Haier caught in the plight of diversification

 Haier caught in the plight of diversification?
Of: Fang Xiaolei
Source:
10 23 morning, the JW Marriott Hotel. Haier Electronics Co., Ltd. (hereinafter referred to as Haier Electronics, 1169.HK) in this extraordinary general meeting of shareholders held an astonishing resolution m the total price of 9 million acquisition, including washing machines and water heaters, including some of the parent company assets. the transaction is completed, Haier Electronics business from the current loading washing machine business, and expand to the drum-type washing machines and water heater business.
this impact, the same day Haier Electronics shares rose slightly, to 0.27 Hong Kong dollars. There is no doubt that the injection of assets, nature will help to enhance the company's sales revenue and net profit. However, in the Extraordinary General Meeting, one of this should cause investors concern How much detail was downplayed m more than a year ago, Haier Electronics proud of 4 million mobile phone business was sold to the parent company of Haier Group.
between a buying and selling, not just mean Haier simple Since entering the financial years, Known for the way the doors wide open to create a diversified Haier situation today, but look back at the Haier the first half of 2005 and 2006 performance, profitability is still maintained nearly 20 years of traditional business m the refrigerator , washing machines, air conditioners and other white goods business.
increasingly slim profit margins in the main industry today, efforts to promote the diversification strategy of Haier, is facing the most severe since 2001, the moment. not only the mobile phone business, Haier painstaking efforts over the years of financial, computer, medicine, home and many other businesses have different degrees of loss. This means that to some extent, over the years into the Haier Group's new business investment and almost no contribution, the phone just a huge loss of face harsh Haier diversity diversified integrators and distress their troubles seemed to enjoy the fruits of greater than they, without exception, demonstration of high debt ratios, and profitability is not optimistic.
; the last two years, Chinese enterprises to expand diversity can be described as the most reflective period. Two years ago, once regarded as the representative of Chinese high-tech industry, Lenovo announced across the board in the diversification attempt failed, and recently returned to the association focus on PC the old road up. Then, lost in the war situation in the diversity of self Aucma into bankruptcy, is being four industries, too numerous, are now showing signs of contraction and adjustment.
once the market called Haier's diversification can out of the acquisition, learn?
This article attempts to reveal, is Haier in the financial, IT, medicine and home and other industries to enter the path and the specific difficulties faced.

Haier financial quietly shrink the layout of the Combination regard to their own set high goals, but it can extend the brand of home appliances to financial services remains to be seen
as Zhang's largest long-cherished wish, Haier's diversification in the layout, the financial undoubtedly the most important.
since 2001, Haier's distribution in the financial services sub-wind. From the beginning, Haier to plan with international standards, and take the GE (General Electric) the Combination of ways, Zhang's ultimate goal is: Haier future profits, the industry and the financial half and half.
2001, during a Beijing entrepreneur forum, Zhang said: , if see Welch, I most want to ask him two questions: First, how do the big business of small, and second, how could manufacturers do finance. desire, it also shows how many sheets there is also the Combination for the confusion.
2001 �� 12 26, Haier Group was established in the 17 year anniversary, Zhang invested 600 million yuan in Qingdao City Commercial Bank holding m This was seen as the first step of Haier into the financial sector. In less than a month, Haier has invested 130 million yuan from the transferee Anshan Anshan City Bureau of Finance Trust (600816) 20% of the shares. After Haier Changjiang Securities to 470 million yuan in capital increase of 20% of the shares purchased, become the largest shareholder. In addition, Haier New York Life Insurance Company (NYI) two hundred million dollars joint venture in Shanghai to set up a joint venture insurance companies, account for 50% shares. Shortly thereafter, Haier insurance agency also opened the 2002 year end of September, Haier hard to apply the 8-year-old finance company allowed to set up registered capital of 500 million yuan.
this point, including Haier has securities, banking, insurance and finance companies, including many financial license, complete the financial arrangement. but new to finance, Haier, which is a dazzling strategic layout, put nearly 20 million yuan, Haier's financial sector little gain in recent years can be described, on the contrary, the former large-scale expansion is increasingly shrinking.
to Anshan Trust, for example, in October 2002, Haier invested less than a year would be ;, withdrew from the Anshan Trust, will hold a full 20% of the shares back to the Anshan Municipal Finance Bureau, 1.3 billion investment has fully recovered. Subsequently, the 20% stake in Haier transfer price below the price of the transfer of about 0.34 yuan to Shanghai company.
