Gree's involvement in the mixed ownership reform of Luoyang Bearing finally blossomed. On April 17, the 12th Henan Investment Fair held in Zhengzhou came news that Gree will participate in Luoyang Bearings and advance the reform of Luoyang State-owned Enterprises.
Analysts believe that Luoyang Bearing is one of the leaders in the domestic bearing industry. Participating in Luoyang Bearing will enhance Gree's intelligent equipment supporting capabilities and promote the rapid development of Gree Electric Appliances in machine tools, robotics, intelligent manufacturing and other related fields.
'Love' more than six months
Dongming Zhu, chairman of Gree Electric, once said that Luoyang is an old industrial base and has many industrial enterprises that can support the development of the future manufacturing equipment industry. 'So we are willing to come here with them and let our products quickly upgrade.'
The official website shows that Luoyang Bearing was established in 1954 and has core technologies such as aero-engine bearings, rail transit vehicle bearings, and major equipment-specific bearings.
Gree Electric and Luoyang Bearing have been in love for more than half a year. On September 15, 2017, Gree Electric Appliances signed a strategic cooperation framework agreement with the Henan Provincial Industry and Information Technology Commission and the Luoyang Municipal Government. The agreement stipulated that Gree Electric Appliances will use it in the smart equipment industry. The resources to attract industrial chain related companies to jointly build a Luoyang High-tech Zone in Luoyang, China independent innovation and intelligent manufacturing industry base project. The project land is about 5,000 acres, a total investment of about 15 billion yuan. After the project is completed, it is expected to achieve an annual output value of more than 30 billion yuan. At the signing ceremony, Gree Electric revealed that it will participate in the mixed ownership reform of Luoyang Bearing.
On November 28 last year, the 14th person of the board secretary and vice president of Gree Electric Co., Ltd. went to Luoyang to negotiate cooperation with Luoyang Bearing and arranged an accounting firm to conduct due diligence on Luoyang Bearing.
Wang Jingdong once told the First Financial reporter in September last year that Gree Electric was involved in the mixed reform of Luoyang Bearing.
In order to speed up the mixed reform of Luoyang Bearing, China Finance and Economics Co., Ltd. learned from related parties that Luoyang Bearing has recently separated from Henan Machinery and Equipment Investment Group Co., Ltd. to open a road for mixed ownership reform.
Gree Equipment Business Accelerates
Lu Changyuan, Director of the Institute of Advanced Industrial and Productive Robotics, analyzed with the First Financial Reporter that Gree Electric Appliances' participation in the Luoyang Bearing Mixed Reform has been delayed until now. There are many reasons for this. The state-owned enterprise reform involves the interests of all parties.
To this effect, Lu Zhangyuan believes that Gree's industrial landscape has gradually extended from the original home appliance air conditioners to emerging fields such as smart equipment, robots, and new energy auto parts. Gree investment Luoyang is optimistic about the industrial base of Luoyang, especially in the core components In the field, Luoyang Bearing has always been in the leading position in the country. In the future, it can be matched with Gree's own intelligent equipment business to help Gree's rapid development in machine tools, robotics, smart manufacturing and other related fields.
On the other hand, Luoyang Bearing is a state-owned enterprise. Although its technology and products are relatively advanced, its own management and efficiency are not satisfactory. The entry of Gree will fundamentally assist the state-owned enterprise reform of Luoyang Bearing in landing and attract more talents. And to improve the efficiency of technology conversion is a win-win situation for both parties.
In addition, since Dong Mingzhu personally acquired shares of Yinlong, he has participated in several major decisions of Yinlong, including investing in Luoyang Base, etc. Luoyang has relatively new energy automobile related supporting enterprises such as CNAC Lithium Battery and CNAC Optoelectronics. The industry chain is relatively mature, and The downstream market is vast, which is one of the reasons Yinlong chose to settle in Luoyang.
In recent years, Gree Electric Co., Ltd. has actively developed its diversified business, from air-conditioning leading enterprises to integrated industrial groups. Among them, smart equipment is regarded as the second pillar business of Gree Electric in the future.
In the first half of 2017, air-conditioning still accounted for 80% of Gree's total operating revenue; its smart equipment revenue, although growing rapidly, grew more than 27 times year-on-year, but only accounted for more than 1% of Gree's total operating revenue. In half a year, Gree’s smart equipment revenue was more than 900 million yuan, most of which came from related transactions with Dong Longzhu’s equity stake in Yinlong.
Gree Electric Appliances needs to further accelerate the development of smart equipment business. Participating in the mixed reform of Luoyang Bearing will undoubtedly accelerate the smart equipment business of Gree Electric Appliances.
However, specific information about the participants in the transaction, investment amount, proportion of shares, transaction progress, performance impact, etc., is not clear.
As of press time, Gree Electric Appliances (000651.SZ) has not issued an announcement on the matter. As of the time of the press release, Wang Jingdong did not answer the reporter's call and explained the relevant circumstances.