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[Combined with 3] Made in Qingdao: China's, it is the world's

[Combined with 3] Made in Qingdao: China's, it is the world's
Source: Daily Qingdao / Qingdao view / Green reported net Author: | Editor: 2018-04-20 07:50:25

Haier’s acquisition of the General Electric Appliances business, Hisense’s acquisition of Toshiba’s color TV business, and DoubleStar’s Kumho tires signify that Qingdao companies are deeply involved in the deep integration of global value chains—

Manufactured in Qingdao: China's, but also the world's

As of the end of 2017, the city's accumulated foreign investment projects were 1,542, and the cumulative foreign investment scale reached 29.55 billion U.S. dollars, which spread throughout the world in 99 countries and regions.

Qingdao companies are participating in the in-depth integration of global value chains with an international perspective, accelerating the construction of a global integrated industrial chain of R&D, production, and sales, and continuously improving Qingdao's new international competition and open economy.

April 20, 2018 Qingdao Daily 1 screenshot

Qingdao companies are looking at the global and frequently implemented capital operations, and are making a full upgrade of Qingdao manufacturing and Qingdao to create a big step toward overseas.

The report of the 19th Party Congress proposed to innovate overseas investment methods, promote international capacity cooperation, form a global trade, investment, financing, production, and service network, and accelerate the fostering of new advantages in international economic cooperation and competition. President Xi Jinping attended the opening ceremony of the 2018 annual meeting of the Boao Forum for Asia and delivered a keynote speech entitled "Opening up, Creating Prosperity, Innovation and Leading the Future," stressing that all countries must follow the trend of the times, persist in openness and win-win, and be bold in change and innovation. China will continue to reform. Unwavering openness continues to introduce major new initiatives to expand opening up.

In 2016, Haier spent USD 5.58 billion to acquire the giant of a multinational corporation, the General Electric appliance business of the United States, and refreshed the acquisition history of Chinese home appliance companies overseas.

China’s overseas investment and mergers and acquisitions have been flourishing in recent years and have attracted global attention. As an open coastal city and a manufacturing brand city, overseas investment and M&A of Qingdao enterprises are unprecedented, and they are frequently “big in the palm”. Two years ago, Haier spent US$5.58 billion to acquire the giant of multinational corporations—the GE appliance business of the United States, refreshing the overseas acquisition history of Chinese home appliance companies. At the end of last year, Hisense acquired the old TV brand, the Toshiba TV business of Japan; in March of this year, Double Star and other companies jointly invested about 4 billion yuan to hold the top ten globally and occupy the first share of the Korean tires in the Chinese tire market. Statistics show that as of the end of 2017, the city’s accumulated foreign investment projects were 1,542, and the cumulative foreign investment reached 29.55 billion U.S. dollars, spread throughout the world in 99 countries and regions, mainly concentrated in mining, manufacturing, wholesale and retail, agriculture, forestry, animal husbandry and fishing In the field of industry and information technology services, the physical structure is more rational and healthier.

Right now, Qingdao companies are participating in the deep integration of global value chains with international thinking. While acquiring foreign advanced technologies, mature brands, perfect channels, broad markets and high-level talents, they are also accelerating the establishment of global integrated industries for R&D, production and sales. Chain ecology, continuously improve Qingdao's new international competition and open economy.

Qingdao's manufacturing, which accelerates the conversion of old and new kinetic energy, is accelerating the transition from follow-up to running and then to leading. Made in Qingdao, it is China, and it is even more world-wide.

Repeatedly going to sea, the scale of mergers and acquisitions continues to increase

On November 14, 2017, Hisense Group's news of the acquisition of Toshiba's color TV business "broke up" the circle of friends. Analysts likened this incident to another milestone in the integration of the global home appliance industry and another victory for China to “go global”.

In fact, this campaign is only a "small step" for Hisense's long international journey. For more than 20 years, with the help of overseas mergers and acquisitions, Hisense has transformed from “Qingdao's Hisense” to “Hisense in the world”.

On March 30, 2018, Kumho Tire’s unions, creditors, labor and government parties reached an agreement and agreed to become Doublestar as its largest shareholder.

Hisense is not a case. In March of this year, DoubleStar and Kookmin Bank headed the Kumho Tire Creditor's Group, and DoubleStar will jointly invest 4 billion yuan in the 45% stake in Kumho Tyres, jointly with Qingdao Guoxin, Qingdao Chengtou and Qingdao Port. And become its controlling shareholder.

Listening to the majestic "international symphony" of Qingdao companies, big-name mergers and acquisitions have become the most impressive chapter.

