On the evening of July 17, Bear Electrical appliances issued an announcement, successfully acquired 61.78% of the shares of Guangdong Roman Intelligent Technology Co., LTD. (referred to as Roman Intelligent) at the price of 154 million yuan, and has completed the relevant industrial and commercial change registration procedures, Roman Intelligent officially became the holding subsidiary of Bear Electrical Appliances.

This move marks the official expansion of Bear electrical appliances from the traditional field of kitchen small appliances to the field of personal care small appliances. However, it is worth noting that the net profit of Roman intelligence in 2023 is negative, so how to improve the profitability of small home appliance business is an important issue that Bear Electrical needs to face after the acquisition.

Since its establishment in Dongguan in 2010, Romantic Intelligent has been committed to the research and development and production of small home appliances, the main products include electric toothbrushes, dental flushers, hair dryers, shavers and so on. Despite its net profit loss in 2023, Roman Intelligence has a strong performance in the foundry business, which accounts for 80% of the revenue in 2023, and its customers include well-known brands such as Philips and Panasonic.

In order to improve its performance, Roman Intelligence plans to divest its self-branded business within three months of the closing of this transaction, which is expected to have a positive impact on its operating conditions. At the same time, the transfer of controlling shares of Roman Intelligence also promised that in the three years from 2024 to 2026, it will achieve no less than 15 million yuan, 25 million yuan and 40 million yuan of net profit to the mother, with a total of no less than 80 million yuan.

Bear Electric said that the acquisition of Roman Intelligence is aimed at expanding its personal care small home appliance business and expanding overseas markets with Roman Intelligence's ToB customers. At the same time, the two sides will also play a synergistic effect in the supply chain, production capacity, channels and other aspects, the introduction of romantic Intelligence's high-quality products into the domestic market channels of Bear Electrical appliances, improve the capacity utilization rate of Roman Intelligent, so as to enhance the income scale and comprehensive competitiveness of Bear Electrical appliances personal care small appliances business.

Although Bear electrical appliances perform well in the domestic kitchen small appliances market, in the face of the weak growth of the market this year, as well as the current operating conditions of Roman intelligence, there is still some uncertainty whether the integration of the two sides can achieve the expected effect. The company will pay close attention to market dynamics and actively respond to potential risks in order to achieve its long-term development strategic goals.