Haier and Anshan Trust for less than a year, For all the different market rumors rumors, G Li Jiqing Haier's securities affairs representative, said, Haier decided to quit for two reasons: first, Anshan Trust has not yet been received re-registration of the People's Bank of China, Haier considered too risky to enter; Second, delays in the formal transfer of equity.
According to company financial one informed source said that in the 20th century, several times since the 90's trust industry clean-up process, Anshan Trust the closing of the column, then regulators consider it is a listed company was retained, and then re-registration requirements of the People's Bank of Trust Company of not less than 300 million yuan in cash, and Anshan Trust does not have money, if the reorganization is not a dead end.
2001 �� 12 months, has just been Haier Pre-losing Anshan Trust took over the release announcement said: Anshan Trust poor quality of assets is an open secret. Anshan Trust listing in early 1994 to mid-2001 debt rate has reached 68.34%, 93.12 million yuan in 2000 net profit largely from self-service, single source of profits and high market risk.
one pair of Anshan Trust rather to understand that the securities sector, The bid is a bargain. transactions. Some in the industry who is still Haier action as Changjiang Securities voice.
enter at the beginning, Haier's assets and operations Minister Cui Shao Hua Zhang Guanghong Qingdao City Commercial Bank Board of Directors into the Changjiang Securities, Changjiang Securities, but did not change the management team, is also chairman and president of Hubei's Haier lack of Changjiang Securities should have the right to speak.
Changjiang Securities, the predecessor was founded in 1991 in Hubei Securities, to increase their investment capital in 2002 to 20 billion yuan, 36 Shareholder. Due to a number of shares of listed companies in the field, Changjiang Securities from a regional brokerage into a comprehensive national securities firms. which, Haier invested 470 million yuan to receive a 20% controlling stake, becoming the largest shareholder.
disclosed a financial company Haier, Haier investment securities in the Yangtze River Several top thirty national broker, the broker is of poor quality assets. Haier entered comes amid industry-wide losses of securities companies in China, Changjiang Securities will be subject to the general trend of drag. particularly since 2004, Changjiang Securities, the sharp decline in investment income Haier early initiation to the idea of a withdrawal, but has not been found willing to take home just under the plate.
Anshan Trust and the Yangtze River in addition to securities, the acquisition of Qingdao Haier commercial banks is not really successful.
2001 ��Haier dilemma faced at the time the acquisition of Qingdao City Commercial Bank. This year, this small commercial banks net loss of more than 20 million yuan, carrying more than 20 billion of bad assets, capital adequacy ratio of less than 4%. the same period, the book shows the line shareholders only 1.3 billion yuan, approaching the co-funded by about 5 billion, the bank holds more than 65% of the shares.
absolute control from Qingdao Haier Commercial Bank of view, the bank holding the Qingdao Haier, the current more than 5 million are still poor assets, and because banks are very small, less service outlets, financial products are limited, difficult to gain the trust of major clients, last year produced a slight profit of 400 million.
from Qingdao City Commercial Bank to enter into the Anshan Trust and Changjiang Securities, no matter from which the local observation, Haier entered the financial industry, although great strides have been taken, but the strategic choice is not yet clear. huge amounts of money to pay, multi-directional access to, people feel there Haier the long-term investment intended. integration of the operations to reduce costs. exactly what kind of return can be obtained, may now be difficult to make conclusions. At that time, Hale chose to enter the insurance industry all his mind the hope that consumers can buy appliances joint venture life insurance company. But Haier might not think that this industry is facing fierce competition in Shanghai, there are only 36 foreign insurance companies to segment the market (12 companies mainly to life insurance), and the only foreign life insurance companies in Shanghai and the other four cities the business.
for Haier In terms of the Combination of the layout, Beijing tin ex President Jiang Ruxiang business management consulting firm that many foreign large companies rely on the success of professional development, there is only one in the diversification and financial business GE has made a great success. Haier Send yourself a high goal, but the home appliance brand Haier can extend to the financial sector remains to be seen.
