On August 4, Huida Sanitary Ware issued an announcement about the signing of an investment cooperation framework agreement, which instantly focused the attention of the ceramic industry.
Huida plans to not exceed 200 million yuan
Holding LA'BOBO Ceramic Sheet
The announcement stated: Huida Sanitary Ware plans to increase capital in Beiliu Xinshengda New Materials Co., Ltd. with a monetary capital of no more than 200 million yuan. After the capital increase, it will hold no less than 70% of Xinshengda's equity.
It is reported that Beiliu Xinshengda New Materials Co., Ltd. was registered in July 2021. It is currently a shareholder of Guangxi Xingaosheng Thin Building Ceramics Co., Ltd. and holds 100% of the equity of Guangxi Xingaosheng.
Guangxi Xingaosheng Thin Building Ceramics Co., Ltd. is a high-tech enterprise whose main business is the research and development, design, production and sales of ceramic thin slate products. It currently has 2 production lines and an annual output of about 5 million slates. square meters.
The announcement shows that on August 3, Huida Sanitary Ware signed an "Investment Agreement" with Xinshengda's existing shareholder Tang Shuodu and Beiliu Xinliansheng Investment Consulting Partnership Xinshengda, Guangxi New Goldman Sachs, and Foshan Goldsheng Bo Ceramics Technology Co., Ltd. Cooperation Framework Agreement.
However, before this capital increase, Xinshengda will integrate the business of Guangxi New Goldman Sachs and Foshan Goldman Sachs, and continue to focus on the production, research and development and sales of ceramic slate and related home products as its main business, based on the final asset appraisal value as a reference , negotiate to determine the final actual amount of capital increase.
Tile business
Accounting for 13.17% of Huida’s overall revenue
Huida Sanitary Ware, as the leading brand of domestic sanitary ware companies, enjoys high popularity and market share in the field of sanitary ceramics. Ceramic tiles are one of Huida's main businesses, and its revenue has continued to rise in recent years.
According to Huida Sanitary Ware’s 2020 annual report, the company achieved operating income of 3.218 billion yuan. Among them, the ceramic tile segment has 412 stores, with sales of wall and floor tiles of 12.1715 million square meters and revenue of 424 million yuan, accounting for 13.17% of the company's overall revenue.
The purpose of Huida Sanitary Ware's plan to control LA'BOBO ceramic sheets is as follows: it will help optimize the regional distribution of the company's ceramic production base.This bureau will help enhance the company's R&D and manufacturing capabilities for ceramic tiles and other products. It can also effectively enrich the company's architectural ceramic product categories and realize the complementary advantages of the product structure, thereby enhancing the company's core competitiveness and promoting the company's sustainable and healthy development, in line with the company's improvement of its main business comprehensiveness. Competitive strategic development planning.
But judging from Huida Sanitary Ware’s 2020 annual report, the role is more than just that.
The company will optimize its category mix in 2020, focusing on increasing its share of supporting products, with new products such as customized balcony cabinets, slate bathroom cabinets, and customized shower rooms. In addition, Huida Housing has successively launched ceramic tile system integrated bathroom products and integrated kitchen products. The result of a series of actions is that it not only enriches the product system, but also improves market competitiveness.
In other words, Huida not only needs to supplement its ceramic tile production capacity with the growth of its ceramic tile business, but also has an increasingly strong demand for slate slabs in the use of integrated kitchens and bathrooms.
LA'BOBO ceramic sheets, as one of the earliest ceramic brands in China to develop and produce sheets, already had the production capacity of 4.8mm ceramic sheets as early as 2009. By 2019, it had perfected the slate home system and formed a product range ( The production and processing of all-ceramic home furnishings such as cabinets, wardrobes, bathroom cabinets, etc., to sales and service, are exactly in line with the needs of Huida's integrated kitchen and bathroom.
(Article reproduced from Ceramic Information)
