Konka Group announced yesterday that it will compete for 100% equity of Henan Xinfei Electric Appliance Co., Ltd., Henan Xinfei Refrigeration Appliance Co., Ltd. and Henan Xinfei Household Appliances Co., Ltd. (hereinafter referred to as Xinfei Company) at a price of 455 million yuan. Fei's brand, patents and related fixed assets.
Netease Finance today called Konka Group, the relevant person in charge pointed out to NetEase Finance that Konka will reinvest in the new flight and lead the new flight to the predicament. 'Participating in the new flight will bring development opportunities to Konka Baidian, Konka The intervention will also give Xinfei Company a new development momentum and promote the new flight to re-take off.
Konka Group officially took over Xinfei Electric
In accordance with the new fly company restructuring plan, its 100% stake in the auction winner will become a new restructured investor.
For this acquisition, Zhou Bin, the president of Konka Group, stated that although Xinfei Electric has been in a difficult position due to various reasons in recent years, the new-generation refrigerators have large capacity, air-cooled, high-frequency products such as frequency conversion, and have a full range of product lines. At the domestic advanced level, Xinfei Refrigerator's R&D and manufacturing capabilities are also highly competitive. Moreover, Xinfei’s product line is complete and its brand awareness is high. It ranks No. 6 in the market share of the city in 2017, brand value, R&D capacity, capacity equipment, and talents. The team and others all have a greater appeal to Konka Power, which is in a period of rapid development. 'This acquisition of dust has settled, and the new flying flower falls to Konka. It can be said that it is a major event in the industry'.
The acquisition of Konka Group in the industry seems to be one of the important measures for its transformation. Zhou Bin, the president of Konka Group, previously stated that Konka will be transformed into a platform-based company driven by technological innovation. On the one hand, it will focus on smart homes. Upgrade existing business models. On the other hand, transform and strategically deploy new industries to create new industry tracks. By 2022, we will build 100 billion Konka.
Some analysts pointed out to NetEase. The most immediate manifestation of this acquisition is the rapid expansion of Konka's industrial scale in the field of white power. It will enlarge and strengthen its white power business and increase profitability. At the same time, the acquisition of new aircraft is also more effective. To promote its five-year strategic goal of achieving 100 billion revenue.
The above analysts also pointed out that from the current perspective of the white power industry, the life cycle of white electricity products is relatively long (usually 2-3 years), the overall business risk is relatively lower than that of color TVs, and the industry gross profit level and overall profitability Capabilities are higher than the color TV industry. At the same time, the concentration effect of the white electricity industry has become more apparent. The relevant figures show that the top five market share in the refrigerator industry has rapidly risen from 72% in 2016 to 78% in 2017. By reorganizing the new flight, Konka White Power will become bigger and stronger. Konka's sales of refrigerators and freezers are expected to enter the industry's ranks within 2-3 years.
However, some home appliance industry experts who do not want to be named pointed out to Netease Finance that the original pattern of the domestic refrigerator industry has been completely broken, forming a new pattern led by Haier, Midea, Meiling and Siemens, and the oligarchic pattern similar to the air-conditioning industry is also possible. It appears that the survival space of refrigerator brands such as Xinfei will be further compressed. 'But in recent years, the market share of Xinfei Refrigerator is gradually declining. After Konka entered Xinfei Electric, the relationship with the local Xinxiang municipal government, Konka stationed in the new Many problems such as the difference between the management team of Fly and the old employees will restrict the development of this company. It is not difficult for Konka to try new flights.
Once the refrigerator industry 'four flowers' has lost money for years
According to NetEase’s previous report, Xinfei Electric, which started with refrigerators, dates back to 1984. Its predecessor was Xinxiang Radio Equipment Factory, a small local military enterprise founded in 1958. In 1983, it took over as director of the small factory. In order to survive in the dilemma, chose to launch the white household appliances project as a transformation of the enterprise.
In 1994, Henan Xinfei Electric Group and Singapore Hong Leong Group formed a joint venture in 1994 to form Xinfei Electric. At that time, China had a controlling position and was responsible for the management and operation of Xinfei Electric. This also became a period of rapid development of Xinfei Electric. Once known as one of the 'Four Golden Flowers' in China's refrigerator industry, the phrase 'Advertising is done well, not as good as a new flying fridge' still makes the industry still be considered a classic.
However, in 2005, things changed. The Xinxiang Municipal Government decided to retain only 10% of the shares that year, and the remaining 39% of Xinfei Electric's shares were sold to Singapore's Hong Leong with RMB 510 million. To this end, Hong Leung Asia has not only acquired Xinfei Electric. 90% of the company's absolute controlling rights, but also obtained the management rights of Xinfei Electric Company.
The full takeover of Hong Leong Asia did not take Xinfei Electric a step further. According to NetEase Finance, the use rights and ownership of the “Xinfei” brand revolved around the relationship between Xinfei Electric, where Hong Leong Asia is located, and Xinxiang City Government, Henan Province. Contradiction has been constant. At the same time, the industry’s rumor that the new flight will be resold has never stopped. In 2009, the news that Hong Leong will sell Xinfei at a price of over US$700 million is overwhelming. Potential potential importers include Panasonic of Japan. Group, China Haier Group, TCL Group, Shenzhen Konka, Midea Group, Changhong, etc. However, due to overvaluation of Xinfei, sales have not been reached.
According to NetEase’s previous report, along with the unintelligence of Hong Leong Asia, in the years of rapid development of China's household electrical appliance industry, Xinfei was completely marginalized and missed the favorable opportunity for high-speed growth of the home appliance industry. The deterioration of the operating environment has also made new The internal contradictions of Fei gradually exposed, and the friction between the management from Hong Leong Asia and Xinfei employees has been one after another. In 2012, Xinfei Electric also broke out with a large-scale employee suspension of production rights.
In addition, since Hong Leong’s arrival in Xinfei, the personnel vibrations of Xinfei’s high-level executives have also been frequently staged. In just 9 months in 2010, five senior executives had resigned, including the former chairman of Xinfei. Zhang Donggui and former general manager Wang Jianhua.
Although Hong Leong Asia has repeatedly promised to inject capital into Xinfei Electric in recent years, it will be used for the transformation of existing production lines, product development, and marketing promotion. But in April this year, the new year-long loss finally forced Feng Leong to do. In response to the change, Hong Leong Asia issued an announcement explicitly declaring a divestment from Xinfei Electric, and notified Xinxiang Intermediate People's Court and business administrator in writing.
For the reasons for the divestment, Hong Leong Asia said in the announcement that Xinfei Company has been losing money since 2011. In view of the overcapacity and competition of China's refrigerators and refrigerators, the overall performance of the refrigerator industry has also deteriorated in recent years, resulting in the new company. Financial performance has been adversely affected. 'The Hong Leong Asian Board of Directors believes that if the proposed equity transfer is successful, it will reduce the losses of Hong Leong Asia's highly competitive consumer goods market in China and divest bad and unprofitable assets'.