Joint production of "Distribution Map of China Copper Industry chain in 2019" by Hailiang Stock and SMM to promote the Development of China Copper Industry chain

SMM4, 30 March: although China's copper processing industry has diversified products, complete specifications, and increasing processing capacity, it has still been in the environment of homogeneous competition, overcapacity, and meagre profits over the years. High-end products and products with some technical barriers still rely on imports. Under the domestic supply-side reform and financial deleveraging policy, the processing capacity of various sections has begun to intensify centralization in recent years. In the long run, the leading enterprises in the processing material industry will emerge in China, and some new enterprises will bear the important task of the market.

For this reason, SMM Organization recombs the industry, integrates the resources of China's copper industry, and produces the "Distribution Map of China's Copper Industry chain in 2019". We will invite the copper industry upstream and downstream industry associations to participate in the production and supervision, welcome to join! In order to improve the domestic layout and broaden the overseas territory, Zhejiang Hailang Co., Ltd. jointly produced "2019 Copper Industry chain Map" with SMM, and contributed its own strength to the development of China's copper industry chain!

Company profile: Zhejiang Hailiang Co., Ltd.

Hailiang shares is a fine management enterprise in the copper processing industry. Since its establishment in 2001, the company has been committed to the research and development, production, sales and service of high-grade copper products, conductive profiles and aluminum profiles. All along, Hailiang shares have been committed to providing customers with quality products and services, seeking reasonable benefits and returns for shareholders, providing employees with a good employment and growth platform, and conveying advanced management concepts and manufacturing experience for the industry. Through continuous research and development of technology, upgrading of technology and improvement of equipment, Hailang shares have changed the situation of heavy technology and pollution in the copper processing industry in the past, and protected the environment to achieve green development. Hailiang shares uphold the spirit of ingenuity, with high-quality products to serve the people's livelihood, and have made due contributions to promoting economic development.

Annual report on the shares of Hailiang shares in 2018

Transnational territory of Hailiang shares

In 2019, Hai Liang's transnational territory became wider and wider, and the company's leading position in the copper bar industry became more stable.

On March 31, Zhejiang Hailiang Co., Ltd. announced that its transaction with the KME Group had completed formal delivery. Hailiang shares bought five KME plants in Europe for 119 million euros.

Hailiang shares are one of the first private enterprises to "go out" in Shaoxing. From the establishment of the plant in Vietnam in 2007, to the merger and acquisition of the copper processing business of the Norda Group and the JMF Company of the United States in 2016, and to the acquisition of five plants of the KME Group this year, Hailiang completed the global layout of copper processing. The multinational giant's copper processing "empire" is getting wider and wider.

In January 2019, Hailang shares signed an merger and acquisition agreement with KME Group, acquiring five factories in Germany, France, Italy and Spain, with more than 1000 employees and a production capacity of 50, 000 tons of copper tubes and 230000 tons of copper bars. Hailiang started making copper bars in 1989 and began making copper tubes in 1996, which has always been the largest in the world, but the copper rod has not been developed. Hailiang's copper rod production capacity was only 50,000 to 60,000 tons last year. But the copper rod will be a focus of Hailiang's future development.

The acquisition, which also includes trademarks and patents, will help Hailiang enhance the technological research and development and manufacturing capabilities of high-end copper alloy products and further gain a foothold in the European market.

After the completion of overseas mergers and acquisitions, Chinese enterprises often have to absorb advanced western management concepts, but Hailang shares have decided to export management. After the delivery of five factories in Europe, Hailiang sent more than 20 employees to Europe to dock the integration work.

In the fine management, first of all in inventory management, Hailiang shares can achieve raw materials only 2 days in advance procurement, saving financial costs. In risk management, after years of exploration, Hailiang shares have also explored and established a set of systems. According to reports, copper prices account for 90% of the operating costs of Hailiang shares, and copper prices are extremely volatile, but no matter how severe the volatility, with a mature risk management system, the impact can also be reduced to a minimum.

