AVIC Electric Measurement (300114) announced that it has acquired a 45% stake in Shanghai Yaohua Weighing System Co., Ltd. for 28.8 million yuan, becoming its largest shareholder and controlling shareholder. The company stated that it will use the existing mature technology platform of Shanghai Yaohua to quickly establish the technological development capabilities of system instrumentation and weighing software at a high starting point, and realize the company’s “spanning from the component product manufacturer to the measurement solution system integration supplier. The strategic objectives of the company will effectively increase the company's return on assets and shareholder value, further strengthen its brand influence and core competitiveness, and consolidate its leading position in the industry.
According to the information disclosed by AVIC, Shanghai Yaohua is the largest developer and manufacturer of weighing instruments in China. It provides professional weighing instruments for weighing instruments and industrial automation. Its market share of automobile scales is over 80%, and its sales value is listed in China. Weighing instrument industry weighing industry first. While Avionics is determined to become the world's top system integrator of measurement and control solutions, it is necessary to rapidly establish its own technology development capabilities of instrumentation and software at a high starting point. The acquisition of Shanghai Yaohua is a fast way for the company to acquire mature technologies. In line with the company's strategic development requirements. According to statistics, Shanghai Yaohua's net profit in 2009 was 9.14 million yuan, and it reached 13.3 million yuan in the first 11 months of 2010. This time, AVIC Electric Power passed the acquisition of the equity of 6 original shareholders of Shanghai Yaohua for 28.8 million yuan, thus becoming the controlling shareholder of the company. The reporter noted that during the acquisition of AVIC, AVIC also arranged that the existing 6 natural person shareholders of Shanghai Yaohua should transfer a total of 13.93333% of the equity to a total of 37 key personnel. Such acquisitions can effectively reduce the risk of loss of core players due to acquisitions.
Currently, Avionics is the largest sensor manufacturer in China. According to the data of Shanghai Yaohua, the two companies have great complementarity in product, market channels, and marketing capabilities. Through this acquisition, it will be beneficial to AVIC. Product strategy, price strategy, channel strategy, and promotion strategy have been comprehensively improved. The company will become the largest professional manufacturer of sensors, strain gauges, and meter products. It will promote the expansion of company's products and services and increase market share. Enhancing the company's profitability and market competitiveness will lay the foundation for the continuous and sound development of AVIC.