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Cheers to new liquor sales setup
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Wuliangye Yibin Co, the second-biggest liquor maker by market value, said it will establish a sales company with its parent to replace a subsidiary in a bid to boost liquor sales.

The liquor maker and its parent, Wuliangye Group, will set up Wuliangye Yibin Liquor Sales Co Ltd. The new firm will have a registered capital of 50 million yuan (US$7.3 million) and Wuliangye Yibin Co will own 80 percent of the firm.

The new company will take over the sales of liquor products in the domestic and overseas markets and is expected to start operations later this month, it said in a statement to the Shenzhen Stock Exchange yesterday.

It will replace the Import and Export Co Ltd of Wuliangye Group, a subsidiary, the statement said.

"The set up of the company will boost the production and sales of the listed firm," Hu Chunxia, an analyst at Guotai Jun'an Securities, wrote.

(Shanghai Daily July 14, 2009)

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