The white goods industry is about to usher in great changes, and Galanz, the king of microwave ovens, plans to acquire Whirlpool China.
On August 23rd, the China listed company of Whirlpool Group, one of the largest manufacturers of household appliances in the world, announced that Galanz Household Appliances was planning some tender offer matters, and this acquisition was not aimed at terminating the company's listing status, but it may lead to changes in the control rights of listed companies. Market participants believe that Galanz's acquisition is intended to be listed on the backdoor.
Whirlpool receives Galanz tender offer, and the control right of listed company changes.
On August 23rd, Whirlpool announced that the company received a written notice from Guangdong Galanz Household Appliance Manufacturing Co., Ltd. on August 2nd, 2020. Based on its confidence in the company's future development prospects and recognition of the company's investment value, it is planning some tender offer matters. This tender offer is not aimed at terminating the company's listing status, which may lead to changes in the control rights of listed companies.
Due to the uncertainty of this tender offer, in order to ensure fair information disclosure, safeguard the interests of investors and avoid abnormal stock price fluctuations, upon the application of the company, the company's shares will be suspended from early trading on August 24, 2020 for no more than two trading days, and will resume trading on August 26, 2020 at the latest.
It is worth noting that Whirlpool also issued another announcement that the Board of Supervisors recently received a written resignation report submitted by Ms. Yuan Fenglan, Chairman of the Board of Supervisors. For personal reasons, Ms. Yuan Fenglan applied to resign as the supervisor and chairman of the seventh Board of Supervisors.
According to relevant laws and regulations and the Articles of Association, Ms. Yuan Fenglan's resignation will not cause the number of members of the company's board of supervisors to be lower than the statutory minimum number, and will not affect the normal operation of the company's board of supervisors. Her resignation report will take effect as of the date it is delivered to the company's board of supervisors. The Company will complete the by-election of supervisors as soon as possible in accordance with relevant laws and regulations and the Articles of Association.
Before Galanz announced its intention to acquire Whirlpool on August 23rd, Whirlpool had taken the lead in daily limit on August 2nd1day, and rose by about 6.28% on August 20th, with a cumulative increase of about 17.0 1% in two days. Up to now, Whirlpool's total market value is 4.852 billion yuan, and its share price is 6.33 yuan/share.
Whirlpool China's "acclimatization" performance is worrying, and its net profit in the first half of the year decreased by 93% year-on-year
According to public information, Whirlpool China owns four brands, namely Whirlpool, Sanyo, Didu and Rongshida, and its business covers more than 40 countries and regions around the world, covering white goods such as refrigerators and washing machines, as well as kitchen appliances and household appliances. The company was formerly known as Hefei Rongshida Sanyo Electric Appliance Co., Ltd. (Hefei Sanyo), and was reorganized by strategic cooperation with Whirlpool Group of the United States in 20 14.
Whirlpool Group is one of the largest manufacturers of large household appliances in the world. It was founded in191/and is headquartered in Pentium Port, Michigan, USA. It owns Whirlpool, KitchenAid, Jennair, Royalstar and Diqua (. The business covers more than 70 countries and regions around the world, and there are 59 production bases, R&D centers and design centers around the world. According to the data of Aowei Cloud, in 20 19, whirlpool air conditioning became the first foreign brand in China market.
On August 20th, Whirlpool released the interim financial report for 2020. During the reporting period, the company achieved an operating income of 2156 million yuan, a decrease of 20% compared with the same period of last year. With the improvement of domestic epidemic situation, the income in the second quarter rose sharply, reaching1274 million yuan, a quarter-on-quarter increase of 44%. In the first half of 2020, the export situation was good, and the revenue reached1406 million yuan, a quarter-on-quarter increase of 20%, which exceeded domestic sales as a whole.
In the first half of the year, the company realized a net profit attributable to shareholders of listed companies of-1.1600 million yuan, which was 93% lower than the same period of last year, but increased by 92% quarter-on-quarter. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was-10.30 billion yuan, down 44% from the same period of last year and up 80% quarter-on-quarter. The net profit narrowed sharply from a loss of107 million in the first quarter to a loss of 09 million in the second quarter.
