Dongpeng Holdings announced new investment moves, and mergers and acquisitions in the ceramics industry are booming again.
On the evening of April 21, Dongpeng Holdings (stock code: 003012) issued the "Announcement on the Progress of Asset Acquisition by Wholly-Owned Subsidiaries" stating that its wholly-owned subsidiary Shanxi Dongpeng New Materials Co., Ltd. (hereinafter referred to as " Shanxi Dongpeng") signed an "Asset Acquisition Agreement" with Shanxi Jinshijia Ceramic Technology Co., Ltd. (hereinafter referred to as "Shanxi Jinshijia") and Wen Minzheng, agreeing toShanxi Dongpeng Peng acquired the operating assets of Shanxi Jinshijia related to the production of ceramic products for RMB 237.1 million (including but not limited to non-detachable properties, buildings, structures attached to the Shanxi Jinshijia factory, Engineering, machinery and equipment and other fixed assets).
Prior to this, Shanxi Dongpeng had signed an "Asset Transfer Agreement" with the Yuanqu County People's Government and Yuanqu Industrial Company on April 19, stipulating thatShanxi Dongpeng transferred 529.05 acres of land use rights, 190,703.456 square meters of standardized factory ownership and related supporting facilities and other facilities located in the southern district of Yuanqu County Economic and Technological Development Zone from Yuanqu Industrial Company for RMB 192210740.83. .
The announcement shows that in addition to the transferred land and factory building use rights, the operating assets targeted for this acquisition also include a porcelain tile production line and a glazed tile production line, with a construction scale of 25 million square meters per year. After the acquisition is completed, it will be conducive to the construction and production capacity expansion of Dongpeng Holdings' Shanxi base, increase the local supply capacity of products covering the North China and Northwest markets, improve supply efficiency and production capacity matching efficiency, reduce operating costs, and meet its continuous development and sales The continuous expansion of scale requires supporting production capacity and enhances its profitability and sustainable development capabilities, which has positive significance for its future development.
01
Has seven production bases
Production capacity will be increased by 50%+
Up to now, Dongpeng Holdings has deployed ceramic tile and sanitary ware production in Qingyuan, Guangdong, Fengcheng, Jiangxi, Jiangmen, Guangdong, Zibo, Shandong, Lixian, Hunan, Yongchuan, Chongqing, and Yuanqu, Shanxi. It has seven major production bases, namely Qingyuan Nafuna Ceramics Co., Ltd., Fengcheng Dongpeng Ceramics Co., Ltd., Jiangmen Dongpeng Smart Home Co., Ltd., Zibo Kapur Ceramics Co., Ltd., Lixian Xinpeng Ceramics Co., Ltd., Chongqing Dongpeng Ceramics Co., Ltd.Peng Smart Home Co., Ltd., Shanxi Dongpeng New Materials Co., Ltd.
The "Ceramic Industry Long March V - 2020 China Ceramic Tile Production Capacity Survey" data jointly released by the China Building and Sanitary Ceramics Association, the China Ceramics Industry Development Foundation, and "Ceramic Information" show that the top 20 ceramic enterprises in terms of ceramic tile production capacity in the country in 2020 are in order. For New Pearl Group, Weimei Group, Huashuo Ceramics Group, Hongyu Group, Dongpeng Holdings, Xinquanye Enterprise, Mona Lisa Group, Haosheng Enterprise, New Jincheng Group, Shuncheng Group, New Zhongyuan Group, Sun Ceramics Group, Oceano Ceramics, Chunyi Enterprise, Top 100 Enterprises, Ririsheng Group, Ruiyang Ceramics Group, Milano Group, Xuri Group, Quansheng Enterprise, Dongpeng Holdings ranks fifth in terms of production capacity.
