CHINA LIQUOR GROUP started issuing ABS financial products for Chinese Baijiu, will bring Baijiu industry to a new realm


SINGAPORE, May 25, 2022 /PRNewswire/ — About May 22, Singapore established the first overseas investment fund with Chinese industry Baijiu as a targeted industrial investment, which will be invested in China Limited alcohol (CHINA ALCOHOL).

China Liquor Limited (CHINA LIQUOR), established at Singapore, is an international professional operator of alcoholic beverages. It currently has 419 registered shareholders. The paid-up capital of the company is SGD 450 millionand net book current assets are approximately SGD 460 million. The main business of China Liquor Ltd. is the wholesale and retail trade. As a central buyer, it purchases alcoholic products from global manufacturers. By 2022, the company has invested and established 13 wholly-owned subsidiaries with wholesale as the main business model in China and 19 holding, equity, shareholding and sales cooperative companies with wholesale and retail as the main business model globally.

Ms. Chenhan Xiaoying, Founder of Jingying International Group and Executive Director of CHINA LIQUOR, said it was the first ABS supported by Chinese Baijiu products by China alcohol. The created fund will invest in the production of Baijiu products issued in the form of ABS, which is the first product of CHINA LIQUOR —— “the aged Longfeng liquor”. The initial issue plan of ABS is divided into two types, one is listed and listed, and the other is unlisted and listed. The Board of Directors determines the subsequent mode of issue of the ABS depending on the evolution of the price of the asset securities.

According to Chenhan Xiaoying, by the end of 2021, with the help of major shareholder China Liquor co, Ltd. had gathered 100 suppliers in the Baijiu industry and operated more than 4000 products, initially realizing the company’s core strategic competitive advantage of “the most varieties, the lowest price, the best quality, the most network professional and the widest”. The company’s total share capital increased from over 80 million shares to 460 million shares, and the company’s net asset value on the balance sheet increased from over SGD 80 million to SGD 460 million. The average annual growth rate of assets has reached around 125% even during the COVID-19 pandemic.

With the vigorous development of the domestic consumer market, China’s Baijiu Private Equity (Singapore) investment fund has found investment opportunities with broad development space for China’s Baijiu industry.

In January 2022, the Ministry of Industry and Information Technology released a document indicating that the Department of Consumer Goods Industry of the Ministry of Industry and Information Technology has studied and drafted the opinions of guidance on accelerating the construction of a modern light industry system (exhibition project). It is proposed to cultivate a number of well-known international brands in winemaking and other fields. Encourage powerful enterprises and light industries with Chinese cultural characteristics such as arts and crafts and Baijiu to “go global” and accelerate the creation of international brands through mergers and acquisitions.

As one of the six major distilled spirits in the world, Chinese Baijiu has not been widely recognized around the world like other spirits. According to the data, in 2021, overseas recognition of Baijiu was less than 1%. It can be said that the internationalization of Baijiu has a long way to go.

Chenhan xiaoying believes that under the guidance of macroeconomic policies, overseas Chinese businessmen will actively act as connectors and builders. Thanks to the joint efforts of Chinese people around the world, the international status and recognition of China’s Baijiu industry has seen a significant increase and will welcome a greater development opportunity in the international market.

Mr. WU GUO LIANG, executive director and chairman of Chinese Baijiu Co., Ltd., believes that over the past five years, Chinese Baijiu has been imperceptibly accepted by the world. In financial cities like New York, Tokyo and London, Baijiu was not only drunk, but also paid attention to the role of his financial instruments. As an international finance and finance center, Singapore is also the most dynamic capital market Asia. We are concerned about the development of Chinese Baijiu, which contains unlimited possibilities. Its financial and heritage attributes will become a new investment and an economic strong point of Singapore in the future and foster the development of Singapore as a center for international financial services in the future. At the same time, Baijiu will also become a “key” to effectively help China integrate the global financial market.

Mr. Kang Wee Teak, founding partner of ALTAGE CAPITAL said that over the past few years, the acceptance of Chinese Baijiu in the world, especially in ASEAN, has gradually increased. It is expected that over the next decade, the growth of China the middle class will bring a bonus period for the consumption of Baijiu. At the same time, as a value and financial attribute of financial assets, Baijiu has special significance and broad prospects in the capital market as an inferior asset in the global investment market, which lacks assets High quality.

Teacher WU WEI, founding dean of the Nanyang Graduate School of Public Relations at Nanyang University of Technology, said Chinese Baijiu culture has a long history and is deeply rooted in the blood of Chinese people. There is no party without wine. The state banquet, the family banquet and the university banquet are inseparable from the contents of the cup. Wine culture is an important part of excellent traditional Chinese culture. With the changing times and economic development, China Wine culture has gradually evolved into a unique political culture and human culture, which has permeated all aspects of society.



Comments are closed.