Zhongxing Fungus Co., Ltd. cross-border acquisition of Shengjiao Liquor Industry's "soup", simplifies...

Recently, Zhongxing Fungi Industry issued an announcement stating that it decided to terminate the acquisition of Shengjiao Winery due to changes in the market's macroeconomic environment and other reasons

The single business structure and excessive reliance on the main products are the long-term dilemmas that Zhongxing Bacteria has faced

Cross-border wine purchase "soup"

On the evening of October 15th, Zhongxing Fungi Industry issued an announcement stating that due to changes in the market's macro environment and other reasons, the company decided to terminate the acquisition on August 25, 2021, and the two parties have reached an agreement on termination related matters

Although Zhongxing Mushroom is very optimistic about the acquisition of Shengjiao Wine Industry, and the relevant news has performed well in the capital market, this plan eventually fell through

As early as June 20 this year, Zhongxing Fungi Industry issued an announcement stating that in order to promote the development of the company’s dual main businesses, add new profit growth points, and consolidate and enhance the ability of listed companies to resist risks, it plans to acquire Liu Jian and Liu Jian in cash.

The acquisition immediately attracted the attention of the Shenzhen Stock Exchange

On June 25, Zhongxing Fungus Industry responded to the letter of concern stating that due to the limited scale of Shengjiao Wine Industry, even if the acquisition is successful, the impact on the company's operating income, net profit and other indicators will be very limited

It is worth noting that this is the second time that Shengjiao Wine has been “returned”.

Regarding the termination of the acquisition of Zhongxing Fungi, food industry analyst Zhu Danpeng said that for Zhongxing Fungi, this may be a correct strategy

Uniform development is still a predicament

In fact, behind the aforesaid acquisitions is the unitary development dilemma that Zhongxing Mushroom Industry has always faced

It is not difficult to see from the financial report that the performance of Zhongxing Fungus Industry relies heavily on its main product, Flammulina velutipes

Due to its single business structure and heavy reliance on a single product, Zhongxing Bacteria's anti-risk capability is relatively insufficient

Regarding the performance of increasing revenue but not increasing profits in the first half of the year, Zhongxing Fungus Industry explained that it was mainly due to the impact of the rebound of the epidemic in the early Spring Festival, and some farmers' markets/distributors closed early, and the sales prices of enoki mushroom products fell more year-on-year in the traditional peak season

In order to solve the problem of single product structure, Zhongxing Fungus Industry is also accelerating its industrial layout through self-construction and mergers and acquisitions, and promotes diversified development

After the termination of the acquisition of Shengjiao Wine Industry, how should the unity pattern of Zhongxing Fungus Industry be broken? In Zhu Danpeng’s view, “The singularity problem of Zhongxing Fungus Industry cannot be solved in a short period of time.

Regarding the specific reasons for the termination of the acquisition of Shengjiao Wine Industry and how to achieve diversified development, on the evening of October 16, a reporter from the Beijing News contacted the relevant person in charge of Zhongxing Fungi Industry, and the other party responded that it was mainly an announcement