[Text|High-tech LED reporter Ding Hui] Zhen Mingli, who has been losing money for three consecutive years, has finally succeeded in smashing the "big money"--Tongfang shares (600100.SH). Whether the combination of the two can bring a turning point for Zhen Mingli The details of the follow-up cooperation were introduced.
On January 28, 2014, Tongfang Co., Ltd. announced the resolution of the 6th meeting of the 6th Board of Directors. In order to expand the overseas business of the company's semiconductor lighting industry, the company's overseas wholly-owned subsidiary THTF Energy-Saving Holding Limited (hereinafter referred to as “THTF ES†") intends to subscribe for 100 million new shares (with a par value of HK$0.1 each) issued by Zhen Mingli Holdings Co., Ltd. (stock abbreviation: Zhen Mingli, stock code: HK1868) at a price of HK$0.9/share. The subscription price is RMB 90 million. Hong Kong dollar. Under this subscription plan, THTF ES will hold a 51.6% stake in Zhen Mingli and become its controlling shareholder.
After experiencing the approval of the Whitewash Waiver to make a full offer, the agreement on the resumption of trading on August 19 and the announcement of the placement of 1 billion new shares to Tongfang (600100, SH) has become unconditional. Upon completion, Tongfang shares and Concerted action holders hold 52.28%. At present, the transaction of Tongfang shares has been completed.
After the resumption of trading, the stock price of Zhen Mingli rose 19.1% to 1.87 yuan.
Zhen Mingli can be described as a veteran of decorative lights and Christmas lights, especially in the overseas market after years of accumulation has a certain customer base. However, the technical barriers of traditional decorative lights and Christmas lights are very low. As time goes by, there are more and more entrants in this market segment, and the price is getting lower and lower, but the huge management and channel maintenance costs of the bright and beautiful are very fast. He lost his former dominance.
The profit before interest, tax, depreciation and amortization of Zhen Mingli's 2012 fiscal year report fell from a profit of 331 million Hong Kong dollars in the fiscal year 2011 to a loss of 1.23 billion Hong Kong dollars, and has been losing money every year since then. On June 25, Zhen Mingli released its financial report for the fiscal year 2014, and its loss increased again, reaching 731 million.
In the annual report, Zhen Mingli's gross profit and gross profit margin were respectively HK$248 million and -29.5% (2013: gross profit and gross margin of HK$98.2 million and 11.9%), a decrease of 346% from the same period of last year, a decrease of 352%.
The main reasons for the losses are: 1) weak global demand, more conservative orders from customers, but the work of researching and developing novel LED products is uninterrupted, and the sales orders are very small; 2) the LED lighting industry is highly competitive, resulting in the global LED industry. Retail prices continued to fall; 3) Labor costs increased from HK$17.7 million (9% of sales) to HK$81.2 million (11% of sales) in 2013, mainly due to lower sales levels and higher average wages 4) Inventories of impairment losses of HK$251 million (2013: HK$164 million).
It is undeniable that in the context of the fierce competition in the traditional decorative lights and Christmas lights market, Zhen Mingli began to try to transform, increase the indoor lighting production line and achieved certain success in research and development. However, it cost a lot of research and development expenses. Some forward-looking and innovative LED lamps can only be placed in the bright and beautiful exhibition hall for media and customers.
An insider familiar with Zhen Mingli told reporters that the sales price of Zhen Mingli's LED lamps is almost twice that of the same type of products on the market, so the market is difficult to promote. At the same time, Zhen Mingli’s previous investment losses in Yangzhou and Vietnam caused Zhen Mingli to bear huge losses, and the Fan Banghong family’s untrustworthy foreigners’ practice has kept Zhen Mingli’s management expenses high.
A person who left Yu Mingli in the second half of 2013 even bluntly stated that during his tenure, the lighting product “sold after sale†was once the “slogan†insisted by the company’s top management. “The company’s decision makers have never been after-sales and maintenance services. Too much attention, the boss's approach is to just sell the goods, so a very direct consequence is that customer losses are getting worse."
Wu Yulin, general manager of Guangdong Kaixiou Lighting Co., Ltd. said that the management of Zhen Mingli is not sensitive enough in the process of transferring foreign markets to the domestic market. It is still inevitable to copy the business model of Taiwan to the Chinese market.