Dongpeng Holdings Headquarters Building
(from the WeChat public account "Dongpeng Tile 1972")
On January 6 this year (2021), Dongpeng Holdings and its subsidiaries Fengcheng Dongpeng Ceramics Co., Ltd. and Jiangxi Dongpeng Sanitary Ware Co., Ltd. signed an "Investment Agreement" with the Fengcheng City People's Government of Jiangxi Province. According to the agreement, the Fengcheng City Government provided 900 acres and 300 acres of industrial project production land to Fengcheng Dongpeng and Jiangxi Dongpeng respectively for their investment in the construction of smart ceramic home industrial park projects, specifically including 9 smart slate production lines and annual output 2.6 million pieces of smart bathroom and other projects. The total investment in the project is approximately 5.08 billion yuan, of which the fixed asset investment intensity is not less than 3 million yuan/mu, and advanced production equipment and environmental protection facilities will be purchased.
Analysts believe that the construction of new investment projects in Fengcheng will increase the production capacity of Dongpeng Holdings by more than 50%. After its production capacity of high-end architectural ceramic sanitary ware products forms economies of scale, it will improve production efficiency, reduce production costs, and thus expand the market. share. It can be predicted from this that After completing the acquisition of Shanxi Jinshijia, Dongpeng Holdings will further increase its production capacity, and the top five ceramic tile production capacity rankings among national ceramic companies will also change.change.
02
Performance in 2020 increased by 6.02% year-on-year
Net profit increased by 7.24% year-on-year
While releasing the "Announcement on the Progress of Asset Acquisition by Wholly-Owned Subsidiaries", Dongpeng Holdings also released the "2020 Annual Report" and the "Announcement on the 2020 Profit Distribution Plan".
The "2020 Annual Report" shows: In 2020, Dongpeng Holdings achieved operating income of 7.158 billion yuan, a year-on-year increase of 6.02%, achieving attribution to listed companies The net profit of shareholders was 852 million yuan, a year-on-year increase of 7.24%. The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 748 million yuan, a year-on-year increase of 4.07%; the production of ceramic tiles was 117.7337 million square meters ( Approximately 118 million square meters), a year-on-year increase of 56.38%, and sales of ceramic tiles were 135,853,800 square meters (136 million square meters), a year-on-year increase of 16.98%.
Screenshot of Dongpeng Holdings 2020 Annual Report
The "Announcement on the Profit Distribution Plan for 2020" shows that Dongpeng Holdings plans to distribute a cash dividend of 3 yuan (including tax) to all shareholders for every 10 shares based on the company's total share capital of 1.173 million shares. It is expected to distribute a cash dividend of 3.519 yuan. 100 million yuan (including tax), no bonus shares will be issued, no reserve funds will be converted into share capital, and the remaining undistributed profits will be carried forward to the next year.
Dongpeng Holdings disclosed its 2021 business plan in the "2020 Annual Report": taking advantage of the listing, seize opportunities, amplify advantages, make up for shortcomings, and gain full momentum. We will do a good job in key tasks such as talent emergence, incentive mechanism improvement, digital transformation, brand upgrade, product leadership, service upgrade, channel sinking, localized supply, and regional marketing. The specific approach in terms of production is to further expand the scale advantages of its own bases and build new production lines in Jiangxi, Qingyuan, Chongqing and other bases. Strengthen technological innovation and product research and development, product upgrades, launch new products such as medium and large slabs and rock slabs, and increase the proportion of high-value products. Lean production, lean management, cost reduction and efficiency improvement, and increase gross profit margin. Optimize production capacity layout, belong toEstablish localized supply and shared warehouse systems to reduce logistics costs.
03
The concentration of the ceramic industry has further increased
The wave of mergers and acquisitions will become more intense in the future
In fact, not only Dongpeng Holdings has made big moves in investment expansion, but other ceramic companies are also experiencing constant drama.
On March 16, a signing ceremony was held for Tianan New Materials to acquire the equity of Yingpai Group. The former plans to purchase the latter's subsidiaries "Foshan Shiwan Yingpai Ceramics Co., Ltd. Foshan Yingpai Ceramics Co., Ltd., Foshan Yingpai Ceramics Technology Co., Ltd., and Foshan Yingpai Ceramics Trading Co., Ltd. each have 66% equity", the purchase amount is 520 million yuan.
