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DGAP-News: Haier Smart Home Co.,Ltd. / Key word(s): IPO/Mergers & Acquisitions
Listing of Haier Smart Home's H-Shares to Establish "A＋D＋H" Global Capital Market Platform
To date, the privatization of Haier Electronics Group Co., Ltd. by Haier Smart Home by way of a scheme of arrangement has finally been completed. In accordance with the scheme document, the listing of the shares of Haier Electronics on the Main Board of the Hong Kong Stock Exchange (HKEX) was officially withdrawn at 9:00 am (HKT) today. Haier Electronics has become a wholly-owned subsidiary of Haier Smart Home. Haier Group remains to be the controlling shareholder of Haier Smart Home.
The Management of Haier Smart Home stated, "Haier Smart Home's listing at HKEX speaks for the Company's confidence over the Hong Kong capital market. Together with our shareholders, we are looking forward to witnessing the prosperous chapter of Haier Smart Home in an era of IoT in the Hong Kong capital market."
Prior to the privatization, Haier Electronics was mainly engaged in the manufacturing of domestic washing machines, water heaters and water purifiers as well as the distribution business covering domestic sales channels, while Haier Smart Home was mainly engaged in the business of refrigerators, air conditioner and overseas household appliances. After the completion of the privatization, Haier Smart Home will aim to fully integrate with Haier Electronics to improve the comprehensiveness and depth of smart home solutions. The enlarged Haier Smart Home Group will also take this opportunity to further deepen the online and offline integration throughout the entire process, to enhance the user experience and loyalty and to build and share the Haier Smart Home Experiential Cloud platform across all categories.
After the completion of the privatization, the enlarged Haier Smart Home Group will share resources and build capacity throughout the entire value chain, including R&D, procurement, manufacturing, and distribution of products, to promote technical cooperation, facilitate result-sharing, and optimize operations. On one hand, the prior overlapping of products and channels of both parties can be eliminated, achieving significant synergies. On the other hand, the improvement of operation management such as reduced internal procedures and simplified approval process is expected to lower the sales and management costs. In addition, the operational risks will be reduced with more robust financial performance supported by a stronger balance sheet.
The enlarged Haier Smart Home Group will have a larger market capitalization, improved financial performance and a more diversified investor base than Haier Electronics Group, which is expected to enhance the Company's capital market profile and to improve liquidity. Moreover, after the completion of the privatization, Haier Smart Home Group will establish a unified capital market image and allow investors to focus on one listing company.
From 2017 to 2019, Haier Smart Home's revenue increased from RMB154.2 billion to RMB198.0 billion, with a CAGR of 13.3%. For the same period, the profit increased from RMB9.1 billion to RMB12.3 billion, with a CAGR of 16.3%. Among the total revenue, the smart home business accounted for a large proportion; in 2019, the revenue from smart home business (including the PRC and overseas markets) accounted for 89.4% of the total revenue.
After the listing in Hong Kong, Haier Smart Home will continue adhering to Haier's core value of "prioritizing users over the Company", capitalize on its RenDanHeYi management model and provide users globally with whole-process customized smart home solutions. Haier Smart Home is committed to creating an IoT smart home ecosystem brand and meeting users' needs for a better life experience.
23.12.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
Haier Smart Home Co.,Ltd.
Haier Industrial Park, Laoshan District
+49 6172 9454 143
+49 6172 9454 42143
CNE1000031C1, CNE000000CG9 (A-share),
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID:
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DGAP News Service