On the evening of November 15, COFCO Packaging Holdings announced that the company received the "Partial Arbitration Award" issued by the Hong Kong International Arbitration Center on October 31, 2019 on November 14, 2019. The award The letter confirms that the application of Wanglaoji, a subsidiary of Jiaduobao, to terminate the capital increase agreement is invalid. It must complete the relevant procedures for injecting the Jiaduobao trademark into Qingyuan Jiaduobao according to the capital increase agreement. At the same time, it must immediately compensate COFCO Packaging for 230 million yuan and pay interest of 7.73 million yuan. Add What's going on with Duobao and COFCO? Let the editor of Jintou answer it for you!
COFCO Packaging stated that after receiving the above-mentioned arbitration award, the company communicated effectively with Jiaduobao Group and cooperated closely with it to jointly promote Jiaduobao’s listing plan.
Add Duobao compensated 230 million and settled with COFCO: After the 1.4 billion compensation for cut off supply was pending, Jiaduobao also announced on its homepage that COFCO Packaging has been a strategic partner for many years. The company's joining will have a negative impact on Jiaduobao's operations. Positive impact, the arbitration will not affect the good cooperative relationship between the two parties. The two parties will continue to cooperate and jointly promote the listing of Jiaduobao Group.
So far, after many separations and mergers, Jiaduobao and COFCO Group A formal settlement was reached, and *** jointly sought the road to the listing of Jiaduobao.
Jiaduobao compensated 230 million and settled with COFCO: it was cut off
1.4 billion compensation is pending for the benefit game : Allies have divorced many times
The cooperative relationship between Jiaduobao and COFCO Packaging has been established for a long time. As the upstream and downstream of the supply chain, the two have been allies fighting side by side for a long time. COFCO Packaging was once owned by Jiaduobao Group President Li Chunlin described it as the blood of Jiaduobao.
However, the two allies who united began a long-term profit game war from 2017 to 2019.
2017 is Jiaduobao has been in constant trouble for a year. Negative news such as factory layoffs and production suspensions have shrouded this leading herbal tea company that has created many legends. At the same time, the dispute over the red can with Wanglaoji finally ended in the exclusive enjoyment, but Long-term price competition has made Jiaduobao unaffordable, and its market share has been eroded by Wanglaoji. Under the crisis, Jiaduobao needs to find new profit growth points and partners to solve eyebrow emergencies.
In 2017 In October, Jiaduobao cooperated with COFCO Packaging, a downstream company seeking new performance growth, and hit it off immediately, deciding to carry out in-depth cooperation. The focus of the cooperation fell on Qingyuan Jiaduobao Herbal Plant Science and Technology Co., Ltd., which produces concentrates. According to public information, Qingyuan Jiaduobao Duobao Herbal achieved revenue of 622 million yuan and 648 million yuan in 2015 and 2016 respectively, with net profits of 130 million yuan and 147 million yuan. It was a profitable factory for Jiaduobao, which was in trouble at the time.
On October 30, 2017, COFCO Packaging, through its subsidiary COFCO Packaging Investment Co., Ltd., announced a capital increase of 2 billion yuan in Qingyuan Jiaduobao Herbal Medicine, becoming the second largest shareholder with a shareholding of 30.58. The capital increase agreement stipulates that Wong Lo Kat Company will sign the agreement when the agreement is signed. Within the next six months, the Jiaduobao trademark with a price of 3 billion yuan was injected into Qingyuan Jiaduobao Cursive Script, acquiring 45.87% of its shares, and the original 100 controlling shareholder Zhishou Co., Ltd. dropped to 23.55%.
Everything seems to be going smoothly. Tianyancha data shows that in December 2017, the registered capital of Qingyuan Jiaduobao Herbal Medicine has increased from 40 million to 169 million, and the capital increase agreement has begun to be implemented.
However, COFCO Packaging The announcement issued on July 6, 2018 showed the direction of the incident. According to the announcement, because Wanglaoji Company failed to provide the trademark as agreed, COFCO Packaging Investment filed a lawsuit with the Hong Kong International Arbitration Center on July 6, 2018 against Hong Kong Wanglaoji Company and Zhishou Company. Qingyuan Jiaduobao filed an arbitration application in cursive script, and the conflict between COFCO Packaging and Jiaduobao officially broke out.
While applying for arbitration, Jiaduobao and COFCO Packaging, which had turned against each other, began to fall out in the second quarter of 2018. , the jars of Jiaduobao were discontinued, and part of the jars were not restored until September 2018. The herbal tea was out of stock before the sales season, which was undoubtedly a fatal blow to Jiaduobao. At that time, Jiaduobao even exposed that some factories had stopped production. .
In January 2019, as the former director of COFCO Packaging
Chairman Wang Jinchang immediately appointed the chairman of Jiaduobao (China) Beverage Co., Ltd. and Kunlun Mountain Mineral Water Co., Ltd. and signed the COFCO Packaging-Jiaduobao 2019 can cooperation agreement. The situation seemed to have eased. In the cooperation agreement, The two parties stated that they would continue to cooperate, properly resolve differences and disputes, and finally reach a settlement.
