Su Ningyun Intends To Build Japan's Largest Duty-Free Retail Network

Su Ningyun business (002024), who has been making rapid progress in the Internet transformation, has not neglected the layout of the internationalization strategy.

The company announced recently that the Japanese LAOX plant style Association (hereinafter referred to as "LAOX", the Chinese name "Tesco") plans to issue 100 million shares of common stock, and the total amount of raised funds will not exceed 42 billion yen (about 2 billion 200 million yuan).

At the same time, LAOX plans to issue 350 new shares to its controlling shareholder and GRANDA MAGIC LIMITED, a wholly owned subsidiary of Suning cloud company. GRANDA MAGIC has the right to subscribe for 106% of the public offering price, and partly or wholly subscribe for 35 million new shares issued by LAOX from April 6, 2015 to April 3, 2018.

Statistics show that LAOX was founded in 1930 in Japan's largest electrical street, Akihabara. It is the oldest household appliance chain dealer in Japan. It is listed on second main boards of the Tokyo exchange. Its main business is sales of 3C appliances, duty-free products and so on. At present, there are 17 chain duty-free shops in the Japanese market.

LAOX's fundraising is aimed at promoting it. Tax-free retail network Development. According to the relevant person in charge of LAOX, the funds raised will mainly be used to build the largest duty-free retail network in Japan, and will also be used for overseas purchases and expansion of the overall business.

In June 2009, Suning subscribed 29.16% stake to become the largest shareholder of LAOX, the first acquisition of Japanese Listed Companies in the history of Chinese enterprises. In the next two years, Suning also increased its LAOX two times, and in June 2011 it became an absolute controlling shareholder with 50.62% of its overseas wholly owned subsidiary GRANDA MAGIC.

It is reported that in order to ensure the consistency and continuity of LAOX management decisions, in March 9th, GRANDA MAGIC signed the agreement of concerted action with the third largest shareholder of Japan LAOX duty-free Corporation. According to the agreement, Japan tour duty free company will be unconditionally consistent with GRANDA MAGIC.

After the public offering is completed, GRANDA MAGIC and Japan sightseeing duty free Corporation will share the equity of LAOX51.28% without considering the excess placement. If the right to reserve the new shares is exercised, the 53.77% will hold a share of LAOX.

In Suning, LAOX has always been highly regarded as an important step in Suning's internationalization strategy. It is also known as the "experimental field" of Suning's innovative format.

　　 Su Ningyunshang Vice chairman Sun Weimin once said, "Suning has a complete plan and deployment for the international development, and the company has been adopting a steady way to promote overseas development. LAOX will cooperate with Hongkong Suning to consolidate the capital platform, talent platform and management technology platform for Suning's overseas development, and further support Suning's development in Japan, Southeast Asia and even the global market.

After entering LAOX, Suning began to introduce the brand of LAOX into China. "In the middle of last year, LAOX entered the suning.com platform as a third party merchant, mainly with small appliances, living appliances, Wrist Watch Commodities such as commodities are the main products, and all kinds of commodities that Chinese consumers will be interested in will be added in the future. Suning insiders told the Securities Times reporter, "LAOX performed very well last year and made a great contribution to the company's performance".

It is reported that in 2014, LAOX achieved sales income of 50 billion 196 million yen (about 2 billion 572 million yuan) and net profit of 1 billion 242 million yen (about 64 million yuan), which is the first time that LAOX has realized profitability since 2001.

According to the insiders, Japan's duty-free commodity market will be very broad in the coming period.

On the one hand, the Andouble administration's policy of building a country based on tourism not only broadened the categories of duty-free commodities, but also relaxed the visa requirements of foreign tourists; on the other hand, Japan's domestic prices continued to be depressed due to the continued devaluation of Japanese yen and deflation, all these factors greatly promoted foreign tourists to visit Japan, while Chinese tourists as neighbors were expected to become the main consumer groups.