Hong Shibin, an industry observer, believes that Konka is not an absolute leader in black power. Although white power is now relatively profitable, the three major white-box companies in the US stock market, Gree, and Haier occupy an advantageous position. Konka acquires Xinfei Electric to become bigger and stronger. Not easy.
Since the establishment of Konka Group, which has been in existence for 38 years, is entering 'midlife', it is still to be seen whether it will be able to acquire Xinfei Electric to obtain 'New Flying'.
Konka's white power business in 2017 only contributed 5.56% of revenue
On June 29, one hour before the auction of Xinfei Electric's bankruptcy reform bid, Konka Group, with auction number F8731, took a bid of RMB 455 million. This made the only bidding company X5091 that was bidding for a price of 450 million yuan (upset price) unprepared. In the end, Konka Group won the highest price.
Alibaba’s judicial auction website shows that Konka Group has won a bid for Henan Xinfei Electric Appliance Co., Ltd., Henan Xinfei Refrigerator Appliance Co., Ltd., and Henan Xinfei Home Appliances Co., Ltd. for a total of 455 million yuan. This includes the brand, patents and related fixed assets. assets.
Why does Konka take over on the verge of bankruptcy of the new fly electrical appliance? Konka said that the acquisition of Xinfei Electric can quickly expand the scale of the industry in the field of white electricity, to achieve the brand's 'Konka + Xinfei' dual-brand collaboration, bigger and stronger White business, improve profitability.
The Konka Group's subsidiary Anhui Konka Tongchuang Electric Appliance Co., Ltd. is mainly responsible for the production and sale of refrigerators, washing machines and other household appliances (ie, white power business). In 2008, Konka Group had high-profile announced that it would use white power as the three pillar industries of Konka Group. Sales exceeded RMB 2 billion. However, over the years, the performance of Konka's white-metal business has been average. From 2015 to 2017, Konka Group's white-business revenues were 1.570 billion yuan, 1.702 billion yuan and 1.737 billion yuan respectively, accounting for 8.53% and 8.38%, respectively. , 5.56%.
Zhou Bin, president of Konka Group, said that although Xinfei Electric has been in a development dilemma for various reasons in recent years, Xinfei Refrigerator is at the domestic advanced level in the research and development capabilities and product line of high-volume products such as large volume, air-cooled and variable frequency. The development and manufacturing capabilities of Xinfei Freezer are also very competitive. The new flight product line is complete, the industry brand awareness is high, the brand value, research and development capability, production equipment, talent team, etc. are all in the high-speed development period of Konka White Power. Greater attraction.
Liang Zhenpeng, a home appliance analyst, believes that brands, production lines and sales network systems are all new flying values. Konka will take over the industry competitiveness of its white goods business.
However, Hong Shibin, an industry observer, believes that Konka is not an absolute leader in black electricity. Although white gold has higher profits, the three major white power companies in the stock market are beautiful, Gree and Haier occupy a dominant position. Konka acquires Xinfei Electric to make it stronger and stronger. It is not easy.
Konka does not have to bear the debts of Xinfei Electric before re-consolidation
Judging from the civil ruling of the Xinxiang City Intermediate People's Court, Xinfei Electric had total assets of 1.156 billion yuan as of December 31, 2016, total liabilities of 1.503 billion yuan, asset-liability ratio of 130%, and net assets of -3.47. 100 million yuan; Xinfei Refrigeration as of December 31, 2016, its total assets of 759 million yuan, total liabilities of 953 million yuan, asset-liability ratio of 125%, net assets of -94 million yuan; Xinfei home appliances as of 2016 On December 31, its total assets were 454 million yuan, total liabilities were 523 million yuan, asset-liability ratio was 115%, net assets were -6,844,500 yuan; total net assets reached -6 million yuan.
According to the “Xinfei Electric Appliance Reconstruction Plan”, the total credit amount of Xinfei Electric Appliances totaled 2.239 billion yuan. The asset valuation of Xinfei Company was only 1.098 billion yuan at the deadline for submission of the draft reorganization plan.
Regarding the problems of the new Feifei’s liabilities facing Konka, Xinfei Electrical Manager, Beijing Jindu Law Firm’s lawyer Shen Yuxi explained to the Beijing News reporter that “Konjia does not need to assume the debt of Xinfei Electric before restructuring and acceptance, 455 million yuan. And the amount of disposal of other assets, will be in accordance with the reorganization plan, after the payment of common-benefit debts and bankruptcy expenses, according to the proportion of ordinary claims to pay off.
'Subsequent convergence, resumption of work, market recovery all require manpower and time. Konka has high expectations for Xinfei brand. I believe that with Konka's funds, management experience, technology and marketing channels, we can restore the influence of Xinfei brand as soon as possible. Market share. 'Xinfei Electric Appliance Manager, Shen Yujun, a lawyer at Beijing King & Wood Law Firm, told the Beijing News reporter.
