Since the announcement of accelerating the layout of core components in 2016, Gree Electric has built a complete industrial chain around the air conditioning industry. Its products cover the two major fields of household consumer goods and industrial equipment, and has developed into a diversified and science and technology-based global industrial group. Recently, Gree's industrial chain layout has made new moves. The company plans to include its important supplier and global leader in refrigeration components industry, Zhejiang Dunan artificial environment Co., Ltd. (hereinafter referred to as 'Dunan environment'), further consolidate the industrial system of the whole industrial chain, and enter the upstream new energy heat management business to drive the coordinated development of its new energy business.
Acquire Dunan environment and give play to business synergy
On November 16, Gree Electric announced that it planned to acquire 29.48% equity through agreement and acquire the control right of Dunan environment by subscribing for non-public shares. Among them, Dunan Seiko plans to transfer 270360000 shares of Dunan environment held by it (accounting for 29.48% of the total shares of Dunan environment) to Gree Electric Appliance, the acquirer; Meanwhile, Dunan environment issued 139414802 non-public shares, all of which were subscribed by Gree Electric in cash (the final subscription amount shall be subject to the requirements of the approval documents of the CSRC). After the above equity changes are successfully completed, Gree Electric will hold a total of 38.78% equity of Dunan environment and become the controlling shareholder of Dunan environment.
Statistics show that Dunan environment is a leading enterprise in the global refrigeration components industry, a strategic partner of well-known air-conditioning manufacturers in the world, and one of the important suppliers of Gree Electric appliances. The predecessor of Dunan environment was first established in 1987 and was officially listed on Shenzhen Stock Exchange on July 5, 2004 (stock code '002011'). The core business of Dunan environment is refrigeration components. Its main products include electronic expansion valves, four-way valves, stop valves, solenoid valves, small pressure vessels, heat exchangers, integrated pipeline components, etc., which are widely used in household air conditioners, commercial air conditioners and other fields. In recent years, Dunan environment has also focused on expanding the thermal management parts business of new energy vehicles, and arranged 5g, rail transit, cold chain, thermal management of new energy vehicles and other industries.
Gree Electric's acquisition of Dunan environment will help give full play to the business synergy between the two sides. In terms of the main business of air conditioning, Gree Electric will obtain the control of Dunan environment through this transaction, open up the upstream and downstream of the industrial chain, and realize stable and reliable supply chain guarantee of air conditioning parts; In terms of new energy business, Gree Electric will seek new business growth points in new energy heat management business and other fields based on the existing new energy vehicle heat management system accessories business of Dunan environment.
Open up the upstream and downstream of the industrial chain and deeply layout the air conditioning parts industrial chain
As a leading enterprise in the global refrigeration components industry, Dunan environment has clear technical, quality and manufacturing advantages in the refrigeration accessories business field. With 'green, efficient, comfortable and intelligent' as the technical development orientation, Dunan environment has a national recognized enterprise technology center, national postdoctoral workstation, academician workstation, National Accreditation (CNAs) laboratory and national central air conditioning full performance test center, and has made a number of key product breakthroughs. The company's microchannel products have won the second prize of national scientific and technological progress. At the same time, Dunan has a rich environmental product line and sufficient production capacity. The annual output of leading products such as stop valve, four-way valve and liquid reservoir has reached more than ten million.
The acquisition of Dunan environment can help Gree Electric achieve stable and reliable supply chain guarantee. Dunan environment is an important supplier of valves and pipelines of Gree Electric appliance. Maintaining long-term and stable cooperation with Dunan environment is of great strategic significance to ensure the supply chain of Gree Electric appliance. Moreover, after the completion of this transaction, Dunan environment will become a subsidiary of Gree Electric appliance. The two can work together to carry out the supporting development of high-efficiency, energy-saving and environment-friendly air-conditioning models, ensure product quality and accelerate the popularization of energy-efficient and frequency conversion products in China's air-conditioning industry.
Dunan environment helps Gree improve the layout of new energy vehicle parts
Since this year, Gree has connected two cities in the field of new energy vehicles. In August, Gree Electric opened up the supporting business of new energy commercial vehicles through the acquisition of Yinlong new energy, forming a closed cycle industrial chain layout from lithium battery materials, lithium batteries, module / pack powertrain, new energy vehicles, energy storage system equipment to power battery echelon utilization and recycling. In November, Gree Electric announced the acquisition of Dunan environment, and cut into the thermal management track of new energy passenger vehicles from the field of key parts, which further clarified the layout of Gree's new energy industry.
Since 2017, Dunan environment has been making continuous efforts in the field of supporting parts for thermal management of new energy vehicles, and has established Dunan automobile Thermal Management Technology Co., Ltd., which mainly creates key parts for thermal management system of new energy vehicles. Its products cover key parts on refrigerant side and water side, such as electronic expansion valve, solenoid valve, commercial vehicle battery thermal management unit, etc. From the perspective of the automobile thermal management system itself, compared with the traditional automobile thermal management system, the new energy automobile thermal management system has higher requirements for parts accuracy, refrigerant adjustment range and accuracy. It requires long-term technical precipitation and product experience to enter the supplier list of new energy automobile enterprises.
At present, Dunan environment has established cooperation with mainstream new energy vehicle enterprises and system companies. Its existing customers include new energy vehicle complete machine manufacturers such as BYD, Weilai, FAW and Geely, vehicle air conditioning system plants such as air conditioning international and Sandian, auto parts enterprises such as yinlun and Tuopu.
At the same time, Dunan environment has established good cooperative relations with battery enterprises such as Weihong power and commercial vehicle enterprises such as Yutong and FAW Jiefang in the field of commercial vehicle battery thermal management, and has achieved supply performance. The products have been applicable to a variety of models including BYD Tang, song, Qin, yuan, E2, E3, Tengshi and Geely krypton 001.
Previously, Gree Electric had a certain technical accumulation in the thermal management system of new energy commercial vehicles, but in the field of passenger vehicles, the new energy thermal management system preferred customized production, and the main suppliers were professional vehicle manufacturers. For safety reasons, the introduction time of auto parts suppliers was generally long, and the industry entry barriers were high.
Therefore, Gree new energy passenger car accessories have not been put into mass production and application. After the acquisition, Gree Electric can quickly enter the new energy passenger vehicle thermal management track with the help of the channel resources and product experience accumulated by Dunan environment, and form a scale effect, improve industrial competitiveness and expand market share through its own procurement and production advantages.
Through this acquisition, Gree Electric has obtained the core technology of new energy passenger vehicle thermal management industry. In the future, Gree Electric can become a more comprehensive supplier of new energy auto parts with the help of its strong industrial manufacturing capacity accumulated in the field of electrical HVAC equipment and industrial equipment. The company will seize more market share in the highly complex and high-precision new energy auto parts market, complete the reconstruction of the supply chain and continuously obtain new market opportunities.