Recently, Huayu Automobile and Joyson Electronics have successively announced that Yanfeng Baili Assets, which are jointly held by the two parties, will be acquired and integrated by the relevant subsidiaries of both parties. This means that Yanfeng Baili will be split.
Yanfeng Baili, what is it?
When it comes to Yanfeng Baili, friends in the automotive industry must be no strangers. After all, there are two well-known auto parts listed companies of Huayu Automobile and Joyson Electronics.
The full name of Yanfeng Bailide is Yanfeng Bailide (Shanghai) Automotive Safety System Co., Ltd., which is a wholly-owned subsidiary of Huayu Automotive, Yanfeng Automotive Trim Systems Co., Ltd. (hereinafter referred to as Yanfeng) and Joyson Electronics subsidiary Key Safety Systems, Inc. (hereinafter referred to as: American Bailide), a joint venture established in December 2003, each holds 50.1% and 49.9% of its equity, and is mainly engaged in the design, development, testing, manufacturing and sales of automotive safety systems The company's products include steering wheels, airbag modules and seat belts, as well as passive safety systems for the entire car, and provide supporting supplies for many domestic car companies.
After years of development, Yanfeng Bailidian has rapidly increased its revenue, profits and market share.
According to Gasgoo, during the six or seven years before 2016, Yanfeng Baili's compound growth rate was about 25%, and in 2015 it achieved a 50% revenue growth. According to its latest official data, in 2018, according to the audited consolidated statement, Yanfeng Baili ’s total assets were 3.963 billion yuan, net assets were 1.806 billion yuan, operating income was 5.863 billion yuan, and net profit was 6.49 100 million yuan.
It's acquisition integration, but also split!
Overall, Yanfeng Baili's performance in recent years is remarkable. If there is no "accident", it will, as always, move towards its farther goal. However, as the shareholders of the two parties acquire and integrate their assets, Yanfeng Bailidian will change from a joint venture of the two parties to its own sole operation, which means that it will be officially split.
At present, Yanfeng Company, Bailider and its related parties have signed relevant transaction framework agreements with Yanfeng Bailider. According to the framework agreement, Yanfeng Baili Group intends to sell related businesses and assets to Yanfeng Automotive Intelligent Security System Co., Ltd. (hereinafter referred to as Yanfeng Intelligent Security), a wholly-owned subsidiary designated by Yanfeng, and the United States. Ningbo Joyson-Bride Automotive Safety System Co., Ltd. and Shanghai Lingang Joyson-Car Safety System Co., Ltd. are designated by Bailee. The above assets mainly include: fixed assets, intangible assets, construction in progress, inventory, etc.
According to the framework agreement, the total amount of related business and asset transactions that Yanfeng Intelligent Security intends to purchase from Yanfeng Bailidian is approximately 428 million yuan, of which the estimated asset transaction value is approximately 208 million yuan, and the other part of the asset transaction amount About 220 million yuan.
According to Joyson Electronics Announcement, Joyson Electronics intends to purchase some assets of Yanfeng Baili through its subsidiaries, mainly including: fixed assets, intangible assets, construction in progress, and inventory. The total transaction amount is approximately 512 million yuan. The assets purchased are mainly used for the design, development, testing and manufacturing of automotive steering wheels, airbag modules, seat belts, and automotive passive safety systems.
It is reported that after the completion of the transaction, Yanfeng Baili will continue to exist for no less than three years, and no longer undertake new automotive passive safety business, and deal with related issues such as product after-sales and warranty.
Why is this "tossing"?
As mentioned earlier, Yanfeng Baili ’s performance in recent years is actually pretty good, so why split it?
According to the announcement from both parties, the background of the transaction is that the Yanfeng Baili joint venture agreement is about to expire. The term of the joint venture agreement between Yanfeng and Bailey is 20 years, and it will expire in December 2023. Based on this, the two parties must consider the next plan in advance.
However, although the joint venture agreement is about to expire, it provides an opportunity for the split, but for deeper reasons, it is based on the fact that both shareholders have their own independent development strategies in the passive security business field; on the other hand, Optimizing resource allocation and improving operating efficiency is undoubtedly the common consideration of Joyson Electronics and Huayu Automotive.
Huayu Automobile pointed out that the transaction is a strategic decision made by the company based on a comprehensive evaluation of the development prospects of Yanfeng Bailider and its joint venture business in accordance with the overall development plan of the "Auto Passenger Safety System Business". Yanfeng Intelligent Security purchases Yanfeng Bailider's related businesses and assets, which helps the company to complete the construction of an independent development platform for the automotive occupant safety system business. It also helps Yanfeng Intelligent and Safety to use related businesses and assets to optimize the allocation of resources and cultivate Key technologies will accelerate the formation of independent development, market development, and manufacturing capabilities in the areas of automotive seat belts, airbags, and steering wheels, thereby laying the foundation for the company to independently develop the automotive intelligent safety system business.
Huayu Automobile, Joyson Electronics, Yanfeng Bailide
Joyson Electronics also pointed out that as the world's second largest automotive safety component supplier, the company's automotive safety division will be able to better explore the Chinese market, optimize resource allocation, improve operating efficiency, and focus on active and passive businesses The research and development and manufacture of safety products create more value for the company and all shareholders of the company.
After the transaction, according to estimates from both parties, the business corresponding to the assets purchased by Joyson is expected to have sales revenue of about 2.5 billion yuan in 2020 (the purchase portion of Yanfeng corresponds to about 2.3 billion yuan). stable.