Enterprise | To expand the digital printing business, Dongfang Precision invested 174 million to become the controlling shareholder of Shenzhen Wande!
A few days ago, Guangdong Dongfang Precision Technology Co., Ltd. (hereinafter referred to as "Dongfang Precision" or the "Company") issued an announcement stating that in order to further promote the implementation of the "digitalization" strategy and further enhance the comprehensive strength in the field of corrugated packaging and printing equipment, it will use its own funds to Equity investment in Shenzhen Wande Environmental Printing Equipment Co., Ltd. (hereinafter referred to as "Shenzhen Wande"), through the combination of transfer of equity and capital increase, obtained 51% shares of Shenzhen Wande, with a total investment of RMB 173,800,000.
Before the transaction, Shenzhen Wande's shareholding structure mainly included Li Yajun, Zhao Jiang, Luo Sanliang, and Shenzhen Wande Business Service Partnership (Limited Partnership), accounting for 48.12%, 27.22%, 19.7% and 4.96% of the shares respectively. After the transaction is completed, the shareholding structure of Shenzhen Wonder will be changed to Dongfang Precision, Li Yajun, Zhao Jiang, Luo Sanliang, and Shenzhen Wonder Business Service Partnership (Limited Partnership), accounting for 51%, 23.58% and 13.34% of the shares respectively. %, 9.65% and 2.43%. Judging from the data disclosed in the announcement, Shenzhen Wonder's revenue in 2021 will reach 118 million yuan, and the net profit attributable to the parent company will be 11.68 million yuan, while the revenue in the first quarter of 2022 will reach 29.15 million yuan, attributable to The parent company's net profit was 4.93 million yuan.
In its announcement, Dongfang Precision pointed out that digital printing is the trend of technical products in the field of corrugated packaging industry printing, and it has become an industry consensus. Compared with traditional plate printing technology, digital printing does not require printing plates, on-demand printing, variable data/arbitrary pattern printing, high precision, low carbon and environmental protection, more flexible flexible production, more agile response speed, richer A variety of printed graphics can fully adapt to and meet the current and future trend of "small batch + multi-variety + individualization + customization" in the current and future Chinese Corrugated Line packaging terminal market demand.
According to the research report "The Future of Inkjet Printing to 2023" released by Smithers Pira, the global market size of packaging inkjet printing has grown strongly from US$890 million to US$3.510 billion between 2013 and 2018, and is expected to reach 111.3 million in 2023. billion US dollars, with a compound annual growth rate of more than 12% during the period. In addition to being used in corrugated packaging, industrial digital printing technology also has a market foundation for large-scale application in printed products (advertising, labels, posters), textile printing, apparel printing, ceramics, glass, automobiles, and even 3D printing. Has broad prospects for development.
Shenzhen Wande is one of the earliest companies in China to promote digital inkjet printing technology in the corrugated packaging and printing equipment industry. After years of development, Shenzhen Wande has established a complete digital printing equipment product matrix, which can provide customers of all levels of large, medium and small types. Provide a full range of Corrugator Plant packaging digital printing equipment products, the products are exported to Europe and the United States, the Middle East, Latin America, Southeast Asia and other places, with a market stock of more than 1,300 equipment in more than 80 countries around the world, with a good brand reputation and leading market status. Through this transaction, Dongfang Precision has completed the acquisition of the controlling stake of Shenzhen Wande, which can help the company to significantly improve its comprehensive strength in the corrugated packaging digital printing equipment segment and become a key step for the company to enter the digital printing field of the corrugated packaging industry.
In addition, both parties in this transaction will cooperate and achieve win-win results to create a new performance growth curve. On the one hand, it will further enrich the product matrix of Dongfang Precision's Corrugated Machine packaging and printing equipment, better meet the needs of multi-level and multi-type industry customers, and provide more comprehensive "one-stop" products and services; It will also give full play to its advantages in the vertical layout of the Corrugated Carton Machine packaging equipment industry chain. Through collaboration, resource sharing and complementary advantages between different internal business units and business segments, the synergy effect of the industry chain will be fully released, and the company's main business will be further stimulated. growth potential.
After the completion of the transfer related to this transaction, Shenzhen Wonder will be included in the scope of the company's consolidated statements, which is expected to become a new performance growth point for the company's core business and enhance its operating performance. Looking forward to the future, in the field of packaging products in China, the industrial digital printing industry market is currently small in scale and has a low base. Once the volume increases, it is expected to usher in a higher growth rate. In the first quarter of 2022, Shenzhen Wande's orders on hand increased year-on-year, production and sales were booming, and both revenue and profit achieved good growth. After becoming a member of Dongfang Precision Group, its development will be more impetus, and its performance growth is expected to accelerate, becoming a new engine driving the overall performance growth of Dongfang Precision.
Finally, it will accelerate the digital transformation and upgrading of Dongfang Precision. 2022 is the final year of the company's third five-year strategic development period (2018-2022). The "digitalization" strategy is an important foothold for the transformation and upgrading of the company's core business, and it is the growth of performance in the next five-year strategic development period. important driver. Since 2021, Dongfang Precision has invested resources and introduced talents, with its subsidiary Dongfang Hezhi as the main body, to build an overall solution for the industrial Internet of smart factories in the corrugated packaging industry and a smart logistics system for the whole factory, and promote the digitalization of China's corrugated packaging industry. upgrade. At the same time, using industrial digital printing technology to boost the "digital upgrade" of China's Corrugated Cardboard Cutting Machine packaging and printing production line equipment is also the proper meaning of the company's "digital" strategy.
The acquisition of Shenzhen Wande has further improved and enriched the company's "digital" business map and comprehensive strength, the implementation of the "digital" strategy, and the transformation and upgrading of the core main business to "the overall solution provider for Corrugated Box Machine packaging smart factories". Support, the steady growth of operating performance is more guaranteed, which is beneficial to the interests of the listed company and all shareholders.
