Global electronics is a field dominated by companies of Chinese origin. In 1958 two companies namely Sichuan Changhong and DTM (Jiuzhou) got incorporated, and since then they have both seen massive growth in years, courtesy of their country’s defence support and orders.
Sichuan Changhong has an extensive military background, and its subsidiary Changhong Power Supply Company happens to have a market share of over a whopping 70% in the military aviation power supply market. Currently, it has plans to acquire 081 Group, and the military assets of the listed company which may be expanded again.
The company intends to acquire 100% of the shares of 081 Electronics Group Co., Ltd. held by Sichuan Electronics Military Industry Group Co., Ltd., a wholly-owned subsidiary of Sichuan Changhong Electronics Holding Group Co., Ltd., with just cash. The overall transaction consideration is about a massive 1.728 billion yuan
“Based on Changhong’s profound pattern of Chinese military industry heritage and military-civilian integration industry, they are committed to creating an ‘intelligent manufacturing + military industry’ industrial ecosystem, and setting Changhong as a corporate benchmark for the coordinated development of military-to-civilian participation and civilian participation in the military.
Both companies have faced many allegation in terms of privacy of the data of their customers and malpractice in getting big orders from company of repute by all means necessary. They are in India too- for about a decade-serving Cable and DTH networks with huge customer base. Data secrecy could be a concern.
In 2007 and 2016, Jiuzhou won the highest honor of China military industry enterprise twice, becoming the “only one” among more than 370 local military industry enterprises nationwide. Mediawire