Suning Jilt 10 Billion 92 Million Yen Strategic Investment In This Japanese Enterprise, Sea Shopping No Longer Need To Go Abroad.

The suning.com group Limited by Share Ltd (hereinafter referred to as suning.com) issued a notice in the afternoon on June 20th that the subsidiary company of Japan LAOX Corporation (hereinafter referred to as "LAOX") has effectively implemented the long-term development of the enterprise, promoted the implementation of a series of strategic business spanformation, strengthened its trade and e-commerce business facing the Chinese market in its international development, and further expanded its business from the comprehensive duty free business to its localization development. fashion Business and other fields. Follow up LAOX will focus on the development of entity shops, the expansion of e-commerce channels, and quality. brand The acquisition of resources and other businesses increased investment and increased demand for funds.

To support business development, LAOX plans to implement orienteering. Additional issue To raise funds, it is sent to GLOBALWORKER, a wholly owned subsidiary of strategic investors Suning Electric Group Co., Ltd. (hereinafter referred to as "Suning Appliance Group"), GRANDAGALAXYLIMITED (hereinafter referred to as "GRANDAGALAXY"), and a wholly owned subsidiary of the Chinese Industrial Corporation (hereinafter referred to as the "Chinese industry") (hereinafter referred to as "GLOBALWORKER") for the directional issuance of shares and the right to make new shares (hereinafter referred to as the "spanaction"). After the completion of the spanaction, the total amount of LAOX raised is 10 billion 92 million yen (according to four house five entry, which is about 642 million yuan).

LAOX started its business in 1930. It was listed on the second main board of Tokyo exchange (code TSE:8202). Its main business was sales of 3C appliances, duty-free products and so on. As of March 31, 2019, LAOX had 38 tax-free stores.

After the completion of the targeted share issue, LAOX intends to re elect the board of directors. Under the premise of maintaining the current number of 7 directors of LAOX, GRANDAMAGIC intends to nominate not more than 2 directors to enter the LAOX board, but it still needs to be considered and approved by the LAOX shareholders' meeting.

After the completion of this spanaction, the company and LAOX independently developed in personnel, assets and finance. LAOX is mainly engaged in duty-free chain business in Japan. LAOX will not affect the main business of the company. The spanaction between the company and LAOX will be spanferred from internal spanactions to related spanactions between the company and related parties. The new related spanactions mainly include commodity procurement, advertising services and so on.

Suning.com said the deal was aimed at the following points:

1, help to reduce the company's capital investment, improve the efficiency of capital use.

In recent years, influenced by cross-border electricity supplier business, tourists visiting Japan have gradually changed from focusing on consumption to focusing on experience, which has an impact on the development of LAOX business. In order to respond positively to the trend of the market, LAOX has focused on the needs of tourists visiting Japan, and has continuously expanded its life style and tourism services. Meanwhile, LAOX is striving to further expand its trade and global business in China, and strive to provide consumers with quality Japanese goods and services. In order to effectively promote the spanformation and development of business, LAOX plans to implement additional fund raising, introduce Suning Appliance Group and LAOX management as strategic investors to meet the financial needs of their business development, and reduce related inputs accordingly, making the company's financial resources more focused on Yu Zhi Hui's core competence and improving the efficiency of company capital utilization.

2, is conducive to reducing the impact on the company's business performance and protecting the interests of shareholders.

In response to changes in the market environment, LAOX actively seeks business spanformation and opens up new space for its future development. While LAOX is in the stage of spanformation and spanformation, the new business such as life style, tourism service and electricity supplier business has not yet been formed. It needs to be nurtured. Its performance in the short run is weak. In 2018, the LAOX operating profit decreased by 535.34% compared with the same period. After the completion of this spanaction, LAOX has changed from a company's controlling subsidiary to a company's shareholding company, which has reduced the impact on the company's business performance brought about by the uncertainty of LAOX spanformation and helps protect the interests of shareholders.

3, help LAOX business development, and further strengthen collaboration with the company's business, and promote the development of the company's international business.

The company has always attached importance to international business expansion. Although the company's shareholding ratio has been reduced after the completion of this spanaction, the company is still an important shareholder of LAOX, relying on the LAOX platform to expand its international influence. With the raising of funds, LAOX will increase its investment in the development of the Chinese market and introduce Japan's high-quality goods and services into China. LAOX will further strengthen close cooperation with the company in overseas purchasing, merchandising, marketing and logistics services, so as to enhance the attractiveness of suning.com platform to quality consumers and promote the development of suning.com.

4, it is beneficial for LAOX to establish flexible decision-making mechanism and quickly seize the market

After the completion of this spanaction, the LAOX shares will be relatively decentralized, more in line with the requirements of the public company, help to raise the flexibility of its financing arrangements and capital operation, and further improve the efficiency of LAOX's internal decision-making, and make timely measures to cope with the changes in the market competition environment, so as to win strategic space for the spanformation of enterprises.

In view of the relevant arrangements for the termination of the "concerted action agreement" between the directional issuance of shares and the tax exemption between GRANDAMAGIC and Japan, the company will lose control of LAOX since the date of the issuance of the targeted shares, so LAOX will no longer be included in the company's consolidated financial statements.

If March 31, 2019 is taken as the delivery date, the company's financial department will initially estimate that the spanaction will affect the company's net profit deficit of about 2019 yuan in the year of 446 million yuan, and the final impact of the financial impact will be based on the actual delivery date.

