De house run Da today, and the integration of Rex still to be promoted

In the evening of June 29th, the company announced that the company planned to make a major asset restructuring of NVC controlled manufacturing operations in China and the merger and acquisition of related enterprises in China. As of now, some of the items have not been approved by the Hongkong stock exchange, and the relevant work is still in progress; therefore, the two parties have not signed a formal agreement, the final plan is still uncertain, and the company can not disclose the major asset restructuring plan in accordance with the original plan. The company's stock will be resumed in July 2, 2018. After the return of the stock, the company will continue to actively promote this major asset reorganization.

The assets to be acquired by de house run are made by NVC, and people in the industry think it is based on the division of the long board capabilities. If the integration can be completed smoothly, the two will complement the advantages, eliminate the related transactions, get rid of the low price competition, and further promote the good development of the company. De house run Da will rely on its perfect supply chain system to improve the production and manufacturing level of the proposed injection of assets, strengthen its LED production, brand and sale of the whole industrial chain layout, and realize the scale. Revenue and industry upgrade; NVC can further develop channel business relying on its powerful terminal operation capability.

That is to say, if the integration can be completed, de house will focus more on R & D and production, and NVC will focus more on the channel business. Both sides will become the upstream and downstream partners on the value chain. The strategic synergy will be significantly enhanced, which will directly enhance the profitability of both sides and further transmit to the two level market.

However, even though the integration of de house and NVC has been brewing for years, the progress is poor. At the end of last year, de house run announced that it would buy NVC - controlled manufacturing and related enterprises in China. But there is no further information on mergers and acquisitions.

The industry believes that the integration of the two sides is inevitable, and based on all the results obtained by the industrial integration of both sides, it can be speculated that if NVC can acquire the industrial integration, the effect of industrial integration will be further enlarged, and the profit level and market share will be enhanced both.

Source: China Securities newspaper

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