This Industry Leader Was Snatched Into the Bag By Domestic Retail Giants
Recently, according to relevant news
Listed company Andrey
Officially control Nanfu battery
Leading consumer battery industry in transition
"Nanfu energy gathering ring, one section is better than six sections". Many years ago, this magical advertisement made Nanfu battery enter thousands of households. Following the completion of the acquisition of part of the equity of Nanfu battery parent company, Anhui Andeli Department Store Co., Ltd. (hereinafter referred to as "Andeli") continued to increase its weight. On the evening of February 9, Andrey announced that it planned to purchase its 15% equity of Yajin technology from Ningbo Yafeng by paying cash through its holding subsidiary Anfu energy.
In January this year, Andrey has completed the original business purchase and acquisition of 36% equity of Yajin technology, and obtained the corresponding voting right entrustment of 15% equity of Yajin technology, so as to obtain the control right of Yajin technology and then control Nanfu battery. After the completion of this transaction, the listed company will hold a total of 51% equity of Yajin technology through its holding subsidiary Anfu energy.
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Performance decline department store enterprises seek transformation
Anhui Andry Trade Center Co., Ltd., formerly known as Anhui Andry Trade Center Co., Ltd., was founded in 1984. It was originally a state-owned enterprise, restructured into a private enterprise in 2002, and restructured into Anhui Andry Department Store Co., Ltd. at the end of 2011.
Headquartered in Lujiang County, the company has outlets in Lujiang, Chaohu, Hexian, Hanshan and Wuwei. It governs Chaohu Andeli shopping center, He county Andeli shopping center, Wuwei Andeli shopping center and other subsidiaries. On August 22, 2016, Andrey was listed on the main board of Shanghai stock exchange with the stock code of "603031".
Since its listing, Andrey has been mainly engaged in department store retail business, including shopping centers, supermarkets, professional home appliance stores, etc. In recent years, due to the impact of e-commerce, epidemic and other factors on department store retail entities, as well as the emergence of new retail models such as consumption upgrading and online and offline integration, Andrey, as a regional department store retail enterprise, has actively changed to focus on supermarkets and accelerated network layout and regional expansion, but its performance has continued to decline. In this context, actively seeking strategic transformation has become the consensus of shareholders and management.
Matching demands and smooth progress of asset restructuring
In September 2021, Andrey announced that he planned to purchase 36% equity of Yajin technology, a new third board company, by cash payment. The news immediately aroused strong concern in the market.
Yajin technology is the controlling shareholder of Fujian Nanping Nanfu Battery Co., Ltd. as the leading enterprise of domestic alkaline battery, Nanfu battery has been unable to be listed in the domestic capital market after many changes of control in the past 20 years since it was acquired by foreign capital in 1999.
Until 2015, CDH, a well-known domestic investment institution, acquired 78.77% equity of Nanfu battery, and Nanfu battery finally returned to Chinese capital.
In 2016, Nanfu battery successfully landed on the new third board through backdoor Yajin technology. As CDH investment uses leveraged buyouts commonly used in the international capital market, all of its Yajin technology shares held through Ningbo Yafeng are in the pledge state, which makes it difficult for CDH to be directly listed in China. Therefore, Yajin technology has been looking for opportunities and paths to enter the A-share market in China.
The demands of both parties match, and this transaction is conducive to the interests of all shareholders of the company and Yajin technology. With the strong support of major shareholders of both parties, this transaction can be smoothly promoted.
In January 2022, Andrey successfully completed the original business purchase and acquisition of 36% equity of Yajin technology, and obtained the corresponding voting right entrustment of 15% equity of Yajin technology, so as to obtain the control right of Yajin technology and then control Nanfu battery.
The completion of this transaction not only marks the completion of Andry's transformation from traditional department store retail industry to battery industry, but also means inserting "capital wings" into the future development of Nanfu battery.
Why listed companies are optimistic about Nanfu battery
According to public information, Nanfu entered a club with an output value of 3 billion yuan in 2018, an increase of 17.5% over the previous year. For 26 consecutive years, it has been in the forefront of the industry, which is inseparable from the following points:
The first is to insist on research and development. For example, we are familiar with the shaped ring battery. This year, on this basis, Nanfu continued to launch the second-generation battery of shaped energy ring with up to 23 major technological upgrades, with the battery life increased by 25%.
Since the late 1990s, Nanfu has established its own R & D team to keep pace with the times, learn new technologies, inject new forces and maintain the core competitiveness of products. At present, Nanfu has successively developed more than 200 scientific and technological achievements reaching the international advanced level.
Secondly, adhere to the diversified product line. Starting from meeting the needs of users and taking alkaline battery as the starting point, Nanfu has continuously developed new products such as button battery, new brand tenavolts rechargeable lithium battery and aircharge wireless charger. Moreover, adhere to the construction of talent team.
Talents are the driving force for the development of enterprises. As a battery technology enterprise, nanfuneng has always had a steady stream of power, which is inseparable from its absorption and talent training. It is said that at present, Nanfu family has more than 450 technical management personnel, including doctors, professors and senior engineers, accounting for more than 40% of the total number of employees. At the same time, Nanfu has also established a national technology center and post doctoral research workstation, and has also established science and technology R & D centers with many key universities in China.
Continue to overweight, deepen transformation and enhance profitability
After cutting into the battery track quickly, Andrey decided to continue to add weight. On the evening of February 9, Andrey announced that it planned to purchase its 15% equity of Yajin technology from Ningbo Yafeng by paying cash through its holding subsidiary Anfu energy. Upon consensus of all parties, the transaction price of 15% equity of Yajin technology is determined to be 1.35 billion yuan.
This transaction is a cash acquisition. How to raise this expensive fund? According to the announcement, the company plans to raise funds through non-public offering of shares for this transaction. In view of the inconsistency between the time when the raised funds are in place and the time when the acquisition funds are actually paid, the company plans to pay in advance through its own funds and self raised funds, and replace them after the raised funds are in place, However, the implementation of this transaction is not subject to the approval of the CSRC for the above-mentioned non-public offering of shares.
As the other party to the transaction, Ningbo Yafeng promises that the annual net profit of Yajin technology shall not be less than 616372500 yuan, 657464000 yuan and 698555500 yuan respectively in 2022, 2023 and 2024.
Andrey said that after the completion of this transaction, the listed company will hold 51% equity of Yajin technology through its holding subsidiary Anfu energy, so as to further strengthen the stability of control over Yajin technology, which is the continuation and deepening of the strategic transformation of the listed company and will further enhance the profitability of the listed company.
(picture and text source: "Weiju Lujiang")