Tianzheng Electric Building Business Revenue Increased by More Than 90% It is planned to increase the capital of Hongyun Intelligent Plus Smart Home by 47.647 million

Yangtze River Business Daily news ● Yangtze River Business Daily reporter Wang Jing

Tianzheng Electric (605066. SH) continues to expand its business layout, this time targeting the construction industry.

On September 6, Tianzheng Electric issued an announcement that based on the long-term optimism about the future development of smart home and building intelligence industry, the company intends to increase the capital of Hongyun Intelligence with 47.6471 million yuan, and after the completion of the capital increase, the company will hold 15% of the equity of Hongyun Intelligence.

According to public information, Hongyun Intelligent is engaged in the smart home industry, and has been shortlisted for the smart home strategy collection of Vanke, Deshang, Galaxy, South China City, CGNpc and other enterprises, and at the same time provides smart home solutions for more than 20 real estate developers such as Sunac, Zhengshang, Excellence, DXN and Poly, with projects in 40 cities across the country.

In this transaction, the founding shareholders of Hongyun Intelligent made a performance commitment, and the sales revenue of Hongyun Intelligent in 2021 is not less than 80 million yuan and the net profit is not less than 20 million yuan. If the above business objectives are not achieved, the pre-investment valuation of Hongyun Intelligent will be adjusted to 13.5 times of the actual net profit in 2021 (up to a maximum of 270 million yuan). If there is a valuation adjustment, based on the new pre-investment valuation, the proportion of equity due to the company in the target company will be recalculated according to the amount of Tianzheng Electric's capital increase, and more than 15% will be transferred to the company by the founding shareholder Zhao Fei free of charge.

After Hongyun Intelligent achieves the above business objectives, Tianzheng Electric will continue to acquire its remaining equity.

Founded in 1999, Tianzheng Electric is one of the strongest enterprises in the domestic low-voltage electrical appliance industry, mainly engaged in the research and development, production and sales of low-voltage electrical products such as power distribution appliances, control electrical appliances, power supply appliances, instrumentation appliances, etc., and the company also provides intelligent low-voltage electrical products and intelligent distribution system comprehensive solutions for various industries.

From 2016 to the first half of 2021, Tianzheng Electric's performance continued to grow, with net profits of 89.14 million yuan, 104 million yuan, 139 million yuan, 216 million yuan, 247 million yuan and 145 million yuan, respectively. Among them, the proportion of distribution appliance revenue has increased by 43.19%.

In addition to being in the forefront of the domestic industry in the traditional mechanical and electrical market, Tianzheng Electric also has a layout in the electric power, communications, new energy, construction and other industries, and is a well-known leader in the cooperation industry.

Among them, in the construction industry, the company has achieved collective procurement in more than 30 of the top 100 housing enterprises, including Country Garden, Sunac, Poly, R&F, Xuhui and other domestic top 20 real estate developers. In the first half of this year, its sales revenue in the construction industry increased by more than 90% year-on-year.

Tianzheng Electric said that Hongyun Intelligent is currently engaged in the real estate developer smart home collection business and the company's construction industry large customer direct sales business there is a good synergy effect, at the same time, Hongyun Intelligent smart home and building intelligent overall solutions and the core technology in the field of intelligence and the company's intelligent low-voltage electrical products can be complementary, in the building intelligent products and solutions research and development and market development is expected to form a synergy.

Editor-in-charge: ZB

This article originated from the Yangtze River Business Daily