---
title: "Guozhong Water Can't Swallow Huiyuan Juice"
description: "After nine months of painstaking planning, Guozhong Water was determined to indirectly acquire Huiyuan Juice, but Guangdong Civil Investment Group intervened, freezing shares held by Shanghai Yongrui in Zhuji Wenshenghui and restricting transfers. The deal has been terminated, leaving Guozhong Water with no choice but to wait."
author: "陈晓京"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2025-04-26"
language: "en"
canonical: "https://xinjignxiao.com/en/articles/guozhong-water-can-t-swallow-huiyuan-juice-5ee4df84/"
markdown: "https://xinjignxiao.com/en/articles/guozhong-water-can-t-swallow-huiyuan-juice-5ee4df84.md"
original_source: "https://mp.weixin.qq.com/s/360YRwswSYEUOsn1_IlfpA"
translation: "https://xinjignxiao.com/zh/articles/%E5%9B%BD%E4%B8%AD%E6%B0%B4%E5%8A%A1%E5%96%9D%E4%B8%8D%E4%B8%8B%E6%B1%87%E6%BA%90%E6%9E%9C%E6%B1%81-5ee4df84.md"
attribution: "New Distribution — https://xinjignxiao.com/en/articles/guozhong-water-can-t-swallow-huiyuan-juice-5ee4df84/"
usage_policy: "https://xinjignxiao.com/ai-policy.txt"
---

# Guozhong Water Can't Swallow Huiyuan Juice

> After nine months of painstaking planning, Guozhong Water was determined to indirectly acquire Huiyuan Juice, but Guangdong Civil Investment Group intervened, freezing shares held by Shanghai Yongrui in Zhuji Wenshenghui and restricting transfers. The deal has been terminated, leaving Guozhong Water with no choice but to wait.