Public information shows that suning.com can be traced back to 1990 as a full channel chain. The company was formerly known as Jiangsu Suning Electric Appliance Co., Ltd., which changed to Limited by Share Ltd in June 29, 2001 and was in July 21, 2004. Shenzhen Stock Exchange Listing. Up to now, the company has been working in the field of home appliances 3C for 28 years, completing deep integration under online and offline.

Peng Yi, an analyst at Zhongtai securities, believes that suning.com has been building retail appliances for more than twenty years, and has formed a broad economic moat. The share of the whole household appliance retail market is ranked first, and the offline chain has entered the era of Wan shop. Under the scale effect of full channel and multi format operation, offline stores provide sufficient and stable source of income for the company, which will focus on the "two big, two small, multi specialty" layout, and meet the diversified consumption demand in an all-round way.

In the meantime, the value of the online store is coming to a new level when the electricity supplier searches for the dividend. At the same time, Suning has expanded its new traffic entry on the basis of: (1) the retail cloud stores have rapidly pushed the market to sink, and tap the consumption potential of the County and town level; (2) Suning has bought the social traffic bonus and strengthened the industrial linkage of the retail system; (3) Suning shop has gone deep into the last mile to support the community business, so as to absorb the high sticky community community traffic at a lower cost.

Peng Yi analysis shows that suning.com's main business is profitable, and its strategic development logic is clear. After Suning finance and Suning shop, it is expected to significantly improve the cash flow and non net profit of listed companies. It is estimated that the operating income will be 303 billion 836 million yuan, /3736.54 billion yuan, 455 billion 561 million yuan and 17 billion 820 million yuan, 2 billion 532 million yuan and 7 billion 211 million yuan of net profit for 2019-2021 years respectively.

According to the financial report, in the year of 2018, suning.com realized operating income of 244 billion 957 million yuan, an increase of 30.35% over the same period, and a net profit of 13 billion 328 million yuan attributable to the parent company. The net profit after deducting the net profit was -3.59 billion yuan, and the net profit after adjustment was 312 million yuan (including investment and financial income). To achieve EBIT45.78 billion yuan, an increase of 4 billion 300 million yuan over the same period last year.

The sales volume of suning.com products was 336 billion 757 million yuan, an increase of 38.39% over the same period last year. The scale of sales of goods in mainland China increased by 38.04% over the same period last year. Online platform commodity trading scale was 208 billion 354 million yuan (including tax), an increase of 64.45% over the same period, of which the sales scale of self operated goods was 149 billion 792 million yuan (including tax), an increase of 53.70% compared with the same period last year. The scale of commodity trading on open platform was 58 billion 562 million yuan (including tax), an increase of 100.31% over the same period last year.

In 2018, suning.com's investment income was 13 billion 990 million yuan, mainly including the sale of Alibaba shares (11 billion 12 million yuan net profit), 100% equity of logistics and real estate fund acquiring company, 5 logistics item company (confirmed investment income of 1 billion 216 million yuan, net profit of 910 million yuan), Huatai Securities adjusted to equity method accounting (net profit of 571 million yuan), investment in Dalian Wanda (net profit 164 million yuan), Shang Tang technology included in fair value measurement and its changes included in current profits and losses of financial assets, and financial income (net profit of 671 million yuan).

By the end of 2018, the total number of stores in suning.com had reached 11064, including 8881 self owned stores, 2071 retail cloud stores, and 112 daily convenience stores, including 3C, mother and baby, supermarkets and convenience stores.

In terms of performance, the sales of comparable household sales of home appliance 3C professional stores increased by 2.39% over the same period last year, 4.72% higher than that of storefronts, compared with 9.35% year-on-year, and 12.74% higher than that of storefront sales. The sales of suning.com outlets increased by 9.35% compared to that of stores, which increased 9.11% over the same period.

Suning.com has formed "one big, two small, multi specialty" multi format layout, "one big" refers to suning.com square, "two small" refers to Suning shop and suning.com direct shop; "multi specialty" refers to the shops that focus on vertical categories, such as household appliances 3C, mother and baby, supermarket, home life, etc. At present, the three to five line of the city's home appliance retail store cloud store and the location of the city community store Suning shop has become the main exhibition shop format.

Home appliances 3C special store: by the end of 2018, there were altogether 2105 companies specializing in home appliances and 3C home life. Among them, suning.com cloud store 424, suning.com regular store 1658 (flagship store 86, community shop 1177, Center store 395), suning.com Town store 23. In the second half of 2018, the company went to Auchan and big RFA, and opened 478 stores.

Easy to buy Shop: by the end of 2018, there were altogether 2368 suning.com outlets. In 2018, suning.com opened 718 stores, replaced 565 stores, and opened 2032 new retail stores in suning.com. As of December 31st, the company has 2368 suning.com outlets.

Retail cloud store: by the end of 2018, suning.com retail cloud stores reached 2071.

Suning shop: sunning small store opened 3972 new stores in 2018, and the total number of stores reached 4177.

Su Xian Sheng Supermarket: new supermarket opened in 2018, Suzhou Sheng Sheng supermarket 3. Close 4. As of December 31st, there were 8 supermarkets in Su Sheng Sheng.

By the end of 2018, suning.com owned its own property area of 209 thousand and 100 square meters. Through the innovative assets operation mode and the cooperation with the large real estate developers, the property area of 852 thousand and 700 square meters and the social lease area of 5 million 600 thousand and 300 square meters were obtained.