Gree Electric’s capital chess game has begun to lay out new pieces.
On the evening of August 1, the listed company Orbit announced that it had been officially approved by Gree Financial Investment, which is a company of Gree Group. Judging from the holding time, Gree Group completed the breakthrough of Orbit's shareholding from 0 to 5% in only half a month, and the move was quick and precise.
This is another important strategic layout of Gree Group after buying Changyuan Group (rights protection). However, Gree Group has successively held shares in companies in emerging fields such as new energy vehicles and satellite big data, and its investment span is not small.
On August 2, due to the positive news of Gree Capital’s placard, Orbit opened higher against the trend. The stock price hit a high of 11.59 yuan that day, and the market value increased by more than 300 million yuan. As of midday closing, Orbit's share price was 11.29 yuan, an increase of 1.99%.
Gree Group intends to strategically invest in Orbit
Gree Group is becoming more and more active in the capital market and its moves are getting faster and faster.
Yesterday evening, Orbit issued a simplified equity change report stating that as of August 1, Gree Financial Investment, a subsidiary of Gree Group, held a total of 35.108 million shares of Orbit, accounting for 5% of its total share capital. % (the proportion after excluding the number of shares in the repurchase special account is 5.02%), has hit the mark-up line.
From the perspective of shareholding time, from July 15th to August 1st, it only took Gree Capital half a month to complete the shareholding move from zero to 5%. With the leap of the brand, he has become the second largest shareholder of Orbit, and the speed of his shareholding is not unsatisfactory.
Specifically, Gree Gold Investment increased its holdings of 22.728 million shares through collective bidding from July 15 to August 1 at an average price of 11.05 yuan/share, with a holding increase ratio of 3.24 % (the proportion after excluding the number of shares in the special repurchase account is 3.25%); on July 30, 12.38 million shares were increased through block transactions, the average increase price was 10.01 yuan/share, and the increase ratio was 1.76%. (The ratio after excluding the number of shares in the repurchase special account is 1.77%).
Judging from public information, Gree Financial Investment is a 100%-owned enterprise. The company’s business scope includes equity investment, capital operation management, asset management, asset restructuring and mergers and acquisitions, financial advisory services, etc. , its legal representative and chairman are Wang Yonghua.
According to information disclosed on the official website, Gree Financial Investment adheres to the strategic concept of financial services for the real economy. It is mainly positioned to provide financial services to Gree Group and various business sectors of the group, and actively develops asset management and capital related to the real economy. operations and project investment; at the same time, focusing on the goals and requirements of financial innovation of the Zhuhai Municipal Party Committee and Municipal Government, it provides financial supporting support for the construction of major projects and industrial transformation and upgrading in Zhuhai City.
In fact, Gree Group’s strong entry is not without trace.
As early as two days ago, Orbit issued an announcement on the reduction of shares held by the controlling shareholder and actual controller through large-scale transactions. According to the announcement, on July 30, 2019, the company received a notice from the controlling shareholder and actual controller Yan Jun to reduce the company’s shares. Yan Jun reduced the company’s shares in total through block transactions on the Shenzhen Stock Exchange on July 30, 2019. There are 12,380,000 shares of unrestricted circulation, accounting for 1.7716% of the company's total share capital (excluding the number of shares in the special repurchase account).
It is reported that the actual controller Yan Jun’s purpose of reducing his holdings this time is mainly to introduce partners. At the same time, Yan Jun, the controlling shareholder and actual controller, promised that the shares sold through the securities trading system within six consecutive months will be less than 5% of the company's total shares.
This move was also understood by the market as the actual controller Yan Jun intends to pave the way for new strategic partners to enter the market.
Getting involved in the field of satellite big data?
So, why is Gree Group, which has gradually adapted to the rhythm of the capital market, so optimistic about Obit?
Public information shows that Orbit is the first domestic private company in the field of satellite big data. Its business mainly includes three major business sectors: aerospace electronics, satellite big data, and artificial intelligence. In 2010, Orbit officially landed on the GEM market.