"But the dead camel is bigger than Ma. Although it is a year-round loss, it has a turnover of 841 million Hong Kong dollars, which is about 670 million yuan. It is a big size among domestic LED lighting companies." Wu Yulin said that the accumulation of technology and overseas channels for so many years is its greatest asset.
Industry insiders speculate that Zhen Mingli has been relying on accounting to maintain the surface prosperity in the past few years. In 2012, the financial loopholes were too large, so all the depreciation, amortization, dead account and other expenses were all accrued, so the loss will be 12 on the books. Billion, because the true turnover of the year was only 1.084 billion, from a financial point of view, it is reasonable to say that this will not happen. Fan Banghong may be preparing to retreat from Zhen Mingli since 2012.
For the acquisition, Lu Zhicheng, chairman of Tongfang Co., Ltd. publicly stated that there has been a certain deviation in the layout of LED business in the past few years. The previous main focus was on commercial environment lighting, and the focus on consumer lighting was insufficient. Zhen Mingli is mainly for foreign markets, and Tongfang now has neither brands nor channels overseas. Even if Tongfang is going to do it in a short period of time, it is difficult to produce results. Why not make a cost-effective acquisition.
At the same time, Lu Zhicheng has taken a look at Zhen Mingli's accredited laboratory, which can be used for product certification in the US and Europe. This will greatly shorten the time for Tongfang's lighting products to enter the overseas market in the future, and gain a time-first advantage for its rapid entry into foreign markets.
"Tongfang shares are different from the shares of Real Bright and Dehao Runda. NVC has its own channels, both in terms of products, brands and revenues. However, Zhen Mingli has always been in a state of loss, and now Tongfang shares hold Fan shares have already had no absolute say. Fan Yulin said that as long as the two companies cooperate well, there is still a good turn.
The above-mentioned insiders said that Tongfang's shares may be the shell of Zhenmingli Hong Kong-listed companies. It is difficult to find out if the Tongfang shares will be divested separately in the domestic market, but with the help of the real Hong Kong listed company's shell, there will undoubtedly be a lot of detours.
The reporter called Wang Lianghai, vice president of Tongfang Co., Ltd., after the completion of the acquisition, the follow-up integration actions of the two parties, he said that it is not convenient to disclose at this stage.
On January 28, 2014, Tongfang Co., Ltd. announced the resolution of the 6th meeting of the 6th Board of Directors. In order to expand the overseas business of the company's semiconductor lighting industry, the company's overseas wholly-owned subsidiary THTF Energy-Saving Holding Limited (hereinafter referred to as “THTF ES†") intends to subscribe for 100 million new shares (with a par value of HK$0.1 each) issued by Zhen Mingli Holdings Co., Ltd. (stock abbreviation: Zhen Mingli, stock code: HK1868) at a price of HK$0.9/share. The subscription price is RMB 90 million. Hong Kong dollar. Under this subscription plan, THTF ES will hold a 51.6% stake in Zhen Mingli and become its controlling shareholder.
After experiencing the approval of the Whitewash Waiver to make a full offer, the agreement on the resumption of trading on August 19 and the announcement of the placement of 1 billion new shares to Tongfang (600100, SH) has become unconditional. Upon completion, Tongfang shares and Concerted action holders hold 52.28%. At present, the transaction of Tongfang shares has been completed.
After the resumption of trading, the stock price of Zhen Mingli rose 19.1% to 1.87 yuan.
Zhen Mingli can be described as a veteran of decorative lights and Christmas lights, especially in the overseas market after years of accumulation has a certain customer base. However, the technical barriers of traditional decorative lights and Christmas lights are very low. As time goes by, there are more and more entrants in this market segment, and the price is getting lower and lower, but the huge management and channel maintenance costs of the bright and beautiful are very fast. He lost his former dominance.
The profit before interest, tax, depreciation and amortization of Zhen Mingli's 2012 fiscal year report fell from a profit of 331 million Hong Kong dollars in the fiscal year 2011 to a loss of 1.23 billion Hong Kong dollars, and has been losing money every year since then. On June 25, Zhen Mingli released its financial report for the fiscal year 2014, and its loss increased again, reaching 731 million.