**Source** | Zebra Consumption
After nine months of painstaking planning, Guozhong Water was confident about indirectly "swallowing" Huiyuan Juice, but unexpectedly, Guangdong Civil Investment Group (Yuemintou) stepped in, applying to the court to freeze the equity held by Shanghai Yongrui in Zhuji Wenshenghui, and transfers have been restricted.
The fat meat that was about to be eaten can only be watched as it is held back at the bottom of the pot.
Guozhong Water hoped to boost its performance and achieve transformation through the acquisition of Beijing Huiyuan, but now the plan has hit a snag, leaving it with only one option: a long wait.
Acquisition Terminated
Becoming the indirect controlling shareholder of Beijing Huiyuan has been Guozhong Water's biggest ambition for nearly a year. However, this plan has changed again recently.
On April 23, Guozhong Water (600187.SH) announced that it plans to terminate the cash acquisition of the equity in Zhuji Wenshenghui held by Shanghai Yongrui. Upon the news, the company's stock price hit the daily limit down.
The company's original plan was to acquire no less than 51% of Zhuji Wenshenghui's equity held by Shanghai Yongrui, becoming the controlling shareholder of Zhuji Wenshenghui, and indirectly taking control of Beijing Huiyuan. Through this, the company would cultivate a green food and beverage business in addition to its main sewage treatment business.
Beijing Huiyuan is the operating entity of Huiyuan Juice after its delisting from the Stock Exchange. Through debt restructuring and asset-light operations, it remains one of the leading companies in the domestic juice industry.
Since the end of 2022, Guozhong Water has invested a total of 930 million yuan in three installments for Huiyuan Juice. As of the third quarter report of 2024, it held 36.486% of Zhuji Wenshenghui's equity, indirectly holding 21.8916% of Beijing Huiyuan.
To further strengthen its control over Beijing Huiyuan, on July 22 last year, the company's board of directors reviewed and unanimously approved the above equity acquisition proposal, and reached an intention agreement with the relevant parties to the transaction.
Originally thought the acquisition would go smoothly, but unexpectedly, Yuemintou stepped in. Its affiliates Huiqiao No. 8 (Shenzhen) and Huiqiao No. 3 (Shenzhen) filed a lawsuit for preservation with the Shenzhen Futian District Court on the grounds of tort liability disputes, with preservation amounts of 79.99 million yuan and 52.287 million yuan respectively. The 52.47% equity held by Shanghai Yongrui in Zhuji Wenshenghui has been fully frozen by the court.
This directly led to Guozhong Water's failure to complete due diligence, audit, evaluation, and other work. Despite a three-month extension, the target equity remains frozen and subject to transfer restrictions.
The company decided to terminate the acquisition but left a "backup plan," stating that it will reassess the feasibility of advancing after the relevant transfer restrictions are lifted.
Juice is Sweet
The reason Guozhong Water is so fixated on Beijing Huiyuan is that it sees its profitability and has already tasted the benefits.
Through its indirect holding of Beijing Huiyuan equity via Zhuji Wenshenghui, the company obtained investment income of 82.8363 million yuan in 2023, accounting for 275.77% of the current period's net profit attributable to the parent, successfully reversing its loss situation. In the first half of 2024, it obtained investment income of 39.2411 million yuan.
This also shows that through restructuring, Beijing Huiyuan's vitality has gradually recovered, and it is contributing considerable returns to the restructuring investors.
In June 2022, Wensheng Assets invested 1.6 billion yuan to become the controlling shareholder of Beijing Huiyuan. At the same time, the original major creditors of Beijing Huiyuan completed debt repayment through share conversion, and Beijing Huiyuan returned to the right track.
The important chips in Beijing Huiyuan's hands mainly include the key assets it took over after Huiyuan Juice's delisting, including brands, trademarks, channels, the Beijing Shunyi factory, and 15 production lines. Subsequently, it leased most of the production lines back to the original Huiyuan Group, entrusting it with OEM production. Beijing Huiyuan then purchased products to complete market sales.
Last year, Beijing Huiyuan adjusted its business model. In addition to commissioned production, it also adopted various production methods such as toll processing and self-owned production lines, making product innovation and sales more flexible.
Huiyuan Juice's recovery of its former vitality should also thank the market.
According to data jointly released by Kantar Consumer Index and Bain, in 2023, the sales scale of the domestic juice category grew by as much as 24%; in the first quarter of 2024, juice product growth reached 20.8%, far higher than ready-to-drink tea and bottled water, becoming the fastest-growing subcategory. NFC, 100% juice, and high-concentration juice products have always been Huiyuan Juice's home turf.
According to Guozhong Water's announcement, in 2023, Beijing Huiyuan's operating revenue was approximately 2.745 billion yuan, net profit was 424 million yuan, and non-GAAP net profit was 393 million yuan.
According to the performance commitment agreement, Wensheng Assets promised that Beijing Huiyuan's audited cumulative non-GAAP net profit from 2023 to 2025 would be no less than 1.125 billion yuan, with average annual non-GAAP net profit no less than 375 million yuan.
After completing the first phase of the performance commitment, Beijing Huiyuan seized the momentum and officially announced two major goals in March last year: to initiate an IPO within three years and achieve revenue of 10 billion yuan after three years.
Pengxin Group's Gamble
For Guozhong Water and the Pengxin Group behind it, a victory is desperately needed to boost morale.
Guozhong Water's main business is sewage treatment and environmental technology services, with a relatively small revenue scale. As the actual controller of the company, Jiang Zhaobai has promoted corporate transformation for many years but has frequently encountered setbacks.
As early as 2020, the company planned to establish a joint venture with Pengdu Health, controlled by Jiang Zhaobai, focusing on the health industry. Due to Pengdu Health's suspected information disclosure violations, the plan fell through.
Two years later, under Jiang's leadership, Guozhong Water planned to spend 274 million yuan and 583 million yuan to acquire all equity of Shanghai Pengxin and Qidong Pengteng, which he controlled, to enter the agricultural sector. However, due to high premiums and related-party transactions, the Shanghai Stock Exchange inquired, and the acquisition had to be withdrawn.
After two failures, Jiang Zhaobai still did not give up. Later, he connected with Wensheng Assets, a leading domestic private AMC, laying the groundwork for subsequent participation in the restructuring of Beijing Huiyuan.
In 2021, Guozhong Water and Wensheng Assets came together and reached a certain tacit understanding: one side was responsible for finding projects, and the other participated and followed up.
In November of that year, Guozhong Water and Wensheng Assets joined forces to enter the new energy field, planning to acquire Mianxian Kaidi and Pingxiang Kaiying. To show sincerity, Guozhong Water paid a 100 million yuan performance bond. Later, due to the low debt value of the acquired companies, the plan was forced to terminate.
Soon after, the two sides joined forces again, planning to invest a total of 1.9 billion yuan to acquire the bankruptcy restructuring target assets of Shandong Quanlin Group. After nearly half a year of due diligence, Wensheng Assets suggested abandoning the project acquisition, and Guozhong Water's transformation failed again. Because this matter was not disclosed in a timely manner, the company also received a warning letter from the securities regulatory department.
During the two years of cooperation with Wensheng Assets, Guozhong Water's performance pressure increased sharply, with losses for two consecutive years from 2021 to 2022. In December 2022, the company made a firm decision and invested real money to participate in the restructuring of Beijing Huiyuan, finally opening a window for itself.


---

## Copyright and AI use

This article is sourced from New Distribution. Search, quotation, summarization, and model training are permitted, but every use must credit New Distribution and retain the canonical source URL.

Contact: zhaobo258@gmail.com · +86 158 5481 7671