China's Chunguang to Pay USD3 Million for Vietnam's Suntone for Vacuum Cleaning Assets

[TaiShang]

Yicai Global) Dec. 17 -- Chinese cleaning appliance maker Chunguang Technology will invest USD3 million to buy Vietnam's Suntone Technology to expand its business in the vacuum cleaning market.

Chunguang, its unit in Singapore, as well as Suntone and its shareholder Ng Yu Shu Andy penned an equity transfer agreement yesterday, the Jinhua-based buyer said in a statement the same day.

Founded in southeastern Vietnam early this year, Suntone counts Chinese home appliance giant Midea Group as one of its clients. The Dong Nai province-based firm made VND4.7 billion (USD202,500) in net profit in the first three quarters this year, according to the same statement. It can produce 1.5 million vacuum cleaners per year.

Chunguang already makes vacuum parts in Vietnam. The acquisition will help Chunguang extend its industrial chain to complement its existing assets while enhancing its core competitiveness and profitability, the statement added.

The widening assets failed to buoy the buyer's stock price. Chunguang's equity price [SHA:603657] slid 2.1 percent CNY18.82 (USD2.90) this morning.

China's Chunguang to Pay USD3 Million for Vietnam's Suntone for Vacuum Cleaning Assets

www.yicaiglobal.com

 

[Han-Tang]

Some you-know-who Vietnamese will say：look，rich Chinese flee to vietnam！
apparently rich Chinese go to Vietnam for being their bosses. LOL

 

[Viet]

My great thank to the people’s republic of china
I believe we will achieve high income status earlier than expected.

 

[Viva_Viet]

Some you-know-who Vietnamese will say：look，rich Chinese flee to vietnam！
apparently rich Chinese go to Vietnam for being their bosses. LOL

rich Cnese think in different way wt poor and not smart Cnese like u guys here. They just try to keep quiet in kicking CN workers out of the factories and try to survive by fleeing to VN

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He Huifeng
16 May 2019

Chinese companies moving to Vietnam keep quiet on trade war to avoid wrath of authorities and staff

Chinese state media may have launched a fierce propaganda campaign, placing the blame for the trade war squarely at the feet of the US government. But many manufacturers in China are keeping their heads below the parapet, for fear of reprisals from both inside and outside the country.
Interviews reveal that many factory owners and operators feel that they are caught in the middle of forceful rhetoric from both sides in the trade war. And rather than face direct retaliation from officials, workers and suppliers in their home market, they are deciding to keep their counsel.
Those companies that plan to move production out of China to avoid US tariffs and preserve their US business face a particularly delicate balancing act.
“Manufacturing exporters that are thinking of relocating face more difficulties and higher costs than those that already moved out over the past two years, so many of them are not willing to speak out,” said Liu Kaiming, head of the Shenzhen-based Institute of Contemporary Observation, which monitors working conditions for hundreds of Chinese contract manufacturers.

“To relocate, they have to handle very carefully the plans for lay-offs and compensation for workers, the reaction of suppliers, the problem of stock price fluctuations in large enterprises, and so on. They have to keep all this low profile,” he said.

Chinese companies moving to Vietnam keep quiet on trade war to avoid wrath of authorities and staff

Chinese state media may have launched a fierce propaganda campaign, placing the blame for the trade war squarely at the feet of the US government. Interviews reveal that many factory owners and operators feel that they are caught in the middle of forceful rhetoric from both sides in the trade...

sg.news.yahoo.com

 

[Feng Leng]

US$ 3 million is like a 60 square meter apartment in some parts of China. Quite a lot for a Vietnamese sucky-sucky though.

 

[Viet]

US$ 3 million is like a 60 square meter apartment in some parts of China. Quite a lot for a Vietnamese sucky-sucky though.

But this $3m is a force multiplier. That equals $3 trillion.

 

[Han-Tang]

My great thank to the people’s republic of china
I believe we will achieve high income status earlier than expected.

wise thinking， because cooperation is good for both sides.
and our Indian friends usually don't have this thinking, they always say China gets more benefits, so we won't accept it! LOL

 

[Viva_Viet]

wise thinking， because cooperation is good for both sides.
and our Indian friends usually don't have this thinking, they always say China gets more benefits, so we won't accept it! LOL

Rich Cnese desperately beg for VNs protection against US'S sanctions instead ( while they left poor CN workers behind by kicking them out of factories) despite we burned up CN factories, beat up CN staff in 2014