The most popular plan to acquire Rongxin Xingye Ba

2022-07-26
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It is planned to acquire Rongxin Xingye Baili electric with 600million yuan. The M & A effect is good

⊙ Han Yuanfei ○ Zhu Jianhua

carry out the acquisition around the main business. Baili Electric is building an industrial cluster around the main business of power step by step. Recently, Baili electric plans to spend 631million yuan to acquire 86.735% equity and supporting assets of Rongxin Xingye held by dream group, and layout high-power power electronic equipment to further expand and strengthen its main business

on November 5, Baili electric announced that the company planned to make the drug release system acquire 86.735% equity and supporting assets of Rongxin Xingye held by dream group with cash of 631million yuan. Among them, the price of equity transfer is 496million yuan and the price of supporting assets is 135million yuan, which is a sliding friction yuan

with regard to this acquisition, Liumin, Secretary of the board of directors of Baili electric, should pay attention to whether the connection between the power supply and the power line meets the specified standards. He told Shanghai Securities News: "we have only one purpose in this acquisition of Rongxin Xingye, which is to further expand and strengthen the main power industry."

according to the announcement, Rongxin Xingye was founded in march2017 by integrating the power electronic equipment manufacturing business of dream group. Its leading products include high-voltage dynamic reactive power compensation devices (SVC) and high-voltage static reactive power generators (SVG). It has a historical record of providing power electronic solutions to nearly 40 countries and regions around the world, including more than 1500 sets of dynamic reactive power compensation devices in the world

in terms of performance, the asset quality of Rongxin Xingye is fully guaranteed. According to the announcement, in 2017, 2018 and the first half of 2019, Rongxin Xingye achieved revenue of 241million yuan, 399million yuan and 221million yuan respectively; The net profits were 38.627 million yuan, 59.2405 million yuan and 26.0547 million yuan respectively

for the performance after the acquisition, dream group promises that from 2019 to 2021, Rongxin Xingye will realize a net profit of not less than 60million yuan, 70million yuan and 80million yuan after deducting non-profit. The promised data also shows confidence in the development of Rongxin Xingye

why is dream group willing to let go of such a target? According to the announcement, dream group is gradually changing from the dual main business after restructuring to the single main business oriented to 5g network and focusing on building rich media cloud communication platform business, and gradually quitting the power electronic equipment manufacturing business. It is precisely because of the strategic transformation of dream group that Baili Electric has the opportunity to acquire the asset of Rongxin Xingye

in recent years, Baili Electric has been making acquisitions around its main business, and the results are also very satisfactory

in October, 2014, Baili electric purchased 98% of the stock rights of Chengdu Ruilian after the destruction of 26 samples with RMB 230million. The products of Chengdu Ruilian are electrical connectors. At the time of acquisition, the products have developed to more than 30 series and nearly 5000 varieties. At present, Chengdu Ruilian has more than 10000 product varieties, and has obtained the laboratory accreditation qualification of China National Accreditation Service for conformity assessment (CNAs), the Qualification Authorization of UL witness laboratory in the United States and the Qualification Authorization of TUV Rhine witness laboratory in Germany. In 2016, Baili electric invested 320million yuan to acquire 95% of the shares of Suzhou Guanlong. Suzhou Guanlong is a high-tech enterprise specializing in R & D and production of wires and cables. Its products are mainly used in steam turbine generators, hydro generators and other fields. It is an important supplier for key heavy-duty motor equipment manufacturing enterprises in China

data show that since the acquisition, the above two companies have contributed nearly 200million yuan of net profit to Baili electric

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