Chen Xiaoda Exposes Gome Financial Loophole &Nbsp, Saying That The Stock Price Has Reached Many Of The Top Institutions.

Chen Xiao said there are many good stores in Gome, and an ordinary counter supervisor from every home every year. Supplier Acquired Profit It's more than ten thousand yuan. Finance Black holes are amazing.

"Those stocks will soon be sold, because the price of Gome is unlikely to rise again in my view, and many institutions have chosen to withdraw, from the hot stocks that the organization has gathered to the concentration camps that now become retail investors. Such stocks have no future in investment value."

At the end of April, facing reporters' questioning, Chen Xiao made such a statement at the home of Cambridge home in Pudong, Shanghai. Once the 1.38% stake in Gome is launched, Chen Xiao will completely cut off all ties with Gome and its Yongle appliance.

Chen Xiao does not seem to have any nostalgia. In his view, the good days of the electrical chain are coming to an end, because the selling mode has become a "high price" store that consumers and suppliers want to get rid of.

Chen Xiao also chose to make a clean breast of the causes and consequences of leaving Gome. In his view, after the civil war last year, he has completed the cutting with Gome's future route, that is, regardless of the performance of Gome, it has nothing to do with Chen Xiao, and is the responsibility of his successor.

In fact, after last September 28th's special shareholders' meeting, Chen Xiao basically withdrew from the intervention of Gome's operation level, but began to look at the items he was interested in one by one. In just half a year or so, Chen Xiao has invested in a small shareholder, including the clothing company founded by Wu Jianke, the former vice president of Yongle appliance, the household goods chain, "Ming Chao industry", the former sales general manager of SIEMENS China, and the five or six "51 car network" of the second hand car rental share.

According to Chen Xiao's words, "Yongle and Gome are all gone. My new sons are growing fast, so there is nothing to regret."

"No one can drive me out."

Although Chen Xiao has been trying to avoid the topic of leaving Gome, he still can not help saying such a thing. "Now the outside world is saying that the major shareholders and Bain investment jointly let me out, but I want to say that if I insist on not going, no one can rush me out, but that doesn't mean anything to me."

In Chen Xiao's view, he voluntarily gave up the position of the board of directors of Gome. He also denied that the memorandum of understanding reached in the memorandum of understanding between the major shareholders and the board of directors in November last year contained the clause of Chen Xiaoyi's automatic turnover. He told the reporter with a laugh, "these are external subjective assumptions. Most shareholders of the shareholders' meeting chose to let me stay in office. How can I agree to such a condition?"

But why did he choose to leave? Former rival Zhang Dazhong as chairman of Gome's new board of directors, what does Chen Xiao think?

Chen Xiao said, "last September 28th is actually a watershed. The results I need have been reached. In October, I began to look for investment projects that I was interested in. At the moment, several investment projects finalized were good at that time."

He recalled the detailed process of last year's civil war. In June 24th last year, when Chen Xiao interviewed this reporter in Shanghai, he first mentioned the sensitive saying that "fish die nets will not be broken" and "Gome will never return to 20 months ago". After reading the article, Huang Xiuhong and Huang Yanhong once took media coverage to Wong Kwong Yu in prison. Wong Kwong Yu soon threw out the argument of leaving four executives such as Chen Xiao and Sun Yiding.

In fact, the struggle between the two sides began in March 2010. A person close to Chen Xiao said, "in November 2008, many of the yellow people, including Huang Xiuhong and Huang Yanhong, lost contact with Mr. Wong Kwong Yu. After that, Wang Junzhou and Wei Qiuli chose to make Chen Xiao chairman of the board of directors. In March, she suddenly returned to the board of directors that the company claimed to want to be listed as a listed company, but this request was opposed by other executives."

As a result, the conflict between the two sides began to sharpen. At that time, Huang Xiuhong once mentioned the extreme argument that "even if we can't tear them down, they can't get them". In May 11th, Gome's annual shareholders' meeting even voted against the three non-executive directors of Bain's investment.

Chen Xiao said, "many practices of large shareholders are irrational. As the beneficiaries of the biggest growth of the company, what benefits can they divide the company? Even if they choose to do so, do other shareholders disagree with them?"

