Jingdong Invest 1 Billion 270 Million To Buy Five Star Electronics 46% Shares, Jiayuan Holdings 47%

Jingdong group (hereinafter referred to as Jingdong) today signed a formal agreement to invest in Jiangsu Five Star Electric Appliance Co., Ltd.

Under the conditions of delivery, Jingdong will buy 46% stake in five-star electric appliance from the existing shareholder of Five Star Electronics, Jiayuan Chuang Sheng Holding Group Co., Ltd. (hereinafter referred to as Jiayuan). The consideration will be 1 billion 270 million yuan, and will be paid in cash and in the form of inherited debt.

After the completion of the paction, the two sides will give full play to each other's advantages and work together to create a new online and offline intelligent shopping experience for the future unbounded retail.

In addition, in order to further deepen the strategic partnership between the two sides, Jingdong also provided Jiayuan with a loan of 1 billion 30 million yuan. Jiayuan and Wuxing electric appliances will give Jingdong certain guarantees and shareholders' rights.

Jingdong and five star electric appliances will play their respective advantages and promote seamless integration between online and offline businesses.

Jingdong will open its leading edge in supply chain, logistics, warehousing, finance and technology.

And cooperate with Five Star appliances in many fields such as unbounded retail experience shop, sunken market, supply chain, and create a classic landing case of unbounded retail.

From the enterprise investigation found that Jiayuan Chuang Sheng holding group holding Five Star Electronics 93% stake, Jiaxing letter Jiahui equity investment partnership (hereinafter referred to as the Jiaxing Xin Jiahui) holds five star electrical appliances 7% shares.

According to the agreement signed today, Jingdong purchased 46% of the shares from Jiayuan. After the completion of the paction, Jingdong held 46% shares of Five Star appliances, and Jiayuan held 47% of Five Star appliances, and Jiaxing letter Jia Hui holds 7% of the Five Star Electronics.

Obviously, Jingdong will become one of the largest shareholders of five star electric appliances. In addition, in order to further deepen the strategic partnership between the two sides, Jingdong also provided Jiayuan with a loan of 1 billion 30 million yuan. Jiayuan and Wuxing electric appliances will give Jingdong certain guarantee and shareholder rights.

It can be speculated that if the paction is completed, Jingdong will have a lot of say in Five Star appliances.

As early as December 11, 2017, Jingdong household appliances signed a strategic cooperation agreement with five star electrical appliances. The two sides launched the strategic cooperation of unbounded retail under the purpose of "creating, empowering and opening up".

Five Star electronics brand flagship store immediately began to enter the open platform of Jingdong home appliances, and sold the products of the Five Star electronics store to the whole country through the Jingdong platform, so that the Five Star Appliance officially upgraded from a regional channel to a national channel.

At the same time, the five-star electronics unbounded retail experience shop of Jingdong, which has been working together, has also become a new unbounded retail retailer under online and offline integration.

Since the opening of the first store in Luoyang in June 2018, as of now, the number of stores nationwide has exceeded two digits. Every newly opened Jingdong five-star electric retail experience shop is a hot local appliance store.

In the five-star electronics retail experience shop of Jingdong, Jingdong integrates itself from brand, product, traffic, technology and supply chain.

The seven categories of Jingdong home appliances, 300 models, and computers, digital, mobile phones and other products are displayed and sold, breaking through the restrictions on the volume of goods and passenger flow under the shop.

List of key events of cooperation between Jingdong and five-star electrical appliances:

In December 11, 2017, the Jingdong signed a strategic cooperation agreement with five star electric appliances. The two sides announced that under the tenet of "co creation, empowerment and openness", the unbounded retail strategic cooperation was launched in an all-round way.

On the same day, the Five Star appliance has been integrated into the open platform of Jingdong to open its official flagship store.

In June 16, 2018, the first five-star retail experience shop of Jingdong opened in Luoyang.

During the 618 global Mid Year Shopping Festival in 2018, the sales volume of the Five Star Electronics flagship store in Jingdong entered into Jingdong's TOP5 sales volume, and the passenger flow of five-star electrical appliance line stores reached nearly 30% year-on-year growth, with sales growth exceeding 50%.

In June 26, 2018, Jingdong and five star electric appliances joined hands to enter the Zhejiang market. The three shops in Wensanlu Road, Cixi and Wenzhou in Hangzhou opened one after another in 7-8 months.

In August 2, 2018, Five Star Electronics entered the Fujian market, the first Jingdong in the province, the five-star retail experience shop, opened in Fuzhou in August 17th.

In September 4, 2018, five star electric announced that the first store in Sichuan will be located in Chengdu's Shuangliu aviation Eagle Road, Lok Fu Plaza, which will reach 4000 square meters.

During the 11.11 global good things festival in 2018, the five-star flagship store has been ranked the top three of Jingdong's home appliances open platform, ranking first in the number of goods sold, and -11 sales in November 1st increased by 230% over October.

Up to now, the five-star electronics retail experience shop of Jingdong has broken through two digits nationwide, and every newly opened five-star retail experience shop of Jingdong is a popular local appliance store.

In April 16, 2019, Jingdong Group signed an investment agreement with five star appliance. Jingdong will buy 46% stake in five star appliance. After completing the paction, the two sides will give full play to each other's advantages and work together to create a new online and intelligent shopping experience for the future unbounded retail.