subject: Suning Slightly Slow Expansion Plans: Additional Grant And Start - Of Suning Appliance, Sun Weimin - [print this page] Announced on the day before (November 4) the issuance of A shares closed the applications committee of the CSRC has received a conditional pass, but the issuance of China Securities Regulatory Commission also needs to be started before the final decision.
Suning CEO Sun Weimin told reporters, "issuance examination committee approval, we will begin with the funding agencies, brokerages additional communication issues, as long as there are no major capital market changes, this should be in the coming months additional to complete. "
Reporter has learned that this year's July 7, Suning Appliance adopted by shareholders of not less than 15 yuan / share non-public offering of shares of not more than 200 million private placement program, to be and fund-raising 2.8 billion, mainly for accelerate the development of chain stores and logistics base.
Specifically, the funds raised will be used for about 1,400,000,000 yuan chain Suning about 250 development projects, while about 10 million dollars in Chengdu, Wuxi, Chongqing, Tianjin, Xuzhou, logistics, etc. Beijing construction projects and construction of Phase II expansion project logistics, the other nearly 400 million yuan used to supplement working capital.
Obviously continue to expand the number of stores is established target of Suning Appliance, Sun Weimin said, "Su Ning, the next time additional 2.4 billion raised in the past two years to help achieve Suning Appliance stores increased from 650 to 885 upgrade After the issuance of the number of our stores within the next two years will continue to increase to 1150 or so. "
However, Financial Crisis on the domestic retail sector, especially electrical chain
Sell Indeed, the impact is obvious,
Gome Appeared in the fourth quarter of last year's first loss after listing, while the first half of 2009 net profit also fell by 49.57 percent, in order to reduce costs
States United States Electric in 2009, plans a net reduction of 100 stores.
Compared with Gome, Suning Appliance continued to maintain a certain growth, but the momentum of its expansion has also been closing slowly, by the end of October Suning has released third quarter report, for the first 9 months, to achieve comparable store Suning Appliance Single-store sales fell 1.24% year on year, while the main business income was 40.765 billion yuan, up 6.97%, which has significantly slowed the growth rate than in previous years.
In addition, in early 2009 Suning, Gome had tried to help the crisis continues to expand, according to the original plan in the country to open its 200 stores, but weak sales of appliances so that Suning's expansion is encountering resistance.
In accordance with its third-quarter report shows the first few months of this year Suning to open 118 new stores and also close the replacement of the 45 invalid stores, its net store growth of only 73.
This Sun Weimin told reporters, "We do the market situation on the beginning of the year plan some adjustments, but not significantly, our goal now is to open 150 new stores throughout the year, while net increase of 100 stores left and right. "
Growth slowdown may affect the investment institutions continue to participate in this private placement for the enthusiasm, but apparently Suning hopes to expand sales network has been placed in 2010.
BOC International's report pointed out, taking into account the gradual restoration of confidence in macroeconomic and Suning Appliance to correct and effective
Marketing Strategies, active and prudent expansion strategy strict cost control system, the company's future performance will continue to exceed market expectations.
According to the forecast of Suning Appliance, 2009 its net profit to grow 25% -40%, or 2.712 billion yuan to 3.038 billion yuan between, obviously it has widened the gap with major competitors Gome.
Addition, Suning ensure main premise of the expansion, also entered new areas, the reporter learned that, Suning Appliance in August this year, as large private enterprises to participate in Jiangsu Province, Jiangsu banks to increase their investment, investment 5.4 billion subscribed for 1.79% of the equity of Jiangsu Bank.