In addition, the company's effectiveness in reducing costs and increasing efficiency partially offset the pressure of price and product structure in the first half of the year. With the traffic recovery of offline stores, the product structure began to improve in the second quarter. In the first half of the year, the company invested resources to promote digital transformation. The implementation of strict cost control has reduced the overall operating costs. In the first half of the year, cash flow from operating activities was-739 million yuan, down 30% from the same period of last year and up 67% from the previous quarter.
However, for a long time, Whirlpool's operating performance is not very impressive. Since 20 16, the total operating income has been declining year by year, and the performance of net profit is unstable. Total operating income in 20 19 was 5.282 billion yuan, down15.97% year-on-year; The net profit of returning to the mother was 323 million yuan, a year-on-year decrease of 223.3%; The net profit returned to the mother after deduction was 3.82%, a year-on-year decrease of 5707%.
Regarding the main reason for the performance loss, Whirlpool said that domestic sales accounted for more than half of the consolidated income in 20 18 and previous years, among which "Sanyo" brand product sales accounted for a large proportion of domestic income. As the brand use right of "Sanyo" expired on 20123, Whirlpool 20/kloc
Due to the huge loss of performance in 20 19, the after-sales problems are outstanding, and household appliances frequently appear on the black list of quality. In February, 2020, a household gas water heater in Whirlpool China was found to be unqualified by the Beijing Municipal Market Supervision Administration. Therefore, some people in the industry said that "the century-old American home appliance brand has lost the China market". For Whirlpool, whether Galanz can "revitalize" it at this time is still unknown.
In the first half of the year, the home appliance market was sluggish, and Whirlpool's ice washing shipments increased year-on-year
In the first half of 2020, the persistent environmental factors, such as the long-term overall market downturn, sluggish consumer demand at the retail end and dull market performance, were further amplified by the novel coronavirus epidemic.
The data shows that in the first half of 2020, the domestic market sales scale of China household appliances industry was 336.5 billion yuan, down18.4% year-on-year; The cumulative export scale was187 billion yuan, up by 4.2% year-on-year. With the gradual weakening of the impact of the epidemic on the China market, the domestic sales of household appliances industry also picked up in the second quarter, and the export situation was better than expected. The spread of the epidemic in COVID-19 has continuously had a negative impact on the offline sales, R&D and manufacturing of household appliances in China, especially large and traditional household appliances. In this context, the effectiveness of the national consumption stimulus and economic recovery policy has gradually become prominent, the offline market has gradually recovered and adjusted, and the new consumption pattern of online and offline integration has accelerated, bringing new sales opportunities to the home appliance industry.
In the context of the overall decline of the ice washing industry in the first half of the year, Whirlpool's ice washing shipments in the second quarter increased significantly year-on-year, and the overall shipments increased by 23% year-on-year. According to Ovi data, in the first half of 2020, the offline sales of Whirlpool washing machines increased by 12% year-on-year, and the sales share increased by1.3% year-on-year; Whirlpool washing machine offline retail market share increased by 0.88% year-on-year, Whirlpool brand share increased by 0.9%, and the growth rate was 25% ahead of the broader market; Whirlpool ice washing e-commerce GMV (online turnover) reached 56.98 million, a year-on-year increase of 29%, making it the fastest growing foreign brand in the industry.
In the offline channel in the second quarter, Whirlpool drum washing machine performed well in the middle and high-end (above 6000 price range), and its market share increased, mainly due to the contribution of new light series and Emperor H series products. In June, the monthly sales of Whirlpool brand self-operated flagship store exceeded 10 million, and the sales of Tmall reached 1 4110,000 on June18, and the sales increased by 104% year-on-year.
Whirlpool said that at present, China's home appliance industry is transforming into high-end, intelligent and energy-saving through industrial upgrading, and the high-cost market, which is mainly based on online channel expansion, is also expanding rapidly. The enthusiasm of young consumers for creating a tasteful life and a healthy life through high-end home appliances is on the rise. Home appliance enterprises continue to rely on "intelligent manufacturing+product upgrading" to get rid of price competition, and differentiation and refinement have become the watershed of competition.
Repeated financial fraud was punished by the CSRC.
It is worth mentioning that Whirlpool not only has problems in its business operations, but also has many performance frauds and was punished by the CSRC.
