Difficult brothers in the motor industry!
[Difficult brothers in the motor industry! A net profit fell 78.88%, and a net profit was 3,681,300.
Jidong Motor's net profit was 1,332,700, down 78.88%
According to the 2017 annual report released by Jidong Motor, the operating income in 2017 was 218 million yuan, an increase of 21.19% over the same period of last year; the net profit attributable to the listed company shareholders was 1,332,700 yuan, down 78.88% from the same period of the previous year.
As of 2017, Jidong Electric's assets totaled 294 million yuan, an increase of 62.63% from the end of the previous year. The asset-liability ratio was 59.31%, an increase of 26.11 percentage points from the end of the previous year of 33.2%. The net cash flow from operating activities was -37,255,800 yuan in the current period, compared with 1955,160 yuan in the same period of the previous year.
Liuzhou Motor's 2017 net profit was 3,681,300 yuan
According to the 2017 annual report released by Liuzhou Electric, as of December 31, 2017, Liuzhou Electric's operating income was 47.476 million yuan, down 25.3% from the same period of last year; the net profit attributable to the listed company's shareholders was -368.13 million. In the same period of last year, it was 2,968,300 yuan;
As of December 31, 2017, Liuzhou Motor's total assets were 108 million yuan, an increase of 15.06% from the end of the previous year, and the asset-liability ratio was 76.85%, an increase of 7.38 percentage points from the end of the previous year of 69.47%. During the reporting period, Liuzhou Electric's operating income was 47.476 million yuan, down 25.3% from the same period of last year, mainly due to the impact of the domestic economic transformation environment and the decline in downstream customers' demand.
Nidko's $1.08 billion acquisition of Whirlpool compressor business
On April 24, Nidec Corporation (Nideco) released a message saying that the board of directors of the company had passed a resolution to acquire the compressor business of Embroid of the United States (Enbraco). To this end, Niedko signed an equity acquisition agreement with Whirlpool on April 24.
As early as last week, a person familiar with the matter disclosed the news that Nedko acquired Embraco. Now the boots are on the ground and the acquisition becomes a fact.
According to Reuters, Whirlpool agreed to focus on consumer-oriented business and agreed to sell the Embraco compressor business to Nedko for $1.08 billion in cash transactions.
Founded in 1973, the Nieder Group currently employs approximately 130,000 people worldwide and has more than 300 branches in more than 40 countries around the world, with a turnover of $14 billion last year.
In a news release on its website, Nedko said that Nedko has been committed to developing new business growth platforms in the home, industrial and commercial sectors. As part of this strategy, Nedko launched a strategic acquisition in the home sector. To achieve this goal, Nedko has established a new division, Nedko Global Appliances, which includes Nedko Solar Motor Co., Ltd. (Nedek's Home Electric Components Group, which was acquired in January 2010 Motor business), Nidec Corporation's home appliance business (Netherco's Emerson Electric Motors and Controllers business acquired in September 2010), and Nideco Motors Romania (Nideco acquired ANAIMEPS in May 2016. A. (Romania)), Niederco's global electrical compressors (the Secop Group acquired by Nideco in July 2017).
Prior to the acquisition of Secop, Nedek Global Appliances focused on the production and sale of "wet motors" such as washing machines, dryers and dishwasher motors. Through the acquisition of Secop, Nedek Global Appliances added compressors to its product portfolio, which allowed the company to further expand into the refrigeration industry. Nideko Global Appliances expects that the huge demand for 170 million units per year in the refrigerator compressor industry will provide attractive growth opportunities.
Embraco, based in Brazil, was incorporated by Whirlpool in 1997. In the refrigeration compressor industry, Embraco has an important position in the industry with its excellent technology. At present, Embraco has 8 factories in Brazil, Italy, China, Slovakia and Mexico, and employs nearly 11,000 people.
The Nideco acquisition does not include Embraco's factory in Italy.
Nideko said that through the acquisition of Embraco, Nedek Global Appliances will be able to strengthen its refrigeration compressor business and expand its product coverage and geographic footprint. In addition, more stringent environmental regulations in major regions such as Europe, the United States, and China have spurred customers' demand for eco-friendly and space-saving refrigeration compressors. Embraco's advanced compressors meet the needs of these customers. Nedko also believes that its state-of-the-art brushless DC motor technology will complement Embraco's compressors.
Nideko also said that due to the similarities in the nature of the components used in the motor and compressor, Nedko Global is expected to reduce procurement costs by leveraging the synergies of the Nidec Group's purchasing capabilities. The company further stated that Whirlpool and Nieder have established mutual trust through long-term relationships and both parties hope to continue to maintain such a relationship.
Nieder is expected to complete the acquisition of Embraco in the first half of 2019.
During the China Refrigeration Exhibition held this month, Nedek Global Electric President and CEOLalterTaranzano said that Nideco Global Electric strives to achieve an annual turnover of US$1 billion within three years. “Our wet motor business is already the world's number one, and the light commercial compressor business is also among the best in the world. Although the current domestic compressor business is not in good condition, we have decided to return to the market with the belief that Nideco Group never gave up. Still confident to make the compressor business the world's number one."
