Glory buyer is a combination of mobile phone channel providers, and Huawei executives will join glory and hold shares

The news of Huawei’s divestiture is clear. According to the first finance and economics report, glory business has determined the acquisition plan and will soon be separated from Huawei. The buyer will be led by Shenzhen Xingmeng information technology partnership. According to market news, the compensation plan proposed by glory new company includes one-off payment of all the original price of shares, income compensation, new company’s options, etc., and puts forward the goal of listing in three years. < p > < p > the Red Star capital Bureau checked with the headquarters of China this afternoon. The other side responded that it had been rumored for a long time before. This time, it should be close to ten, and everyone is waiting for the final news. According to Tianyan app, Shenzhen Xingmeng information technology partnership was newly established on October 26, 2020 with a registered capital of 1.377 billion yuan. < p > < p > the shareholder composition of Shenzhen Xingmeng is as follows: Beijing Songlian Technology Co., Ltd. accounts for 37.77%, Beijing Putian Taili Communication Technology Co., Ltd. accounts for 36.32%, China Post and Telecommunications Equipment Group Co., Ltd. accounts for 21.79%, Gongqingcheng kugui investment partnership accounts for 2.18%, Tianyin Communication Co., Ltd. accounts for 1.74%, and Shenzhen Kunpeng Zhanyi Equity Investment Management Co., Ltd. accounts for 0.20%. < p > < p > the Red Star capital Bureau has noted that, except for Kunpeng Zhanyi, which is a strategic fund management platform for state-owned assets in Shenzhen, the rest are national general agents or distributors, distributors and agents of mobile phones. < / P > < p > Beijing Songlian Technology Co., Ltd., the largest shareholder, is a leading enterprise in the field of communication distribution, and an important partner of Huawei and glory mobile phone. Beijing Putian Taili Communication Technology Co., Ltd., the second largest shareholder, is a subsidiary of Putian, a state-owned enterprise. The company is one of the earliest national mobile phone distributors in the industry. In addition, China Post and Telecommunications Equipment Group Co., Ltd. and Tianyin Communication Co., Ltd. are well-known mobile phone distributors; behind Gongqingcheng kugui is Shenzhen Aishi Co., Ltd., which is also a well-known mobile phone distributor. < p > < p > according to 36 krypton, the price of this transaction is set based on the profit of 6 billion yuan last year and 16 times of PE, which is about 100 billion yuan. In addition to Shenzhen Star Alliance, the acquirer also includes a small shareholder camp composed of Digital China, TCL and other companies. < p > < p > some Huawei colleagues have also exposed relevant details: glory 1.7 times 19 years’ income compensation, one-time payment, full original stock price repurchase, new company giving options, and target to be listed in three years. Details further revealed that the prerequisite for glory’s acquisition was “to be able to purchase and use 5g chips, which was officially announced on November 20.”. < p > < p > this afternoon, digital China rose sharply and closed at a price of 31.68 yuan. TCL technology suddenly rose in late trading, closing up 3.38% to 7.03 yuan. For the relevant rumors, digital China Securities Affairs Department said no response, all subsequent announcements shall prevail. According to various sources, many senior executives will join glory and hold shares directly. Zhao Ming, President of glory, will continue to serve as CEO, and WAN Biao, chief operating officer of Huawei’s consumer business, will serve as chairman. After the sale, glory plans to retain most of the management team and more than 7000 employees and go public within three years. Huawei has been focusing on high-end mobile phone brands, such as Huawei’s high-end mobile phone series, and has been focusing on the high-end mobile phone market. Huawei + glory was once regarded as the best mobile phone dual brand. < p > < p > in 2011, glory was officially launched as a product of Huawei, and became an independent Internet mobile phone brand in December 2013. It adheres to the light asset model of Internet innovation, positioning itself as a technology tide brand for young people, focusing on fashion design and extreme performance. < / P > < p > If Xiaomi has pioneered a cost-effective smartphone in the field of Internet, then glory is a rising star with outstanding performance. With excellent quality and high cost performance, glory has become the leader of low-end mobile phones. < p > < p > at the end of 2014, glory announced its independent operation, and the competition with Xiaomi has become increasingly fierce. Relying on Huawei’s technology platform, glory quickly established its foothold in the low-end market, and found a suitable path in the market competition. By 2017, glory will be the first Internet mobile phone in China with 54.5 million sets of sales and 78.9 billion yuan in sales. < / P > < p > in the six years since its establishment, the sales volume of glory has also been rising, which has contributed greatly to the overall shipment volume of Huawei mobile phones. But glory is not as stable as Huawei in overseas markets. At the same time, although glory’s market share is very high, it is not as profitable as Huawei, which focuses on high-end product lines. < / P > < p > but after a long period of development, glory is constrained by Huawei’s platform, and its growth bottleneck has also begun to appear. For example, glory hardly goes into high-end product lines to avoid impacting Huawei. < p > < p > after consulting the public data, red star capital Bureau found that the revenue of glory in 2019 was 90 billion yuan, and the net profit was about 6 billion yuan. Compared with Xiaomi mobile phone, the revenue in 2019 is 122.1 billion yuan, and there is still a certain gap between glory and glory. < p > < p > after Huawei was listed in the “entity control list” of the United States, Huawei fell into the dilemma of core shortage due to the continuous sanctions and pressure of the United States. Guo Ping, chairman in office of Huawei, has publicly responded that Huawei consumes hundreds of millions of mobile phone chips every year, so it is still looking for ways to reserve mobile phones. At the same time, many U.S. companies are actively applying to the U.S. government for shipping licenses. < p > < p > in the case of high-end chip supply interruption, Huawei’s market competitive advantage will inevitably narrow. According to the smartphone sales data released by canalys in the third quarter of 2020, Huawei shipped 51.7 million mobile phones in the third quarter, a year-on-year decrease of 23%, which is the first such decline in Huawei in recent years. < / P > < p > in the context of “lack of core”, it has been repeatedly rumored that Huawei will consider selling its independent mobile phone brand glory to ensure the chip supply of Huawei mobile phones. Huawei officials have publicly denied this, but the rumors have not stopped. Guo Mingqi, a well-known analyst of Tianfeng securities, also pointed out in his report last month that one of the most likely scenarios for Huawei’s contingency strategy is that Huawei sells its glory mobile phone business, which is a win-win situation for the glory brand, suppliers and China’s electronic industry. < p > < p > Guo Mingqi believes that once glory is independent from Huawei, the former will not be restricted by the U.S. ban on the purchase of parts, which will also contribute to the growth of glory mobile phone business and suppliers. Glory and independence can keep the brand to the maximum extent and help the independent and controllable development of China’s electronic industry. At the same time, glory independence can develop high-end models. If glory is successful and independent, it will have more advantages in the development ability and marketing of medium and high-end models. Science Discovery

Author: zmhuaxia