But in less than half a year, the incident reversed again, and the relationship between the two parties was once again delicate. In June 2019, COFCO Packaging announced that the company received According to the document, Zhishou Co., Ltd. applied to repurchase the ownership of 30 COFCO Packaging.58 owned by Qingyuan Jiaduobao Cursive, hoping to return the relevant total cash and in-kind investment to COFCO Packaging Investment, with interest calculated at an annual interest rate of 10.
In this regard, COFCO Packaging has sought legal advice on the matter and requested the solution that is most beneficial to the company’s shareholders. This means that once COFCO Packaging agrees to the plan, the nearly one-year arbitration dispute will be withdrawn.
Why did the two parties merge multiple times but did not reach a settlement? Why did Jiaduobao propose to buy back its shares? The result was profit distribution. Zhu Danpeng, a Chinese food industry analyst, said in a previous interview with the Beijing News that Jiaduobao requested Repurchasing the stock, you may think that the loss in this transaction is too large, and after the financial aspect has taken a breath, you want to repurchase the stock.
After more than a year of game, the two parties finally agreed on November 15, with the arbitration result. Announcement ushered in a reconciliation and reached a balance of interests.
Seeking to be listed: Jiaduobao continues to take action
In recent years, due to the red can and trademark disputes with Wanglaoji, Jiaduobao has Suffering losses for the first time, Wanglaoji not only took away most of the herbal tea market, but also fell into a crisis of production suspension and layoffs. Its road to listing also encountered many obstacles.
Jiaduobao compensated 230 million yuan and settled with COFCO: 1.4 billion in compensation that had been cut off from supply, but in order to achieve this goal, the most important thing is to obtain the benefits of the enterprise. Specific to short-term planning, it is first necessary to stabilize the dealer system externally, increase revenue and reduce expenditure internally, and compress costs. Li Chunlin said in the interview that adding Starting from May 2018, Duobao will reduce the national delivery price from 70 yuan to 50 yuan per box, eliminating the need for dealers to replace dealers and improving dealers’ motivation.
The second key point is to have a plan To withdraw from price competition, create new products, restore healthy competition, and seek benefits. In May 2018, Jiaduobao announced a price limit across the board. Among them, the wholesale purchase price of Jiaduobao in a single box of 24 cans rose to 53 yuan, and the retail price was raised to 3.5 yuan. /can, the lowest wholesale price in the market so far is only about 40 yuan.
At the beginning of 2019, in order to compete with differentiation and high-end, Jiaduobao launched a new golden can herbal tea, including a price of 7 Two specifications, the thin can of 5.5 yuan and the thick can of 5.5 yuan, are gradually withdrawing from the market. At the same time, Kunlun Mountain, a high-end mineral water brand under Jiaduobao, transcends skin care products and releases Kunlun Mountain moisturizing spray to enrich its product line. Expand corporate profit margins.
In addition to cross-border skin care products, in May 2019, Jiaduobao invested 60 million yuan to establish Beijing Dayuntongtai Logistics Co., Ltd. to reduce logistics costs. It is said that this logistics company It can reduce the comprehensive cost to 40. According to Tianyan survey data, the legal representative of the company is Chen Jingkun, and the registered capital is 100 million yuan. Among them, Jiaduobao (China) Beverage Co., Ltd. is the major shareholder, with a shareholding ratio of 60.
In terms of management, in addition to Wang Jinchang’s entry on January 1, 2019, Jiaduobao also conducted an executive exchange on July 24. Jin Jichuan and Xu Wei were appointed to Jiaduobao respectively. The group’s chief financial officer and chief operating officer. The final settlement between COFCO Packaging and Jiaduobao is believed by industry insiders to be helpful to Jiaduobao’s issuance process.
However, in addition to the 230 million compensation, Jiaduobao Duobao is also responsible for pending compensation. In July 2019, according to the ruling of the Supreme People's Court, the Guangdong Provincial Higher People's Court (2014) Guangdong High Court Min San Chu Zi No. 1 Civil Judgment was cancelled, and the case returned to Guangdong. Provincial Higher People's Court retrial. For Jiaduobao, this means that there are new variables in the more than 1.44 billion yuan that was originally required to compensate GPHL.
In 2014, GPHL filed a lawsuit against Guangdong Pharmaceutical Group The Provincial High Court filed a civil lawsuit demanding compensation from Jiaduobao
From May 2010 to May 2012, the economic losses caused to Wonglaoji by infringement of Wonglaoji's trademark rights totaled 1 billion yuan, and the compensation later increased to 2.9 billion yuan. According to the first-instance judgment, Jiaduobao needs to compensate GPHL. Economic losses and reasonable rights protection costs totaled 1.4 billion yuan.