Home » “Mechanical Mao” presents a generous gift!Luchang Technology intends to acquire 100% equity of Zoomlion High-Tech Machinery Co., Ltd. to resume trading today

“Mechanical Mao” presents a generous gift!Luchang Technology intends to acquire 100% equity of Zoomlion High-Tech Machinery Co., Ltd. to resume trading today

by admin
“Mechanical Mao” presents a generous gift!Luchang Technology intends to acquire 100% equity of Zoomlion High-Tech Machinery Co., Ltd. to resume trading today
© Reuters “Mechanical Mao” presents a generous gift!Luchang Technology intends to acquire 100% equity of Zoomlion High-tech Co., Ltd. and resume trading today

Financial Associated Press, February 6th (Reporter Huang Lu)“Mechanical Mao” Zoomlion (000157.SZ) became the owner of Luchang Technology (002813.SZ) for one year, and a generous gift was also arranged. On the evening of February 5, Zoomlion announced the release of a plan for the spin-off of its subsidiary, Zoomlion High-Tech Machinery Co., Ltd., for reorganization and listing. Luchang Technology intends to acquire 100% equity of Zoomlion High-Tech and resume trading from today.

An insider of Zoomlion told a reporter from the Financial Associated Press that after the completion of the transaction, Zoomlion and Zoomlion High-speed Machinery will focus on their respective main business areas, clarify the main business structure, and strengthen the emerging field of aerial work platforms. The layout of the company; Zoomlion High-tech can use the platform of listed companies to enhance its financial strength, grasp the critical period of domestic and foreign market development, and consolidate its market position. In addition, the listing of Zoomlion’s high-speed aircraft will help Zoomlion use aerial work platforms as a starting point to drive the machinery and equipment industry cluster to climb to the middle and high end of the global value chain.

Zoomlion High-Tech earned 6.4 billion last year, and Yiluchang Technology received a “big gift”

According to financial data, the net profit of Zoomlion High-speed Machinery increased by 175% year-on-year last year, achieving a net profit of 640 million yuan, which is about 1/2 of the net profit of Zhejiang Dingli (603338.SH), the domestic leader in high-speed machinery (Note: Zhejiang Dingli’s estimated net profit in 2022 From 1.23 billion to 1.33 billion yuan, the latest market value is about 28.6 billion yuan). Compared with Luchang Technology‘s net profit of 3.58 million yuan in the first three quarters of 2022 and its market value of 3.4 billion yuan before the suspension, the latter is expected to turn around and realize a “counterattack” in business and market value.

See also  Bitcoin: Unicredit loses the first round in Bosnia against a "miner" who asks for 131 million in damages

On the evening of February 5th, Zoomlion announced the plan to spin off its subsidiary, Zoomlion High-Tech Machinery, to restructure and go public. The specific plan is: Luchang Technology issues shares to 29 shareholders of Zoomlion High-Tech Machinery to purchase the shares held by it. 100% equity of Gaoji, and non-public issuance of shares to no more than 35 specific investors to raise supporting funds to realize the reorganization and listing of Zhonglian Gaoji. After the transaction is completed, Zoomlion High-Tech will become a wholly-owned subsidiary of Luchang Technology, and Zoomlion will still be the controlling shareholder of Luchang Technology.

After deducting the issuance expenses, the supporting funds raised by this issuance of shares are planned to be used for the project construction of the target company, supplementing the working capital of Luchang Technology and the target company, or repaying debts.

Zoomlion High-altitude Machinery is mainly engaged in the research and development, production, sales and service of aerial work platforms. During the reporting period, its main products include scissor-type, straight-arm, and articulating-arm aerial work platform products. The announcement shows that from 2020 to 2022, Zoomlion High-speed Machinery will achieve operating income of 1.05 billion yuan, 2.947 billion yuan, and 4.55 billion yuan respectively; net profits of 29.36 million yuan, 232 million yuan, and 640 million yuan respectively.

The above-mentioned Zoomlion insider said that after the completion of the spin-off and listing, Zoomlion High Machinery will become a subsidiary of Luchang Technology. Luchang Technology is a holding subsidiary of Zoomlion Heavy Industry. Profitability will still be reflected in Zoomlion’s consolidated statements. Through this spin-off, the company’s aerial work platform segment will enhance its capital strength and further expand its business layout, which in turn will help improve the company’s overall profitability in the future.

See also  Wall Street heading for a week in the red. Nasdaq Futures -1%, Lyft Plunge Over -33%

Overseas market demand is heavy, and the crowd is competing

The prospectus of Lingong Heavy Machinery to be listed shows that the aerial work equipment market has achieved expansion at a relatively high growth rate, and has also attracted more large-scale construction machinery group manufacturers to enter this branch to join the competition. The domestic peers of aerial work platforms listed by Lingong Heavy Machinery include Zhejiang Dingli, Xugong Machinery (000425.SZ), Xingbang Intelligent, Zoomlion, etc.

Aerial work equipment has achieved import substitution in China and is gradually going global. At present, it has occupied a steady and rising market share in developed countries such as Europe and the United States. It is understood that since the second half of 2021, developed countries such as Europe and the United States have “released a large amount of demand in the rental market”, and the internationalization of China’s aerial work machinery industry has begun to make great strides. Under the background of “dual carbon”, electrification has become a global trend. Zhejiang Dingli, a leader in aerial work platforms, said that the company has taken the lead in realizing the electrification of a full range of products.

According to statistics from relevant agencies, in 2021, the number of aerial work platforms in China’s leasing market will be 329,700 units, a year-on-year increase of 57%, and the revenue will be about 10.982 billion yuan, a year-on-year increase of 47%. Three major markets.

The data shows that from January to June 2022, a total of 99,488 aerial work platforms were sold nationwide, a year-on-year increase of 19.84%; of which 63,423 were domestic, a year-on-year increase of 4.43%; 36,065 were exported, a year-on-year increase of 61.85%. Stimulation stemming from the recovery of overseas demand.

See also  Financial forecasts are calculated in the cloud

Many domestic high-speed aircraft manufacturers predict that the demand for high-speed aircraft is expected to remain strong in 2023. A few days ago, Zhejiang Dingli has released a performance forecast. It is expected that the net profit in 2022 will increase by 39.04% to 50.01% year-on-year. One of the reasons is the increase in customer demand in overseas markets. The company previously stated that the company’s normal schedule generates part of the inventory to meet the market demand in the peak season of the industry in the second and third quarters of 2023.

China Railway Emergency (603300.SH) said in a recent survey that due to its economical, efficient and safe features, aerial work platforms can quickly replace traditional climbing equipment in various application scenarios including industrial plants, commercial complexes, and municipal engineering. Form a replacement, and continue to expand the application scenarios. At the same time, as the overall economy continues to improve in 2023, it is expected that the overall demand will remain strong and the occupancy rate will remain high.

As the leading enterprise in my country’s aerial work platform industry, Zoomlion High-altitude Machines, the reporter learned that in 2022, its sales of smart high-altitude machine new energy products accounted for more than 80%. Grasp the orders, set off for batches of scissor-type and boom-type aerial work platform equipment, and deliver them to customers at home and abroad.

(Editor Liu Yan)

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy