Apparel / Textiles & Accessories

Country Garden has entered the paint industry again, this is the third time in recent years.

Recently Anhui Bicheng Material Technology Co., Ltd. announced that it plans to invest in a new project with an annual output of 450,000 tons of water-based environmentally friendly coatings and accessories. Anhui Bicheng was registered and established in March this year and is a holding subsidiary of Guangdong Orange Technology Co., Ltd. (hereinafter referred to as "Orange Technology").

According to data, Orange Technology was founded in 2015 and registered in Guangzhou in December 2016. "Orange Home", which belongs to Orange Home Technology, is an Internet home improvement brand under Country Garden.

At the beginning of its establishment, Orange House promoted its brand as the “only partner of Country Garden’s Internet Home Improvement Strategy”, and Country Garden also attached great importance to Orange House.

According to industry analysis at the time, the Orange House was mainly controlled by Country Garden. The Orange House management personnel gave priority to the selection of relevant personnel at Country Garden headquarters, and all external personnel had to undergo a unified assessment by Country Garden; the construction workers were from the Tooling Department of Country Garden headquarters; At the same time, in terms of home furnishings, the collection of raw materials is in the form of centralized procurement by the group, and the Orange Family has the right to suggest reporting.

An Chengjia platform staff told reporters that the company is indeed an Internet decoration brand under Country Garden. "He further revealed: "The company's equity has changed last month, but the current orange family management staff is still the headquarters (Country Garden). "

As a "rising star" in the home improvement industry, the Orange Home has a high degree of cooperation with Country Garden in terms of operation. With the increase in the number of houses delivered by Country Garden, and the arrival of home improvement orders such as long-term rental apartments, the performance of Orange Homes rose sharply. According to official website information, in 2017, Orange Technology achieved revenue of 650 million yuan, a year-on-year increase of 5 times.

As one of the real estate giants, it is not the first time that Country Garden has set foot in the coatings market.

Public information shows that as early as 2016, Country Garden had the intention to acquire the Italian coatings company TASSANI China; in 2018, Country Garden indirectly acquired the Nippon Paint subsidiary through its investment, and formally entered the coatings industry.

In 2019, Country Garden announced its stake in Goke Energy, a well-known domestic architectural coating and thermal insulation and decoration integrated board company. Founded in 2001, Gook Energy Concentrates on technology research and development of imitation stone coatings, wall energy-saving systems and prefabricated buildings. It is one of China's top ten environmentally friendly exterior wall paint brands.

For Country Garden’s involvement in the coatings market, some insiders said that it is mainly to save channel costs and obtain more profits: "In recent years, the price of upstream raw materials has risen, causing many downstream companies to invest in cost savings and build factories to meet supply. ."

According to incomplete statistics, since 2016, as the prices of raw materials such as titanium dioxide and MDI have risen, the price of coatings has also entered a price increase channel. The data shows that in recent years, the price of titanium dioxide has increased from the earliest 300 yuan/ton, 500 yuan/ton, and 800 yuan/ton to 1,000 yuan/ton and 1,200 yuan/ton in 2020, setting a single largest increase. .

The paint industry, as a downstream industry, has seen prices rise in recent years. According to statistics, since the paint industry experienced three concentrated price increases in March, September, and November in 2017, paint prices have been rising year by year. So far, Nippon, Zhanchen, Sankeshu, and Dongfang Yu More than 100 paint companies including Rainbow have issued price increases notices.

It should be pointed out that the cross-border coating industry is only one step in Country Garden's strategy. Country Garden's larger layout lies in covering the upstream and downstream industrial chain of real estate.

In January 2019, Country Garden established a special investment company-"Country Garden Venture Capital", which is responsible for equity investment companies other than real estate investment. Country Garden Venture Capital mainly focuses on the real estate upstream and downstream industrial chain, big health, big consumption, new infrastructure and other investment fields .

At the beginning of its establishment, Country Garden Ventures invested in the paint company Guke Energy; in 2020, it tried to invest in three ceramic companies, Dio Home Furnishing, Mona Lisa, and Huida Sanitary Ware, with a total investment of more than 1.5 billion yuan; at the same time, the company also set foot in In the field of waterproofing, invested in Zhuobao Technology, a leading domestic waterproofing material company.

At the same time, Country Garden also entered the home furnishing industry. In February 2019 and May this year, Country Garden invested 2.3 billion yuan and 1.3 billion yuan in Xinyang, Henan and Zhaoqing, Guangdong to establish modern Zhumei green smart home industrial parks; in April last year, the company invested another 5 billion yuan in construction in Chaozhou, Guangdong. Smart Bathroom (Chaozhou) Industrial Park.

It is not difficult to see that from home improvement to raw materials, to the entire home furnishing industry, Country Garden's business tentacles are constantly expanding. This leading company in the real estate industry is trying to reach deeper and deeper into the upstream and downstream industries.