Zhang Jindong, Chairman Of Sunning Cloud Business, Has Made New Moves.

According to a notice from Suning, Suning's subsidiary Great Universe Limited is planning to sign a share transfer agreement with the associated Fang Suning culture Cci Capital Ltd. It is agreed that Great Universe will transfer its PPTV 68.8% stake to Suning culture or its designated subsidiary company, with a transfer price of 2 billion 588 million yuan.

The Suning culture, which is PPTV, is called "Suning culture Cci Capital Ltd". Its registered capital is 3 billion yuan, the date of its establishment is September 17th this year, and no substantive business has yet been launched.

Because Suning culture is the controlling subsidiary of Suning's actual controller Zhang Jindong, it means that sunning Yun chairman Zhang Jindong invested 2 billion 588 million yuan to buy PPTV. In October 2013, Suning invested $250 million in PPTV and owned 44% of its shares, when PPTV valued at about 3 billion 483 million yuan. The valuation of the transfer ($3 billion 800 million) is a little higher than two years ago.

Sunning said the reason for stripping PPTV is cooperation with Alibaba.

In September 10th this year, Suning had voted with ALI strategy, and the matter still needs approval from the China Securities Regulatory Commission. As the Alibaba is registered in the Cayman Islands, if the above transaction is completed, there will be indirect foreign shareholding in Suning's shares. "In order to avoid the possible impact and limitation of foreign investment industrial policies on the subsequent development of PPTV, the company intends to transfer PPTV equity." Suning explained this.

From this point of view, it can help Suning and Ali to avoid some potential policy restrictions in the development of video business, but the deeper reason is that PPTV has brought huge losses to Suning listed companies.

Reporters also noted that, as one of the ten largest shareholder of Suning cloud business, Beijing Hongyi two billion equity investment center has reduced its holdings to Suning stock. The number of shares held at present is 49632003 shares, and its shareholding ratio is 0.67%. But in the semi annual report, Hirotake's shareholding ratio was 1.34%, and its shareholding was 98765436. July 10, 2015 was the date when Hongyi subscribed to Su Ning's non public stock and lifted the sale limit. It is not clear whether Hongyi's holdings of Suning stock are related to its recent performance.

Fortunately, Suning thought of a way to strip PPTV from losing money to ease the pressure of performance loss that might come at the end of the year. Suning's announcement said that in the first half of this year, PPTV's operating income was 357 million yuan, with a loss of 384 million yuan, which directly affected the profits of listed companies. Suning has also changed its performance deficit through carrying out related innovative assets operation mode through 14 stores property as the underlying asset.

Suning responsible person in an interview with an interface reporter said that after stripping PPTV, Suning could concentrate its resources on price competition and calculate debt repayment, which is expected to increase the net profit of listed companies by 1 billion yuan.

"The overall operation of PPTV will not be affected by the change of ownership. In order to maintain PPTV business stability, Suning culture plans to entrust the Su Ningyun business to provide PPTV management services for a certain period of time after the transaction is completed. After the acquisition of PPTV, Suning culture will base itself on the capital market and implement diversified financing methods, which will help them to seek long-term and healthy development. The person in charge stressed.

Suning's first three quarters of public earnings data show that this year 1-9 months Suning The total revenue was 93 billion 570 million yuan, up 17.44% from the same period last year, of which the net profit attributable to shareholders of the parent company was 53 million 40 thousand yuan, an increase of 105.09% over the same period last year.

Suning side said that due to the growing competition in the video industry, PPTV has been increasing investment in copyright content, intelligent hardware and so on. In the 1-9 month of 2015, PPTV realized a profit loss of 705 million yuan, which affected -4.8 net profit of the company attributing to shareholders of the parent company.

At the end of July this year, PPTV launched three smart TV sets, a 4K TV box product, and announced its formal entry into the TV industry. Later in September, PPTV launched its first mobile phone, PP King, which is known as "3D cinema in pocket" and the main purpose is naked eye 3D. All of these bring a lot of cost to the company.

If we only look at the performance of Suning in the three quarter of 7-9, its gross profit, net profit and net profit attributable to shareholders of the parent company are still in a deficit state, which are -3.48 billion yuan, -3.02 billion yuan and -2.95 billion yuan. If the effect of PPTV is eliminated, the net profit of the shareholders belonging to the parent company will be -0.8 billion yuan in the three quarter.

Of course, remove the loss, Suning There are also many outstanding performance. In the first three quarters, online growth has maintained a relatively high growth rate. The sales volume of self operated goods has reached 24 billion 574 million yuan, and the scale of commodity trading realized by the open platform is 6 billion 766 million yuan. The total volume of online commodity trading is 31 billion 340 million yuan, an increase of 80.63% over the same period last year.

In terms of category management, Suning focused on commodities rich in mother and baby, supermarkets and department stores, and expanded SKU scale through self operated and open platform. As of the end of the reporting period, the number of goods SKU reached 15 million, and the number of open platform merchants was nearly 23000.

In the mobile terminal, September 2015. Order quantity The overall percentage on the line is increased to 58.54%. By the end of 9 this year, the number of members of the company's retail system has reached 214 million, and the number of active members has increased to 45 million.

In the recent period, Suning devoted most of its energy to the eleven joint promotion with ALI. In the afternoon of October 28th, Suning COO Hou Enlong himself confirmed that Suning was going to launch an attack on Jingdong and open the "Ping Jing campaign". The price of goods between the double eleven periods was lower than that of Jingdong, and the price of a large quantity of explosive products was 20% lower than that of Jingdong. He also made it clear that the Jingdong's benchmarking is not only eleven, but in three years, through the cost of logistics and cash flow.

People close to Suning told the interface reporters that in order to match Jingdong, the double eleven Suning and Tmall were basically losing money to play. This also means that Suning's sales costs will further expand, while operating profits may continue to be in a state of loss. It is not easy to achieve annual profits.