Fang Hongbo: After the merger and reorganization, it will further strengthen the size of the swan

On the evening of October 23, Midea Group and Little Swan A (000418) officially announced that Midea Group intends to issue 342 million shares, and convert shares to absorb Little Swan. According to the conversion price, the transaction amount reached 14.378 billion yuan. It is reported that After the completion of the share swap and absorption, Midea Group or its wholly-owned subsidiary will inherit and undertake all the assets, liabilities, business, personnel, contracts and all other rights and obligations of Little Swan. After the merger and absorption, the control of Midea Group The right does not change.

40 years of wholeheartedly, the little swan re-takes off

When it comes to domestic washing machines, Little Swan is a well-deserved industry leader. A 'heart-round little swan' runs through the memory of generations. In fact, before the beauty of the United States, the Little Swan also experienced a decline and a drastic change. Business integration, at the beginning of 2008, Midea Group acquired Wuxi Guolian Group's 24.01% A shares of Wuxi Guolian Group in the way of 1.68 billion yuan. It also fully shows the sincerity of the United States and the confidence of Little Swan.

After ten years of fingering, Little Swan successfully completed the industrial restructuring after being included in the US's 'print', and ushered in the rebirth of the brand. The Little Swan 2018 semi-annual report showed that the operating income in the first half of 2018 was 12.06 billion yuan, a year-on-year increase. 14.1%; net profit of returning to mother is 90 million yuan, up 23.3% year-on-year; basic earnings per share is 1.43 yuan, the company's revenue and profit continued to grow steadily. Gross profit margin was 26.6%, up 1.0 percentage point year-on-year, net profit margin was 8.3%, up 0.4 Percentage points, the company's profitability improved year-on-year. Its own funds of 13.5 billion yuan, an increase of 13.1%.

Among them, in the first half of 2018, the domestic sales revenue was 8.75 billion yuan, up 16.6% year-on-year, and the domestic gross profit margin was 32.8%, up 1.0 percentage point year-on-year. The export business income was 2.46 billion yuan, up 12.3% year-on-year, and the gross profit margin was 12.0%. Increase by 0.2 percentage points. According to customs statistics, the company's export volume and export share are both in the leading position in the industry. This performance has far surpassed the most brilliant period of the United States before entering the Little Swan.

Fang Hongbo: We will further strengthen the size of the swan

In fact, the reorganization of Midea and Little Swan is also expected in the industry. Since the two parties completed the acquisition in 2008, both the United States and Little Swan have maintained the parent-sales model operation, and their business has relative independence, and through assets. With the restructuring of the business, the two parties will conduct business integration more effectively.

After the completion of the merger, Midea will be based on the development of Little Swan in the washing machine industry, achieving internal synergy in terms of brand, scale, R&D, user, globalization, etc. At the same time, Little Swan will benefit from Midea Group in various fields around the world. Strategic layout and channel advantages, further integrated into the broad platform for the development of the whole category of the US Smart Home System, thereby enhancing the strength of international development.

It is worth mentioning that although this reorganization means that Midea will absorb Sunshine through the share swap, Little Swan's original R&D, marketing, channel, after-sales, production system remains unchanged, its registration place, employee employment, and profits and taxes. Still in Wuxi.

Midea Group (000333), Chairman of Little Swan A (000418) Fang Hongbo said that after the reorganization, Wuxi will be the headquarters of the washing machine business of the Midea Group, and Little Swan and its Beverly trademark will continue to be used. The United States will continue to increase. In the investment in R&D and manufacturing in Wuxi, we will further strengthen the size of the swan and transform the Little Swan into an excellent national brand with global competitiveness for the high-end market. At the same time, it does not rule out the use of the US platform to realize Little Swan in the whole appliance category. The full force on the product.