November 6th, 2009 | 
Author: November 5, the domestic electrical appliances chain giant Suning Appliance (002024.SZ) announced on the previous day (November 4) Its A shares closed additional applications Fashen Wei China Securities Regulatory Commission has received a conditional pass, but The issuance of China Securities Regulatory Commission also need to obtain a final decision after the start.
Suning CEO Sun Weimin told reporters, “Fa Shenwei approval, we will begin with the funding agencies, brokers communicate with additional issues, as long as capital markets, there are no major changes, the additional should be completed within the next few months . ”
This reporter has learned this year, July 7, Suning Appliance adopted by shareholders of not less than 15 yuan / share non-public offering of not more than 2 million shares of the private placement program, is to fund-raising 2.8 billion, mainly for speed chains surface development and logistics base.
Specifically, the funds raised will be used for about 1.4 billion chain Suning about 250 development projects, while about 10 million dollars in Chengdu, Wuxi, Chongqing, Tianjin, Xuzhou and other places logistics base construction projects and Beijing logistics base construction of two expansion projects, the rest of almost 4 billion for additional working capital to enterprises.
Apparently continue to expand the quantity of Suning Appliance stores the established goals, Sun Weimin said, “the next Suning additional 2.4 billion raised to help in the past two years, the number of Suning Appliance stores realized from the 650-885 upgrade, this time later, our number of additional stores within the next two years will continue to increase to 1150 or so. ”
However, the financial crisis on the domestic retail sector, in particular the impact of the electrical chain sales are indeed very clear that the fourth quarter of last year, Gome’s first loss of the listing, while the first half of 2009 net profit also fell by 49.57%, in order to cost reduction plan in 2009, Gome a net decrease of 100 stores.
Compared with Gome, Suning Appliance still maintained a certain growth, but the momentum of its expansion has also been close to wait, by the end of October Suning Appliance’s third quarterly report released shows that in the first 9 months, Suning Appliance to achieve a comparable-store same-store sales revenue declined 1.24%, while the main business income of 40.765 billion yuan, an increase of 6.97%, which has greatly slowed the growth rate than in previous years.
In addition, in early 2009, Gome, Suning Appliance had tried to help the crisis continues to expand, according to the original plan their will across the country to open 200 new 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 while closing 45 of the invalid replacement stores, which stores a net increase of only 73.
Sun Weimin told this reporter, “We do the market situation on the beginning of the year plan, which must be adjusted, but not changed much, we are now the goal is to open 150 new stores throughout the year, while a net increase of 100 stores around . ”
The slowdown in growth rate may affect investment institutions continue to participate in this private placement for the enthusiasm, but apparently Suning Appliance 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 the macroeconomic as well as Suning Appliance to take correct and effective marketing strategies, active expansion strategy, as well as careful a strict cost-control system, the company’s future performance will continue to exceed market expectations.
Suning Appliance according to the forecast net profit growth in 2009 of its 25% -40%, that is 2.712 billion yuan to 3.038 billion yuan between, obviously this has widened the gap with major competitors Gome.
In addition, the Suning Appliance in ensuring the main premise of the expansion, has also started to enter some new areas, the reporter learned that Suning Appliance in August this year, as large-scale private enterprises in Jiangsu Province, Jiangsu banks to increase capital investment 540 million yuan subscribed for 1.79% stake in Bank of Jiangsu.
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Article Source: Himfr.com reports Suning Appliance slightly slow expansion plans.
