AGSW(SH:600199) Xin Lang Cai Jing·2025-11-13 10:21Core Viewpoint - Jinzhongzi Liquor has made substantial progress in asset divestiture by signing a contract to transfer 92% of its stake in Anhui Jintaiyang Biochemical Pharmaceutical Co., Ltd. to Shenzhen Junchen Pharmaceutical Co., Ltd. for approximately 126 million yuan, amid ongoing financial struggles and management changes [1][2]. Group 1: Asset Divestiture - The transfer of Jintaiyang Pharmaceutical was first planned in April 2024, with an initial public listing price of 139.96 million yuan, but it failed to attract qualified buyers, leading to a price reduction to 90% of the initial listing [2]. - Jintaiyang Pharmaceutical's revenue significantly declined by 62% in 2024 to 161 million yuan, with a net profit of only 6.19 million yuan, indicating its status as a financial burden for Jinzhongzi [2][3]. - The valuation of the asset transfer is estimated at a price-to-earnings ratio of 4.6 times based on the 2023 net profit of Jintaiyang Pharmaceutical, which was 29.51 million yuan [2]. Group 2: Financial Performance - Jinzhongzi's liquor business revenue fell by 24.33% in 2024 to 744 million yuan, returning to 2021 levels, with a further decline of approximately 22% in the first three quarters of the current year [3][4]. - The company's gross margin dropped by 10.44 percentage points to 38.4% in 2024, with high, medium, and low-end product revenues all declining [4][5]. - The company reported a loss of 100 million yuan in the first three quarters of the year, with a significant portion of its product structure still focused on low-end products, which accounted for 64% of total sales [5]. Group 3: Management and Strategic Challenges - The departure of two senior executives from the China Resources Group, including the general manager, raises questions about the effectiveness of the management changes since China Resources became a strategic shareholder [3][4]. - Jinzhongzi's high expense ratios, which reached 44.31% compared to a gross margin of 34.94%, indicate a failure to cover costs, exacerbating the company's financial difficulties [4][5]. - The company is facing a negative feedback loop of declining sales, high expense ratios, and low gross margins, making it urgent for management to find ways to reverse the losses [5].