Nearly period of time, come up to a lot of "subsidiary" sanitary ware industry, some subsidiary appearance was set a difficult task, and expand the market, for example, while some subsidiary facing the fate of the merger, be abolished. So, in the year 2018, what capital operation does the company have around the subsidiary? What is the purpose behind each operation?

　　I. new subsidiary.

　　New subsidiary, common purpose has two kinds, one is to strengthen the main business, one is to expand the market. The former is based on the mainland, and hopes to explore the consumption potential of the local market to the main business of the company; The latter is looking far away, and while designing globalization, it is expected to realize the globalization of sales.

　　1. Strengthen the main business.

　　On April 13, seagulls live announced that its subsidiary in suzhou gulls have nest's overall sanitary ware co., LTD., intends to set up a wholly owned subsidiary of Qingdao seagull f embellish da household integration co., LTD. According to the report, the registered capital of the gull fu runda is RMB 50 million yuan, which is to be engaged in the r&d, manufacturing, sales and other production and business activities of the whole bathroom. Seagulls resident said that the establishment of the seagull furunda, is the company layout to customize the decoration of the bathroom industry chain important measures. Therefore, it is a decision to strengthen the main business.

　　2. Expand the market

Some subsidiaries are set up to expand the market, especially overseas. In January of this year, le live group announced a $65 million Indian market expansion plan, including the acquisition of Indian companies post-acquisition changed its name to "le wei yu India private companies", as the probe and American standard brand in local production base. The move is aimed at expanding overseas markets such as India and the us, which will strengthen the group's global production capacity.

　　Ii. Merger of subsidiaries.

　　When there are too many companies, or the business has a large overlap, there is the possibility of being absorbed. For an enterprise, the merged subsidiary has three main objectives, namely, to reduce the management cost, brand integration and business integration.

　　1. Reduce the management cost.

　　Whirlpool wei yu and huimei ceramics, it is related to lower management cost and stop loss. In February, huida sanitary announcement, its basement is a wholly owned subsidiary of tangshan huimei building ceramics co., LTD has made tangshan abundant south area and market supervision administration issued by the grant notice of cancellation of registration, at this point, huida sanitary finished basement to huimei ceramic absorption. Learned, huida sanitary basement merger huimei ceramic news came in August 2017, according to the announcement, the merger is to "integration of resources, reduce the management cost, increasing the service efficiency of assets". According to huida's annual report of 2017, the net profit of huimei ceramics before the merger is: -1,180,273.64 yuan, and the net profit is: -1,820,019.59 yuan, which is in the loss state.

　　2. Brand integration

　　In its annual report, which was released earlier, jiboli said it would consolidate the four brands of KERAMAG, pozz-ginori, Sphinx and ALLIA in 2019, and integrate them into Geberit. These four brands have positive significance for the expansion of the brand. Keramag focus "wall technology", for example, brands, and one hundred products in Germany and Europe, and Italian ports more brand has a long history, with elegant and delicate design style attracted global consumers. Therefore, integrating these brands will help jiboli move from "behind the wall" to "before the wall" and directly promote the brand promotion.

　　3. Business integration

　　Examples of business integration can be seen in the recent capital operation of TOTO. In February, TOTO announced a wholly owned subsidiary of two TOTO AQUAIR and TOTO ENGINEERING to merge, and establish the new company TOTO AQUA - ENG, the registered capital of 100 million yen, the new company has been run on April 1st. It is understood that the two companies that have been amalgamated have certain business overlap, such as the installation and construction services of the construction equipment provided to customers. TOTO hopes to improve service by merging the construction systems held by the two companies.

　　Iii. Sale of subsidiaries.

　　The sale of subsidiaries may be due to the rapid development of the main business, the subsidiary's business is too busy to consider, or the subsidiary is losing money, so it is sold to realize the return of funds; In addition, there are business strategy considerations.

　　1. Return of funds.

　　At present, the reason that defend bath enterprise sells subsidiary is more concentrated in the first or second point. Danze enterprise announcement in February, for example, the subsidiary danze enterprise (virgin) co., LTD., Qingdao danze plans to sell technology industrial co., LTD. 100% stake in Qingdao Jiang Shanyi jia real estate co., LTD., trade amount is RMB 62.8 million yuan.

　　2. Adjustment of business strategy.

　　Companies withdraw from a business and also have strategic considerations. Although not a subsidiary, but le le live haier held by the recently announced it would build facilities (Qingdao) co., LTD. 51% stake, sold at 446 million yuan to haier, and the company hopes to independent sales kitchen products in China business strategy.

　　If the parent company is the base of the enterprise, the subsidiary is the foothold of the enterprise in the specific territory. It can expand the business circle of the enterprise and seek more possibilities for the development of the enterprise. But the subsidiaries are not the more the better, if the management is not good, there may be losses, even "burn the body". In some industries, it is not uncommon for companies to sell subsidiaries to "arm themselves". Therefore, the subsidiary is a double-edged sword, can not control well, can reflect a company's comprehensive strength.

　　(source: headliner - public number)