Text | AI Finance Agency Jin Fei
Edit | Sun Yue
On the evening of June 6, Xinyang Maojian (00362. HK) announced that it is studying the establishment of a special purpose acquisition company (SPAC) and intends to conduct an initial public offering for SPAC, which is expected to raise between US$40 million and US$50 million, with the aim of acquiring some potential big data and blockchain projects.
Happy to rub the heat, once wanted to change the name of "Maotai" was beaten by public opinion, and now the stock price has fallen endlessly and then wants to enter the blockchain, can Xinyang Maojian get his wish this time?
I want to make Moutai a joke
As a Hong Kong-listed company, Xinyang Maojian made a joke about changing its name in February this year. The announcement claims that it is proposed to change the company's English name from "Xinyang Maojian Group Limited" to "China Dragon Moutai Group Limited" and adopt "China Guolong Moutai Group Co., Ltd." as the second name of the company Chinese to replace the existing name "Xinyang Maojian Group Co., Ltd." At that time, Moutai in Guizhou (600519. SH) has broken through 2,000 yuan per share, and Xinyang Maojian's move is considered by public opinion to be rubbing the current market value of Moutai with a market value of 2.7 trillion yuan.
Behind the change of name, Xinyang Mao Jian believes that the name change can better reflect the current situation of its business development and its future development direction, and the new name "can establish a more suitable corporate image and identity for the company". However, after the announcement of the name change, ridicule and doubts continued, and forced by external pressure, Xinyang Maojian issued another announcement after saying that the name of the Chinese was changed to "China Guolong Liquor Group Co., Ltd.", and the word "Moutai" was missing.
How can it be related to Moutai? Mudanjiang Longjin Liquor Co., Ltd., an indirect wholly-owned subsidiary of Xinyang Maojian, acquired 100% of the shares of Beijing Yaolailong Micro Liquor Co., Ltd. The company and Guizhou Moutai jointly produced the "Jackie Chan Moutai Wine" series of wine products, which were discontinued in 2016.
In the second half of 2020, Xinyang Maojian began to engage in the liquor trading business, recording profits of HK$69 million and HK$4 million respectively. After explaining the "past of selling wine", Maojian of Xinyang said that considering that "Moutai" was a well-known trademark in China, in order to avoid misunderstanding or causing potential legal proceedings, he simply abandoned the word "Moutai" as mentioned above.
Rub the heat again
Xinyang Maojian this wave of rubbing heat can be described as unsuccessful, before the latest announcement of the intention to enter the big data, blockchain, as early as March 2021, Xinyang Maojian 90% of the subsidiary Heihe Longjiang Chemical Co., Ltd. and Heihe Shark Technology established a joint venture company, each holding 50% of the equity of the joint venture company, focusing on cryptocurrencies.
According to the announcement, Heihe Shark injected its cryptocurrency business, big data business, related personnel, product technology, all related intellectual property rights and RMB150 million into the joint venture between the two parties. Xinyang Maojian's wishful thinking is that the joint venture company can not only enable the group to enter the business of cryptocurrency and big data management, but also revitalize some of the assets of Heihe Longjiang.
On June 7, Shen Meng, executive director of Chanson Capital, said in an interview with AI Finance and Economics that Xinyang Maojian is a shell company that is constantly manipulated, so what business concept is hot will be speculated, and Hong Kong stocks have no strict restrictions on this. Shen Meng believes that the production capacity of Xinyang Maojian is not reliable, "If the production capacity is reliable, it will not rub hot spots such as Maotai and SPAC." ”
Xinyang Maojian Group Co., Ltd. was formerly known as China Zenith Chemical Group Co., Ltd., in October 2018, the Group completed the acquisition of Xinyang Maojian International Holdings Co., Ltd., and obtained the exclusive license for e-commerce sales and overseas distribution rights of Xinyang Maojian Tea, "Longtan" is its main brand. Xinyang Maojian is not willing to only sell tea, and actively diversifies the layout, as early as 2014 to establish China's Mudanjiang residential heating district, Xinyang Maojian said that "this has tripled the group's revenue."
At the same time, Xinyang Maojian has also extended its tentacles to the construction services industry. In January 2018, it acquired Jinyang Engineering, a company engaged in the construction and supervision of public facilities. The purpose of acquiring this company is also to support its thermoelectric business. In addition, Xinyang Maojian is also involved in the production of coal-related chemicals.
In May this year, Xinyang Maojian said that Mudanjiang Xusheng Co., Ltd., a joint venture established in July 2019 under the Group, successfully used idle polyvinyl chloride (PVC) production equipment and machinery to transform, and after nearly two years, it has built a production line with an annual output of 500 tons of Yonggu Purple RL and an annual output of 500 tons of BMAP. The output value of the two production lines is expected to be about RMB 250 million.
Will the situation be as optimistic as Xinyang Maojian expected? Shen Meng said to AI Finance and Economics that the value of these assets often lacks a fair valuation, and most of them rely on the company's own book processing. Moreover, as a second- and third-tier city, Mudanjiang also has "great uncertainty" in its liquidity and liquidity.
The performance is worrying about the stock price falling
In terms of layout business, Xinyang Maojian is so "flower-hearted", what is the performance in the end? According to the 2020 interim report released by Xinyang Maojian, the company's turnover was HK$223 million (about RMB184 million); the loss during the period was HK$78.42 million (about RMB64.6548 million). In this regard, Shen Meng stressed that Hong Kong stock shell companies "often contain huge risks, and lack sufficient stability in terms of business, so there will be huge fluctuations in performance, and it is often the operation of accounting books rather than the specific business operation."
Losses are clearly an important warning sign for a listed company, and Xinyang Maojian said in the announcement that in order to strengthen the group's capital base and maintain the sufficient funds needed to maintain future business development, several idle use rights assets owned by the group in Mudanjiang can be used with a total book value of about HK$107 million (about RMB87.79 million). If refinancing is required, these right-of-use assets can be sold with a total market capitalisation of approximately HK$237 million (approximately RMB196 million).
Xinyang Maojian was so short of funds that he had to tighten his belt to live, saying that the group "will take cost-cutting measures in the next 12 months to reduce administrative expenses and cash outflows.". On June 3, Xinyang Maojian fell 10.14% as of 13:01 p.m., and the stock price was sweating. After breaking the news that it was going to enter the blockchain, at the close of trading on June 8, Xinyang Maojian closed at HK$0.305, with a total market value of HK$459 million.
This article is originally produced by AI Finance and Economics, an account of Caijing Tianxia Weekly, without permission, please do not reprint it on any channel or platform. Violators will be prosecuted.