For three years following China Resources' (CR) acquisition, Anhui Golden Seed Winery Co.,Ltd. has reported losses surpassing 600 million yuan. The initially well-regarded cross-sector rescue operation has now reached a stalemate. CR, once viewed as a "white knight," has itself suffered significant financial damage.
Anhui Golden Seed Winery is still reporting losses more than three years after CR took control. On January 28, 2026, the company disclosed its annual earnings forecast for 2025, projecting a net profit attributable to shareholders between -190 million and -150 million yuan. After deducting non-recurring gains and losses, the net loss is expected to be between -210 million and -170 million yuan. This marks the fifth consecutive year of net losses for the company. Although the loss narrowed year-on-year in 2025, this does not necessarily indicate an improvement in the company's fundamental business performance.
In 2022, CR Strategic Investment acquired a stake in Golden Seed Group, raising hopes for a turnaround. However, over the past three-plus years, CR's distribution channels, capital, and management expertise have failed to pull the Anhui-based brewer out of its difficulties. This highly anticipated rescue has instead resulted in substantial losses for CR.
The operational struggles at Anhui Golden Seed Winery are long-standing. In 2012, the company achieved annual revenue of 2.294 billion yuan, with net profit and adjusted net profit both reaching a record high of 561 million yuan. However, performance began to decline starting in 2013. Revenue only saw positive growth in four years: 2018, 2020, 2021, and 2023. The profitability situation is even more dire. From 2020 to 2024, the net profit attributable to shareholders was 69.4016 million yuan, -166 million yuan, -187 million yuan, -22.0696 million yuan, and -258 million yuan, respectively. After adjusting for non-recurring items, the situation is worse, with losses for seven consecutive years from 2019 to 2024. The projected loss for 2025 continues this trend.
Persistent losses have strained the company's finances. By the end of the first three quarters of 2025, Anhui Golden Seed Winery's cash and cash equivalents stood at 367 million yuan. Meanwhile, the company had short-term borrowings of 270 million yuan, notes payable of 85 million yuan, and accounts payable of 197 million yuan.
Beyond performance pressure, external attention has focused on CR's support for the winery. In February 2022, Fuyang Investment & Development signed an agreement to transfer a 49% stake in Golden Seed Group to CR Strategic Investment via a non-public agreement. As the largest shareholder of Anhui Golden Seed Winery, this gave CR an indirect stake in the listed company. Market expectations were high that CR's resources could revitalize the Anhui-based brewer.
After taking control, CR implemented changes in personnel, products, and channels. These efforts led to profitability from the second quarter of 2023 through the first quarter of 2024. However, for the full year of 2024, the company fell back into loss. Calculated from the second half of 2022, the cumulative loss under CR's stewardship, after adjusting for non-recurring items, is estimated between 632 million and 672 million yuan.
To raise cash, Anhui Golden Seed Winery has frequently sold assets: a land parcel at the end of 2023, nearly 100 properties in mid-2024, and a 92% stake in its subsidiary, Golden Sun Pharmaceutical, for 126 million yuan in November 2025. These three disposals brought in over 300 million yuan. However, asset sales are a temporary measure and cannot mask the ongoing operational challenges of the core business.
Notably, despite years of losses, executive compensation at the company has consistently risen. Reports show that before CR's entry in 2021, total executive compensation was 3.441 million yuan. This figure doubled to 6.5928 million yuan in 2022 and doubled again to 12.7943 million yuan in 2023. Former General Manager He Xiuxia received 3.0496 million yuan in 2023, accounting for 23% of the total board and supervisory board compensation. Although her pay fell to 1.9885 million yuan in 2024, the total compensation for directors and supervisors remained high at 11.1413 million yuan. This sparked strong investor opposition, with nearly 50% of minority shareholders voting against the 2024 compensation proposals at the annual general meeting.
After failing to deliver improved performance over three years, the first batch of CR-appointed executives have departed. Between July and December 2025, General Manager He Xiuxia, CFO Jin Hao, and Deputy General Manager He Wuyong, all sent by CR, resigned. In September 2025, CR appointed Guo Jibao as the new CFO, while Deputy General Manager Liu Fubi assumed the acting General Manager role. The once-promising cross-sector rescue has reached an impasse.
For CR, the investment in Anhui Golden Seed Winery has proven unsuccessful. The specific investment amount for the 2022 stake acquisition was not disclosed, but media estimates suggest it was no less than 1.3 billion yuan. So far, this investment has yielded no returns, as the company has paid no dividends from 2020 to 2025, according to Tonghuashun data.