On March 9, Diou Home Furnishing (Oshennuo) announced that it plans to invest in Shanxi Huizi New Materials with its own funds. The investment amount is 50 million yuan,The actual investment will be completed before January 31, 2031.
On March 4, Hongyu Group 186 million yuan successfully purchased Guangxi Xinzhong Ceramics.
On February 18, Jiangxi Hemei Ceramics' investment of 6.18 billion yuan started construction on the third phase of the Fengcheng expansion project on February 18.
On February 7, Mona Lisa Group acquired 70% of the equity of Zhishanmeide for 651 million yuan, adding 9 production line; on March 16, the delivery with Putin Ceramics was officially completed, and Gaoan Mona Lisa New Material Co., Ltd. was established.
On February 3, Hongyu Group signed an investment contract for a ceramic production project in Teng County, Guangxi, with 2 billion yuan in Teng County 2,600 acres of land will be acquired and 12 production lines will be built.
On January 11, Dajiaolu held a press conference in Foshan to acquire the Guangdong Jianxing Ceramics Factory, announcing that it would complete and put into operation the third production line of the Jianxing Factory by June 2021; on February 18, the Guangdong Jianxing Ceramics Factory it acquired Jianxing Ceramics Factory was officially put into production. Founder Nan Shunzhi said that he would invest in 2021100 million yuanBuild a new super-large kiln with a daily production capacity of 35,000 square meters and plans to put it into operation in June.
On November 25 last year (2020), Nobel Group invested 5 billion yuan in the Nobel high-end ceramics Wuhu production base Signed a contract to settle in Fanchang, and plans to build 15 high-end, intelligent building ceramic production lines and 1 TCM special building ceramic membrane production line.
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The founding ceremony of Gaoan Mona Lisa New Materials Co., Ltd.
(from the WeChat public account "Mona Lisa Group")< /span>
The eight investment or M&A cases cited above involve a total amount of approximately 14.687 billion yuan, nearly 15 billion!
In recent years, affected by factors such as consumption upgrades, channel fission, and stricter environmental protection, the reshuffle of the building ceramics industry has further intensified, and the Matthew Effect has gradually become more prominent: On the one hand, small and medium-sized ceramics companies have suspended production, limited production, liquidated warehouses, and gone bankrupt. , bankruptcy has become the norm; on the other hand, leading ceramic companies are actively expanding, investing in new projects, or acquiring other small and medium-sized ceramic companies, further increasing the concentration of the industry.
On April 15, the website of the Ministry of Ecology and Environment published the "Letter on Soliciting Opinions on Strengthening the Prevention and Control of Ecological Environment Sources of High Energy-Consumption and High-Emission Projects (Draft for Comments)", proposing "strengthening Guiding opinions on "leading from the source to promote the orderly development of the 'two high' industries", "strict environmental assessment and approval, promoting the reduction of pollution and carbon dioxide in the 'two high' projects", "strengthening supervision and law enforcement to ensure that policies and measures are implemented and effective", and make specific provisions :
Projects that fail to take effective regional pollutant reduction measures as required are national air pollution prevention and control prioritiesCoal-consuming projects in the region that have not adopted coal reduction and substitution measures as required are new and expanded projects that are restricted or eliminated in the "Industrial Structural Adjustment Guidance Catalog", petrochemical and modern coal chemical projects that are not included in the national industrial plan, and are not included in the national industrial planning. Newly built or expanded petrochemical, chemical, coking, non-ferrous metal smelting, flat glass, and ceramic projects entering the industrial park are projects that have not carried out planned environmental impact assessments in accordance with the law, and do not meet the ecological environment access list control requirements or the environmental access requirements of the park where they are located. For projects, ecoenvironmental departments at all levels must strictly review them in accordance with laws and regulations to determine whether they fall within the statutory disapproval of environmental impact assessment documents.
Once this document comes out, the difficulty of new projects for ceramic companies will inevitably increase further. Against this background, more leading ceramic companies may expand through mergers and acquisitions, and the wave of mergers and acquisitions in the ceramic industry may become more intense in the future.
