Last year, in order to reduce the debt pressure of the company, Zhao Guodong, the former actual controller of Omar electric, chose to give up the actual control right, and Zhang Jiong of Beihai Qingyun took the capital of 1.2 billion yuan into Omar electric. Omar refrigerator, the only source of profit, was transferred 49% of its equity to Zhongshan Jinao equity investment center (limited partnership) and eight natural persons of Omar refrigerator’s core management team.
I thought that Omar electric had fallen to the ground, but this year, it’s coming back. On the evening of February 3, Omar electric disclosed that TCL home appliance group once again increased its 1.37% stake in the company, and its total shareholding ratio with the person acting in concert will reach 10%, constituting a second license. At the moment when Zhang Jiong intends to take control of the listed company by way of fixed increase, TCL household appliance group’s second lifting of the brand makes the ownership of Omar electric become complicated.
Capital operation frequently
It is reported that the announcement data of Omar electric show that the company’s net profit loss attributable to shareholders of Listed Companies in 2020 is 74.888 million yuan to 150 million yuan, a decrease of 240.53% – 380.90% compared with the same period last year. In this context, TCL appliance group increased its holding of 14.8663 million shares of the company through centralized competitive trading in the stock exchange from February 1 to February 2, 2021, accounting for 1.37% of the total share capital of the company. Before the increase, TCL appliance group and its concerted action, Chongqing Zhongxin Rongze Investment Center (limited partnership) (hereinafter referred to as “Rongze investment”), held 93.5446 million shares of the company, accounting for 8.63% of the total share capital of the company.
After the completion of the increase, TCL appliance group and its concerted actors hold a total of 10% of the shares of Omar. According to the latest closing price of Omar electric on February 3, the market value of TCL home appliance group and its partners exceeds 600 million yuan.
In January, TCL household appliance group and Rongze investment raised the brand of Omar. From January 8 to 27, they quickly raised their brand of Omar electric appliances and increased their 5% stake in the listed company. After that, on January 29, TCL home appliance group increased its 3.63% stake in Omar again. At the beginning of February, Sima Zhao raised his card again, which is known to all.
Under the operation of TCL home appliance group and Rongze investment, Omar electric increased significantly this year. In the short 23 trading days from January 4 to February 3, the cumulative increase reached 43.69%. As of the close of February 3, Omar electric reported 5.69 yuan / share.
Can’t the history of “demon stocks” cover the past glory?
Grapefruit learned that, as a failure case of cross-border finance of household appliances, Omar electrical appliances can be said to be “famous” in the industry. On October 29, 2015, Omar electric acquired Zhongrong (Beijing) Technology Co., Ltd., which was controlled by Zhao Guodong, the former vice president of Jingdong. At the same time, Zhao Guodong became the actual controller of Omar electric. On the evening of November 26, 2015, 14 senior executives of Omar electric resigned collectively. Since then, Omar Electric has made frequent moves in the field of Internet finance, and successively invested 100 million yuan to establish Huitong and 150 million yuan to establish Huitong Wallet insurance, 20 million yuan set up wallet gold service, etc.
In the operation of frequent transformation to mutual fund business, Omar’s home appliance industry suffered a decline. Omar Electric’s 2016 semi annual report showed that the revenue decreased by 5.25% year on year, and the revenue of home appliance business decreased by more than 10% year on year. If the net profit of the subsidiary zhongrongjin Technology Co., Ltd. is excluded, which is 70.4374 million yuan, the net profit of Omar refrigerator’s main business only increases by 9.12% year on year. This is the first time since 2012 that the year-on-year growth rate of Omar refrigerator’s net profit has dropped to single digits. Due to long-term OEM for other brands, “Omar” brand has faded out of the market, and even many people regard Omar as a third line brand.
Facing the decline of the main business, Omar electric chose to transform the Internet finance. The merger and acquisition of Internet financial institutions on the tuyere made the share price of Omar electric rise again and again, from 35.22 yuan before the resumption of trading to more than 100 yuan after several trading limits, becoming the “first demon stock” in the eyes of shareholders in the household appliance industry.
After crossing the border, Omar Electric is full of tricks. Shortly after Zhao Guodong took control of Omar electric, he put out a 2.608 billion yuan private fixed increase plan, allowing the relevant stakeholders to subscribe for the additional shares issued by the listed company at a price of 31.07 yuan. At that time, the stock price of Omar electric was more than 110 yuan. Since the release of the fixed value-added plan, Omar Electric has accepted the feedback from the CSRC twice, and the scale of the raised funds should not exceed the net assets of the latest period. However, the net profit of Omar electric in the first half of 2016 was far lower than the funds to be raised, and there has been no news about the fixed value-added audit since then. On June 23, 2016, Southwest Securities, the sponsor of Omar electric, was put on file for investigation, making the future of Omar Electric’s fixed increase plan more uncertain.