The company's market capitalization has also shrunk considerably over the past three years. When the share transfer was completed in June 2022, the stock price was above 30 yuan per share, giving a market cap exceeding 20 billion yuan. Golden Seed Group holds 178 million shares, or 27.10% of the total. CR indirectly holds a 13.28% stake in the listed company through its stake in the group. At the peak in June 2022, the value of CR's indirect holding exceeded 2.6 billion yuan. Over three years, the stock price has fallen sharply. As of February 4, 2026, the price was around 10 yuan per share, a drop of 61.13% from its peak, reducing the total market cap to approximately 6.841 billion yuan. Consequently, the current market value of CR's indirect stake is estimated at about 908 million yuan.
Some of the company's executives are also facing paper losses on their share purchases. In May 2023, management planned to buy shares worth 3.2-4.2 million yuan, marking the first such buyback in the company's history, intended to show confidence in the reforms. In March 2024, former GM He Xiuxia and Deputy GM Liu Fubi each purchased 20,000 shares, spending 307,200 yuan and 301,400 yuan, respectively. With the stock price falling from around 24.4 yuan in May 2023 and 16.4 yuan in March 2024 to about 10 yuan currently, these executives are facing paper losses estimated between 32% and 58%.
Reviewing CR's investments in the baijiu sector, aside from its successful investment in Shanxi Fenjiu, other ventures have been less fruitful. In February 2018, CR acquired an 11.45% stake in Shanxi Fenjiu for 5.16 billion yuan. By February 2022, the value of this stake had surged to 41.516 billion yuan, a gain of 36.356 billion yuan and a return of 704.57%. This success likely bolstered CR's confidence, leading to investments in Shandong Jingzhi Baijiu, Anhui Golden Seed Winery, and Jinsha Jiuye between 2021 and 2022. The total investment in these three companies is estimated to exceed 15 billion yuan. Currently, none are performing better than before their acquisition. In the first half of 2025, Jinsha Jiuye's revenue was only 781 million yuan, suggesting annual revenue may be under 1.6 billion yuan, while Jingzhi Baijiu has not disclosed results for years. CR's investments in these three brewers can be described as a significant setback.
Capital market sentiment towards Anhui Golden Seed Winery has reversed dramatically during CR's tenure. Following the investment news in 2022, funds were broadly optimistic. Data from East Money Information showed that by the end of 2022, 143 funds held a combined 109 million shares, peaking at 16.60% ownership. However, likely due to the lack of visible improvement under CR, funds began exiting from 2023 onwards. By the end of 2023, the number of funds dropped to 69, with ownership falling to 10%. This declined further to 27 funds (7.85% ownership) by the end of 2024, and by the end of Q1 2025, only 4 funds remained among the top ten shareholders, with ownership at 6.97%.
A reversal occurred in Q2 2025, as some funds began "bottom-fishing." Seven of the top ten shareholders increased their holdings, including three of the four remaining funds. Penghua CSI Liquor ETF, managed by China Construction Bank, added 1.4166 million shares; Penghua CSI Liquor Index Fund added 61,300 shares; and Tianhong CSI Food and Beverage ETF added 8,400 shares. In Q3 2025, these three funds continued significant buying, and ChinaAMC CSI Segmented Food & Beverage Industry Theme ETF entered the top ten. However, performance data from Tonghuashun indicates returns for these funds have been "poor."
Despite this buying, the stock price continued to decline, falling approximately 10% from Q2 2025 to the end of January 2026. A rebound in baijiu stocks on January 28, 2026, lifted Anhui Golden Seed Winery's price, resulting in an 18% surge over four trading days, though it retreated 6% in the subsequent two sessions. On February 2, 2026, the stock appeared on the market's volatility list for the first time in three years. Trading data suggested retail investors and hot money were primarily driving the activity, with top trading seats associated with the "Lhasa Squad," known for short-term trading. Analysts, such as Cai Xuefei, attribute the sector's rise to market rotation, suggesting the rally lacks sustainability.
Currently, there are no clear signs of fundamental improvement for Anhui Golden Seed Winery. While media reports note a narrower loss in 2025 compared to 2024, this is not conclusive, as a similar narrowing occurred in 2023 before losses widened again in 2024. For a company that has been "bleeding" for years, discussing a true reversal is premature until it demonstrably "stops the bleeding."
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