At the foot of Changbai Mountain lies an underground wine cellar built in 1937, preserving not only China's 90-year winemaking history but also the turbulent capital story of a listed company. Tonghua Grape Wine Co., Ltd. (ST: 600365), a heritage winemaker with nearly nine decades of history, has recently caught market attention by achieving five consecutive trading limit-ups in late September, hitting a one-year stock price high. Yet this aged wine seems to carry complex flavors, as the company continues to bear the ST designation.
01 Historical Background Tonghua Grape Wine Co., Ltd. represents one of China's oldest winemaking brands, with nearly 90 years of production experience. After restructuring in 1999, the company went public on January 15, 2001. Its post-IPO journey saw multiple ownership changes, most notably the 2004 acquisition by the Xinhua Union Group as controlling shareholder.
02 Core Business Operations ST Tonghua's operations focus on two segments: - Winemaking: Specializing in fruit wines and grape wines, including dry, ice, sweet, and fortified varieties using unique Changbai Mountain grapes. - E-commerce: Conducted through wholly-owned subsidiary Jiurunyuan, holding authorized distribution rights for multiple brands across JD.com, Tmall, and Pinduoduo. The company recently announced plans to phase out baijiu e-commerce sales, refocusing on wine and non-baijiu consumer goods.
03 Ownership Structure The company features an unusual shareholding arrangement: - Largest shareholder: Jilin Jixiang Jiade Investment Co., Ltd. (9.55% stake). - Voting rights: In 2022, Jixiang Jiade transferred voting rights for 10.08% shares to Anji Zhonghong Management Consulting, making it a key decision-maker (directly holding 4.44% as of September 30, 2025).
04 Financial Performance (2022-2024) Key metrics show volatility: - Basic EPS: -¥0.13 (2022), -¥0.17 (2023), -¥0.12 (2024) - Net assets per share: ¥0.78 (2022), ¥0.72 (2023), ¥0.67 (2024) - Gross margin: 19.49% (2022), 17.99% (2023), 14.54% (2024) 2024 saw ¥869M revenue (+1.22% YoY) but -¥49.88M net profit, with H1 2025 debt ratio reaching 66.8%.
05 ST Designation Causes The "Special Treatment" status stems from historical illegal guarantees: - In August 2020, former controllers improperly used company seals to guarantee ¥306.3M loans for Dalian Dinghua International. - Though arbitration ruled guarantees invalid, the company remains liable for 20% (¥61.26M) compensation. - A 2020 internal control audit denial opinion further cemented the ST status.
06 Current Resolution Status (Q3 2025) Delisting conditions remain unmet: - Legal proceedings: Initial lawsuit against former controllers failed in July 2025; appeal pending. - Company actions: Provisions made for contingent liabilities, with monthly progress updates on risk mitigation efforts.
07 Market Themes Despite fundamentals, traders focus on: 1. Strategic refocus: Exiting baijiu e-commerce to concentrate on core wine business. 2. Equity incentives: 2025 restricted stock plan offering 6.26% shares to 45 key employees. 3. Heritage value: 90-year history and unique cellar assets. 4. Trading momentum: September 2025's 40% monthly surge with five limit-ups attracted speculative capital.
08 Key Investment Risks 1. Prolonged ST status: Ongoing litigation delays delisting, restricting trading and damaging reputation. 2. Legal uncertainty: Appeal outcome remains unpredictable, with potential material losses. 3. Deteriorating finances: Persistent losses, declining net assets, high leverage, and negative operating cash flow. 4. Industry pressure: Domestic wine production decline amid competition from imports and local brands.
While Tonghua Grape Wine's September 2025 rally and ongoing equity incentives suggest transformation, its ST removal hinges on legal resolution and fundamental improvement. For investors, this vintage story blends rich heritage with bitter challenges—a flavor profile requiring careful tasting.
(Information sourced from company disclosures and public records. Not investment advice.)
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