Bairong Co., Ltd. (002568), the parent company of leading pre-mixed cocktail brand RIO, recently announced that its controlling shareholder and actual controller Liu Xiaodong plans to transfer 63 million unrestricted circulating shares to Liu Jianguo through an agreement transfer, representing 6.01% of the company's total share capital, with a transfer consideration of 1.47 billion yuan.

The transaction is being conducted at a discount, with both parties agreeing to a transfer price of 23.337 yuan per share, which represents a 10% discount from the company's closing price on the day before the agreement signing (September 8).

If the transaction is completed successfully, Liu Xiaodong will cash out 1.47 billion yuan. After the transfer, he will hold approximately 363 million shares of Bairong, accounting for 34.97% of the total share capital, remaining the company's largest shareholder and actual controller.

The "buyer" Liu Jianguo will become a shareholder holding 5% or more of Bairong shares with his 63 million share stake (actually representing 6.01% of total share capital).

Regarding the reason for the share transfer, the announcement explains that this is to enrich the listed company's shareholder structure and introduce resources that promote the company's development.

However, buyer Liu Jianguo's professional background is not related to the alcoholic beverages and fast-moving consumer goods sector where Bairong operates.

According to the "Equity Change Report," Liu Jianguo is the chairman of HONMAGOLF Limited (06858.HK), indirectly holding 38.72% of its shares. Additionally, Liu Jianguo is the founder of Pentium Electric and currently serves as executive director of Pentium Investment Holding Company.

From his external investments and positions, Liu Jianguo's experience is mainly concentrated in sporting goods, small home appliances, and other sectors. He has not previously been involved in the pre-mixed cocktail and fast-moving consumer goods track, making this acquisition appear more like a pure financial investment.

Bairong's RIO brand is the leading brand in the pre-mixed cocktail sector. Liu Xiaodong is not only the company's actual controller but also the "soul figure" who single-handedly led RIO from brand establishment to becoming the industry leader, earning him the title "Cocktail King."

However, Liu Xiaodong has been facing "continuous troubles" recently.

Last year, he was investigated and detained for suspected bribery, which attracted industry attention. Although the detention was lifted in May last year, he still faces considerable financial pressure. Public data shows that he has repeatedly pledged shares to repay loans in recent years. According to financial reports, as of the first half of this year, Liu Xiaodong still had 104 million shares under pledge.

From the company's operational perspective, Bairong remains the leader in the pre-mixed cocktail industry, but competition is becoming increasingly fierce, and the company's performance shows significant fluctuations.

In the first half of this year, the company's operating revenue was 1.489 billion yuan, down 8.56% year-on-year, marking the third consecutive year of revenue decline; net profit attributable to parent company was 389 million yuan, down 3.32% year-on-year.

As an early internet celebrity brand, RIO's market entry strategy was massive advertising investment. In the first half of this year, the company unusually reduced its sales expenses to 300 million yuan, a 24% decrease year-on-year.

For consumers, RIO's presence has been much lower than in previous years. In the first half of this year, the company's alcoholic beverage product revenue was 1.297 billion yuan, down 9.35% year-on-year. Both sales volume and production of alcoholic products experienced double-digit declines; inventory turnover days increased from 313.6 days in the same period to 464.6 days.

From regional market performance, the company faces significant challenges in North China and West China markets, with revenues in these two regions declining 23% and 21.4% year-on-year respectively in the first half of the year.