Prior to China's accession to the WTO, overseas mergers and acquisitions were still a new thing for domestic companies and could not be expected. However, Qingdao companies are brave enough to be the first to eat crabs. In 2001, Haier took the lead in bringing together a refrigerator plant of Italy's Minecraft Group, making it the first Chinese company to acquire plants in the heartland of home appliance manufacturing in Europe.

After the small knife trial, Haier’s overseas mergers and acquisitions “have a good show”. In 2009, Haier acquired a 20% stake in Fisher & Paykel, a well-known brand in New Zealand. After 3 years, it acquired the remaining 80% of its equity and acquired its core technology, brands and channels. In the same year that this acquisition was completed, Haier successfully acquired white-light businesses such as refrigerators and washing machines of Japan's Sanyo Electric Group in Japan and Southeast Asia for 10 billion yen. The most talked about, or in 2016, Haier's acquisition of GEA (general household appliances), the first brand of home appliances in the United States. This generous initiative set a number of records and became a classic case of Chinese overseas M&A.

After many years of exploration, overseas mergers and acquisitions by Qingdao companies have already blossomed.

At the end of 2017, Hisense acquired the old TV brand, the Japan Toshiba TV business.

In the field of machinery manufacturing, in September 2014, Qingdao Machinery Industry Corporation, a subsidiary of China Huatong Group, successfully acquired Kunge Wagner Technology Co., Ltd., a top casting equipment company in Germany, and successfully obtained world-class manufacturing brands and high-end casting equipment technologies. The three-chain lock industry of Qingdao, which is keen to discover business opportunities, adopts a flexible way to acquire overseas brands and conduct cross-border cooperation. As of now, it has accumulatively acquired 16 overseas brands in Europe, Latin America, and the Middle East, among which there is no shortage of 100-year brands that have enjoyed a reputation in the international lock market.

In the field of resources and energy, since 2008, Qingdao Jinwang Group has opened the curtain for the acquisition of US shale gas oil fields, becoming the first Chinese specialized shale to invest in technology, resources, equipment, and professional teams in the United States. Gas company. Qingdao Ruichang Cotton has established seven ginning factories, two oil mills, and one spinning mill in Malawi, Zambia, Mozambique, Tanzania, Zimbabwe, and Mali in Africa, and has acquired more than 100,000 tons of seed cotton annually. More than 8,000 tons of cotton yarns are produced, involving more than 200,000 local farmers, benefiting 1 million local people.

In the cultural and creative industries, Ruixin Ruihao Group acquired US-based cinema software service providers and French 3D cinema equipment suppliers in the upstream of the industrial chain with a total investment of US$60 million to create a complete industrial chain and achieve an international industrial layout.

The “Qingdao Brand” merger and acquisition, which is mainly made in Qingdao, has already achieved a lot. According to a report released by PricewaterhouseCoopers, the number of overseas mergers and acquisitions by Qingdao companies has continued to increase, involving a diversified development trend in the industry, with increasingly rational structures and increasing health.

Climb the ladder to quickly establish a competitive advantage

Compared to tangible goods, intangible capital is more fluid, and it is easier to break the limitations of geographical space and various artificial barriers.

With overseas acquisitions, the risks and costs of overseas development can be significantly reduced. The picture shows that in 2016, Haier acquired the United States General Electric appliance business, Zhang Ruimin (right) and Chip Blankenchi unveiled the company. (Data map)

“With overseas acquisitions, the company can obtain a mature and perfect sales network as quickly as possible, existing intangible assets such as patents, proprietary technologies, trademark rights, goodwill, etc., a molding management system, abundant human resources, and mature This will effectively reduce the barriers to entry into new markets and new industries, significantly reduce the risks and costs of overseas development, and rapidly establish competitive advantages, said Chen Xin, a founding partner of M&A Consulting.

Qingdao companies know this well. For a long time, in the entire international trade industry chain, foreign sales channels have gained about 80% of the profits of the entire industry chain, domestic production companies have obtained 10%-12% of profits, and foreign trade links can only obtain 8%-10% of profits. . Extending toward the ends of the smile curve, obtaining higher profits, and rapidly establishing competitive advantages have become the original intention of foreign trade companies in implementing overseas mergers and acquisitions.

Alongside this goal, Xinhua Jinjin has actively expanded its international trade industry chain around the core product of hair products and successively acquired the second and third largest male distributor in the United States, OR, and the United States, and entered the overseas marketing. High value-added links such as networks and brands. “Using overseas acquisitions, our hair products have formed a relatively complete industrial chain integrating design, production, branding, and sales, from the low-profit margin to the high-margin range, and the dominant position and discourse power in the international market have been significantly enhanced. "The person in charge of the Xinhua Jin Group said.

