In 39 days, nearly 15 billion yuan was hit. Why did Country Garden Venture Capital invest in 3 ceramic sanitary ware enterprises?

In 39 days, nearly 15 billion yuan was hit. Why did Country Garden Venture Capital invest in 3 ceramic sanitary ware enterprises?
After Diou Home Furnishing and Mona Lisa, Country Garden Ventures plans to subscribe for Huida bathroom shares, and only 15 days have passed since the last subscription.This year, Country Garden Venture Capital made three strategic investments in 39 consecutive days, with an average value of ceramic sanitary ware enterprises, and gradually involved funds of nearly 1.5 billion yuan.On May 20, Huida Sanitary Ware issued a fixed increase announcement that Country Garden Group’s equity investment company Country Garden Venture Capital planned to subscribe for Huida Sanitary Ware 5060.980,000 A-shares, involving 4.1.5 billion yuan.After the initial issuance, Country Garden Ventures will hold Huida Bathroom 11.With 76% of the shares, the actual controller of Huida Sanitary Ware will not change.On May 21st, Huida Sanitary Ware opened its daily limit and set it at 12.The price of 97 yuan / share closed.Today, Huida Sanitary Ware opened at a price higher than yesterday’s closing price, and then immediately opened the ascent stop until the morning close to 14.27 yuan / share blocked the daily limit.Country Garden Venture Capital has successively subscribed to the official website of three ceramic sanitary ware companies. Country Garden Venture Capital is the first-level department of Country Garden Group engaged in equity investment and is responsible for the Group’s foreign equity investment business in addition to real estate investment.As of now, Country Garden Venture Capital has made three consecutive investments in ceramic sanitary ware enterprises.On May 20, Huida Sanitary Ware issued a fixed increase announcement showing that the target of this non-public issuance of A shares includes Country Garden Venture Capital, Wang Huiwen, Wang Yanqing and Wang Yanwei. The price of the issued shares is 8.20 yuan / share, the number of issued shares does not exceed 6097.560,000 shares (inclusive), of which Country Garden Venture Capital intends to subscribe4.1.5 billion US dollars, the remaining subscriptions are completed by Wang Huiwen, Wang Yanqing and Wang Yanwei.According to Huida Sanitary Ware, this non-public offering has two purposes, restructuring, dating strategic investors, and strengthening strategic synergy.At the same time, it supplements the company’s development funds, enhances the company’s financial strength, and helps the company’s strategy implementation.Among them, Huida bathroom experts, dating Country Garden Venture Capital as a strategic investor of the company, can change the level of corporate governance and also contribute to the future development of the company’s business.It is understood that Country Garden Venture Capital belongs to Country Garden as a well-known real estate company. It has strategic resources in the real estate development market, channels, and brands. It has formed an obvious industrial chain synergy with the bathroom industry where Huida Bathroom is located.At the same time, Huida Sanitary Ware introduced that Country Garden, as an important customer of the company’s long-term cooperation, can effectively promote the company’s market expansion and sales performance through this cooperation.This is not the first time Country Garden Venture Capital has subscribed for a home furnishing company. This is the third subscription in more than a month.On April 12, Country Garden Venture Capital subscribed to Diou Home Furnishings 2676 for 500 million.660,000 shares are expected to be held by Country Garden Ventures after the completion of this offering.50% equity.On May 5, Country Garden Venture Capital subscribed for Mona Lisa 2712 for about 500 million yuan.970,000 shares, after the completion of this issuance, Country Garden Ventures will hold Mona Lisa 6.22% equity.The three subscriptions of Country Garden Venture Capital involved a total investment of nearly 1.5 billion yuan.Judging from the products of the three companies, they all involve ceramic products, among which Huida Sanitary Ware and Diou Home Furnishing also involve sanitary products.According to the data, Diou Home Furnishing mainly has sanitary ware and architectural ceramics. The sanitary ware segment mainly deals in the domestic high-end sanitary ware brand “Emperor”.The building ceramics segment mainly deals with domestic high-end ceramic tile brand “Osino”.The main products of Mona Lisa can be divided into ceramic tiles, ceramic plates, thin ceramic tiles.Huida bathroom products mainly include sanitary ware, ceramic tiles and whole bathroom.3Why do companies all date Country Garden Venture Capital?In fact, Country Garden Venture Capital’s strategic investment in ceramic sanitary ware enterprises has mutual needs and help.From the purpose of the three companies issuing shares, it is not difficult to find that dating strategic investor Country Garden Venture Capital and strengthening strategic synergy are one of the commonalities.Some people believe that for the three companies, it is more important to strengthen business cooperation. After all, Country Garden is a large-scale housing company that requires the replacement of building materials.At the same time, Diou Home Furnishing, Mona Lisa and Huida Sanitary Ware also mentioned in the announcement that as a well-known real estate listed company, Country Garden has strategic resources in the field of real estate development, such as markets, channels and brands, which can promote the company’s market expansionSignificant improvement in sales performance.As for the strategic investment