SCSF(SH:600779) Xin Lang Cai Jing·2025-12-26 03:12Core Viewpoint - Water Margin (600779.SH) experienced a significant stock price fluctuation, initially dropping by 2.79% to 38.69 CNY per share, following a surge that led to a trading halt the previous day, attributed to rumors of a potential acquisition by Jian Nan Chun [1][8][14]. Group 1: Company Developments - On December 25, Water Margin issued a clarification denying rumors of being acquired by Jian Nan Chun, stating that the reports were untrue [10][1]. - Water Margin's stock surged to a trading halt on December 25, leading the entire liquor sector, amidst unverified acquisition rumors [5][14]. - The company is projected to achieve over 5 billion CNY in revenue for 2024, marking its best performance historically, although it contributes only a single-digit percentage to Diageo's global revenue [5][15]. Group 2: Market Context - Diageo has held approximately 63% of Water Margin's shares since the early 2000s, viewing it as a strategic asset in the Chinese market [5][15]. - Jian Nan Chun, a larger liquor company with over 16.9 billion CNY in sales in 2023, has faced speculation regarding its potential IPO, which remains uncertain due to various regulatory and operational challenges [6][16]. - The liquor production sector has not seen any successful IPOs in A-shares since 2016, with many companies shifting focus to Hong Kong listings due to regulatory restrictions [16].