Today, overseas mergers and acquisitions are increasingly favored and increasingly become the main way for companies to invest overseas. According to statistics, as of now, the amount of investment agreed by the Chinese party for overseas investment in mergers and acquisitions projects (accepted) by Qingdao has accounted for 45% of the city’s total foreign investment.

In July 2015, Hisense invested US$23.7 million to acquire the entire equity and assets of Sharp Mexico Plant. Through the authorization of the Sharp brand, Hisense can acquire more channel resources, thus realizing the rapid growth of Hisense in the Americas market and enhancing Hisense's bargaining power in terms of channel and scale. The picture shows the location of the Sharp Mexico factory. (Data map)

With the “ladders” of overseas acquisitions, Qingdao enterprises have successfully achieved self-improvement goals. In recent years, Haier, Hisense, Huatong, Xinhuajin, Qingdao Wanda, Jinwang, Diendi and other companies have seized the important opportunity of bankruptcy and bankruptcy of poorly-operated overseas companies in the financial crisis, actively seeking targets and acquiring foreign advanced brands. And technology, the layout of overseas high-value industrial chain, make up for short board, enhance its competitive advantage, and achieved "leasing ladder climb."

“Overseas M&As as an important means of foreign investment is an important means to enhance the competitiveness of enterprises. Successful overseas M&A will help enterprises make full use of resources, explore the international market, and promote internationalization strategies,” said the person in charge of the Municipal Bureau of Commerce.

Accredited by the world, Qingdao companies demonstrate their strength

No one can succeed casually. The key to the success of Qingdao companies in overseas mergers and acquisitions is the "self-hardness."

"Overseas M&A money is very important, but light and money don't necessarily succeed. The acquired company may feel that Chinese companies have money and they don't have to really take care of you in their bones." A company official said that only the acquired companies can see To Chinese companies' strong R&D capabilities, good operating conditions, and good brand value, they will be willing to be acquired, even if they fall.

Haier was able to successfully acquire general-purpose home appliances, largely because of Haier’s brand recognition for general-purpose appliances. The picture shows Haier refrigerator factory.

Haier's successful acquisition of GE appliances illustrates this point. "Haier's offer is at a moderately low level among competitors, and the final transaction success is largely due to the recognition of Haier's brand of universal appliances and trust in Haier's multinational operating capabilities," said Zhou Yunjie, president of Haier Group.

As the world's second-and third-largest distributor of men's hair, the United States OR company and the United States National Corporation of the United States are willing to "commit themselves to" the new Huajin, it is also the importance of Xinhua Jin in hair products in the field of strong production, research and development and other comprehensive strength. Such companies as Hisense, Double Star, Huatong, King of Gold and Dien Land can successfully merge overseas brands.

Overseas mergers and acquisitions are in full swing, but they should not blindly follow suit. Experts in the industry pointed out that they must meet their own actual needs and cannot rely entirely on "take it." “When companies acquire technology-based companies overseas, they must pay particular attention to the acquisition of each other's technology through acquisitions and the enhancement of independent research and development. Because only with strong innovation and research and development capabilities can we go further.” PricewaterhouseCoopers China and Hong Kong And partner Bao Dewei, head of corporate mergers and acquisition services in Asia Pacific, said.

With the acquisition of Kumho Tire, the brilliant achievements of Double Star's “wisdom transformation” have received attention and recognition from the global industry. The picture shows the Double Star full-flow tire "Industry 4.0" intelligent factory.

Haier and Hisense’s acquisitions of international home appliance giants are highly targeted and a good “chemical reaction” is occurring after the integration: Qingdao companies have expanded their businesses and markets, acquired technology and talents, and have met standards and regulations and were acquired. The company has obtained abundant capital, a stable supply chain, and a vast market, achieving the effect of “1+1>2”.

Different policies and cultural concepts are different. In overseas mergers and acquisitions, cross-border conflicts and collisions occur from time to time. “In the context of globalization, Chinese companies must first adopt open thinking in overseas M&A, and they should adapt to different rules and environments on the basis of their full awareness of differences,” said Qian Liqiang, partner of PwC's Northern China M&A Department. .

Qingdao enterprises have deep understanding. “In the process of acquiring two American companies, we deeply felt the difference in the culture and values of the two countries. Our strategy is to fully respect and fully communicate. The result of this is not only to deepen mutual understanding and trust. It also promoted the improvement of the business, said the person in charge of the Xinhua Jin Group.

Through more and more overseas M&A practices, the overseas M&A capabilities of Qingdao companies are slowly increasing. They have not only developed and expanded themselves, but also emerged on the world stage, establishing a better Chinese corporate image and brand image. (Qingdao Daily/Qingdao View/Qing Bao Daily reporter Shen Junlin)


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