Liang Zhenpeng believes that 'how to revitalize the assets of Xinfei Electric, use the brand of Xinfei Electric, the production line, make the old and old home appliance brand brand new, and be accepted by young consumers after 80, 90. These are the comparisons that Konka faces. Big challenge. '
■ Observation
Black electricity acquisition of white electricity is gradually becoming a trend
In recent years, the overall growth of the domestic TV market has been sluggish. IHS Markit data shows that global TV shipments in 2017 decreased by 3.4% year-on-year. According to data from China Yikang Times Market Research Co., Ltd., retail sales of domestic TVs in 2017 decreased year-on-year. 8.1%. The revenue of color TV business of Konka Group in 2017 also dropped from 12.478 billion in 2016 to 11.795 billion, and the revenue ratio decreased from 61.47% to 38.41%.
For some time, in the domestic appliance market, 'white' strong 'black' weakness has become a consensus in the industry. The profit rate and market growth rate of white power companies are higher than black power companies. The concentration effect of white power industry has become more obvious, relevant figures show , The top five market share in the refrigerator industry has risen rapidly from 72% in 2016 to 78% in 2017.
Konka also stated 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 All above the color TV industry.
As a result, in the home appliance industry, black-and-white acquisition of white electricity has gradually become a trend. Xinfei Electric and Haier, Rongsheng, and Meiling are also known as the 'Four Golden Flowers' in the refrigerator brand world. Nowadays, Rongsheng, Meiling and Xinfei all have Join the Black Power Enterprise.
At the end of 2006, the black power enterprise Hisense Group successfully acquired Kelon Electric Co., Ltd. and changed its name to Hisense Kelon.
In 2008, Sichuan Changhong, a black power company, became the largest shareholder of Meiling Electric, a white-power company. On the evening of June 4th this year, Meiling Electric issued an announcement that it plans to change its full name from 'Hefei Meiling Co., Ltd.' to 'Changhong Meiling Co., Ltd.' Co., Ltd., at the same time, intends to change the company's A-share securities from 'Meiling Electric' to 'Changhong Meiling'.
Today, Konka also hopes to leverage on its acquisition of the former star company Xinfei Electric to increase its white-light business and increase its profitability.
■ Focus
Selling equity for two years earns 5 billion
In recent years, Konka Group’s earnings have fluctuate greatly. According to financial data, Konka Group's revenue for 2013-2017 was 20 billion yuan, 19.4 billion yuan, 18.4 billion yuan, 20.3 billion yuan, 31.2 billion yuan; net profit attributable to 45.82 million yuan, 52.62 million yuan, -1.26 billion yuan, 95.67 million yuan, 5.06 billion yuan. Corresponding deducted net profits were -69.01 million yuan, -4.75 billion yuan, -11.3 billion yuan, -283 million yuan, - 97.28 million yuan.
The net profit attributable to the company increased from RMB 95.67 million in 2016 to more than RMB 5 billion. For the reason for the sudden increase in profit, Konka Group stated that it was due to adjustments in the company’s management system, business structure, and incentive systems.
It is noteworthy that the Beijing News reporter found in his 2017 annual report that the company’s non-recurring profit and loss amounted to RMB 5.154 billion, which was mainly due to the company’s return on the proceeds from the transfer of 70% equity of Shenzhen Kangqiao Jiacheng Real Estate Investment Co., Ltd.
In November 2017, Konka Group announced that 70% of the shares of Shenzhen Kangqiao Jiacheng Real Estate Investment Co., Ltd. were publicly listed on the Beijing Equity Exchange. The highest quotation generated by this dynamic quotation activity was 6.980 billion yuan. Jiacheng Company calculated based on the book net assets as of October 31, 2017. If the transaction is finally completed at RMB 6,980 million, the investment income from disposal of long-term equity investment is expected to be RMB 6.35 billion.
The Beijing News reporter noted that the 2015 annual report showed that Kangqiao Jiacheng was jointly established by Konka Group in January 2015 with OCT Group, with a registered capital of RMB 1 billion, of which Konka subscribed RMB 700 million, accounting for registered capital. 70% of the controlling parent company OCT Group subscribes RMB 300 million, accounting for 30% of the registered capital.
■ Trend
'One hundred billion revenue' long road
The Konka Group, which was caught in the 'midlife crisis,' did not 'serve the old', while pursuing the sale of equity, but also involved in environmental protection, chips and other areas, seeking to diversify development.
In May of this year, Konka Group announced the establishment of a new environmental protection technology division, the Semiconductor Technology Division, focusing on semiconductor design, semiconductor manufacturing, semiconductor equipment, semiconductor materials, and other aspects. 'Hope to use 5-10 years to enter the international excellent semiconductor The company is committed to becoming the top 10 semiconductor companies in China with annual revenue of over 10 billion yuan. ' At that time, the president of Konka Group said that Konka will transform into a platform-based company driven by technological innovation.
Konka said that the announcement of its entry into the environmental protection and semiconductor businesses has not slowed down its rapid expansion in the home appliance sector. The acquisition of Xinfei not only further strengthens the foundation of Konka's own home appliance industry, but also further promotes its home appliance business. Five years to achieve the strategic goal of revenue of 100 billion.
However, people in the industry believe that the investment in the semiconductor industry is large, the revenue cycle is long, and the home appliance industry is in a long-term downturn. Konka Group's 'one hundred billion revenues' is a long road.
This edition was written by the Beijing News reporter Chen Weicheng