The most exposed multiple games behind the strateg

Uncover the multiple games behind the strategic layout of Oriental Seiko

release date: Source: Carton micro vision editor: Yu Jia browsing times: 5888 copyright and disclaimer

core tip: Oriental Seiko is one of the earliest manufacturers of corrugated carton multicolor printing complete sets in China, and has rapidly grown into an industry leader after more than 20 years of hard work. Since its successful listing in 2011, Dongfang Seiko has created the best in many industries with its ingenuity and outstanding performance in six years. What kind of business wisdom is hidden behind the high income growth? Recently, I had the honor to interview Ms. Qiu Yezhi, the president of Dongfang Seiko. Ms. Qiu Yezhi revealed the multiple games behind the strategic layout of Dongfang Seiko

[China Packaging News] Dongfang Seiko is one of the earliest tension testing machine material testing machine manufacturers in China, which is engaged in the production of corrugated box multicolor printing complete sets of equipment. After more than 20 years of cultivation, it has rapidly grown into an industry leader. Since its successful listing in 2011, Dongfang Seiko has created the best in many industries with its ingenuity and outstanding performance in six years. What kind of business wisdom is hidden behind the high income growth? Recently, I had the honor to interview Ms. Qiu Yezhi, the president of Dongfang Seiko. Ms. Qiu Yezhi revealed the multiple games behind the strategic layout of Dongfang Seiko

leveraging the market with capital, Dongfang Seiko has been acquiring continuously for six years since its listing

in April 2017, Dongfang Seiko spent 4.75 billion yuan to acquire Prader, a leading manufacturer of new energy vehicle power batteries, to enter the promising field of high-end core auto parts, and the company's business has also ushered in a major transformation. Since its listing for six years, "Intelligent packaging equipment + high-end core parts" dual main industry development mode has gradually become the core strategy of the development of Oriental Seiko

since 2014, Dongfang Seiko has successively completed several successful acquisitions and successfully taken the step of extensive development

in March 2014, Dongfang Seiko completed the acquisition of 60% equity of fosberr in Italy

in July 2014, Dongfang Seiko completed its 20% equity participation in Jiateng robot

in November 2014, Dongfang Seiko, as the controlling shareholder, and fosber of Italy jointly funded the establishment of Guangdong fosber Intelligent Equipment Co., Ltd

in July 2015, Dongfang Seiko completed the acquisition of 80% equity of Yum power

in October 2015, Oriental Seiko completed its 40% equity participation in ferretto group of Italy

in January 2016, Dongfang Seiko, as the controlling shareholder, jointly invested with Italian flando group to establish Guangdong flando Intelligent Logistics System Co., Ltd

in July 2016, Oriental Seiko completed the acquisition of 100% equity of edf100 in Italy

in April 2017, Oriental Seiko acquired 100% equity of Beijing praid

according to Ms. Qiu Yezhi, the acquisition of 60% equity of fosberin Italy in 2014 opened the way for Dongfang Precision Industry and opened the first door for its extensive development. In a series of acquisitions, fosber of Italy, EDF of Italy, Jiateng robot and ferretto of Italy were acquired. The above four acquisitions all serve the company's traditional business intelligent packaging sector; The acquisition of Yum power is the beginning of the company's layout on high-end core components

epitaxial development, the extension of the whole industrial chain, and a new round of strategic transformation are quietly underway

so what is epitaxial development? Ms. Qiu Yezhi further explained that in terms of intelligent packaging equipment, the company controls fosber and EDF in Italy, and shares in intelligent three-dimensional warehouses and handling robots. Fosber in Italy is the upstream of the East. Their equipment is to turn base paper into cardboard, while the equipment of the East is to turn cardboard into printed cartons, which belongs to a complete upstream and downstream relationship. The intelligent three-dimensional warehouse and handling robot are designed to cooperate with Oriental's layout in the field of intelligent packaging equipment production line and provide customers with fully automatic and intelligent packaging equipment and production line solutions

at present, the total output value of intelligent packaging equipment in the world is about 30 billion, while Oriental and fosber in Italy have achieved sales of nearly 2 billion, and the ceiling is relatively obvious. The company further chose to lay out the core parts of high-end equipment, so as to form a synergy with the company's intelligent packaging equipment. In recent years, the acquisition of Yum power layout marine power equipment outboard machine and the acquisition of Prader layout new energy vehicle power battery pack belong to the field of high-end core parts

on the whole, the company implements enterprise mergers and acquisitions through the entry and integration of multiple fields, aiming to build the company's dual main business strategy, further extend the industrial chain, and realize the strategic transformation of the international development of the whole group and the extension of the whole industrial chain