In fact, Chen Xiao was also afraid of the sudden failure of the major shareholder in May 11th. "If the major shareholders then proposed to restructure the board of directors, only 62.5% of the voting rate would be enough, then Chen Xiao would have to leave. The result was that the majority shareholders chose the wrong target, because Bain has the protection of the protection agreement." The above said.

Zhang Dazhong's coming out of the mountain is a product of interest combination.

Chen Xiao did not regret his public statements in June last year. In his view, most of the public opinion that he attacked online later was manipulated. He told reporters, "they hired three public relations companies in this area to invest more than 60 million yuan, which can be said to be a loss of money, and they have their own good communication rhythm. At the beginning, I did not understand why many famous management, economics and media people spoke on their side. Later, I think it is easy to understand the interest combination behind this."

At the same time, he was somewhat dissatisfied with the role of some government departments. He said frankly, "a criminal is still exerting so much influence outside. Is the government not aware of it? But they finally chose not to interfere. "

Zhang Dazhong's choice as chairman of the board of directors of Gome is very direct, Chen Xiaoze said. "It's better than Huang Xiuhong and Zou Xiaochun, but there's a choice of interests behind this."

Chen Xiao said, "the outside world is saying that I have a great deal of contradiction with Zhang Dazhong. I didn't have much contradiction with him in 2007. Our contradiction was in the price of large and medium appliances. At that time, Suning Appliance only gave 1 billion 800 million yuan purchase price. I gave 2 billion 800 million yuan to have considered the friendship for many years, because even if the market value of large and medium IPO listed could not reach this figure, but Wong Kwong Yu finally gave 3 billion 600 million yuan, is it only for enterprises to consider behind it? Of course not. Today, Zhang Dazhong came out to save the emergency, which has already explained the problem at that time.

As for the possible turbulence of Gome management, Chen Xiaoze said, "these executives have their own plans and career plans. This is normal. I also hope that the management of Gome will remain relatively stable, but it may be very difficult."

During last year's civil war, many executives chose to side with Chen Xiao. However, the fact is not the case. A person close to Chen Xiao said, "although these executives came out to face the media in August 12th, they were only under Chen's persuasion. At that time, they said they mainly introduced historical issues, but vice president Li Juntao still tried to refuse to meet on the grounds of a business trip that morning, and after many media reports about the news of executives' turnover, many executives called private shareholders to explain the problem.

Obviously, every executive tried to find room for survival in the gap between the two. Wang Junzhou and Wei Qiuli had never met the media, and even when the press release about Wang Junzhou's support for Chen Xiao's speech appeared, Wang even became furious.

Today most executives choose to stay in office, and Chen Xiao understands this. Because before Wong Kwong Yu's accident, his relationship with Wang Junzhou and other senior executives was also very intense, and the fact that those executives were standing with him was Wong Kwong Yu's proposal to let Huang Xiuhong or Zou Xiaochun serve as chairman of the board of directors, and Huang's "Suning overtook Gome as a strategic mistake in management", which made executives dissatisfied with the most difficult times in Gome.

Gome has gone astray?

Chen Xiao chose to leave, but the bain investment introduced by him was in a dilemma.

Chen Xiao said, "although he (Bain is investing in crops) is now saying that he will not quit, the problem is that if Bain's investment is to drop out of its price, it is bound to fall sharply. Bain's investment in two years is basically not profitable, and now he is the most uncomfortable."

In exchange with reporters, he also revealed a pessimistic attitude towards the industry. In his view, the electrical chain industry has reached a state of illness after 20 years of development.

Chen Xiao said, "now Gome adopts the selling mode, that is, the store has become a place where no risk is charged, and suppliers must bear huge costs when they want to enter Gome. Eventually, the cost of these suppliers will be added to the consumers for their performance. This leads to the fact that Gome has become the highest price in various channels on the commodity price, and the cost is also the highest for the supplier, and such a channel will inevitably be eliminated.

In Chen Xiao's view, although Gome often maintains its market share with low price promotion, its sales price has lost its competitive advantage in the past, not only higher than e-commerce, but also higher than other channels.

