“China Food’s 2012 net profit may be only about 400 million yuan, and this kind of performance is beyond the expectation of the entire industry.” Huatai Securities analysts estimated that the Great Wall Wine Business of China Foods was between profit and loss in the second half of 2012. It may be because the Great Wall wines in the first half of the year are more heavily laden with less shipments in the second half of the year, and part of the sales expenses are spread to the second half of the year.

China Foods once told a reporter from the First Financial Daily that COFCO Chairman Ning Gaoning had hoped that China Foods will be able to maintain a livelihood of COFCO. In addition, China Foods is regarded as a COFCO Group's terminal brand consumer food business. The only platform.

In the first half of 2012, China's Food General Manager Ran Xiuju mentioned the goal of Chinese food: Ning Gaoning put forward “Double Ten” expectations for Chinese food listed companies, hoping that in 2013, the total profit will exceed one billion yuan and the stock price will exceed ten yuan.” We strive to achieve the "Double Ten" goal in advance." However, this kind of expectation has already become a bubble. As of yesterday's close, China Foods' share price was only 5.130 Hong Kong dollars.

In order to achieve this goal, China Foods cancelled the Liquor Business Unit, Kitchen Food Business Unit and Leisure Food Business Unit at the end of 2011. Wu Fei, former general manager of COFCO Wines, became Assistant General Manager of China Foods and General Manager of Strategic Business Development Department.

Insiders pointed out that China's large-scale changes in food performance and its Great Wall wine performance have many links.

Du Zhiguo, a marketing expert who cooperates with sales agents of Great Wall Wines, said that in recent years, a considerable number of old salesmen have lost the Great Wall wines. A dealer stated that there existed cases of “outsider management” in the sales of the Great Wall wine market, and there were certain problems in internal docking arrangements.

A wine distributor in Guangdong told the newspaper that Great Wall Wines had a very poor overall response in Guangdong last year. He estimated that Great Wall Wines had a 30% or more decline in sales in the Guangdong market last year, and Shenzhen Dashui, Long Cheng and other three major prior The customer's cooperation has existed problems such as the realization of sales cost and contract signing in previous years. After Wu Fei regained control of the South China market at the end of last year, he did not see a big improvement. “In the past, it was a good brand to rush to do. Now it is not. In the same way, it is now asking for people to do it, and people do it."

According to the data, China Foods achieved a revenue of HKD 28.010 billion in 2011, a net profit of HKD 645 million, and a net profit rate of only 2.30%. Looking at the situation in 2011, Great Wall Wine and other alcoholic beverages contributed 13% of its revenue to Chinese food. 57% of net profit.

Insiders pointed out that under the background of the long-term impact of domestic wines on imported wines, entering high-margin liquor business will help increase China's food net interest rate. While high-margin wine performance of the Great Wall declines, COFCO Group encountered many times. The news of the acquisition of Xifeng Liquor, Yanghe, etc. was reported but there was no embarrassing situation in the liquor business.

A person involved in the liquor industry M&A business said that the main reason for this situation is that there is no consensus within COFCO on whether to aggressively enter the liquor industry. COFCO does not have an investment strategy in the liquor industry and has not yet established a liquor industry. The framework is not as clear as Lenovo's entry into the liquor industry knows its own goals in the industry.