First, cross-border transformation: the original main business is not good enough, and it is transformed to survive.
Usually cross-border enterprises with poor main business participate in order to find new profit growth points. This kind of companies from scratch have insufficient endogenous development of environmental protection business, and extension mergers and acquisitions have become the main way of business development. Some companies even completely stripped or diluted the original main business through restructuring, and took the environmental protection business as the whole of the company, so they changed their names. Yingfeng Environment and China Re-investment Ring are typical representatives.
Yingfeng Environment, formerly known as Shangfeng Hi-Tech, is mainly engaged in enameled wire sales. The gross profit margin of this business was too low for several years, fluctuating between 5% and 7%. He Jianfeng, the owner of Midea Group and chairman of Yingfeng Holdings, took over the offer and renamed it Yingfeng Environment. On March 20 16, Yingfeng Environment put forward a new development strategy, that is, taking environmental monitoring as the leading factor to build a leading domestic high-end equipment manufacturing+integrated environmental service provider.
Ma Gang, general manager of Yingfeng Environment, put forward ten businesses to be carried out in the future, namely: high-end fan equipment, Internet plus environmental management, Internet plus environmental monitoring, Internet plus water conservancy management, Internet plus environmental protection equipment operation and maintenance services, flue gas treatment, water treatment, solid waste treatment, hazardous waste treatment and ecological restoration, and sponge city.
As can be seen from the above, Yingfeng's vision of environmental protection is not small, and the business it hopes to carry out covers the monitoring and treatment of water, gas and solid waste, aiming to be a "comprehensive environmental protection platform". The company once told Interface News that environmental monitoring will be the focus of development.
The transformation path of Yingfeng Environment is as follows: firstly, Yuxing Technology, a veteran first-line enterprise in the monitoring field, was wholly acquired with RMB 654.38+0.7 billion to enter the environmental protection industry, and then Green Oriental Environmental Protection, a waste incineration power generation enterprise, was controlled with RMB 654.38+0 billion. At the same time, Shangfeng Environmental Protection, a wholly-owned subsidiary, was established to jointly set up 3 billion Yingfeng Environmental Protection M&A Fund.
The company also entered the field of water treatment through acquisition. 20 16 In August, Yingfeng Environment acquired 55% equity of Liangke Environmental Protection, Sheng Da Global 100% equity and Minghuan Limited 100% equity respectively.
In September, Yingfeng Environment also plans to raise no more than 950 million yuan by non-public offering of shares, which will be used for the construction of three domestic waste incineration power generation projects, the upgrading and construction of the national environmental monitoring operation center, and the research and development of an integrated environmental and ecological early warning information monitoring system.
Yingfeng Environment said that the strategic framework for environmental protection has basically taken shape, and the construction of environmental monitoring platform, solid waste platform and water treatment platform has been completed. In the future, the company will accelerate the layout in the fields of air control, hazardous waste, soil remediation, ecological restoration, and smart cities.
Although in the semi-annual report, the proportion of the company's environmental monitoring and governance business is still less than 40%, it has improved a lot compared with 16% at the end of 20 15, and this proportion will continue to rise in the future. The background of few owners of He Jianfeng Midea Group also adds imagination to Yingfeng's environment.
China Reinvestment Group was renamed Qinling Cement. The company's original main business was cement manufacturing, and its gross profit margin was as low as 7.04% in 20 14 years. The net profit attributable to the parent company from 2005 to 20 14 was a loss in nine of the company's ten years, so it was "capped" by ST.
In 20 14, the company injected the assets of eight subsidiaries of China Renewable Resources Development Co., Ltd. (hereinafter referred to as China Renewable Resources Development Co., Ltd.) into Qinling Cement, a listed company, and stripped off the original cement business of the listed company. The company has transformed into a leader in renewable resources, and its main business has turned to the recycling and dismantling of waste electrical and electronic products.
Next, take off your hat, make a profit, change your name, and everything will develop in a good direction. In 20 15, the gross profit rate of discarded electronic products was as high as 57.47%, but it decreased to 4 1. 19% in the first half of 20 16.
Recently, the application for capital increase of China Re Investment Ring was approved by the China Securities Regulatory Commission and has been successfully renamed. Among the controlling shareholders, Regeneration also owns scrap steel, waste paper, waste plastics, waste non-ferrous metals and other business sectors, and the Group's assets are expected to be injected.
Second, the transformation of surrounding industries: high industrial relevance has transformation advantages.
Different from cross-border transformation, industries engaged in environmental protection-related businesses have also transformed into environmental protection businesses. Some landscape architecture listed companies are examples. Their original landscape business is often related to ecological management, and they also have the advantage of taking orders.
Because of the abundant orders, the environmental protection of oriental gardens has flourished.
The traditional garden business is facing difficulties, and the original green leading oriental garden seeks transformation. In the second half of 20 15, the company invested about 3 billion yuan to acquire five environmental protection companies and cut into the fields of sewage treatment and solid waste treatment.
The transformation of landscape companies into environmental protection industry has its natural advantages, and water treatment business is a derivative of the original landscape business of landscape companies.
The M&A path of Oriental Garden is: in September of 20 15, 80% equity of Wuzhong Solid Waste was acquired with cash1470,000 yuan and capital increase, and Fuyang Jinyuan Copper 100% equity was acquired with cash1200,000 yuan and capital increase. In June 5438+10, the company acquired 60% equity of Shenneng Solid Waste with cash10.46 billion yuan. 165438+ 10, the company disclosed that it acquired the equity of Zhongshan Environmental Protection100 for 950 million yuan and Shanghai Liyuan100 for 330 million yuan.