PC unable to create the After the second toss is still only a handful of
harvest white goods market, as China increasingly narrow profit margins, as early as 8 years ago, Haier tried to enter the field with the computer manufacturing industry. However, Haier in the advance and retreat several times before and after the computer manufacturing , fiddle around with little success so far after.
back in 1998, to home appliances manufacturer Haier to enter the PC as the field began in the Haier Group has set up a computer business men Haier Computer Co., Ltd. and Haier 3C chain software Haier Co., Ltd. is responsible for operating the computer. the next three years, although sales continued to rise, but overall has been a loss.
2001 by the end of the Haier Group to give computer manufacturers, the production line into the TV workshop, the two companies in Taiwan to do to change your OEM. almost the same time, Beijing, Chengdu and other places out of supplies computer begins Haier, Haier offices around the computer off, Haier Computer has begun to enter the ice age. Three years in the computer business, the Haier Group, a total loss of over 200 million yuan.
Haier those working in the computer division, said.
after two years of silence, in the PC under a tide of home appliances, Haier has been unwilling to find a partner early .2003, Haier Computer thrust backwards in Shanghai. This time it drew the Taiwan Pou Chen, the two sides established a joint venture $ 20,000,000 into the sea (Shanghai) Information Technology Co., Ltd., the original division of Haier computer into a fully integrated into the sea. the sea into the company specializes in the R & D, production and sales, and solely responsible for the years. like mine, so thank the people of Taiwan, the sea into a total of seven. For such a professional management team, Haier has given full trust and authority, the sea into the business has been solely responsible for the management team. but then the results proved the sea into a management team called the luxury does not bring good luck to Haier computer.
year, Haier Computer Dragon big waves.
Since 2003, the sea continues to shrink as the company size, reason, a sales staff, told reporters Haier computer, resulting in the status of the main reasons is that Haier Haier computer to computer manufacturing, sales and different enterprises, several people did not settle the interest, resulting in the operation of Haier computer not working the situation there. And a well-known computer brand, general manager of China said: , the supply of the organization to another company to operate. Haier computer is small, the high cost of tailor-made. Haier certainly can not go on this way. To promote the development of its computer business, quietly in Shenzhen, a company newly registered m Haier Information Technology (Shenzhen) Limited (Shenzhen Haier). The company registered capital of $ 20,000,000, from Haier Investment and Development Co., Ltd. and Taiwan's Pou Chen Group under the Electronic Technology Group refined into a joint venture, of which 51% of the total of shares, which shares 49% share of the company five board seats, 3 seats occupied Haier, Haier led by the company's business.
fact Before the preparation of Shenzhen Haier, Haier has started to adjust its computer business .2005, Haier is upgrading the computer division headquarters, one stroke out of the past in a subsidiary position, under the direct management by the Group. In addition, Haier Computer to become the head of the high Haier is also directly served as the Minister of the computer.
industry believes that Haier Computer south of Shenzhen, is since 2003 a joint venture with Taiwan since the Pou Chen Group, Haier Group, the implementation of the computer business once again surgery. Obviously, Haier hope that after this adjustment The reversal from the Haier computer fate.
present, Haier has also been a great layout of the computer changes m the most energy into the notebook. Up to now, 47 of Haier brand of notebook models, all from Wistron , Compal three OEM business with the public.
enterprises from Taiwan OEM is only temporary, the next step Haier notebook will come from the achievements on behalf of M & A notebook computer factory 10 million units.
full, low profits. force, and ready to compete DIY accessories market. In addition, Haier brand of MP3, mobile storage, speakers and other products are also appearing on the market. internal sources, Haier computer product line will be extended to the LCD TV, portable DVD, PDA, mobile storage devices and other fields, will launch the next tablet computers, digital cameras, video phones, digital consumer products.
then another strategic adjustment of Haier Computer, can make it out of the woods?
to the present situation , the domestic PC industry, the level of competition has been as much as home appliances, notebook market is heating up competition. major IT giants than Haier, no matter the brand, channel, or financial strength, are no less significant. Instead of Haier products in the IT sales experience as well as aspects of the chain run, there is still the missing.
phone fate will do?