of Diou Home Furnishing and Mona Lisa, Country Garden Venture Capital also stated on the official website that this reflects Country Garden Venture Capital’s investment thinking based on industrial capital and empowering the industrial chain.Diou Home Furnishing and Mona Lisa are located in the upstream of the domestic industrial chain. They are optimistic about the industrial upgrade of the big home race track in the subdivision areas such as ceramic tiles.At the same time, Country Garden Group has continuous procurement needs in the field of large home furnishing such as architectural ceramics, strategic investment in high-quality suppliers to form an equity relationship, and support their long-term stable development. It also helps the Group optimize the supply chain system and form industrial synergy.Dai Yongbo, managing partner of Country Garden Ventures, once said: “We are optimistic about the integration and development of Diou Home Furnishing and Mona Lisa as leaders in the building materials industry.Country Garden and both parties will further explore the depth and breadth of cooperation on the basis of supplementing good business cooperation.”At the same time, there is also a Supreme People competent, this time to make a strategic investment in Huida bathroom, also reflects Country Garden’s determination to diversify development.At the same time, according to official website information, Country Garden Venture Capital strictly follows the logic of “research-driven investment” and continues to focus on outstanding projects and investment opportunities in areas such as big health, big consumption, big residence, AIoT, logistics and supply chain.In addition, through the annual report, Country Garden is also an important customer of Diou Home Furnishing, Mona Lisa and Huida Bathroom.Among them, the annual report data of Diou Home Furnishing shows that from 2018 to 2019, Diou Home Furnishing sells tiles and other products to Country Garden with revenues of 20 respectively.4.1 billion and 13.2.8 billion yuan, accounting for 47% of the company’s total revenue.36%, 23.85%.Can the ceramic sanitary ware enterprise make a comeback when the market is saturated?Sauna, Yewang noticed that in 2019, there will be conduction pressure in the building ceramics industry and sanitary ware industry.Diou Household introduced in its 2019 annual report that the market demand for the building ceramics industry and sanitary ware industry has reached saturation. From January to November 2019, the total demand for sanitary ware in the country is about 5.7.1 billion pieces (sets), including toilets, bathroom cabinets, shower doors, faucets, showers, pendants, squats, etc.In 2019, the output of ceramic tiles continued to decline in the downward channel, reaching 82.25 billion square meters, down 8 every year.73%, a decrease of 2 from 2018.47 averages.According to the “General Situation of Construction Ceramics and Sanitary Ware Industry Development in 2019” released by the China Building Ceramics Association, in 2019, there were 1,522 building sanitary ceramics enterprises above designated size in the country, a decrease of 122 from 2018 and a year-on-year decrease of 7.42%.Among them, 1,160 architectural ceramics enterprises above designated size and 105 enterprises were eliminated.From the performance point of view, the market competition is still fierce. At the same time, the entire industry is still showing a breakdown of retail demand and intensified competition on the engineering side.The annual report shows that the difference in net profit between the three companies is not very different.In 2019, Diou Home Revenue was 55.7 billion, an annual increase of 29.29%, with a net profit of 5.6.6 billion, an annual increase of 48.70%.Mona Lisa had a revenue of 38.4.0 billion, an annual increase of 18.57%, with a net profit of 4.3.3 billion US dollars, an annual increase of 19.42%.And Huida bathroom revenue is 32.1 billion, an increase of 10 in ten years.70%, the net profit is 3.2.9 billion, an annual increase of 37.78%.Obviously, the three companies dating Country Garden Venture Capital have supplemented their working capital.Among them, Huida Sanitary Ware said that the company supplemented working capital through this non-public appointment of high-quality strategic investors, which is conducive to enhancing the company ‘s financial strength, promoting the ability to resist risks in the future development, and effectively promoting the company ‘s expansion of business scale and development strategyImplementation.And Diou Home Furnishing and Mona Lisa also have a demand for working capital.Some senior people believe that in the background of increasingly fierce market competition and accelerated industry reshuffle, dating strategic investment can help ceramic sanitary ware enterprises to alleviate the problem of tight liquidity to a certain extent.At the same time, ceramic sanitary ware enterprises also need to seize market share during the period of growth in the industry, and cooperate with large housing companies to seize the share of fine decoration products of housing enterprises, becoming an important way for too many ceramic sanitary ware companies to replace the market.However, the strategic investment of dating alone may not be enough. Accelerating the development of intelligentization is also the key to the realization of the ceramic industry from big to strong, and to reorganize the global ceramics ecosystem.At the same time, we must also face the challenges and challenges brought to the traditional building ceramics and sanitary ware industry by product and technology upgrades, channel upgrades, and cross-border integration.Sauna, Ye Wang Zhang Jie editor Peng Yali proofreading Chen Diyan