Increased holdings of Guohong Communications frustrated Changhong said little damage

Recently, Sichuan Changhong issued an announcement stating that the company received a letter from INFOBEYOND LIMITED, a foreign shareholder holding a 20% stake in Guohong Communications, regarding the termination of the transfer of 20% of Guohong Communications. As a result, the company could not continue to implement plans to increase Guohong Communications. At the same time, the company stated that after negotiating with the other two transferors, the company will no longer implement the holdings of Shenzhen Kaihong and Chongqing Guohong.

"This time the termination of the acquisition of Guohong Communications' shareholding in foreign shareholders will not affect the development of the company's mobile phone business. The size and structure of Changhong's mobile phone business is stable, and the termination of the share purchase will not affect the role of Changhong's mobile phone in the smart strategy." Changhong News The spokesman told reporters. The other party did not give a positive response to whether it is possible to continue the acquisition.

Industry sources pointed out that Changhong, a major shareholder of Sichuan Changhong Group, is currently promoting the overall smart strategy of integrating various product lines, and making smart phone business into the Blue Ocean Mobile Internet has become a necessary factor in strengthening its absolute control of mobile phones.

Mobile phones are not affected by the termination of the acquisition of shares

In July 2012, Sichuan Changhong passed a resolution to acquire a 20% stake in Guohong Communications held by INFOBEYOND LIMITED for approximately 175 million yuan, while Hong Kong Changhong, a subsidiary of Changhong, plans to acquire 6% of Shenzhen Kaihong for 21.168 million yuan. Investors acquired approximately 6% of Chongqing Guohong’s shares for approximately 23.36 million yuan.

According to statistics, Guohong Communications is a high-tech digital enterprise group that integrates R&D, manufacturing, sales, and service of communication terminals, network terminals, and personal mobile electronic products. In March 2005, Sichuan Changhong invested 200 million yuan to set up.

If the acquisition is completed, Sichuan Changhong will increase its shareholding in Guohong Communications to 65%, thus achieving absolute control.

Guohong Communications is an important smart phone production and operation platform in Changhong Smart Strategy, and it is one of the pillar industries for Changhong Group to enter 3G. Established long-term cooperation with Microsoft, TI, INTEL, etc. Sichuan Changhong stated that because no formal contract was signed, the termination of the aforesaid acquisition intention will not affect the current profit and loss and shareholders' equity.

Changhong spokesperson said: “Changhong’s acquisition of equity is a strategic deployment of the smart phone business. Sichuan Changhong has been a major shareholder of Guohong Communications, and related performance data has also been included in the scope of Sichuan Changhong consolidated statement, whether to increase holdings of Changhong’s mobile phone business. No effect."

"From the current point of view, Guohong Communications sells 2 billion yuan a year. The sales revenue of Sichuan Changhong's 2011 revenue of 72.3 billion yuan is not large. Whether it can absolutely hold Guohong Communications has no obvious impact on Changhong." Economic observer Liang Zhenpeng said that in the future development, many home appliance manufacturers have launched their own brand of tablet computers and mobile phones, implementing digital living room, entertainment and other integration strategies, the status of smart phones has become increasingly prominent. Changhong mobile phone R & D, production, sales channels and other mobile phone business are almost all in the Guohong Communications, Changhong strengthen the absolute holding of Guohong Communications is necessary.

Smart phone is a key link

Changhong said that Changhong and Guohong have formed a consensus on the future development of smart phones in the operation of mobile phone business. Changhong will continue to vigorously develop mobile internet terminals and promote the high-end transformation of the mobile phone business.

“Changhong currently holds 45% of the shares of Guohong Communications, which is relatively controlled. However, if it exceeds 50%, it is absolutely controlled. The position of Changhong’s largest shareholder will not change. Ever since last year, Changhong has made tremendous efforts in the smart phone business and achieved absolute Controlling rights will have more advantages,” pointed out industry insiders.

It is reported that Changhong currently promotes the smart industry as the core of the overall smart strategy, plans to accelerate the development and implementation of intelligent terminal strategy, covering smart TVs, smart phones, handheld smart terminals and all smart terminal products, layout of multi-screen integration of mobile Internet, smart The key role of mobile phones is becoming increasingly prominent. Luo Qingqi, a senior observer of the home appliance industry, said that in the era of mobile Internet, the overall transformation of home appliances has been upgraded, Changhong has completed the transition to smart home system integration, and the upstream and downstream bundles have been integrated. Changhong Mobile has played an important role in Changhong's smart home.

Liang Zhenpeng told the reporter: “In the light of the shrinking market share of white power, last year Changhong scored the top ten in the air-conditioning market. At present, Changhong Huayi Compression and Changhong White Electric have a good momentum of development and are in a stable growth phase. The mobile phone business has become the entire Changhong Group. The relative need to strengthen the share of the share."

"Smartphones are an important part of Changhong's smart industry. Changhong will strengthen Guohong's business and development in the field of smart phones to form a complete intelligent mobile terminal industry chain through sales and distribution," said a Changhong spokesperson.