In 2014, Orbit proposed the "Strategic Concept of Satellite Space Information Platform" and launched the "Zhuhai-1" remote sensing micro-nano satellite constellation plan. The plan will consist of 34 satellites (video satellites, hyperspectral satellites, radar satellites and infrared WeChat, etc.) to form the "Zhuhai-1" remote sensing micro-nano satellite constellation. The satellite measurement and control and receiving network is composed of satellite ground stations in Zhuhai, Mohe, Shihezi, Guiyang, Shanghai, and Qingdao, and the satellite big data storage, processing, and distribution network is composed of data centers in Zhuhai, Guiyang, Shanghai, Qingdao, and Macau.
Data show that as of April 30, 2018, there were approximately 1,980 satellites in orbit around the world. Among them, there are about 661 earth observation satellites and no more than 24 hyperspectral satellites. During the same period, there were 4 hyperspectral satellites operating in Orbit.
On June 10, Orbit issued an announcement confirming that the company was the winning bidder for the Zhuhai City "Green Waters and Green Mountains" project. The contract value of the project was RMB 83.6233 million.
CITIC Research believes that this winning bid is an important achievement of strengthening market expansion and implementing satellite big data applications since the company's "satellite big data" strategy was implemented, and opened up a new model of satellite big data application services. , which has positive significance for subsequent promotion of data applications. The company will rely on the implementation of this "Green Waters and Green Mountains in One Picture" project to create and form a model demonstration of satellite big data application services, strengthen its promotion and application in Guangdong Province and other provinces and cities, and improve the company's profitability.
It is worth noting that although Orbit’s satellite big data business is in the high-precision direction, the company’s performance has been tepid since its listing. It was not until it started to carry out continuous mergers and acquisitions that its performance improved. improvement.
Data shows that from 2015 to 2017, net profit has experienced high growth for three consecutive years (growth rates of 130.74%, 46.26%, and 42.89% respectively). However, in 2018, there was a double decline in operating income and net profit. fell, of which net profit fell by 21.47% year-on-year to 95 million yuan.
Specifically, Orbit’s high growth performance in the past few years is inseparable from frequent mergers and acquisitions. After 2014, Orbit successively acquired Boya Information, Zhijian Electronics, and Huiyu Intelligence, spending 525 million yuan, 100 million yuan, and 520 million yuan respectively. However, after the performance commitment period of Platinum Information, last year's net profit began to decline sharply, and internal management changes were also very frequent.
As of the end of last year, Obit’s goodwill on its books was as high as 836 million yuan, accounting for 25.91% of the company’s net assets. At the same time, starting from 2015, the company’s accounts receivable for four consecutive years were 336 million yuan. yuan, 465 million yuan, 540 million yuan, and 672 million yuan. Accounts receivable data continue to rise, and bad debt losses during the same period are also increasing at different levels, dragging down the company's profitability.
However, these circumstances have not diminished Gree Group’s determination to enter the market strongly. According to the above-mentioned equity change announcement, Zhuhai Gree Group, the controlling shareholder of Gree Financial Investment, is optimistic about Orbit’s future development prospects and intends to strategically invest in Orbit. After this announcement, Glikin Investment Bank will continue its plan to increase its holdings of Orbit shares in the next 12 months.
On August 2, in the secondary market, Orbit’s stock price opened higher against the trend, with the highest price increase of more than 4%. As of midday closing, Orbit’s share price was 11.29 yuan. Compared with the average purchase price of 10.58 yuan, Gree Financial Investment has already made a profit on this investment.
It has made a high-profile increase in its holdings in problematic companies
Since this year, Gree Group has frequently launched investment actions. Its actions and intensity are fast and ruthless. It seems that it has a long-term strategic rhythm for its investment layout. .
At the end of May, Changyuan Group announced that two wholly-owned subsidiaries of Gree Group have entered the company's top ten shareholders through continuous shareholding, with a combined shareholding ratio of up to 4.96%, approaching the company's Plaque line. Driven by Gree Group, market funds often follow the trend and buy. From May 30 to May 31, for two consecutive days, Changyuan Group's stock price rose by the daily limit for two consecutive days, with a cumulative increase of 20%.
