Zhangzhou old cellar to the wine technology reform project to increase investment of 1.463 billion yuan, the total investment will reach 8.877 billion yuan

Source: Changjiang Business Journal reporter Cao Xuejiaohigh-end liquor market supply and demand tight balance pattern, Zhangzhou old cellar to increase capital to expand productionOn June 1, Luzhou Old Cellar announced that, due to the expansion of the scale of the construction of the wine technology reform project, the company intends to invest 1.463 billion yuan in the brewing technology reform project through self-financing, expanding the project production capacity, plus the previously planned investment of 7.414 billion yuan, the investment in the wine technology reform project will reach 8.877 billion yuanIt is understood that the project is mainly used to solve the company's high-end wine production capacity problemin recent years, with the enhancement of the social attributes of liquor, the demand for high-end liquor gradually increasedHowever, due to the high barriers to entry, the high-end liquor market has been in a tight balance between supply and demand, and mainly concentrated in Guizhou Maotai, Wuliang and Luzhou old cellar three wine enterprisesby the Yangtze River Business Journal reporter statistics, in 2019, Mao Wuxian three liquor enterprises high-end liquor revenue of 124 billion yuan, accounting for about one-fifth of the total liquor market revenue, while the same period, high-end liquor market sales accounted for less than 1%Stimulated by high demand and high incomes, the three wine companies have embarked on plans to expand production and to break through production capacity by 2020increase capital of 1.46 billion expansion capacityJune 1, Zhangzhou Old Cellar announced that under the condition that the main body of the project implementation remains unchanged, the company will make additional investment in the wine technology reform project, expand the technical reform project capacityannounced that due to the expansion of the scale of the construction of the wine technology reform project, Zhangzhou Old Cellar plan through self-financing, an additional 1.463 billion yuan of investment, plus the original planned investment of 7.414 billion yuan, the wine technology reform project investment will reach 8.877 billion yuan's wine-making project in the old cellar of Luzhou goes back four yearsIn 2016, Luzhou Laojiao announced that it will invest 7.414 billion yuan in the construction of wine-making projects through its own funds and other financing, mainly to solve the bottleneck of the company's high-end wine production capacityit is understood that the planned wine-making technology reform project will be carried out in two phases, the first phase starting in 2016 and expected to be completed in December 2020, and the second phase is expected to be completed in 2025It is expected that after the completion of the project will reach 100,000 tons of high-quality base wine, 100,000 tons of quercet medicine, wine storage capacity of 300,000 tons of industrial baseIn 2017, Luzhou Old Cellar simply completed the first phase of the project by means of a fixed increase of 3 billion yuan, and in August 2019 and March of this year, Luzhou Old Cellar raised a total of 4 billion yuan through the issuance of corporate bonds twiceup to now, the first phase of the project has completed the overall project progress of 88%, the completion of the cellar pool was put into last year grain trial productionand after this increase in capital, the project land area from the original plan of 2908 mu to 3270 acres, wine storage capacity will also be increased to 380,000 tonsHowever, due to the increase in investment funds, The old cellar of Zhangzhou said in the announcement that it expects the dynamic payback period for all investments to be extended from the previous 7.45 years to 9.5 yearsMao Wuxuan high-end liquor revenue of 124 billionsince 2016, with the upgrading of consumption, the enhancement of the social properties of liquor, high-end liquor market demand gradually released, but due to high-end liquor on the brand entry qualification requirements and brewing process and other reasons, high-end liquor market has been in a tight balance of supply and demand pattern, and the main brands concentrated in Guizhou Maotai, Wuliang and Luzhou old cellar three enterprisesAccording to the National Bureau of Statistics, in 2019, the national liquor production is about 7.86 million tons, while the high-end liquor sales of about 67,000 tons, accounting for less than 1%Of this total, the three companies account for about 95% of the market shareand from the revenue end, in 2019, the national scale of liquor enterprises sales revenue of 561.8 billion yuan, of which, Mao Wuxian three liquor enterprises in the last year to achieve a total of revenue of about 124 billion yuan, accounting for about 22% of the national liquor sales revenuein high demand and high income, the three head wine enterprises in the high-end liquor market expansion is imperative, and in 2020 have achieved a production capacity breakthroughin addition to the old cellar in Zhangzhou, Maotai