Xinhua Department Store Plans To Increase Its Main Business By 1 Billion Yuan.

In May 23rd, Xinhua Department Store issued a non-public offering plan. The company intends to issue no more than 56 million 630 thousand shares to three specific objects at a price of 17.66 yuan / share, raising a total of 1 billion yuan to increase the main business of the department store and supplement the working capital.

Among them, the controlling shareholder of the company, Wumart holdings, intends to subscribe for 51 million 30 thousand shares, accounting for more than 9 of the shares. But in the past two weeks, the two private funds of the Shanghai Department of the Xinhua Department store, together with the two funds, will be subscribed for 5 million 600 thousand shares.

Market watchers told reporters that through the issuance, we can see that on the one hand, the US Department of Commerce has strengthened the control over Xinhua Department stores, and on the other hand, we have reached a consensus with the capital of placards.

In the evening of May 24th, Cui Jun told reporters that he was "continuing to communicate with major shareholders (Wumart Holdings) and hoped to participate in the company's future operation."

The reporter noted that after the issue was completed, as the controlling shareholder of Xinhua Department store, wumi holdings will increase its shareholding ratio from 26.91% to 39.59% and remain the controlling shareholder of the company.

The announcement shows that

Of the funds raised, 335 million yuan will be put into 10 new stores in Xinhua Department store.

The construction period of the project is 1.5 years, of which the construction cycle of a single store is usually 4 months, and the time for all 10 stores to realize rolling operation is 1.5 years.

According to estimates, after the completion of the project, it is estimated that the sales revenue will be 1 billion 353 million yuan in 8 years.

After tax, the internal rate of return is 12.53%, and the payback period is 4.85 years (excluding construction period).

At the same time, 375 million yuan will be used in the Dongmen square project of Xinhua Department store.

The implementation period of the project is 2 years and 5 months, and is expected to open at the end of 2017.

It is estimated that after the completion of the project, the main revenue comes from the operation of supermarkets, electrical appliances and the sale of part of the street properties. It is estimated that the sales revenue will be 262 million yuan in 10 years, the internal rate of return after project tax is 3.16%, and the investment recovery period will be 15.41 years (excluding construction period).

The remaining 290 million yuan is used to supplement the company's liquidity.

It is worth mentioning that before this issue, Shanghai Bao Yin and Shanghai trillion win, which are controlled by Cui Jun, a private person, altogether hold 22 million 563 thousand and 200 shares of Xinhua Department store, accounting for 10% of the total shares, and become the second largest shareholder in the company in a relatively short period of time.

(see our newspaper May 6th.

Frequent capital blitz "Xinhua Department Store suspension"

In a notice issued in May 16th, Xinhua Department said that the company actively communicated with Shanghai Bao Yin on non-public offering and other related investment matters. Shanghai Bao Yin proposed to the company the proposal to set up an industrial fund and other investments in the future. The company and board of directors seriously referred to Shanghai's treasure Silver, which was carefully considered.

The feasibility of the company needs to be further demonstrated. Due to prudent decision-making and the principle of protecting shareholders' interests, the company will further communicate with Shanghai Bao Yin on its operation and development.

Moreover, Xinhua Department store will have necessary communication and consultation with major investors who are willing to participate in this non-public offering, including Shanghai's treasure silver, to further improve and finalize the plan for further issuance.