Haier present situation in the communications industry, is already obsolete, or can be > Haier mobile phones in the information industry, including Haier, Haier Computer, Haier IC, and software, but objectively speaking, in addition to PC is still holding on, the Haier other areas in the laying of the information industry are showing signs of fatigue. the example of mobile phones Haier is currently the situation in the communications industry, is already a thing of the past, fate will do.
from Norson Telecom Consulting, according to a survey reported in 2005, Haier ranked mobile phone in the GSM market, ranking in the Bird, Amoi, Lenovo, TCL, Konka, after other domestic mobile phone manufacturers, ranking No. 10, the market share of only 2.5%; easily understood concept of the international release of The market share of only about 1%.
few years ago, Haier entered the mobile phone industry in the heavily devastated Why? a well-known consulting firm, who asked not to be named, said telecom analyst, Haier cell phone sales are poor, come from their own , said the product, channel, there are problems in corporate governance; from the objective environment, increased competition now that all the domestic manufacturers have to face, Haier cell phone is no exception. However, the analysts believe that the cause Haier mobile phone sales the main reason for poor quality of their products or because of immature technology, software, hardware and workmanship issues are significant, failure rates remain high, these problems continue to lower prices caused by Haier mobile phones, not only seriously undermine the profit margins also led to the backlog of inventory.
1999 �� 9 months, the first mobile phone mH6988 based Haier Group in Qingdao new listing. This type of cell phone declared that one. This phone has connected to prompt and efficient mode of operation functions, the use of large-screen 4-line display of Chinese characters. Motorola's commitment to the production technology transfer plans and cell phone chips and software technology transfer program, providing the most advanced mobile communications technology and Haier manufacturing and research and development cooperation. However, this cooperation does not persist long on abortion, though with GSM and The two production licenses CDMA, but because of poor relations with China Unicom, Haier has been only a few years later production of GSM.
early, Haier's phones are mobile phones from Taiwan foundry, since 2002, to reduced costs, Haier mobile phones all over the country outsourcing foundry .2003 several mobile phone is the most brilliant year for domestic mobile phone, with the channels, prices, and are familiar with the advantages of local market, even beyond the market share of foreign manufacturers, Haier phones Also in a market blowout in 2003 that grew up in the business, and it is a good market situation as at that time, let the blind optimism of the market, which will increase its annual production capacity to 1,000 million .2005, Haier total production more than 360 million handsets, of which exports about 56 million units in 2005, stocks more than 140,000 new units. So far, plus the previous number, a total of nearly 100 million backlog.
consult one of Norson opinion, as foreign manufacturers increased the channel reform, innovation in product technology and attack the low-end cellular phone market, market competition will be fierce. In this case, Haier and other parts of the domestic mobile phone handset, as the original Some loss of competitive advantage, and launch the products until the results of the market and keep up with technological changes, and a significant backlog of inventory. On the other hand, because of the communications industry itself is not particularly aware of, and no accumulation of technology, only to see to short-term prospects, but also want a slice of the communications industry for the blind horse, is causing the main reason for the plight of Haier into today.
walking fog dispersed and because a number of diverse
intertwined together in the Haier Industrial banner, but the relationship in terms of investment or investment income, and even their own very difficult to be discerned Haier
in Qingdao city, you feel a brand more impact on a city everywhere. Here Haier named streets, bridges, schools and restaurants, and even can see the development of the residential area of Haier.
If you drop in on the Haier Industrial Park in Qingdao, we can see a square rectangular building, which is Haier headquarters. visitors went in, we could find in the middle of the building is empty. building exterior is surrounded by the same big red four columns, one-pass top. the building is surrounded by two laps, circle of water such as the Building trust float. the left side of the lake in front of the building, but also Shen Haier brothers lying on a large wooden boat. The whole layout of the great moral repose mm, such as a swimming dragon, keep building, and Living Water Industries include: communication, medicine, logistics, biotechnology, home integration, etc., and even runs a catering business, tourism, tobacco and alcohol Ribes and other things trading, and shares with each other. large number of diversified industries and because intertwined together under the banner of Haier in investor relations and investment income, and as a trap.
