Rectangular group faces many difficulties, the transformation of "LED+ education" dual industry to be tested

In the face of intense competition in the main business, the rectangular group transformation education tried to get a slice of it. However, the transformation of the rectangular group frequently encountered twists and turns. After the termination of the signing of the investment education asset cooperation framework agreement, the group is now again terminating the acquisition of educational assets. Insiders said that the education industry is a high investment, long period of the industry, for the cross-border education industry listed companies faces some challenges, particularly the test's double main industry integration and operation management ability.

Overweight education fizzled

The road to education in the layout of the rectangular group does not seem to be going well. After the termination and the partners signed a framework agreement on education industry assets part of the shares by the transferee equity and capital way, rectangular Group intends to acquire education matters related assets of 51% equity once again fell through. For the rectangular group, no doubt to the transformation of the company's education industry on the way again plugging.

On the evening of June 28th, the group announced that the termination of the planning of major events, which also means that the rectangular group in transition, overweight, education failure. It is learnt that the major issues planned by the group this year involve foreign investment in the education sector. The company intends to acquire equity related third party education by means of equity transfer and capital increase of 51%. For the reasons for the termination, the group explained that the parties were unable to reach agreement on key issues. Thus, the Group believes that the current conditions to continue to promote the project is not yet ripe, and decided to terminate the planning of the foreign investment. In fact, a group of the planning issues is not a long time, a group of historical retrospective announcement, due to planning major issues involving foreign investment in education industry, a group since May 16, 2017 morning opening date suspension. In other words, after more than a month of planning, the rectangular group announced the planning of the "abortion."".

It is worth mentioning that this is not the first time the rectangular group in the layout of education suffered defeat. As early as November 23, 2016, the Group signed a cooperation framework agreement with trading partners Guo Xiaona and Lin Yunjian. Intends to 600 million yuan through the transfer of equity (400 million yuan) and capital increase (200 million yuan), the total access to Shenzhen special bud new Education Group Co., Ltd. (hereinafter referred to as "new bud") 60% of the equity. The final transaction price is based on the new audit and evaluation results of the company. At the same time, the counterparty commitments, Telei new (by merging caliber estimates after the completion of the integration of the 2017 year 2018 year), 2019 annual audited net number of non recurring gains and losses net profit attributable to owners of the parent company was 50 million yuan, 65 million yuan and 84 million 500 thousand yuan. In addition, the parties to the transaction commitment, since all the equity transfer within 180 trading days after the two market or bulk trading platform to buy a group shares, the purchase amount is not less than 120 million yuan, and the complete rectangular group company stock purchase to the underlying assets of 2019 annual audit report on the signing date, no reduction have to buy shares. The specific mode of stock purchase shall be negotiated by both parties separately. At that time, a group said that the signing of the framework agreement is an important step forward to the field of private education, will promote the deployment of the company in the field of education, for the company to further lay the foundation for the integration of education assets.

However, after more than two months of signing the framework agreement, the group announced in February 9th this year that the cooperation framework agreement should be terminated. In this connection, the group explained that the two sides failed to reach agreement on specific issues concerning future cooperation and agreed to terminate the framework agreement through friendly consultations between the two sides.

Transformation education is not easy

For the planning of the termination of the matter, the famous economist Song Qinghui said, it can be seen that the rectangular group in transition education industry is not easy.

Song Qinghui said that the education industry has broad market prospects, coupled with the A stock market "education concept stocks" scarcity degree is higher, so many encountered "ceiling" of cross listed companies have the education industry in the development process, trying to slice.

In fact, the transformation of the group is also in the company's main business, the overall downturn in the industry, "helpless" move. It is reported that in March 2012, the group listed in the Shenzhen Stock Exchange listing, 2016 annual report shows that the company is mainly engaged in LED lighting lighting devices and LED lighting products R & D, design, production and marketing. It is worth mentioning that, in 2016, rectangular group began to transition education. 2016 annual report, the rectangular group said that the company in the existing LED business development on the basis of positive transformation to the education industry. At present, the company has been set up in Qianhai. International education management company, jointly established education Yide capital fund industry, through mergers and acquisitions, investment, integration of high-quality educational assets, the rapid transformation of education industry in order to achieve the objective of the company.

In the 2016 annual results briefing, a group chairman Deng Zichang had said, affected by the economic environment downturn, and the rapid development of LED lighting to replace the traditional lighting, the development of China's lighting industry has been affected to a certain extent, the lighting market is not satisfactory. LED industry has experienced fierce competition such as price war and product homogenization, the industry has been shuffling violently, and the enterprises in the industry have become more and more polarized. Large enterprises through mergers and acquisitions scale further bigger, while small and medium-sized enterprises are difficult to survive. In addition, Deng Zichang admitted that in the market intensified competition and lighting should be