Hillhouse and Softbank took a fancy to the well-known furniture brand Qumei Home Furnishings Group Co.Ltd(603818) .
According to the latest announcement, Hillhouse investment and Yinti consulting plan to invest 200 million yuan and 25 million US dollars (about 159 million yuan) respectively in Qumei Home Furnishings Group Co.Ltd(603818) wholly-owned subsidiaries.
Qumei Home Furnishings Group Co.Ltd(603818) it has increased by more than 67% this year. It has raised four positive lines in recent four trading days, once up to 14.45 yuan / share, and the latest total market value is 8.2 billion yuan. Why do the two PE / VC giants like Qumei Home Furnishings Group Co.Ltd(603818) at the same time? Let's have a look.
two giants invest in Qumei Home Furnishings Group Co.Ltd(603818) subsidiary
On December 29, Qumei Home Furnishings Group Co.Ltd(603818) issued the announcement on the signing of equity financing intention agreement by wholly-owned subsidiaries. It is announced that the company is a wholly-owned subsidiary Qumei runto s. àr.l。 For equity financing, the company signed the letter of intent for Qumei Home Furnishings Group Co.Ltd(603818) strategic cooperation with Zhuhai hilling Deyou Investment Management Co., Ltd. and Yinti consulting (Beijing) Co., Ltd.
Specifically, Hillhouse investment and Yinti consulting plan to invest RMB 200 million and US $25 million respectively by increasing capital or transferring old shares to Qumei runto.
From the industrial and commercial information, the registered capital of hilling investment is 10.1 million yuan. It is registered in Hengqin new area, Zhuhai, and its legal representative is Ma Cuifang. Yinti consulting is a wholly foreign-owned enterprise with a registered capital of US $10 million. It is registered in Chaoyang District, Beijing. Its legal representative is Ding Haipeng, who is a partner of Softbank Asia venture capital fund.
Tianyancha information shows that Yinti consulting (Beijing) Co., Ltd. is owned by SV advisor HoldCo Ltd. Wholly owned. It can be seen from the information left in its annual report that it is related to Softbank ventures Asia (that is, Softbank Asia venture capital fund). the corresponding valuation of this transaction is RMB 6.045 billion
According to the announcement information, Qumei runto was established on February 10, 2018, registered in Luxembourg with a registered capital of 12000 euros. The company was originally established Qumei Home Furnishings Group Co.Ltd(603818) for the acquisition of ekonres as. From the financial position of ekonres as, the operating revenue in 2020 is NOK 3.482 billion and the net profit is NOK 383 million; From January to September this year, the operating revenue was NOK 3.144 billion and the net profit was NOK 402 million.
In July 2021, Qumei Home Furnishings Group Co.Ltd(603818) Norwegian subsidiary Ekornes QM holding as acquired 9.5% of the shares of Ekornes holding as held by Ruisi holding company limited in cash. The transaction consideration was EUR 741 million, and the corresponding valuation (EV) of Ekornes as was RMB 5.768 billion.
The announcement also said that the valuation of this transaction corresponds to the valuation of Ekornes as of RMB 6.045 billion, which will be further adjusted according to the due adjustment.
Qumei Home Furnishings Group Co.Ltd(603818) also said that Hillhouse investment and Yinti consulting have the right to appoint one director on the board of directors of the investment object, and enjoy the customary rights of strategic investors in the investment object. Meanwhile, in the future, investors will enjoy the option of taking the higher one between the subscription valuation and the current round of transaction valuation as the overall valuation before capital increase, which will be further agreed in the formal investment documents.
With regard to the impact of this equity financing on the company, Qumei Home Furnishings Group Co.Ltd(603818) said that the investors have the background of investment and management in multiple industries and rich resources and experience. With the help of the advantages of investors in the industry, they can provide long-term empowerment for the company, help to speed up the layout of relevant industrial sectors of the company and further enhance the comprehensive strength of the company.
However, the company also reminds that the agreement signed this time is only an intentional agreement. The final valuation, transaction price and other key terms of this equity financing need to be finally clarified after the completion of due diligence.
Qumei Home Furnishings Group Co.Ltd(603818) rose 67% this year
Qumei Home Furnishings Group Co.Ltd(603818) is a well-known furniture brand in China. In April 2015 Qumei Home Furnishings Group Co.Ltd(603818) (603818. SH) was listed on the Shanghai Stock Exchange. The company is mainly engaged in the design, production and sales of medium and high-grade civil furniture. The product range covers the main furniture used in household life such as living room, study, bedroom and restaurant. The company's main products are wood furniture, including solid wood furniture, wood-based panel furniture and comprehensive furniture.
Qumei Home Furnishings Group Co.Ltd(603818) in 2018, Ekornes, a comfortable chair company (with stressless, the world's No. 1 comfortable chair brand), was acquired with a large amount of money. After the adjustment of the management team and accelerating the development of the Chinese market, Ekornes entered the stage of large-scale revenue and accelerated profit improvement.
From the financial report, it was previously Qumei Home Furnishings Group Co.Ltd(603818) announced that in the third quarter of 2021, the company realized an operating revenue of 1.229 billion yuan, a year-on-year increase of 7.52%; The net profit attributable to the shareholders of the listed company was 53.0369 million yuan, a year-on-year decrease of 26.85%.
China Merchants Securities Co.Ltd(600999) believes that Qumei Home Furnishings Group Co.Ltd(603818) is undergoing positive changes. China's marketing reform is deepening, retail business is developing, and innovative business is advancing rapidly; Ekornes achieved remarkable results in management adjustment, accelerated regional + category expansion, optimized product R & D, and China's market development is worth looking forward to; Many measures actively alleviate the financial pressure, and the improvement of financial expenses in the future is expected to bring profit elasticity. In Qumei China, brand upgrading helps the growth of retail business, and home decoration + high-quality projects continue to incubate new growth points. In terms of retail business, the transformation of "three new marketing" mode is smooth, the brand upgrading of "fashion home" has achieved remarkable results, the image upgrading of stores such as forced moving line has been continuously promoted, and the company's retail business has grown rapidly.
In terms of stock price performance, Qumei Home Furnishings Group Co.Ltd(603818) has ushered in a wave of sharp rise since November this year, from around 8 yuan / share to the highest 14.45 yuan / share. As of the closing on December 29 this year, Qumei Home Furnishings Group Co.Ltd(603818) reported 14.10 yuan / share, and the latest total market value was 8.2 billion yuan. Overall, Qumei Home Furnishings Group Co.Ltd(603818) this year's increase reached 67.46%.
It is worth noting that on December 17 this year, Qumei Home Furnishings Group Co.Ltd(603818) announced that Zhangjiagang industrial capital, Wu Nani and Xie Wenbin planned to reduce their holdings of no more than 3.43 million shares, 290300 shares and 216900 shares respectively through centralized bidding. The reduction totaled 3937200 shares.
(China Fund News)
