Guangzhou Friendship Renamed "Yuexiu Golden Control" To Boost The Department Store Business With Finance

In July 30, 2016, Guangzhou friendship announced that the name of the company was changed from "Guangzhou friendship group Limited by Share Ltd" to "Guangzhou Yuexiu financial holding group Limited by Share Ltd" (hereinafter referred to as "Yuexiu gold control").

This is an important step in the reform of state-owned enterprises in Guangzhou.

For Guangzhou friendship, which is in the tide of state-owned enterprise reform, the name of Guangzhou is local.

Thinking about the pformation of retail enterprises caused by declining performance.

For more than 30 years in the department store industry, from an ordinary salesperson of Guangzhou friendship to the high position of the chairman, Fang has a clear understanding of the future development direction of the company: insisting on the positioning of high-end department stores and looking for other development opportunities.

"All business opportunities do not belong to you. If you want to know how to choose, you can not drift with the tide."

However, the road of pformation is not smooth, and the Guangzhou friendship director room has been in the first half of the year. When Guangzhou friendship officially changed its name to Yuexiu golden control, the retiring age of him will retire to the second tier.

Then, who will take the helm to merge the Yuexiu gold control of Guangzhou friendship, Yuexiu golden control and Guangzhou securities three excellent companies? What has been focused on the development of the department stores and the lack of financial experience in Guangzhou friendship? How should we deal with this short board?

With many questions, the reporter called Guangzhou friendship. Li Hao, the representative of securities affairs, told reporters that the disclosure date of the company's semi annual report was advanced to August 12th.

According to the interview in an interview last year, 3 months ago, "the speed and scale of financial development are different." (and department stores) are two wheels that operate independently.

The original department store business will continue to pform and upgrade, including new business development on the basis of the original department store format.

Who is the trader?

As one of Guangzhou's key financial holding platforms, Yuexiu's gold control predecessor was established in 2012 in Yuexiu finance. Currently, there are 5 subsidiaries of Guangzhou securities, Yuexiu leasing, Yuexiu production and investment, Guangzhou guarantee and Yuexiu small loan.

The Guangzhou securities of the company's core assets was established in 1988. It was one of the earliest established securities companies in the country. In January 2016, the company completed the capital increase and share expansion, with a registered capital of 5 billion 360 million yuan.

At the end of 2014, Guangzhou friendship announced the first plan for targeted issuance. It raised nearly 10 billion yuan to Guangzhou SASAC, Guangzhou national development, Guangzhou metro, Guangzhou electrical equipment, Guangzhou city investment, Guangzhou trading and Wanli Group, and launched the overall plan to purchase Yuexiu gold control.

Since May 1st this year, Guangzhou friendship has incorporated Yuexiu's gold control into the scope of the consolidated statements, and has completed the delivery of shares.

According to the 2015 annual report, Guangzhou friendship has more than 100 thousand square meters of its own property. It has 5 stores, namely, the Plaza Plaza, the Times Square store and the ring city east store. Its operating area is over 140 thousand square meters. It has 5 subsidiaries and 2 equity companies, and has a VIP account of more than 100 thousand people. It accounts for 60% of the annual consumption.

For more than 30 years in the department store industry, with the lack of financial experience and the possibility of retiring from office at any time, it means that he needs a new and powerful financial man to steer the new company.

Some public opinion turned to Zhang Zhaoxing, chairman of Yuexiu group.

Industry analysts believe that although the chairman of Yuexiu golden control is room forward, the actual trader is Zhang Zhaoxing.

It is reported that Zhang Zhaoxing, who was born in 1963, has a master of Business Administration degree and is qualified as a senior accountant in China. He was a former director of Guangzhou broadcasting and television financial and electronic Limited by Share Ltd, and was appointed chairman and non executive director of Chuangxing Bank Limited in February 14, 2013.

In July 16, 2013, Zhang Zhaoxing succeeded Lu Zhifeng, who retired from his retirement age, as chairman of the Yuexiu group.

Whether the change of chairman will bring about a change in the way of operation of the company, Yuexiu's response is: "real estate is the last thing to do in finance."

This is the overall operation idea of Yuexiu's real estate.

It is not difficult to see that compared with Fang Qian, Zhang Zhaoxing has made good use of financial means to promote enterprise development.

All along, Yuexiu group "finance, infrastructure, real estate" three development strategies of the sector are becoming clearer, and they form good support and synergy between them.

The development mode of "taking the land first and paying the money later" is Zhang Zhaoxing's most proud thing.

In short, the Yuexiu real estate group's state-owned assets fund and Yuexiu real estate trust investment fund directly holding 36.45% stake in the company (hereinafter referred to as the "Yuexiu real estate fund") cooperate to acquire land at low cost for development. When the project is developed and sold, the buyback is selected according to the project situation.

