China To Raise 6.55 Billion U.s. Dollar Part Of The Store To Expand

Gome announces the placing of existing shares to be the first old up subscription

of new shares and the proposed issue of convertible bonds, raising a total of 6.55 billion Hong Kong dollars, these funds will be used to optimize the flow of U.S. capital and the country business model, acquisition Some high-quality shops and shopping environment for system reform, optimizing logistics and distribution management.

Total of 6.55 billion Hong Kong dollars to raise funds

Journalists from countries the United States learned that the company on May 11, respectively, after the old by the first IPO and the issuance of new convertible bonds means the total funding 65.5 billion of capital. Specific way, according to a new way after the first Old 13.30 Hong Kong dollars per share placing 110 million shares, raising about 14.6 billion total. Placing of existing shares account for about 3.6% of the issued share capital, about the country after the U.S. expanded 3.5% of the issued share capital.

The same time, the proposed issuance of RMB and U.S. dollar denominated payments, zero coupon due 2014, convertible bonds, the principal amount of bonds actually issued 4.6 billion yuan, an additional issuance of 400 million principal amount of bonds yuan. Initial Conversion Price of 19.95 Hong Kong dollars, assuming full conversion bonds will be convertible into 255,142,590 shares, representing about GOME May 11, 2007 8.3% of the issued share capital by share placements and all convertible securities expanded 8.1% of the issued share capital. After release, the National Stock Exchange of Singapore for U.S. bonds will be listed. It is the largest private enterprises in China convertible bonds (market forum) issued the largest ever offshore renminbi convertible bond issues, issued the highest premium on convertible bond issues in China. To this end, States United States about the total funds raised 65.5 billion, including shares of the gross proceeds of the placing about 14.6 billion Hong Kong dollars and assumptions include the issuance of bonds after the issuance of bonds of the total amount of about 5.09 billion Hong Kong dollars.

Part of the funds for the expansion of stores

Gome president Chen Xiao said , The funds raised will be used for various purposes to enhance operational efficiency to enhance the country's software and hardware facilities, the United States, further to create new core competencies. Specific investment will be used in many areas, one used in the optimization of capital and business model, enhance relationships with suppliers, about this 40% of the total funds raised? Smoked most of the major funds to optimize the flow of capital and operating model, in particular, to shorten the accounts payable cycle, improve profitability and competitiveness. Country United States will spend money to speed up the transformation of mining sales model, in accordance with the contract to speed up the turnover of goods and capital flow speed.

In addition, the funds will be used to purchase some good quality shops and shopping environment for system reform, this part of the funds raised this about 35% of the total funds. According to the 2007 store opening program, part of the plan listed Gome to open 170 new stores, this raised some funds to support the new network layout. With the continuous expansion of store size, will implement the business strategy of differentiation stores, on shop layout, shop adjust the shape to create differentiated features and to find a new store profitability space. According to the present and future store size, location and market segment for the flagship store to store, standard appliance store, supermarkets, appliance stores and mobile stores four forms. States United States pointed out that the shape of the stores re-planning and adjustment to bring the most immediate effect is to raise the level of single-store profitability.

The same time, another 20% of the total funds raised will be used to optimize logistics and distribution management. States United States revealed that the seven regions in the country plans to build a large logistics system, investment capital will be the first to Beijing, Shanghai, Guangzhou and other large cities in the Logistics Center.

Gome president Chen Xiao

told reporters that the fund-raising practices of the company to provide important support for development planning. The financial arrangement allows the company to further expand the shareholder base will help to enhance the liquidity of shares. May 10th country the United States announced in 2007 1st quarter results, in terms of overall financial condition, operations management, economies of scale and other aspects of the country the United States has made good growth, reflecting the country the United States and Paradise merger synergies and scale advantages began to be reflected, and enhance the operational effectiveness of the main business strategy has been the overall positive results, the next country the U.S. will strengthen cooperation with upstream suppliers to provide a wider range of distribution channels and diversified portfolio of high quality.

China To Raise 6.55 Billion U.s. Dollar Part Of The Store To Expand

By: xt

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