On December 15, Hong Kong Exchanges and Clearing Limited (HKEX) disclosed that Yang Lingjiang, founder of 1919 Liquor Direct, acquired a 73.63% stake in Gracewine, becoming the new controlling shareholder and actual controller of Shanxi's largest wine producer.
The acquisition, valued at approximately HK$159 million (based on Gracewine's pre-suspension price of HK$0.27 per share), marks a strategic step for Yang Lingjiang to expand his liquor empire while offering Gracewine a potential turnaround amid financial struggles. The deal also reflects broader capital dynamics and survival challenges in the liquor industry's transitional phase.
**Key Details of the Acquisition: A Personal "Bottom-Fishing" Move** The acquisition was no coincidence but part of Yang Lingjiang's recent capital maneuvers. Gracewine suspended trading on December 9 pending an "inside information announcement," and six days later, HKEX revealed that Yang Lingjiang completed the purchase of 589 million shares on December 12, securing a 73.63% stake. Notably, Gracewine's pre-suspension market cap stood at just HK$212 million, with net assets of around RMB226 million as of late 2024.
Funding for the deal came entirely from Yang Lingjiang's personal resources, unrelated to 1919’s corporate entity. This aligns with his recent efforts to optimize capital structures, including repurchasing 1919 shares from former major shareholder Skyline International Liquor, boosting his stake from 12.67% to 92.87%, and reducing 1919’s debt ratio from a peak of 92% to below 20% by repaying over RMB6 billion in liabilities.
Yang Lingjiang cited "confidence in Gracewine’s growth potential and long-term industry value" as motivations, while 1919 highlighted Gracewine’s undervalued net assets and its港股 listing platform and overseas sales experience as strategic advantages for expanding international reach.
**A Meeting of Struggling Company and Ambitious Capital** Founded in 1997 by Hong Kong entrepreneur Chan In Cheung and French experts, Gracewine was later managed by Chan’s daughter, Judy Chan. Leveraging Shanxi’s terroir and French winemaking techniques, it developed core brands like "Grace Vineyard Chairman’s Reserve" and "Deep Blue," with an annual capacity of nearly 3,000 tons and a production base in Ningxia. Gracewine went public on HKEX in June 2018 as China’s first premium winery listed company and Shanxi’s first wine industry IPO.
However, post-IPO performance has been volatile, with three annual losses in seven years and peak net profit at just RMB10.22 million. In 2024, losses widened to over RMB41 million. Despite a 42.5% revenue growth to RMB18.775 million and a 22.3% narrower loss of RMB2.745 million in H1 2025, the company failed to reverse its decline. A diversification attempt—acquiring whisky producer Vanhao Asia for HK$15 million in 2019—ended with a divestment in December 2024 due to persistent losses.
Meanwhile, Yang Lingjiang’s 1919 Liquor Direct, a pioneer in liquor新零售, was founded in 2005, listed on China’s NEEQ in 2014, and secured a RMB2 billion strategic investment from Alibaba in 2018. Its "online app + 5,000 offline stores" model, featuring "19-minute delivery," drove 2023 GMV to RMB11 billion. However, 1919 delisted from NEEQ in June 2023 and pivoted to a "dining + liquor" strategy in July 2025, planning to shutter 1,500 non-compliant franchises.
The Gracewine acquisition is seen as Yang Lingjiang’s bid to relaunch资本化, with Gracewine potentially serving as a core listed platform for a future "Gracewine + 1919 + Skyline International" conglomerate, mirroring Diageo’s global brand整合. Yang has openly targeted a "RMB100 billion market cap" within 5–10 years.
The deal also completes Yang’s product matrix, adding wine to his portfolio of baijiu (Hengchang Shaofang), craft beer, and cocktails (Mojito).
For Gracewine, Yang’s takeover offers urgent relief as its core wine business suffers from industry-wide downturns. Yet,协同效应 faces headwinds amid China’s wine sector slump, characterized by weak demand, high inventory, and过剩原酒, forcing production cuts and industry contraction.
*(Note: This article was created with AI assistance and does not constitute investment advice.)*
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