In accelerating development, this greatly reduced the pressure of Yuexiu.

For example, in 2013, Yuexiu real estate purchased 7 plots, the total amount was about 20 billion 124 million yuan, but there were 4 of the land and fund cooperation, Yuexiu actually paid only 5 billion 817 million yuan.

In addition, the Yuexiu group formally completed its acquisition of Hongkong Chong Hing Bank on 2014.

The total purchase price of HK $11 billion 644 million is the largest acquisition in Guangzhou since reform and opening up. It is also the first time that local state-owned enterprises have acquired banks in Hong Kong.

In February 2016, Chong Hing Bank released its annual performance report for 2015. The company recorded a net profit of HK $1 billion 193 million, an increase of 51% compared with net profit after deducting non recurring gains and losses in 2014.

Zhang Zhaoxing, President of Chuangxing bank, said that since the Yuexiu group took two years in charge, its net assets have doubled since the early 2014.

Before Yuexiu's gold control was incorporated into Guangzhou friendship, Zhang Zhaoxing also served as chairman of Yuexiu golden control group.

At the 2016 annual economic work conference of Yuexiu golden control group, Zhang Zhaoxing believed that Yuexiu gold control should develop in an integrated way, actively promote the internationalization layout and explore the Internet pformation.

According to the relevant group of Yuexiu group to the media, promoting the listing of Guangzhou securities and striving for the "full licence" in the financial field will become the goal of Zhang Zhaoxing's appointment.

This time, the Yuexiu gold control company integrated into the listing platform Guangzhou friendship, and Yuexiu securities company's Guangzhou securities also completed the "curve listing".

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The new management is mostly from the financial sector.

Learned from the Yuexiu gold control company, the main task of the company in 2016 is to build a new business development mode of "department store + finance" double main business, in which the Department Store plate should increase the intensity of innovation and pformation, and Yuexiu golden control should actively promote capital operation and merger and reorganization.

At the enterprise level of Yuexiu golden control company, we accelerated the pformation of Guangzhou securities from a traditional channel business model to a comprehensive financial service provider with capital intermediation and capital investment.

Bank of China Securities Wei Tao believes that after the acquisition of Yuexiu gold control, Guangzhou friendship will be pformed into a pure holding company, from the traditional "business + property" business mode to a "financial +" mode.

Highly integrated services and finance, Yuexiu gold control will build a multi-level sustainable development strategy for the company's new business strategy.

Mode and profit mode.

Before the army and horses moved, the grain and grass went ahead.

For Guangzhou friendship, which has always been focused on the development of department stores and lack of financial experience, the formation of professional management teams is the first step to deal with this short board.

Before the official rename of Guangzhou friendship, Wang Fan, Chen Haiquan, an independent director who resigned in June 29th for personal reasons.

Last year, Guangzhou friendship director, vice chairman, general manager Wang Yinxi and chairman of the board of supervisors Wang Zhanfei have already retired to the company because of the statutory retirement age (60 years old).

In the current management, the chairman of the board of supervisors, Jiang Yingyong, is 59 years old and will soon retire to the second tier.

This means that the replacement of new management is imminent.

In July 21, 2016, the week before the formal renaming of Yuexiu golden control, there was a big personnel adjustment within the Guangzhou friendship. Four independent directors and an independent director, including Ou Junming and Wang Shuhui, were officially inaugurated.

It is easy to see from the senior curriculum vitae that they are obviously good at the latter in the development conception of Yuexiu golden control department store + finance.

After sorting out the news, reporters found that the new board members were born in the financial sector and have made some achievements.

Ou Junming, a 47 year old independent director, served as the convenor of the board of supervisors of the Guangzhou securities and Limited by Share Ltd, and the chairman of the Limited by Share Ltd supervisory board of the Guangzhou Yuexiu industrial investment fund. Wang Shuhui, a 47 year old independent director, worked for more than 13 years in Guangzhou Securities Co., and served as secretary and vice president of the board of directors.

Li Feng, a 48 year old independent director, once served as deputy general manager of Yuexiu Development Co. Ltd., in addition to his position in Yuexiu, Li Feng served as chief capital operation officer of Yuexiu enterprises (Group) Co., Ltd. and general manager of Yuexiu Finance Co., Ltd.; Tan Sima, a master of Economics at the age of 53, served as the vice chairman and President of Guangzhou Securities Co., Ltd. while Yang Chunlin, 60 year old independent director, was a master of economics and a doctorate in management. He served as vice president of ICBC Guangdong branch and President of ICBC Fujian branch.