Source: Zhen Mingli's fiscal year 2014 financial report
In the annual report, Zhen Mingli's gross profit and gross profit margin were respectively HK$248 million and -29.5% (2013: gross profit and gross margin of HK$98.2 million and 11.9%), a decrease of 346% from the same period of last year, a decrease of 352%.
The main reasons for the losses are: 1) weak global demand, more conservative orders from customers, but the work of researching and developing novel LED products is uninterrupted, and the sales orders are very small; 2) the LED lighting industry is highly competitive, resulting in the global LED industry. Retail prices continued to fall; 3) Labor costs increased from HK$17.7 million (9% of sales) to HK$81.2 million (11% of sales) in 2013, mainly due to lower sales levels and higher average wages 4) Inventories of impairment losses of HK$251 million (2013: HK$164 million).
It is undeniable that in the context of the fierce competition in the traditional decorative lights and Christmas lights market, Zhen Mingli began to try to transform, increase the indoor lighting production line and achieved certain success in research and development. However, it cost a lot of research and development expenses. Some forward-looking and innovative LED lamps can only be placed in the bright and beautiful exhibition hall for media and customers.
An insider familiar with Zhen Mingli told reporters that the sales price of Zhen Mingli's LED lamps is almost twice that of the same type of products on the market, so the market is difficult to promote. At the same time, Zhen Mingli’s previous investment losses in Yangzhou and Vietnam caused Zhen Mingli to bear huge losses, and the Fan Banghong family’s untrustworthy foreigners’ practice has kept Zhen Mingli’s management expenses high.
A person who left Yu Mingli in the second half of 2013 even bluntly stated that during his tenure, the lighting product “sold after sale†was once the “slogan†insisted by the company’s top management. “The company’s decision makers have never been after-sales and maintenance services. Too much attention, the boss's approach is to just sell the goods, so a very direct consequence is that customer losses are getting worse."
Wu Yulin, general manager of Guangdong Kaixiou Lighting Co., Ltd. said that the management of Zhen Mingli is not sensitive enough in the process of transferring foreign markets to the domestic market. It is still inevitable to copy the business model of Taiwan to the Chinese market.
"But the dead camel is bigger than Ma. Although it is a year-round loss, it has a turnover of 841 million Hong Kong dollars, which is about 670 million yuan. It is a big size among domestic LED lighting companies." Wu Yulin said that the accumulation of technology and overseas channels for so many years is its greatest asset.
Industry insiders speculate that Zhen Mingli has been relying on accounting to maintain the surface prosperity in the past few years. In 2012, the financial loopholes were too large, so all the depreciation, amortization, dead account and other expenses were all accrued, so the loss will be 12 on the books. Billion, because the true turnover of the year was only 1.084 billion, from a financial point of view, it is reasonable to say that this will not happen. Fan Banghong may be preparing to retreat from Zhen Mingli since 2012.
For the acquisition, Lu Zhicheng, chairman of Tongfang Co., Ltd. publicly stated that there has been a certain deviation in the layout of LED business in the past few years. The previous main focus was on commercial environment lighting, and the focus on consumer lighting was insufficient. Zhen Mingli is mainly for foreign markets, and Tongfang now has neither brands nor channels overseas. Even if Tongfang is going to do it in a short period of time, it is difficult to produce results. Why not make a cost-effective acquisition.
At the same time, Lu Zhicheng has taken a look at Zhen Mingli's accredited laboratory, which can be used for product certification in the US and Europe. This will greatly shorten the time for Tongfang's lighting products to enter the overseas market in the future, and gain a time-first advantage for its rapid entry into foreign markets.
"Tongfang shares are different from the shares of Real Bright and Dehao Runda. NVC has its own channels, both in terms of products, brands and revenues. However, Zhen Mingli has always been in a state of loss, and now Tongfang shares hold Fan shares have already had no absolute say. Fan Yulin said that as long as the two companies cooperate well, there is still a good turn.
The above-mentioned insiders said that Tongfang's shares may be the shell of Zhenmingli Hong Kong-listed companies. It is difficult to find out if the Tongfang shares will be divested separately in the domestic market, but with the help of the real Hong Kong listed company's shell, there will undoubtedly be a lot of detours.
The reporter called Wang Lianghai, vice president of Tongfang Co., Ltd., after the completion of the acquisition, the follow-up integration actions of the two parties, he said that it is not convenient to disclose at this stage.
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