Konka's acquisition of the new flight, what is the story behind, how to achieve dual brand operation?
He Jianjun, vice president of the white goods business of Konka Group, revealed the details of the acquisition of Xinfei and its future plans for the first time in an exclusive telephone interview with the First Financial Journal on July 1. He said that Konka’s acquisition has undergone detailed due diligence. The investigation, operated by mixed ownership, is for a more flexible mechanism and a shared risk.
He Jianjun also said that Konka will not participate in the bidding for other land assets that Xinfei has auctioned.
'Love' for more than half a year
On June 29, the main body that successfully bid for 100% equity of Xinfei Electric Appliance for 455 million yuan was not Konka Group, but the joint venture company of Kangjia Holdings, 'Anhui Konjia Electrical Technology Co., Ltd.', which was owned by Konka 51%, by private enterprises. Ganzhou Hanshang Electric holds 49%.
Why do you join hands with private enterprises to operate together? He Jianjun explained that this is due to two considerations. First, the State-owned Assets Supervision and Administration Commission, Konka’s major shareholder, OCT, has called for the promotion of mixed ownership reform this year. Second, from the recovery of the new flying brand, there are certain risks. Konka and Hanshang Electric's controlling company Huacai Electric Co., Ltd. is a partner for many years. Everyone joins hands to acquire and introduce private capital. The mechanism is more flexible, more efficient, and the risks can be shared.
Looking back at the acquisition process, He Jianjun revealed that Konka had contacted Xinfei as early as when Singapore's Hong Leong Group took control of the new flight, because the price did not reach a consensus and was suspended. Later, Xinfei was not well managed and production stopped. Konka has been Concern. Around November last year, Xinfei issued a bankruptcy reorganization announcement, Xinfei restructuring manager and Konka got in touch, Konka expressed the desire to purchase for the first time.
This rumor involved in the bidding for the new flight, including Gome, Wanbao, why did the final Konka win? He Jianjun said that the new fly was reorganized twice. The first time Konka did not complete the legal procedures, the Hong Leong Group returned, but Later, he gave up. The second new flight was divided into two asset package auctions. Konka participated in the auction and took the first asset package at a price higher than the reserve price of 5 million yuan. 'This is the legal process, there is no choice for it. , I choose it. 'From the auction website, another company participating in the auction is Wanbao. Because the auction has to pay a security of 100 million yuan, some companies may be concerned about risks, and ultimately did not participate in the bid.
Konka is not afraid of risk? He Jianjun revealed that Konka has done detailed asset evaluation and due diligence. 'Now just buy the asset package, there is uncertainty about how to operate, not completely risk-free.' This asset package, including the new flight The factory, land, equipment and intellectual property of the two production bases of refrigerators and freezers. 'Kangjia hopes to use these assets, expand production capacity, realize dual-brand operation, and quickly expand and strengthen Konka's white electricity business. This is our goal.'
How to operate dual brands
The reason for the resolute shot, because there is complementarity between Konka and Xinfei. He Jianjun said that Xinfei has a freezer business, Konka has no freezer capacity; Xinfei's export business, large-capacity refrigerator, stronger than Konka's original white electricity business, both sides There are complementarities. Of course, whether Xinfei needs technical transformation, equipment upgrade, what products to sell in the future, where to sell, how to sell, but also need to discuss, there is some complexity.
He revealed that Konka's acquisition of Xinfei Electric, the brand covers refrigerators, freezer products. Xinfei brand uses scattered, air-conditioning, small appliances and other categories of the new flying brand use rights, not in the company of Xinfei Electric. Recently bankruptcy reorganization, There is also some damage to the new flying brand.
Then, the purchase price of 455 million yuan, the value? He Jianjun believes that first, Konka has done a detailed asset assessment, this pricing is in line with legal procedures; In addition, Xinfei brand operating space is large, now the price is 50 million yuan. 'If double brand to do Up, it is definitely worth it; if the double-brand operation fails, we have to bear the corresponding management responsibility. 'Kangjia has experience in the white-light industry, it is easier to find the complementarity between the two sides and achieve synergy.