China's carton production is moving from the middle end to the high end. The "Asian line", which is designed for Asian customers, has successfully developed the strategic layout of two main industries, based on the field of intelligent equipment and paying attention to the high-end core parts sector. The success of Dongfang Seiko has provided empirical benchmarks for many domestic manufacturers and promoted the transformation of the domestic market. According to Ms. Qiu Yezhi, from the perspective of the domestic market, the past two to three decades have experienced a process from foreign introduction to self production, and then to export, but it has always remained at the stage of low automation, low efficiency and high energy consumption, and single machine production is relatively common. At present, China is in the stage of upgrading the whole industry. The upstream paper mills have basically completed the capacity reduction stage, and the low-end capacity of corrugated boxes has basically been eliminated. At this stage, it is making progress from the middle end to the high end. In mature markets in Europe and the United States, industry integration and concentration have been completed. It is believed that the Chinese market will also usher in a healthy and steady growth period in the direction of mature markets in Europe and the United States

after the cooperation between Dongfang Seiko and fosber in Italy was unqualified, it absolutely did not leave the factory. Through the establishment of a joint venture, it developed and launched "Asia line" products for medium and high-end customers in the Asian market. The "Asia line" is divided into two parts, of which the "cadre" product line was sold on the market last year, and the "wet end" product line will be launched on the market by the end of this year

the dual main business strategy has achieved initial results, and the performance of Oriental Seiko has increased significantly.

the dual main business strategy has been laid out, and Oriental Seiko has made a lot of profits. According to the 2016 annual report of Dongfang Seiko, in 2016, Dongfang Seiko achieved an operating revenue of 1.533 billion yuan, an increase of about 18% year-on-year 43%； The net profit attributable to the parent company was nearly 95.66 million yuan, with a year-on-year increase of about 47.53%. In this regard, Ms. Qiu Yezhi, President of Oriental add simple accessories Seiko, said that the performance growth in 2016 first benefited from the industrial upgrading of the entire packaging equipment industry; Secondly, the Italian fosber group and Suzhou Yum Power Machinery Co., Ltd., its subsidiaries, have also contributed a lot. Among them, fosber, as an important source of supply for the performance of Dongfang Seiko in 2016, has achieved a new high in more than 30 years, helping the performance of Dongfang Seiko soar significantly. In 2017, the performance of Dongfang Seiko will reach a new record high

on June 23, 2017, Oriental Seiko signed an equity sale and purchase agreement with the original shareholders of fosber, Italy, to purchase the remaining 40% shares of fosber, Italy, at the price of 33.1352 million euros (about 252 million yuan). After this acquisition, fosber, Italy, will become a wholly-owned subsidiary of Oriental Seiko. According to Ms. Qiu Yezhi, the high-end equipment of fosber in Italy is oriented to Europe and the United States and positioned at the high end, which is very in line with the development trend of China's industry. In the future, it will continue to promote the performance of Oriental Seiko

as for the future development direction of the enterprise, Ms. Qiu Yezhi mentioned that there is no priority development in a certain field. In terms of business structure, although intelligent packaging equipment is difficult to achieve rapid growth, it will still maintain excellent profitability and stable growth. Especially for the paperboard production line business in Asia, the company will continue to increase investment in this field. In 2016, the company formulated a three-year product R & D plan for the "intelligent packaging equipment" sector, and relying on the company's resources in Italy, it established the Oriental Seiko European R & D center, hoping to seek greater breakthroughs in the field of high-end printing machines through overseas resources

for the field of "high-end core parts", Dongfang Seiko will intensify efforts to extend the layout of this field. The company will not only pay close attention to the development trend of the global new energy vehicle industry chain, but also pay close attention to other fields of the high-end core parts sector, integrate the appropriate goals at the right time, and further expand the layout of this business sector

finally, referring to the cooperation with Reed Exhibitions group for more than ten years, Ms. Qiu Yezhi said frankly that she was glad to see that China International corrugation exhibition has grown into a truly international industry leading brand. The growing number of powerful buyers from all over the world on the exhibition site is the recognition of the world influence of China International corrugation exhibition. I'm glad to see that Reed Exhibitions has made more and more innovative measures to promote more trade matching between exhibitors and visitors. Dongfang Seiko participates in the China International corrugation exhibition and South China International corrugation Exhibition hosted by Reed Exhibitions almost every year, and promotes cutting-edge new products to China and the world on the platform when steel products yield to a certain level at the corrugation exhibition. In the future development process, Dongfang Seiko will continue to cooperate with Reed Exhibitions and adhere to mutual benefit and win-win results