LVMH’s Chinese partner in its Chandon vineyard venture is offering its entire 40% stake at a starting price of just one yuan (US$01.15), seeking to exit a business whose liabilities exceed its assets by more than RMB 17 million (US$2.5 million).
Ningxia State Farm Group, a leading state-owned agriculture company in the province, listed the holding on the Ningxia Technology Resources and Property Rights Exchange, according to a sale notice. LVMH’s Moët Hennessy International owns the remaining 60% of the grape-growing company, which supplies Chandon’s sparkling wine operation in northwestern China.
The proposed sale comes more than a decade after the French luxury group established the project in Ningxia, choosing the eastern foothills of the Helan Mountains for its move into Chinese sparkling wine production.
The one-yuan figure is the minimum bid, rather than an agreed sale price. The stake will be sold through online bidding following a 20-working-day notice period ending October 22. Consortium bids will not be accepted.
Ningxia State Farm Group hasn’t publicly explained its decision to sell.
Liabilities Exceed Assets
The vineyard company had assets of RMB 19.73 million and liabilities of RMB 37.09 million at the end of 2025, according to financial statements audited by Tianhua (Ningxia) Certified Public Accountants. That left shareholders’ equity at negative RMB 17.36 million.
The balance sheet remained under pressure this year, even as the company reported a profit. Revenue totaled RMB 3.60 million in the eight months through August, with net income of RMB 1.47 million. As of Aug. 31, liabilities still exceeded assets by RMB 17.27 million.
The figures relate to Moët Hennessy Chandon (Ningxia) Vineyard Co., Ltd., a grape-growing business, rather than the separate company that produces Chandon’s sparkling wines. They do not establish the financial position of the winery operation.
Established in October 2011 with registered capital of RMB 27.47 million, the vineyard company is based at Huangyangtan Farm in Yongning County, part of Ningxia’s regional capital, Yinchuan.
A Decade in Ningxia
LVMH began searching for a Chinese location suitable for premium sparkling wine in 2009. It launched the Ningxia project in 2011, started construction the following year and opened the winery in June 2013. The first locally produced Chandon sparkling wines went on sale in September 2014.
Founded in 1959, Chandon became Moët Hennessy’s international sparkling wine brand, with wineries in Argentina, Australia, Brazil, the US, China and India. The Indian operation was sold earlier this year, as we have reported.
The brand invested in sports sponsorship and celebrity marketing to build its profile. Chandon sponsored the McLaren Formula One team in 2016 and named actor Yang Yang its first brand ambassador in China in 2021, supporting the announcement with a Shanghai launch event and livestreaming activities.
Its Chinese distribution expanded from supermarkets, restaurants, hotels and bars into e-commerce. Moët Hennessy introduced Chandon wines on platforms including Tmall and offered products specifically for online shoppers.
That market presence hasn’t prevented financial strain at the vineyard venture. While the grape-growing company was profitable in the first eight months of this year, its negative equity remained largely unchanged – the financial backdrop to its Chinese shareholder’s proposed exit.
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