In 2018, the Internet financial industry ushered in strong supervision, and a large area of bad debts appeared in zhongrongjin, and Omar electric also suffered a serious drag. According to the financial report of 2018, the net profit loss of zhongrongjin reached 667 million yuan. Coupled with the impairment of goodwill and the provision of bad debts, Omar electric lost 1.903 billion yuan in 2018.
Over the past two years, Omar Electric has been divesting its mutual gold business. On December 13, 2019, the company held a meeting to sell 100% equity of China finance to Zhao Guodong and yilibao (Beijing) Technology Co., Ltd.; on January 25, this year, Omar Electric said that it plans to transfer all equity of its wholly-owned subsidiary, WANGJIN investment, to Shenzhen Changhe Investment Co., Ltd., with 119 million yuan.
Now, in the face of the impact of the epidemic on the economy, only half of the shares in the refrigerator business remain. Omar Electric is like duckweed in the wind, and can only let the company’s business situation decline.
For this enterprise, the only bright spot seems to be in the “half” refrigerator business. As more than 70% of the annual revenue comes from overseas, Omar electric was once known as the “king of export refrigerators”. According to public reports, Omar refrigerator won the champion of China’s refrigerator export for 11 consecutive years from 2009 to 2019, and ranked first in Europe in refrigerator export for 12 consecutive years.
TCL home appliances “encirclement” causes mystery
TCL home appliance group and Rongze investment, which acquired Omar electric appliances this time, are Huizhou TCL home appliance and Hefei TCL home appliance which TCL group separated from itself in 2018. One is an investment company controlled by TCL technology and Zhonghai Jiacheng. As for why TCL wants to “encircle and suppress” Omar electric appliances, the reason is still a mystery, which has attracted a lot of speculation in the industry.
Some analysts believe that TCL’s acquisition of Omar may be to enhance its market share and influence in the refrigerator industry. According to the official introduction of Omar refrigerator, Omar refrigerator itself is one of the largest refrigerator manufacturing bases in the world. It has eight production bases with an annual production capacity of over 12 million units. It also has foreign refrigerator design and advanced technology. If Omar refrigerator can be included in the bag, it may gain TCL white power’s influence in the Chinese market.
According to the data from the National Bureau of statistics, Haier, Midea and Hisense Kelon still occupy the top three refrigerator brands in China in 2019, but Haier’s market share is far ahead. In 2019, Haier’s refrigerator sales account for 31.8%, Midea’s refrigerator sales account for 14.1% and Hisense Kelon’s domestic sales account for 11.2%. Omar refrigerator ranked fifth with a market share of 2.6%, while TCL refrigerator failed to rank in the top five. If TCL appliance group can successfully control Omar refrigerator, then with the combination of the strength of both sides, the industry can really expect a strong competitor to appear again in the oligopoly Chinese refrigerator market.
In addition, the resources of Omar refrigerator in foreign markets are also very attractive to TCL, which accounts for more export revenue. According to the official introduction of Omar refrigerators, its refrigerators account for 34% of the five major European refrigerators export markets in Germany, Italy, Spain, France and Poland, ranking first. However, some people in the industry said that among the total sales of Omar’s 7.05 million refrigerators, more than 5 million are OEM exported, and none of them is Omar brand. Even in the European market with the largest export volume of Omar refrigerators, there is no Omar brand refrigerator. Although this is a worrying phenomenon, the sales channels of Omar refrigerator in the five European markets are also a resource that can not be underestimated. Controlling these channels will help TCL refrigerators export overseas in the future.
However, TCL appliance group has another potential competitor, Zhang Jiong, who wants to be a master of Omar. Some experts said that it is difficult to judge the trend of Omar Electric’s control right at present. In October 2020, Omar electric issued an announcement on the proposed change of its actual control right. The company plans to increase its financing, and Beihai Qingyun Information Technology Co., Ltd. (hereinafter referred to as “Beihai Qingyun”) will subscribe in full. After the completion of the fixed increase, Beihai Qingyun will hold 23.08% of Omar Electric’s shares, and Beihai Qingyun will become the leader of the company As the controlling shareholder and Zhang Gong of the municipal company are the actual controllers of the listed company, the shareholding ratio of TCL appliance group and Rongze investment will be further reduced. At that time, Zhang Gong will have a greater advantage, but it still depends on whether TCL appliance group will increase its shareholding in the future.
Editor in charge: Tzh