However, what surprised Gree Group was that after its high-profile purchase of Changyuan, Changyuan received an investigation notice from the China Securities Regulatory Commission on May 31. Due to the fact that last year Changyuan Group’s subsidiary Changyuan and Eagle was suspected of performance fraud, and the China Securities Regulatory Commission decided to formally investigate the company.
Although Changyuan Group managed to remedy the Changyuan and Eagle performance fraud incident and made retrospective adjustments to its performance in the previous two years, the company continued to be negatively affected by the incident. The sudden launch of the investigation into Changyuan Group undoubtedly caused a heavy setback to Gree Group's investment.
Since June 13, Changyuan Group’s share price has been falling. As of August 1, the company’s share price has dropped from 6.62 yuan to 5.70 yuan, a drop of 13%.
According to an announcement on July 24, Changyuan Group plans to sell the office buildings, ancillary facilities and land use rights under the name of its subsidiary Changyuan Nanjing for a total price of 603 million yuan. Changyuan Group It was explained that the sale of some existing assets will help revitalize the company's assets, reduce liabilities, and ease financial pressure.
Since the investigation against Changyuan Group has not yet ended, it is difficult to assess the impact of the Changyuan subsidiary’s counterfeiting case on the company. However, it is certain that Gree Group’s investment may not be able to obtain better returns in the short term. income.
The equity transfer of Gree Electric Appliances is still in progress
Of course, the most puzzling thing about Gree Group’s capital actions is that it is selling the equity of Gree Electric Appliances, a star enterprise with a market value of 100 billion. , and also involves the transfer of control rights.
On April 8 this year, Gree Electric announced the resumption of trading and revealed that Gree Group transferred 15% of its shares in Gree Electric. The transfer price shall not be lower than the arithmetic average of the daily weighted average prices in the 30 trading days before the indicative announcement date (April 9, 2019). The final transfer price shall be based on public solicitation and approval by the state-owned assets supervision and administration department. The result shall prevail. After the completion of this transfer, the company's controlling shareholder and actual controller may change.
Based on the closing price of 47.21 yuan before the suspension, this equity transfer involves 40 billion yuan. Suddenly, there was huge speculation in the market as to who would take over.
On May 22, Gree Group held a meeting with investors interested in stock transfer. It is reported that 25 intended investors showed up at the meeting that day.
Judging from the public list of intended investors, international strategic investors such as Hopu Investment, Temasek, and Hillhouse Capital, as well as local private equity investors such as Boyu Capital and Zhuhai Tongpei are all on the list. besides. Financial institutions with state-owned backgrounds such as Huaneng Guicheng Trust and China Universal Fund also participated.
Regarding the transfer plan, transfer price and transfer conditions that the outside world is most concerned about, Zhuhai State-owned Assets Supervision and Administration Commission and Gree Group stated that the specific solicitation plan is still being studied and formulated, and relevant specific conditions and requirements will need to be followed. Public disclosure can only be made after completing the review procedures of the state-owned assets supervision department.
According to the relevant person in charge of Gree Electric Appliances, the leading parties in the transfer of the company’s equity are Zhuhai State-owned Assets Supervision and Administration Commission and Gree Group.
It is worth noting that after the transfer, although Gree Group lost control of Gree Electric Appliances, Gree Group and its wholly-owned subsidiaries and holding companies can continue to use it free of charge in the areas already used." "Gree" trademark serves as the company name and company logo. If the "Gree" trademark or "Gree" trade name needs to be used in any future investment or expansion entities and fields, the two parties shall negotiate separately and determine in writing.
This also means that although Gree Group has lost core assets such as Gree Electric Appliances, both parties can still use the "Gree" trademark in terms of trademark rights.
In the future, it is worth looking forward to what kind of capital layout Gree Group will have.
This article is from China Fund News
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