by the company itself.
Conclusion
As the liquor industry enters a downturn, the illusions created by capital speculation (such as the "soy sauce-flavored liquor dream" and the "glory of Anhui liquor") have collapsed. Companies burdened by debt are forced to sell off their assets at low prices. The market's reluctance to buy heavy assets reflects the industry's cold reality. For ordinary consumers, seeing base wine sold for 12.6 yuan per jin may seem cheap, but behind that lies the failure of these companies and the harshness of the industry cycle.