China-Singapore Jingwei Client, July 23, according to the official website of Maotai Group, on the 22nd, Li Jingren, deputy secretary and general manager of the Maotai Group Party Committee, hosted a special meeting at the Maotai Conference Center to study and promote the cleanup and rectification of 11 companies under the group.
Moutai Group "thin body" again
Li Jingren, Deputy Secretary of the Party Committee and General Manager of Moutai Group. Source: Moutai Group official website
Moutai Group pointed out that the purpose of speeding up the cleanup of the remaining 11 low-profit, loss-making and zombie subsidiaries is to achieve weight reduction and fitness, improve quality and efficiency, continue to deepen management system reform, and improve corporate governance.
Moutai Group requires that under the premise of normalization of epidemic prevention and control and compliance with laws and regulations, communication and coordination should be strengthened, work responsibilities should be tightened, cleanup and rectification should be accelerated, and historical problems existing in the work should be properly resolved to ensure that the cleanup and rectification work is achieved. Solid results.
Moutai Group's subsidiary cleanup timeline
The Sino-Singapore Jingwei client combed and found that starting in 2019, Moutai Group has been accelerating the pace of cleaning up subsidiaries.
On February 22, 2019, at the Moutai Group's 2019 financial and statistical work meeting and budget and final accounts work layout meeting, Li Jingren proposed to speed up the pace of cleaning up subsidiaries, unswervingly follow the group's three-level management and control requirements, and complete the cleanup on time task.
On March 18, 2019, the Moutai Group Party Building Work Conference and Party Work Style and Clean Government Construction Work Conference emphasized that before the end of the year, the clean-up and rectification of loss-making, meager, and “zombie” subsidiaries will be completed, and the fourth and fifth-tier companies will be thoroughly cleaned up and merged.
On March 25, 2019, Moutai Group held a "Special Meeting on Further Promoting the Clean-up and Rectification of Various Enterprises". The meeting pointed out that in recent times, the group company has formulated the "Implementation Opinions on the Comprehensive Clean-up and Integration of Various Enterprises by the Group Company". Continue to clean up and rectify losses, meager profits, and "zombie" companies. As of March 25, 2019, 26 companies of various types have been fully cleaned up.
At the sixth and seventh party committees held by Moutai Group on June 14 and July 13, 2019, Moutai Group made it clear that 51 subsidiaries will be cleaned up and all clean-up work will be completed in 2019. In principle, the company's management level is basically controlled within the third level, and no branches and subsidiaries are established at or below the fourth level. As of July 15, 2019, Moutai Group has cleaned up 29 loss-making, meager, and zombie subsidiaries.
Moutai said that the 51 subsidiaries that need to be cleaned up mainly have "ambiguous positioning and low relevance to the group's business; multiple management levels, with regulatory blind spots and loopholes; overlapping functions, and some homogenized competition; weak profitability. The business situation is poor; the "zombie company" is meaningless" and other five types of problems.
On October 10, 2019, Moutai Group held a special meeting on the promotion of clean-up and rectification of various enterprises, which fully discussed and conducted in-depth research on the clean-up and rectification work involving a total of eight topics and dozens of companies. It is required to further sort out the relationship between creditor's rights and debts of related companies, properly handle the problem of asset attributes, do a good job of coordination, and effectively reduce the impact on the group company in the process.
On May 11, 2020, Li Jingren presided over a meeting to study the cleanup and rectification of 12 companies under the group, and required a good asset assessment to ensure the safety of equipment and facilities of the removed company.
2020 net profit target increased by 10% year-on-year
The official website shows that Moutai Group completed operating income of 100.3 billion yuan in 2019, a year-on-year increase of 17%; net profit of 46 billion yuan, a year-on-year increase of 16%; realized tax revenue of 41.6 billion yuan, an increase of 8% year-on-year, and fully completed the annual target plan.
At the Moutai Group’s 2020 Work Conference and "Infrastructure Year" kick-off meeting in January this year, Li Jingren revealed Moutai’s main expected goals this year: complete operating income of 110 billion yuan, a year-on-year increase of 10%; net profit of 50.5 billion yuan, a year-on-year increase An increase of 10%; tax revenue was 45.5 billion yuan, a year-on-year increase of 9%. Completed the production of 150,000 tons of liquor, 142,000 tons of liquor sales, and completed the project investment of 10.62 billion yuan.
Source: Wind
According to Wind data, as of the close of the market on July 22, Kweichow Moutai’s stock price rose 0.6% to RMB 1678.08 per share. The stock price rose by more than 43% during the year. The current total market value is 2.108 billion yuan. Kweichow Moutai is the stock price and market value of the A-share market. The first "double stock king". (Zhongxin Jingwei APP)