Gree Dong Mingzhu wants to swallow Zhuhai Yinlong intended lithium battery

Gree Electric revealed the latest progress in the acquisition of Zhuhai Yinlong New Energy Co., Ltd. (hereinafter referred to as: Zhuhai Yinlong) on the evening of July 4. Gree Electric intends to issue shares to all shareholders of Zhuhai Yinlong to acquire its total 100 % equity, and plans to issue shares to no more than 10 specific investors, including employee shareholding plans, to raise funds.

This means that Gree Electric intends to swallow Zhuhai Yinlong in one fell swoop. Prior to this, Dongmingzhu, chairman and president of Gree Electric, had revealed that the acquisition of Zhuhai Yinlong was not to build a new energy car, but to see the advantages of its lithium battery. The relevant person in charge of Gree Electric said that the acquisition is still under way and many things may change at any time, subject to the final announcement.

The downturn in the home appliance industry led by air conditioning has made home appliance giants increasingly eager to play cross-border. However, the style and logic of the giants across borders are not the same. The above relevant person in charge of Gree told reporters that Gree's cross-border is a technology-related diversity.

To swallow Zhuhai Yinlong

On March 7, Gree Electric, which had been suspended for nearly half a month, announced for the first time that the target of the proposed acquisition was Zhuhai Yinlong. The preliminary judgment did not constitute a major asset reorganization. However, it has not been clear how many shares will be acquired.

On the evening of July 4, Gree finally solved the mystery and plans to acquire 100 % equity in Zhuhai Yinlong through the issuance of shares, and plans to raise funds through the issuance of shares.

Gelidongmingzhu wants to swallow zhuhai silver long intended for lithium batteries rather than electric cars?

According to industry and commerce data, Zhuhai Yinlong currently has 20 corporate legal person shareholders, including listed companies such as Beiba Media and Zhongyeda.

According to public information, Zhuhai Yinlong is a professional engaged in the production and research and development of new energy vehicles. It focuses on the supply of lithium battery materials, the development, production and sales of lithium batteries, and extends to the research and development, production, and sales of core components of electric vehicles. Research and development, production, sales and technical support of peak modulation system of intelligent power grid.

In parallel with the acquisition of Zhuhai Yinlong, there is also the employee shareholding plan of Gree Electric. Gree Electric said in the announcement that due to the large number of shareholders in Zhuhai Yinlong and the need to determine the introduction of no more than nine specific investors other than the employee shareholding plan, the transaction structure is relatively complex, so the company needs to conduct in-depth research on the details of the plan. And argumentation, there is also a need for full consultation with stakeholders, including the counterparty, the underlying corporate creditor, potential specific investors and employees.

Gree said that the scale of the company's assets purchased this time is relatively large, and some of its subsidiaries belong to overseas subjects. The due diligence, audit, evaluation, etc. involved are relatively large and require a long time; At the same time, this transaction involves multiple regulatory authorities. For the relevant approval issues involved in the plan, the company needs to further coordinate, communicate and confirm with the relevant government departments. "Therefore, there is still considerable uncertainty in this matter. "

However, in addition to the announcement of the proposed acquisition of the entire equity of Zhuhai Yinlong, Gree did not disclose more information.

The reporter noticed that according to a public announcement on March 9 on the transfer of 1 % equity of Zhuhai Yinlong Company, Zhuhai Yinlong's overall valuation was 5 billion yuan.

Cross-border lithium battery manufacturing?

According to Zhuhai Yinlong official website, Zhuhai Yinlong has supplied Zhuhai, Zhanjiang and Shijiazhuang bus systems. The company has three production bases in Zhuhai, Hebei Wu'an and Shijiazhuang.

As of January 2016, Zhuhai Yinlong had produced and sold 3,189 pure electric passenger cars, with a market share of only 3.6 %, and annual sales volume was seventh in the country. By the end of 2015, Zhuhai Yinlong's assets had exceeded 10 billion yuan, operating income was more than 3 billion yuan, and net profit exceeded 400 million yuan.

After Gree Electric announced the acquisition target, the outside world rumors that Gree Electric will build electric vehicles across the border. However, Dong Mingzhu and Gree Electric Vice President Wang Jingdong said at the Gree Electric Appliances General Meeting this year that Gree intends to acquire Yinlong, not because of the automobile, but because of the two lithium-titanate battery and energy storage battery of Yinlong. Block advantage technology.

However, Gree responded to this on July 5. "The final announcement shall prevail. "

From mobile phones to zhuhai yinlong, now grid is also practicing diversification. However, Gree's "cross-border" style and logic are also different from other giants.

Midea Group announced the "second runway" for the construction of the cross-border robot industry last year. This year, the United States began to openly bid for a partial share of the German KUKA, and it is intended to become the largest shareholder of KUKA. The diversified mergers and acquisitions of Gree Electric have been carried out only in China.

From building smart equipment industry parks, launching smart phones, developing autonomous industrial robots, to acquiring zhuhai yinlong, GREE calls these cross-border "diversification due to technological extension".

In June of this year, Dongmingzhu commented on the acquisition of Zhuhai Yinlong in an exclusive interview. "Many people say that we are cross-border acquisitions. In fact, we are developing together. After the acquisition, we intend to integrate all new energy technologies to solve the energy problem of a family or even a building. "

At the same time, she said, "by introducing technology and joint venture mergers and acquisitions can never become a strong."

The page contains the contents of the machine translation.