.1996 medicine such as Haier, Haier Group's diversification strategy implemented The next year, Haier Pharmaceutical Co., Ltd. was established. the year is three, the sun god and other health care products sales in full swing in the country, in the example of two successful before, Haier has always wanted to build a kingdom of health care products, and at the production, invested heavily in scientific research. Haier Pharmaceutical then proposed a , prominent in the appliance industry, Haier Group, and did not bring its influence to the pharmaceutical industry, the establishment of Haier medicine in the industry for several years without much effect on the formation. The market weakness of the far from successful.
Another highlight of Haier Pharmaceutical medicine is to enter circulation, in addition, Haier also plans to develop the brand chains, has been opened in Qingdao, the two hung out their own brand of ; Haier Hang Seng Tong Dispensary, market expansion.
Haier to enter medicine, in the short term, may be part of medicine to share profits; However the long term, Haier can reap the expected profits is an unknown quantity, mode of operation of products made OTC, contrary to the laws of the market. Haier may be due to enter medicine, brand dilution or brand is facing the risk of deterioration. , the medicine seems to have become short-board, compared to the deep pockets of home appliances division that hundreds of billion in revenue every turn, Haier Pharmaceutical two million of revenue each year it is a bit weak. Some colleagues did not even heard of Haier medicine? related. Because of this random, leading to the failure of Haier in home industry. In the past few years involved in the home improvement market, Haier has been in a home make ends meet and embarrassing position, far from Haier described on its Web site as good business. < br> home the company's vision in accordance with Haier, the appliance, the whole kitchen, bathroom, and all their control of the overall function of parts into a home, just add a little design and construction that can not only play to their production source of cost advantage, and the integration of smart home appliances can make use of the concept, quickly won market. Haier home had .
into the household sector in the first two years, Haier has indeed acquired a small, branch continues to expand, more than a dozen provinces and municipalities throughout the country, more than 20 cities. to show the whole kitchen Haier store for the site, to attract customers home decoration , Haier's range of products will be joint ventures 180 million euros, announced to open 100 stores in China a joint venture m design and construction process on the missing homework, could not, and regular home improvement company to compete. For example, when many home improvement companies have begun integrating their resources into different categories to establish the most appropriate when the material supply partner, Haier has chosen OBI material support to do business, and OBI in China's strategic mistakes, the business deteriorated, and finally acquired by B & Q. Finally, Haier had to withdraw from a joint venture with the OBI dropped heavily.
Although Haier Kitchen appliances and overall, the overall performance is not a small bathroom area, but is entirely in the overall home improvement is demonstration of ; The key point is that integration appliances are not accepted by people far away. Haier out where the problem in the end, how should I adjust? information. At present, in addition to financial, computer and mobile phone industry, the Haier headquarters and production base in a wide range of almost four thousand acres all located in this large park in the.
Last month, the Haier headquarters building 6th floor, sitting on the sofa Zhang's sad face told reporters on a visit.
see most dynamic companies, but the foreigner asked me a question that m10 is also dynamic in Hou Haier? He said: You see, that Japanese companies are active in all 10 years ago, but today is not already scenery At that time I really did not want his words carefully, every issue very seriously, his children, but today, his words come true hh the kind of attention in the dissemination of Haier This is the first monster is still ahead, but the light has no past dance, we heard more and more intense breathing.
2005, Haier global sales exceeded 1,000 billion yuan, growing in the family business large the same time, the manufacturing giant Haier that anything they want to venture into a an almost completely unknown territory. At the same time, Haier constantly looking for land, construction of industrial parks (currently owned by Haier in China more than 10 large industrial park), to expand size of the plant, investment in new production lines and so on.
present, the light in the financial sector, Haier invested 13 billion a year. The net profit of 10 billion to 20 billion between Haier, this scale of investment by no means a decimal. but together with other areas of investment, Haier pressure on the investment is not easy. The problem is vast and complex industrial layout still did not give Haier to create profits. Although there is no adequate figures show a wide range of Haier overall profit status, but the company's thirst for capital, we can see that it is a strong ability to absorb the . ... years, according to Zhang