Impact Assessment of the Free Transfer of Controlling Shareholder Equity in Guyue Longshan

Based on the collected data and analysis, I will systematically evaluate the impact of the free transfer of controlling shareholder equity in Guyue Longshan from two dimensions: corporate governance and operational efficiency.

The SASAC of Shaoxing plans to transfer 44.1% of its directly held equity in China Shaoxing Rice Wine Group to Shaoxing Guokong free of charge. After the transfer is completed, Shaoxing Guokong will directly hold 44.1% and indirectly hold 50.31%, totaling 94.41% equity. This transfer will not change the company’s actual controller, which remains the SASAC of Shaoxing.

: This transfer realizes the shift from “managing enterprises” to “managing capital”, which aligns with the direction of state-owned enterprise reform in Zhejiang Province [3]. As a professional state-owned capital investment and operation platform, Shaoxing Guokong is expected to introduce more modern corporate governance mechanisms to Guyue Longshan.

: As a state-owned capital investment and operation company, Shaoxing Guokong has stronger resource allocation and industrial integration capabilities. From the trend of state-owned enterprise reform in Zhejiang Province, asset integration through state-owned capital investment and operation companies has become the main model [3].

: State-owned capital investment and operation companies usually have more professional investment management teams and decision-making mechanisms, which help improve the strategic guidance and supervision efficiency for Guyue Longshan.

: Guyue Longshan has experienced frequent executive changes in recent years. In December 2024, Deputy General Manager Xu Dongliang resigned early, and in July 2025, Deputy General Manager Lü Danlin resigned due to job transfer [2]. This equity transfer may further intensify the pressure of management adjustment.

: Although the actual controller remains unchanged, the change in controlling shareholder may affect the continuity of the company’s long-term strategy execution, especially during the critical period of high-end and youth-oriented transformation.

According to the latest financial data [0], Guyue Longshan currently faces the following operational challenges:

: In 2024, the company failed to meet performance expectations for four consecutive years, and the gross profit margins of mid-to-high-end and ordinary rice wines both declined by 0.37 and 2.75 percentage points respectively [1].

: In 2024, revenue from the Jiangsu-Zhejiang-Shanghai region still accounted for more than 50%, which is jokingly called “unable to break out of the free shipping zone” [1].

: As of November 2025, the total market value of competitor Kuaijishan has surpassed Guyue Longshan, and the gross profit margin of its mid-to-high-end products reached 61.57% in 2024, significantly higher than Guyue Longshan [1].

: As a state-owned capital investment and operation platform, Shaoxing Guokong has stronger financing capacity and capital allocation capabilities, which can provide capital support for Guyue Longshan’s transformational development.

: Through the Shaoxing Guokong platform, Guyue Longshan is expected to achieve synergies with other industrial assets under its umbrella, especially in channel expansion and brand building.

: State-owned capital investment and operation companies usually establish more market-oriented performance appraisal and incentive mechanisms, which are expected to improve Guyue Longshan’s management efficiency.

: Organizational integration and personnel adjustment after the equity transfer may bring short-term operational uncertainty.

: Over-reliance on administratively led integration may affect the marketization level of the enterprise’s business decisions.

: Against the backdrop of intensified industry competition, there are significant challenges to short-term performance improvement.

: Keep the management and core business teams stable during the integration process to ensure operational continuity.

: Make full use of the advantages of state-owned capital investment and operation companies, but maintain the market-oriented characteristics of the enterprise’s business decisions.

: Leverage Shaoxing Guokong’s resource advantages to speed up the implementation of high-end and youth-oriented strategies and break through geographical restrictions.

Overall, the free transfer of controlling shareholder equity in Guyue Longshan is of positive significance, aligning with the trend of state-owned enterprise reform and the direction of professional management. Short-term integration challenges may exist, but long-term operational efficiency is expected to improve through optimized resource allocation and professional management. The key lies in ensuring a smooth transition during the integration process and maintaining the market-oriented characteristics of the enterprise’s business decisions.

Considering Guyue Longshan’s current performance pressure and industry competition pattern, it is recommended to closely monitor the integration progress and its actual impact on the company’s business decisions and performance.

[0] Jinling API Data
[1] Sina Finance - “Guyue Longshan Fails to Meet Performance Expectations for Four Consecutive Years; Ten-Yuan Bottled Rice Wine Falls into Gross Profit Dilemma” (https://finance.sina.com.cn/roll/2025-04-02/doc-ineruant3601376.shtml)
[2] Times Finance - “Guyue Longshan Raises Prices for Some Products, with a Maximum Increase of 12%” (https://www.jiuzhan.com/tag/古越龙山)
[3] Far East Research Topic - “Regional Research Topic” (https://pdf.dfcfw.com/pdf/H3_AP202506051685194913_1.pdf?1749129621000.pdf)