On July 3 1 day, Whirlpool announced that the company and related responsible persons were punished for false records in the annual reports of 20 15 and 20 16. The penalty decision shows that in 20 15 and 20 16 years, Whirlpool inflated its operating income by 245 million yuan and inflated its profits by 223 million yuan by making false sales orders, recording operating costs less, delaying the confirmation of sales expenses and recording sales discounts less.
Anhui Supervision Bureau of China Securities Regulatory Commission said that after Whirlpool found the company's illegal behavior in this case, it reported it to our bureau in time, corrected its own illegal behavior, mitigated the related harmful consequences, and gave the parties in this case a lighter punishment according to law. The CSRC imposed a fine of 400,000 yuan on Whirlpool, and imposed different degrees of fines on the relevant responsible persons.
However, this is not the first time that Whirlpool has designed financial fraud. Prior to this, on May 3, 20 18, Whirlpool China was investigated by the Securities and Futures Commission for alleged fraud in net profit.
Why does Galanz, the king of microwave ovens, take a fancy to Whirlpool, and the two may complement each other to achieve a win-win situation?
Galanz is an out-and-out "king of microwave ovens". It is reported that Guangdong Galanz Group Co., Ltd. (hereinafter referred to as "Galanz") is a comprehensive provider of white goods and smart home solutions, and one of the leading enterprises with extensive international influence in China's home appliance industry.
1992, with the ambition of making China brand proud in the microwave oven industry and letting microwave ovens enter the families of ordinary people in China, Galanz boldly broke into the home appliance industry. In the past 10 years, Galanz microwave ovens have rapidly developed from the first in China to the first in the world: 1993, Galanz trial-produced microwave ovens 1 10,000 units; 1995, ranking first in China market with a market share of 25. 1%; 1999, the production and sales exceeded 6 million units, making it the largest professional microwave oven manufacturer in the world; 200 1 year, global production and sales soared to12 million units; By 2006, Galanz had been the first double champion in China microwave oven market for 12 years in a row, and the export sales and foreign exchange earning of microwave ovens for 9 years in a row. China's brand power index SM(C-BPI? In the ranking, Galanz continuously maintained the first place in the brand power of microwave oven industry.
In the past ten years, Galanz has changed from a microwave oven manufacturer to a comprehensive white goods group. By the end of 20 191February, Galanz brand had been registered in more than 50 countries and regions around the world. In 20 19, Galanz products and services were supplied from China and Guangdong to nearly 200 countries and regions around the world. The data shows that Galanz's home appliance exports have maintained positive growth since June, and exports in July increased by nearly 60% year-on-year.
At present, Galanz's products mainly include microwave ovens, electric steaming ovens, steaming ovens, micro-steaming and baking machines, ovens, air conditioners, refrigerators, washing machines, dishwashers, rice cookers, high-speed blender, water heaters, gas cookers, range hoods and other fine electrical appliances, which have achieved innovative development in the fields of household appliances, kitchen appliances and Internet of Things appliances.
So why did Galanz choose to acquire Whirlpool with dim business at this time?
In fact, judging from the main business categories of the two companies, Galanz's acquisition of Whirlpool will help to realize the complementarity between the main business categories. After all, Whirlpool China has certain advantages in Baijiadian categories such as refrigerators and washing machines. In addition, in recent years, Whirlpool China has also begun to expand its kitchen appliances business, which is in line with Galanz's main business.
Therefore, Whirlpool, which is deeply mired in losses, is in urgent need of blood transfusion for redemption and complementary resources; Galanz can take this opportunity to vigorously lay out the white goods business, realize the layout of all household appliances and the whole industrial chain, expand the China market, and become bigger and stronger, which can be described as a win-win situation.
In addition, the reason why Galanz's tender offer for Whirlpool has attracted the attention of the industry is that Galanz has not been listed yet, and its IPO process has always been the focus of market attention.
If Galanz buys Whirlpool China, or promotes the listing process, it may be possible to re-inject Galanz's assets into Whirlpool in the future, so as to realize Galanz's overall listing and "backdoor listing". At the same time, the subsequent capital operation of the two also leaves room for imagination for the market.