According to the introduction, the most powerful suppliers of Gome, Haier and SIEMENS, can get about 55 yuan of return funds for every 100 yuan of goods sold, and the most vulnerable ones are small household electrical appliances enterprises. For example, the actual cost of a range hood is often only 1000 yuan, for example, Sacon sells 100 yuan for every $100 sold from GOME 25 yuan.

In Chen Xiao's view, Gome's huge financial loophole is also a problem. Gome from headquarters to large areas, and then to branch offices, even stores and counters have become charging points. Besides the annual contracts finalized by headquarters, suppliers also need to pay a considerable amount of fees to leaders at all levels of Gome, which has led suppliers to be overburdened.

According to the introduction, Gome's many good stores, an ordinary counter director, get more than 10000 yuan from each supplier every year. Such a financial black hole is amazing.

Chen Xiao said, "in July 2009, we launched equity incentive in addition to binding management layer, but also to curb the spread of this gray area through positive revenue growth. Now I leave, it seems that this mode is difficult to continue."

And in order to shift the increasing cost, the price of goods sold in Gome is often higher than other channels. Chen Xiao said, "it's just that consumers are not clear now. Once the truth is understood by consumers, the operation mode of Gome will be unsustainable. Compared with the computer city, Gome's 3C and IT digital products have absolutely no advantage. Once GOME stores are opened to two or three tier cities, if they insist on such a mode, they will die."

In his view, this is not the problem of Gome or the electrical chain industry. Almost all the selling mode operation in China is not the so-called foreign commodity business mode, but the selling business mode, even the new electronic mall, for example, Jingdong.

Chen Xiao told reporters, "when the price of electrical chain industry has become the highest, Jingdong mall has gained the best opportunity for rapid growth, but Liu Qiangdong has made a big mistake. He has made many horizontal expansion attempts to copy the mode of store operation to the Internet, and this Jingdong is also very difficult to have a future."

For Gome's new plan to open 480 stores, Chen Xiao said, "this is totally impossible. Now the one or two tier market is saturated, the Beijing market can accommodate 50-70 stores, now there are more than 200, and the two or three level market can not be profitable. Where do they go to open so many stores?"

He also said, "business has not done so. If the opponent wants to open 370, Gome will open 480, which is entirely in the pique, not the normal way of doing business." {page_break}

Investment in small shareholder mode

When the outside world thought he would retire from the rivers and lakes to feed the family, Chen Xiao, 51, was planning his new career, that is, to be an investor.

It is worth noting that Chen Xiao first invested in the old branch of his company to build "Ming Chao industry". For this investment, Chen Xiao said, "on the one hand, I am interested in circulation industry, and on the other hand, I need support after starting a few years of rest."

However, Chen Xiao is not only willing to invest in the original business of Yongle employees, he told reporters. "Although Yongle employees know the root of the matter, it is an important reference factor for investment, but some people are born to work only, so the investors I invest in are definitely not limited to Yongle workers, for example, I invested in the project of SIEMENS China Regional Sales Director Wu Jianke."

It is reported that in July 2010, Wu Jianke left SIEMENS, the world's third largest white power company, chose to start his own business and set up a clothing company of his own. His friendship with Chen Xiao has become an important reason for Chen Xiao to invest in his projects.

Chen Xiao is also involved in the Internet field. He has just invested in a leading 51 car network in the field of online second-hand car rental in China. He told the newspaper reporter, "I am not very interested in finding or visiting projects. I like to go out and look for projects of interest."

During the two hours of communication with reporters, our conversation was often interrupted by calls from many investors seeking investment. Chen Xiao said, "I prefer to invest as a small shareholder, because for the executives of the start-up period, if I enter as a major shareholder, their enthusiasm for entrepreneurship will diminish."

When the reporter's interview is coming to an end, Chen Xiao once again received a phone call, and on the phone, he finalized a new investment project.

In Chen Xiao's view, many of the investments made by Zhang Dazhong in the big and middle investment are financial investments, such as its participation in the TCL and Hisense electric private placement. Such a project is obviously not what Chen Xiao likes. He told reporters, "I will choose some promising projects and invest in them and grow with them, and there is no short-term profit target for these projects."

Chen Xiao chose to be an investor. With his final stake in Gome, he will add more than 500 million yuan in cash. Chen Xiao said, "even if I do not invest at the age of 60, I will give advice to young entrepreneurs. I will not be idle."