In addition to the completion of the Guangzhou friendship board, the 44 year old Wang Hui and the 48 year old Li Gang served as the deputy general manager of the Guangzhou friendship group Limited by Share Ltd. The 52 year old Jiang Guoyuan is currently the Secretary and deputy general manager of the Guangzhou friendship board of directors in Guangzhou.

Downturn in performance

Transformation has always been the problem of the department store as a traditional format.

Frustrated by the downturn in consumption, the impact of electricity suppliers and the impact of three public restrictions, it was once a department store format for shopping on the "high rise" shopping mall, but now it is faced with embarrassing sales growth and deteriorating profit margins.

According to media reports, in the first half of 2016, in the single department stores, shopping centers, and over 2000 square meters of large supermarket formats, 22 companies closed 41 shops, including 15 shopping malls and shopping centers, 26 large supermarkets, and the business area of closed shop was more than 600 thousand square meters.

Data show that in early 2016, WAL-MART announced 269 stores in the world, while 10 stores were closed in China in 2016.

And the positioning of high-end Guangzhou friendship, in recent years, the operation is also difficult to say optimistic.

Reporters found that in the first half of 2016, the main retail business statistics list, friendship store located in Guangzhou area of 20 thousand square meters of Nanning shop in the list.

It is reported that the shopping mall, which opened for 9 years, was officially closed in April 26, 2016.

This is not the first close to the friendship store, in December 2014, Guangzhou friendship store Foshan store because of a loss of business.

Frustrated, in the past 2012-2015 years, Guangzhou's friendship business income was 4 billion 460 million yuan, 4 billion 90 million yuan, 3 billion 360 million yuan, and 2 billion 800 million yuan respectively, and operating income increased by 0.05%, -8.26%, -17.83% and -16.6% respectively.

Net profit attributable to shareholders of listed companies was 382 million yuan, 309 million yuan, 263 million yuan and 229 million yuan respectively, and the net profit attributable to the company increased by 3.96%, -19.06%, -14.96% and -12.8% respectively.

All of them are decreasing year by year.

Guangzhou friendship 2016 first quarter results show that its operating income reached 694 million yuan, down 8.27% compared to the same period last year.

Net profit attributable to shareholders of listed companies decreased by 5.77% compared to the same period last year.

However, although the Guangzhou friendship data showed a trend of slower growth, the gross profit margin of 2012-2015 years was 22.53%, 22%, 23.93% and 25.08% respectively, and the net interest rates were 8.55%, 7.55%, 7.81% and 8.17% respectively, with 203 million yuan, 184 million yuan, 184 million yuan and 184 million yuan respectively.

While some of the data remain stable, slight growth will still be achieved.

In addition, the Yuexiu gold control and Guangzhou securities revenues are already in the bag, and there is a lot of dividends for Guangzhou friendship, which is weak in growth.

The operating income of Yuexiu gold control company in 2012 and 2013 was 1 billion 130 million yuan and 1 billion 325 million yuan respectively, and the corresponding net profit attributable to the parent company was 104 million yuan and 155 million yuan respectively.

In the first three quarters of 2014, its operating income and net profit were 1 billion 690 million yuan and 579 million yuan. By the end of 2015, Yuexiu's total assets of gold control amounted to 62 billion 100 million yuan, and its net assets reached 14 billion 200 million yuan, with operating income of 3 billion 800 million yuan and net profit of nearly 1 billion 200 million yuan.

As Yuexiu's gold control core assets, Guangzhou securities achieved revenues of 888 million yuan, 1 billion 682 million yuan and 762 million yuan in the first quarter of 2013, 2014 and the first quarter of 2015 respectively. The net profit of the owners belonging to the parent company was 118 million yuan, 530 million yuan and 174 million yuan, and the growth rate of performance was higher than that of Guangzhou friendship.

Benefiting from the March 29, 2016 September 30, 2015 benchmark date, the company pferred all assets and liabilities to the Guangzhou friendship of the wholly-owned subsidiary based on the audited net book value system. The total assets of Guangzhou friendship increased by 294.40% to 13 billion yuan over the same period last year, and the net assets attributable to the shareholders of the listed companies increased by 450.38% to 12 billion 200 million yuan over the same period.

In addition, since May 1, 2016, Guangzhou Yuexiu Financial Holding Group Co., Ltd. has incorporated into the listed company as a whole, that is, its 2016 5-6 months' performance has been incorporated into the consolidated statement of the company. The Guangzhou friendship's 2016 half year business performance has increased significantly over the same period last year, of which the profit reached 206 million -2.55 billion yuan, up 110 million yuan from the previous year and rose by 86.41%-130.28%.