wine capacity expansion project will also be completed this year, the production capacity is expected to reach 56,000 tons;the old cellar expansion capacity of Zhangzhou: an additional 1.4 billion yuan last year interest costs reached 140 millionJune 1, Luzhou old cellar announced that the original 7.414 billion yuan of technical reform investment on the basis of an additional 1.463 billion yuan, a total investment of 8.877 billion yuanThe old cellar technology reform project in Zhangzhou started in 2016, the first phase of the funds raised through a fixed increase, the second phase of the funds through the issuance of corporate bondsIf the new capital is self-financing, it is expected to have an impact on the company's profitsAugust 2019 and March 2020, Zhangzhou Old Cellar issued 4 billion yuan of corporate bonds in two phases, with coupon rates of 3.58% and 3.5%, respectively, and the annual interest rate on the two bonds reached 142 million yuanZhangzhou old cellar to self-financing 1.463 billion yuan into technical reform projects or affect the profit2019 Luzhou old cellar operating income of 15.817 billion yuan, the return of net profit of 4.642 billion yuan, new funds accounted for 32% of the net profit of the parent According to the company announcement, the project has now completed 88% of the overall project progress, the construction of the cellar pool has been put into grain test production, the project construction period adjusted to December 2016 to December 2020 This means that the project will be completed in December Luzhou old cellar technology reform project as early as 2016 began, the original plan to its own funds combined with other financing methods to invest 7.414 billion yuan to build wine technology reform project technology reform project is mainly divided into two phases, the first phase of the funds from the fixed increase to solve, in 2017 Luzhou old cellar completed a fixed increase of 3 billion yuan, for the first phase of the technical reform project (planning investment of 3.341 billion yuan) In July 2019, the application for debt issuance of no more than 4 billion yuan was approved, and the first issue was successfully issued in August 2019, amounting to 2.5 billion yuan In March 2020, a further 1.5 billion yuan of corporate debt was issued The two phases raised a total of 4 billion yuan, all for the second phase of the technical reform project (planned total investment of 4.073 billion yuan) the new 1.463 billion yuan is mainly self-financing to solve, if the required funds into the project construction this year, is expected to have a greater impact on the company's performance in fact, the amount of interest on the issued corporate bonds is not low In August 2019, the coupon rate of RMB2.5 billion was 3.58%, and the interest rate of RMB1.5 billion in March 2020 was 3.5%, and the annual interest rate on these two bonds reached RMB142 million interest charges in the old cellars of Zhangzhou have increased rapidly since 2018, with interest charges of 64.698 million yuan in 2018 and 140 million yuan in 2019 The increase in interest charges has partly reduced the company's net profit capacity expansion project sized to continue to expand the expected investment payback period of 9.5 years According to the announcement, the main reason for the increase in costs is due to the expansion of capacity expansion project smaller scale After the increase in investment, the project land area increased from 2908 mu to 3270 mu, the construction area increased from 726.7 million square meters to 839,500 square meters, the storage capacity of wine increased from 300,000 tons to 380,000 tons, plant and wine warehouse design standards improved the old cellar in Luzhou has been facing the capacity bottleneck of high-end wine, the main purpose of the technical reform project is to improve the high-end wine production capacity According to the company's introduction, through the technical reform project can be used to produce mid-range products of the old cellar pool replacement out to focus on the producer cellar 1573 base wine but it is worth noting that high-end liquor base wine generally needs a longer storage time, capacity expansion projects really want to release the production of high-end liquor, in a few years, the company expects the full investment dynamic payback period (after tax) of 9.50 years What will happen to the market by then is still unknown from 2013 to 2017, the concentration of high-end liquor market increased rapidly, Maotai, Wuliang, 1573 have achieved high-speed growth, sales annual compound growth rate of 13%, 7%, 19% The top three accounted for 72% of the market in 2012 and 95% by 2018 Among them, Maotai accounted for 63%, five grain liquid accounted for 26%, Zhangzhou old cellar 1573 accounted for 6% the current high-end liquor competition pattern has been basically stable, the industry TOP3 has occupied more than 95% of the market share, in this case, the large expansion of high-end production capacity in the old cellar in Zhangzhou can bring the expected high growth, or unknown Source: Changjiang Business Daily Sina Finance Company Research Institute