As for the division of labor between the two brands, He Jianjun said, 'Xinfei and Konka have different brand values in different channels to maximize value. ' Konka brand will be covered in all white goods products. And Xinfei brand, in refrigerators, freezer In the product field, in the e-commerce, supermarkets, agents, townships, export, OEM and other channels, will try to maintain integrity, in order to maximize brand value and synergy.
However, the first step is to receive assets, inventory, verify, and account Maximize value.
He Jianjun revealed that Kang Jiayi had received the notice of winning the bid. On June 30th, he had sent people to communicate with Xinfei left-behind employees to check the assets of Xinfei. The two-way selection of personnel will be carried out as soon as possible, and the team will be formed. Then the team will be used to formulate the production and operation plan. In the process, it also includes communication and coordination between the two parties. 'We still hope to integrate, instead of 'new flying is new flying, Konka is Konka'. '
Can Konka White Power be 'new fly'
The outside world has some different voices on the acquisition of the new flight by Konka. It believes that it will also bear the burden of its 2.2 billion yuan debt and personnel resettlement. In this regard, He Jianjun clarified that Konka does not need to undertake the debt and personnel placement of the new flight. The price of the package auction will be used by the Xinfei restructuring manager to handle the debt through the creditors' meeting, personnel issues.
Some of the new land, factory buildings and buildings will be auctioned for another 115 million yuan. He Jianjun clearly told the First Financial Reporter that Konka will not continue to participate in the bidding. 'The new land of the new building, we do not participate in the bidding Now that the land plant is sufficient, if it does not reach the peak of the highest output in the short term, we will consider focusing on one place. Because Konka has now acquired the second part of the new Feifei Electric Appliances Co., Ltd., one of the three refrigerator and freezer production bases. The office building of the Ministry, R&D Building Konka does not. We will also consider the market size to match the personnel, it is impossible to maximize at once, we are responsible for the business performance, too many fixed assets are not the most suitable.
In addition to the refrigerator, will Konka take this acquisition to expand its other white electricity business? He Jianjun said that because washing machines, air conditioners, and small household appliances are not currently in Xinfei Electric, Konka will communicate with Xinxiang Municipal Government of Henan Province as soon as possible to see if Uniform arrangements, otherwise the promotion of Xinfei brand will be affected. 'This not only looks at us, but also sees whether Xinfei City, the holder of Xinfei brand, can support our development.'
The competition pattern of the 'one super and strong' in the refrigerator industry has been formed. Haier is in the refrigerator industry, a big one, the United States, Hisense Rongsheng, Changhong Meiling, Dr. Siemens and many other group forces are chasing after it. Can Konka revitalize the new flight and achieve white? Leap-forward development of electric business? He Jianjun admits that Konka's position in the white electricity industry is not high. This acquisition of new flying is to enter the ranks of 'more strong'. 'Our own market share is not high, I hope Konka, new fly Add up, enter the ranks of the strong, Xinfei has reached the second place in the industry. '
The acquisition of Konka and the private enterprises together to operate, not only meet the requirements of mixed reform, the mechanism is more flexible, can be risk-sharing. He Jianjun revealed that Xinfei's operation is not necessarily successful in the short term. Now the white power industry is concentrated, Konka Established a joint venture with Huacai Electric Co., Ltd. to hold 100% equity of Xinfei Electric. In the future, Konka and Huacai have cooperation space in centralized procurement, sales channels and production coordination, which can better achieve scale effect. Business cooperation, now has a capital bond. '
Can Baidian become the second tens of billions of industries after color TV? He Jianjun said that it is difficult for a listed company to give a specific answer, but Baidian is already the second leading product of Konka. Through the means of capital operation, it is believed that Konka White Business will soon be on a new level.