Will The Takeover Be Slow?

Why does Huarun start selling retail businesses? Many people in the industry believe that this has nothing to do with its losses in recent two years. Huarun has a large number of retail brands, including Huarun Wanjia supermarket, Zhongyi, Hua Runtang, and cosmetics store, VIVO, Pacific Coffee and so on. In 2014, the same store sales of its retail business dropped by 2.6%.

There is institutional analysis. Buy Huarun's profitability has declined after China's Tesco, which has a large but low profit margin. In fact, if the assets were reassessed after tax, the actual performance loss of Huarun venture last year was about HK $794 million. Among them, the retail business has become the biggest performance drag of Huarun venture, and the food business has also performed poorly.

Huarun CEO Hong Jie Told reporters that it is expected to fully complete the organizational structure, personnel, commodities, supply chain of Huarun Wanjia and Tesco in all the country. Stock It will take three years to connect and merge financial aspects.

"After the sale of retail business, Huarun's acquisition will slow down, but its capital expansion will not stop." According to the insiders, after all, the scale effect is still a very important factor for retail enterprises.

A few days ago, Guangzhou friendship issued a performance report that the first quarter of 2015, the company's profit is expected to decline compared to the same period, the net profit attributable to shareholders of listed companies reached 64 million 100 thousand -6550 yuan during the period, down 13.10%-14.95% compared with the same period last year.

Affected by the downturn in consumption, the impact of electricity providers and the restriction of three public spending, Guangzhou friendship has been running down for the nine consecutive quarter. But surprisingly, the price of Guangzhou friendship has soared. This is closely related to the dual engine strategy of Guangzhou Department of friendship and finance.

Guangzhou friendship director Jiang Guo Yuan said recently that according to the Guangzhou state assets plan, the Guangzhou friendship listing platform will be injected into Yuexiu's gold control assets, and the plan has passed the examination of the SFC successfully. The listed company will be transformed into a platform for department stores and financial double main businesses, of which the financial sector will visit the capital market and make use of the rare opportunities in the financial market to create regional financial leading enterprises. Yuexiu's gold control will go across the border into the financial sector. There are reports that after the completion of the financial assets, the possibility of renaming the Guangzhou friendship listed company will not be ruled out.

"Industry docking finance must be a big development trend." Huang Wenjie, executive director of Guangdong Circulation Industry Association, thinks that the biggest part of TOYOTA's profits is not from selling cars, but from finance. Guangzhou friendship's department store + finance dual engine strategy, if implemented well, is likely to achieve the acquisition strategy and scale up.