Through mergers and acquisitions, Shenneng Environmental Protection, Wuzhong Solid Waste and Jinyuan Copper entered the hazardous waste treatment industry; Through the merger and acquisition of Zhongshan Environmental Protection and Shanghai Liyuan, the two companies have advanced technology, which makes up for the shortage of oriental gardens in the field of water treatment. Oriental Garden has basically completed the basic ability to expand its business in the field of environmental protection, making it possible for the company to make further planning.
At the end of 20 15, He Ye, the chairman of Oriental Garden, said that the company would conduct 20 billion yuan of mergers and acquisitions in the environmental protection industry in the next two years, and then invest10 billion yuan in the new construction and technological transformation of the merged company in two years, so as to make Oriental Garden an eco-friendly whole industrial chain company.
Oriental Garden is a successful one. First, it chose PPP mode to alleviate the company's cash flow problem. In the past two years, more than 60 billion orders are mostly PPP mode, and cash flow has improved.
Secondly, oriental gardens have higher requirements for screening M&A targets. He Zeng revealed in an interview with the media that technology is the standard for selecting M&A standard, and scale as a reference cannot guarantee the leading position of the standard in the industry. "Subdivision industry means that Oriental Gardens should find enterprises that rank at least in the top five in a certain field or can quickly enter this standard. If they can't be found, the company will give up mergers and acquisitions in this field. "
Among them, Shenneng Environmental Protection Co., Ltd., which has the largest investment, is mainly engaged in the resource utilization of solid hazardous waste of non-ferrous metals. The company is the largest non-ferrous metal waste residue and sludge treatment enterprise in East China, and also the largest electroplating sludge and electronic sludge treatment enterprise in China.
Other garden companies are taking the same path. Pubang Garden 20 15 acquired the equity of Deep Blue Environmental Protection 100% for 440 million yuan. After the acquisition, the company entered the solid waste treatment and environmental protection industry. This is also the layout of Yuntou Ecology.
Third, the transformation of environmental protection industry: the transformation jumps out of the traditional subdivision "Red Sea"
With the successive introduction of "Water Ten Articles", "Soil Ten Articles" and "Gas Ten Articles", companies with a single business in the environmental protection industry are not willing to stick to one line to carry out their business, but have begun to transform their layout across sub-sectors. Capital Limited, Willie, CLP Environmental Protection, etc. Not limited to a single field of environmental protection business.
Some traditional environmental protection fields are already a "Red Sea", such as urban sewage treatment, garbage incineration, etc., and the bid price keeps hitting new lows, and low-price competition occurs frequently, even the bid price is far below the estimated cost price. To this end, there are also environmental protection enterprises to transform into new environmental protection business areas.
Enlighten Sander to transform the field of renewable resources. Sander Recycling was established in June 20 15, and its main business includes recycling of renewable resources, dismantling of electronic waste, scrapped cars and remanufacturing, deep processing of renewable resources, O2O of renewable resources, and hazardous waste disposal, covering the whole industrial chain of renewable resources such as resource recycling, primary processing and deep processing. At present, it has become one of the largest comprehensive renewable resources companies in China.
CLP Environmental Protection is also a cross-industry environmental protection company. Is an environmental protection enterprise specializing in water treatment-related business, but after two years of layout, it has now formed a "4+ 1" environmental protection industry development pattern, including industrial water treatment, municipal sewage treatment, solid waste treatment, flue gas treatment and environmental protection service platform.
In the 20 13 annual report, the company added industrial flue gas treatment business; In the annual report of 20 14, the company added solid waste disposal business. Although the operating income of these two businesses is not high, the absolute value is rising every year. As can be seen from the financial report, the newly developed industrial flue gas treatment business and urban solid waste treatment business are growing steadily.
20 15 CLP environmental protection set up a project company in Changshu to continue the vertical development of solid waste treatment business. This strategic layout is also clearly reflected in performance. In 20 15, the income of municipal solid waste treatment business increased from 14 1700 yuan in 20 14 to 37 1700 yuan. At the end of that year, the company won a large-scale solid waste treatment order and won the bid for a 300,000-ton/year sludge treatment project in Changshu, with a total contract value of about 65.438+372 million yuan. By the end of the first half of 20 16, the company had ordered 2.847 billion yuan, several times the revenue of 20 15.
Fourth, central enterprises test the water: seize the market and don't care about low gross profit.
In addition to private enterprises, the environmental protection industry has also ushered in the capital "entry" of large central enterprises in recent years. Gezhouba took the lead in blowing the "horn" of state-owned enterprises entering the environmental protection market.
Acquired Zhonggu Technology and entered the field of sewage sludge treatment. In 20 15 years, the income was 54.46 million yuan, and the total profit was 3 10/00000 yuan. Acquired Kaidan Water, entered the field of sewage treatment, and realized income of1200 million yuan in 20 15 years; Joint venture with Dalian Jiahuan, entering the field of renewable resources, achieving income of 6.5 billion yuan in 20 15 years and total profit of1600,000 yuan; Joint venture with Sinoma International, entering the field of solid waste treatment such as domestic garbage-Gezhouba's environmental protection business has been completed in many fields.
This series of measures has achieved remarkable results. The proportion of environmental protection business in Gezhouba increased from 8% in 20 15 to more than 12% in the first half of 20 16. However, its gross profit margin is pitiful, only about 3%, far lower than the industry's gross profit margin of about 30%.
Liao Mingbing, an analyst at CICC, believes that Gezhouba is taking environmental protection as an important breakthrough in its transformation, and its revenue in 20 17 is expected to exceed 30 billion yuan.
It is undeniable that the environmental protection industry will be fiercely "killed" in the future, and the industry entry threshold is getting higher and higher. Environmental protection companies that seem to have successfully transformed should also observe whether there are core technologies.
The only constant is change. For enterprises, transformation may be an eternal topic.