On the evening of February 3, Omar electric (002668) announced that Huizhou TCL Home Appliance Group Co., Ltd. (hereinafter referred to as “TCL home appliance group”), the company’s shareholder with more than 5% shares, increased its holding of 14866300 shares of the company through centralized bidding trading from February 1 to 2, accounting for 1.37% of the total share capital.
After the completion of the increase, TCL appliance group and Chongqing Zhongxin Rongze Investment Center (limited partnership) (hereinafter referred to as “Zhongxin Rongze”) held 85.2728 million shares and 23.1381 million shares respectively, accounting for 2.13% and 7.86% of the total shares of the company.
On the issue of TCL appliance group and its concerted action to increase the holding of Omar appliance shares, the reporter contacted Liu buchen, a well-known analyst in the appliance industry. He told reporters that TCL appliance group needs to increase its holding of Omar from two aspects. From the perspective of TCL home appliance group, although TCL home appliance business has made continuous efforts in recent years, the effect is not obvious. The annual revenue is about 5 billion yuan. This scale can not be listed in the mainstream. The increase of holding Omar electric appliances focuses on Omar’s strong manufacturing capacity and sales volume. Moreover, the possibility of TCL home appliances backdoor listing will not be ruled out in the future.
On the contrary, Liu buchen believes that Omar is in urgent need of getting rid of the negative influence of Zhao Guodong, the major shareholder, and entering the TCL home appliance group system, we can borrow TCL home appliance group’s strong overseas sales system to better expand the overseas market.
Intensive holdings of Omar electric
Looking at the past announcements, the reporter found that in recent years, TCL appliance group and its concerted action person Rongze investment are accelerating the “fund-raising”.
On January 18, TCL household appliance group and China Singapore Rongze signed the agreement on concerted action. Before that, they began to buy shares of Omar electric.
According to the announcement on the evening of January 28, TCL appliance group and Zhongxin Rongze bought 31.0674 million shares and 23.1381 million shares of the company from January 8 to 27, accounting for 2.87% and 2.13% respectively. After the completion of the increase, the two sides held 54.2055 million shares of the company, accounting for 5%.
On the evening of February 2, Omar electric again issued an increase in holdings notice. According to the announcement, on January 29, TCL home appliance group increased its holding of 39.3391 million shares of the company through centralized bidding and block trading, accounting for 3.63% of the total share capital of the company.
Combined with the fact that TCL appliance group increased its holding of 14.8663 million shares from February 1 to 2, it means that TCL appliance group and its concerted action person Rongze invested hundreds of millions of funds to buy nearly 10% shares of Omar appliance in less than one month.
It is worth mentioning that according to the company’s information, TCL home appliance group is 100% owned by TCL Industrial Holding Co., Ltd., and Li Dongsheng is the actual controller; the shareholders behind Zhongxin Rongze include Zhongxin rongchuang Capital Management Co., Ltd., Tibet Zhongxin ruiyin Investment Management Co., Ltd., Chongqing Zhongxin rongchuang Investment Co., Ltd., while the largest shareholder behind Zhongxin rongchuang Capital Management Co., Ltd It is TCL Technology (000100) Group Co., Ltd. and the major shareholder behind TCL Technology Group Co., Ltd. is also Li Dongsheng and his co-operative person.
The best choice?
According to public information, Omar electric was established in 2002 and listed on the SME board in 2012. The company is mainly engaged in the production and sales of refrigerators and freezers, and financial technology business.
In 2015, Zhao Guodong, who had left the post of vice president of Jingdong at that time, transferred 20.38% of the equity of Omar electric, replacing Cai Ershi, founder of Omar electric, as the controlling shareholder and actual controller. Zhao Guodong, who was born in finance, just one month after he became the owner, promoted Omar electric to acquire 51% of the equity of China Finance (Beijing) Technology Co., Ltd. (hereinafter referred to as “China finance”) under his name with 612 million yuan in cash.
In 2017, Omar Electric paid 784 million yuan in cash to acquire the remaining 49% equity of zhongrongjin. Since then, Omar Electric has officially opened the development pattern of refrigerator and finance.
However, with the strong supervision of Internet Finance in 2018, a large area of bad debts appeared in zhongrongjin, which also affected Omar electric.
In 2018, the company achieved revenue of 7.803 billion yuan, a year-on-year increase of 12.04%; however, the net profit fell precipitously, with a huge loss of 1.903 billion yuan, a year-on-year decrease of 398.71%. A large part of the reason is because of the loss of cicf, as well as the impairment of goodwill and the provision of bad debts.
Since then, Omar electric began to try to spin off the Internet financial business. On December 13, 2019, Omar electric held a meeting to sell 100% of the equity of China finance to Zhao Guodong and yilibao (Beijing) Technology Co., Ltd.; on January 25, 2021, Omar Electric said that it plans to transfer all the equity of its wholly-owned subsidiary WANGJIN investment to Shenzhen Changhe Investment Co., Ltd. with 119 million yuan.
On the other hand, Zhao Guodong’s 134 million shares of Omar electric had been registered as pledge by the end of February 4, and were frozen by the judiciary and waiting for freezing.
Performance, affected by a series of previous operations, the company’s operating situation is quite worrying. According to the company’s 2020 performance forecast, during the reporting period, Omar Electric is expected to achieve a net profit of – 74.888 million yuan to 49.688 million yuan, a year-on-year decrease of 240.53% – 380.9%; non net profit deduction of – 16.61793 million yuan to – 240.9793 million yuan, a year-on-year decrease of 1056.82% – 1487.5%.
It is not difficult to see from the above data that the company’s performance is not easy to recover. As Liu buchen told reporters, Omar Electric has encountered a lot of trouble in recent years, and has not yet got rid of the negative influence of Zhao Guodong, the major shareholder, so that the capital market lacks confidence in it. In addition, as the business direction of Omar Electric is too single, it mainly relies on OEM export, and its products are mainly low-end products, so its future development is limited.
“If we don’t get rid of the negative influence of Zhao Guodong as soon as possible, Omar Electric will have to continue to struggle in difficulties,” Liu buchen told reporters. For the current Omar electric, TCL home appliance group’s ownership or even holding may be the best option for Omar electric.
Editor in charge: Tzh