Screenshot of Jiangxi Provincial Property Rights Exchange website
According to the Jiangxi Provincial Property Rights Exchange, Nanchang Food Factory 3 is listing to sell 30% equity of PepsiCo Beverages (Nanchang) Co., Ltd. (hereinafter referred to as PepsiCo Nanchang) for a minimum transfer price of 220 million yuan, and the listing will end on January 23, 2024.
According to public information, the target enterprise Pepsi Nanchang was established in October 2008, and its predecessor, Nanchang Pepsi Cola Beverage Co., Ltd. (hereinafter referred to as Nanchang Pepsi), was the first foreign-funded enterprise to enter Jiangxi Province.
In addition to Nanchang Food Factory 3, which has transferred its equity this time, PepsiCo Nanchang also has a major shareholder, Kangshifu Baiyin Investment Co., Ltd. (hereinafter referred to as Kangshifu Baiyin), with a shareholding ratio of 70%.
According to the disclosed financial data, PepsiCo Nanchang's net profit for the year 2022 was 59.1501 million yuan. As of September 30, 2023, the company achieved a net profit of 59.7866 million yuan.
Screenshot of Jiangxi Provincial Property Rights Exchange website
On the afternoon of January 15th, a reporter from the Daily Economic News, as a project consultant, learned from the relevant person in charge of the transferor Nanchang Food Third Factory that in this transaction, Kangshifu Baiyin has the priority right to acquire. The person said, "They (Kangshifu Baiyin) also want to buy, and this is a fact. Firstly, they (Kangshifu Baiyin) proposed to acquire our (equity)." The person also introduced that the current factory and personnel of Nanchang Food Third Factory are aging. If the equity transfer is successful, the existing problems of Nanchang Food Third Factory will be solved.
The transferor claims that the transaction is beneficial for solving the company's problems
The 30% equity of PepsiCo Nanchang is currently in the stage of soliciting potential acquirers, with Nanchang Food Factory as the transferor. The listing and transfer period starts from December 25, 2023, and ends on January 23, 2024. The target enterprise, Pepsi Nanchang, was established in October 2008 and belongs to the alcohol, beverage, and refined tea manufacturing industry. It is a state-owned equity enterprise in terms of economic type.
Nanchang Industrial Investment Group Co., Ltd. (hereinafter referred to as Nanchang Investment) is the competent department of the transferor Nanchang Food Third Factory. Nanchang Investment approved the equity transfer in July 2023.
According to public information, the predecessor of the target enterprise, Nanchang Pepsi, was established in 1988. Nanchang Pepsi was the first foreign-funded enterprise to enter Jiangxi Province. In order to cooperate with the rapid development of PepsiCo's business in Jiangxi, Nanchang PepsiCo began preparing a new factory in Xiaolan Economic Development Zone in 2008 and officially started production at the end of 2009, renaming it PepsiCo Beverages (Nanchang) Co., Ltd.
On the afternoon of January 15th, a reporter from the Daily Economic News, as a project consultant, dialed the contact information disclosed by the transferor Nanchang Food Third Factory in the national enterprise credit information disclosure system. The person in charge who answered the phone said that Nanchang Food Factory No. 3 is a state-owned enterprise with a maximum of over 400 employees.
The person in charge further introduced that Nanchang Food Factory No. 3 is located in the old urban area and currently has "no operation". There are still more than 20 old employees in the factory. The person stated that if the equity transaction is successful, the problems faced by Nanchang Food Factory No. 3, such as factory aging, can be basically solved.
The other shareholder of the target company is Kangshifu Baiyin. According to Kangshifu's official website, in 1981, PepsiCo began investing in the construction of a carbonated beverage filling enterprise in Shenzhen, China, and began its beverage business in China. Kangshifu Baiyin Investment Co., Ltd. was established in 1995, headquartered in Shanghai. The company has gradually acquired all or part of PepsiCo's equity in 23 carbonated beverage filling enterprises in China through direct or indirect shareholding. After Kangshifu and PepsiCo formed a strategic alliance in 2012, PepsiCo's beverage business began to be exclusively responsible for manufacturing, filling, packaging, sales, and distribution of PepsiCo's non-alcoholic beverages in China. Its beverage business includes Pepsi Cola, Minolta, Seven Up, Pure Fruit 100% Juice, Fruit Colorful, Gatorade Sports Beverages, Pure Water Drinking Water, and more.
The target enterprise has been expanding production frequently in recent years
After sorting out by the Daily Economic News reporter, it was found that in the past two years, the target company Pepsi Nanchang has made frequent investment and expansion actions.
According to relevant articles on the WeChat official account "Nanchang Xiaolan Economic and Technological Development Zone" (note: the certification subject is the management committee of Nanchang Xiaolan Economic and Technological Development Zone), in the second half of 2022, PepsiCo Nanchang invested nearly 100 million yuan to introduce modern digital control complete sets of equipment, and built a world's most advanced canned production line at room temperature, so that every bottle of beverage can be traced from product production to consumption terminal, ensuring food safety Product quality.
It is reported that the above-mentioned production line is expected to be put into operation in June 2023, and after it is put into operation, it will add 180000 tons of beverage production capacity to the enterprise. It is expected that the company will produce 280000 tons of beverages annually, with a total annual sales revenue of 1.2 billion yuan and a tax revenue of 80 million yuan. The Enterprise Service Center of Xiaolan Economic and Technological Development Zone has stated that after the production line is put into operation, the output will increase by more than 30% and the energy consumption will decrease by 25%. After the completion and operation of the Pepsi Beverage project, it is expected to receive more than 6 million yuan in equipment subsidy funds.
In addition, the website of the Nanchang Municipal Government shows that the total land area for the newly added storage shed (yard) project of Pepsi Nanchang is 12844.17 square meters, with a planned total construction area of 11305.56 square meters.
The relevant person in charge of Nanchang Food Factory Three told the Daily Economic News reporter that the above-mentioned production line has already been put into operation, but the stacking shed project seems to be still in progress.
According to the information released by Nanchang Xiaolan Economic and Technological Development Zone in February 2023, the PepsiCo Nanchang KHS Line technical renovation project is a renovation and expansion project. After the completion of the KHS line technology renovation project, an annual increase of 28.8 million standard boxes of PET bottled carbonated beverages (counted according to 500ml specifications) will be added. The entire factory will produce 5.4 million standard boxes of CAN canned carbonated beverages (counted according to 355ml specifications) and 54.72 million standard boxes of PET bottled carbonated beverages (counted according to 500ml specifications). The total investment of the project is 65 million yuan, of which environmental protection investment is 20000 yuan, accounting for 0.03% of the total investment.
A reporter from the Daily Economic News noticed that in the listing information, the original shareholders of the target company can choose not to give up the right of first refusal. Does this mean that Kangshifu Baiyin, who holds 70% of the shares of the target company, will continue to acquire 30% of the equity held by the transferor?
Regarding this, a person from the aforementioned Nanchang Food Third Factory revealed, "They (Kangshifu Baiyin) also want to buy it, which is a fact." In addition, the person said that there are currently multiple investors consulting with them about the project situation.
Will Kangshifu Baiyin continue to acquire the 30% equity being sold by Pepsi Nanchang?
On the afternoon of January 16th, a reporter from the Daily Economic News contacted Kangshifu Baiyin by phone and email through the contact information provided in the national enterprise credit information disclosure system. The staff who answered the phone stated that they would report their interview demands to their superiors and that they could send the email to the email registered in the National Enterprise Credit Information Publicity System. But as of the time of publication, the reporter has not received a response from Kangshifu Baiyin.