In 2007, Hailang shares "go out" the first stop to choose Vietnam. That year, Hailang shares built a small copper processing company in Vietnam and a copper processing plant with a capacity of more than 70,000 tons in Qianjiang Province, Vietnam, in 2008. Today, the copper processing company has become the largest local tax payer.

In December 2016, Hailiang shares bought three factories in Asia owned by Finland-based Norda Group for 880 million yuan. Norda is one of the earliest copper tube enterprises in the world, with a history of nearly 200 years. Along with the three factories, there are also a large number of patents and trademarks of Norda around the world. Over the next two years or so, the integration of Norda Asian plants has brought positive synergies, and the production efficiency and operating efficiency of these plants have been greatly improved. In 2018, the annual sales of the three factories acquired from Norda were more than 60% higher than before the merger, and the net profit was nearly 100 million yuan, an increase of nearly 90%.

Last year, Hailang shares "ate" more than 1200 acres of industrial land in Houston, and some of the land will be used to build factories this year. Before that, Hailang shares already had a ready-made sales channel in the United States-JMF. In the first half of 2016, Hailang shares bought JMF for $30 million. JMF is a leading wholesaler of air conditioning refrigeration and plumbing pipes in the United States and has been a customer of Hailiang shares in the past. In the first year of the acquisition of JMF, there was an obvious synergy, which greatly led to the export of Hailiang copper tubes.

With its industry-leading production capacity, superior management ability and excellent strategic vision, Hailang shares began to implement its global layout plan one step at a time from the processing plant in Vietnam in 2007. Until the acquisition of five plants owned by the KME Group, this is sufficient to prove the leadership of Hailang shares in the copper processing sector.

Hailiang shares, as a leading enterprise in Shaoxing, is committed to setting a good example for other enterprises in Shaoxing. In cross-border mergers and acquisitions, Hailiang shares will rely on their own experience to encourage Shaoxing strong enterprises, in the encounter of good M & A targets, to actively participate in cross-border mergers and acquisitions. Because of the cross-border mergers and acquisitions, due to different positions, there will be a different understanding of the industry and the company.

In summing up the company's road to cross-border mergers and acquisitions, Hailiang also said that mergers and acquisitions are not always plain sailing, and sometimes some unexpected surprises occur, so if you can look at the problem from different angles, even if you encounter difficulties in the acquisition case, And you can benefit from it.

2019 Distribution Map of Copper Industry chain in China

Content of "Map of Copper Industry chain in 2019"

1. Enterprise distribution map

Name of National Electrolytic Copper smelting Enterprise and details of Electrolytic Copper Brand in 2019

Distribution of representative copper processing enterprises in China in 2019: copper strip, copper foil, copper pipe, copper bar, copper rod, copper wire, copper bar, copper alloy and other copper processing materials

Annual production capacity data of representative copper processing enterprises in China in 2019

Delivery database information and library capacity.

2. Investigation data of copper processing materials

Classification of copper processing in China in 2019

Proportion of raw materials for copper smelting in China in 2019

Output of Copper processing Materials in China from 2010 to 2019

China's copper import and export volume from 2010 to 2019

3. Standard unit of spot price of 2019SMM electrolytic copper

2019SMM Yangshan Copper Premium Standard Unit

National Copper processing Materials quality Trader in 2018

Issuance situation

1. Number of issues

The first batch of 20000 copies was printed, with a total of 30000 copies printed.

2. Distribution object

3. Map distribution channel

(1)。 Express mail: directed distribution to the non-ferrous network cooperative copper processing and smelter and its downstream enterprises procurement or other departments;

(3)。 Copper industry exhibition: participation in the copper industry summit and related exhibitions free of charge to representatives of participating enterprises;

(4)。 Trade association distribution: through SMM cooperation of the domestic upstream and downstream trade association distribution;

(5)。 Visit research: the non-ferrous network regularly organizes visits to the upstream and downstream enterprises of the copper industry chain, giving away the person in charge of the downstream enterprises.

Map distribution form

Producer: SMM Information & Technology Co., Ltd.