NEWS
CHINESE BAIJIU DISTILLER KWEICHOW MOUTAI TO SET UP RMB10B TECH-FOCUSED INVESTMENT FUNDS
By Tony Zhu
31-5-2023
Source: Sotheby's
China’s leading baijiu distiller, Kweichow Moutai, is planning to invest RMB10 billion (USD1.4b) to set up two investment funds with special focus on new technologies and materials.
The Shanghai-listed distiller will partner with China Merchants Capital and Goldstone Investment, the private equity arms of China Merchants Group and Citic Securities respectively, to set up these investment funds.
Each fund will have capital of RMB5.5b (USD775 million), Kweichow Moutai will provide 91 percent of the funding.
China media quoting sources with knowledge of the plan said the two funds will invest in sectors that will have potential to grow in the future.
These could include biotechnology, next-generation information technology, new energy, new materials and high-end equipment, further details will be decided after the funds have been set up.
China media also said that capital contributions will be made in three phases, with the first phase set at 40 percent and the other two at 30 percent each.
It is understood that Kweichow Moutai aims at a performance benchmark of 6 percent a year.
The firm has ample cash flow because of good sales performance of the high-end liquor brand, which is very sought-after as drinks and presents for special occasions in China.
Its cash and cash equivalents balance stood at RMB157.8b (USD22.4b) at the end of March, after a net increase of RMB5.4b last quarter, according to the company’s most recent trading report.
Net profit jumped 20.6 percent to RMB20.8b in the three months ended 31 March from a year earlier, and revenue rose 18.7 percent to RMB39.4b. The firm will also pay a record RMB32.5b in dividends.
Kweichow Moutai is the world’s most valuable liquor brand, the company has a market capitalisation of RMB2.1 trillion (USD298.7b).
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 