Frbiz.com Reports Gree Electric Appliance Denies Negotiation Shandong Ducklings

Gree Electric Appliance (000,651) Deputy General Manager Wang Jing-dong 17

, told China Securities Journal, an interview, denied that the company intends to acquire Shandong Little Duck Group.

Earlier reports said the Gree interested in acquiring second-line refrigerators, washing machines and white goods brand, and in Jinan, accompanied by officials inspected the SASAC of Shandong Xiaoya Electric Group. Industry, researchers believe that the current situation analysis, may be caused by the acquisition of Gree Group, came forward, so to avoid risks to listed companies, if all goes well, does not rule out when conditions are ripe injected into the listed companies.

Diversification strategy away

Media reported that since the end of Gree Group, to begin planning an acquisition target is a nationwide number of second-line refrigerators, washing machines and other white goods categories the brand, the latest acquisition target is aimed at the Shandong Xiaoya Electric. It is reported that with the Little Duck Group, Gree Group has contacted but has not yet reached a substantive agreement, while the newly acquired brands will be retained, the time being into a listed company Gree Electric.

Guotai Junan researcher Wang Zhen said that if the Gree Group acquired the intention is true, then the right Gree Electric Appliance is a great good, may help Gree Electric entered a new stage of development. "If true, this may be just the first step in expanding diversity Gree Electric Appliance, ducklings can be seen as Gree Electrical Appliances of the mergers and acquisitions to enter new areas of white test, we believe that the future expansion of Gree is expected to accelerate the pace of diversification, while the the company's cash will be sufficient to form a solid support for future expansion. "

The latest data show that total sales of Gree Electric Appliance before September to reach 10.6 million units, up 32%, the market share of 37%, while China's domestic air-conditioning production accounted for 80% of the world, Gree Electric is the world's air-conditioning industry, leading enterprises . Insiders believe that the electrical appliances with the United States Gree Electric air conditioner market in the combined market share of more than 60%, has formed a high degree of monopoly situation, the future may be limited room for growth, while the reference to the U.S. electrical appliances around the white variety of the associated expansion may be one of the development direction of Gree Electric Appliance.

America's electric start with electric fans, has to enter through the acquisition of air conditioners, refrigerators, washing machines industry, through the acquisition of Little Swan to expand the size of its washing machines, in the white sector formed a perfect layout.

Stakeholders that is currently under negotiation Shandong Xiaoya hard to judge true or false, but some sub-industry leaders look for new growth points for consideration, frequently "cross-border" acquisition, integration appliance industry is entering its peak.

Ducklings financial constraints

Shandong Little Duck is the only one listed company withdraw from the market of household appliances, has been phased out of public sight for many years, the company is currently in a "bad money" situation - there are orders, but a lack of working capital.

With the air conditioning industry branded the case a high concentration of different washing machines market, are dispersed. Haier, Little Swan among the top two, Haier's market share up to 64%, followed by 14% of small swans, ducks ranked third, compared with only 5.7%, and with the days after the Swiss Shengda, goldfish, Fu Mate, Meiling, etc. did not differ much.

1999 ducks in the domestic electrical appliances market, due to blind people to diversify and plunged into losses in 2003 by China Heavy Duty Truck backdoor listing, washing machines and asset class set out the listed companies. From July 2003, the Jinan municipal authorities regarding the meetings with the ducklings re-Greencool, CLP Corporation and many other inspection companies were contacted and finally the "Hydrangea," shifting the Nanjing Eastwood Group.

Beginning in 2008, due to lack of funds, ducklings washing machine production and sales is almost limited to the cut-off semi-shutdown state, very difficult position. But the state "home appliances to the countryside" policy to the ducklings rebirth of hope. In 2008 the first national household appliances to the countryside to bid ducklings were declared six cities and 10 models, the results of all the successful, becoming the largest washing machine manufacturer industry, successful models.

Ducklings an executive briefing, the current orders for household appliances to the countryside are in abundance, but due to lack of working capital, only lasted less than 10% of the capacity, if there is adequate funding, only orders for household appliances to the countryside to allow the company to back from the dead.

by: himfr

POST COMMENT

Frbiz.com Reports Taiwan's Advanced Semiconductor Engineering 4 Billion Acquisition Of Central Power Keeping Your Delicate Lingerie Looking Great Himfr.com Reports Energy Consumption Driven Air Conditioning Upgrade Frbiz.com Reports Taiwan Panels Is Expected To Enter The Mainland Lingerie Meant To Stir His Imagination Himfr.com Reports China's Tianhe No.1 The World's Fifth Asia First Himfr.com Reports East China Computer Is Prospected Frbiz.com Reports Flat Tv Quality Complaint Is Up: 3 Standard Is Absence Frbiz.com Reports The New Policy Of China Mobile Terminal Operators To Kill Low-end Operation Himfr.com Reports Increasing Exports Ease Wind Pressure Equipment Capacity Frbiz.com Reports The Guangdong Toy Exports Dropped Overall Re-warmer Faced Two Industries Obstacles Finding The Honey In Honeymoon Lingerie Frbiz.com Reports Foxconn's Merger Qimei Next April Electric Light Will Reconstruct Pattern