"big Money Bull" Gome And Suning On Collision

Su Ning current means of financing or take additional stock.

Quarterly according to Su Ning in the first quarter showed a quarter of 2007 revenues 8.949 billion yuan, up 69.75 percent, of which the main business income rose 71.05% and net profit of 126,285,700 yuan, up 201.69 percent. Excellent results that the company still is growing fast.

Suning statement analysis, the main business revenue due to the rapid growth in the second half of 2006 Fast shop, 1 March 2007, Suning into six new cities above the prefectural level, to open 29 new stores, Replacement five chains, to further promote the steady and rapid chain network layout.

In a bull market, and have good performance, so Suning additional shares to be issued no more than 7300 million A shares to raise more than 2.4 billion yuan of funds used to accelerate the development of chain stores, financing prospects.

Issuance of equities relative Suning, Gome more diversified financing channels. Since last year, after the introduction of Huaping Ji Kim take the line, the beginning of this year, the country the United States began in the frequency and variety of investment fund transactions.

3 5, States United States and Singapore Pacific Star Group to set up 800 million U.S. dollars in real estate funds. On March 20 countries the United States once again declared, Huang Guangyu of Eagle Investment Group, a subsidiary of another U.S. investment bank Bear Stearns (BearStearnsCos.), invested 250 million U.S. dollars each to establish 500 million U.S. dollars joint investment fund to invest in promising Chinese retail enterprise.

Have two joint-venture fund set up generous, to Wong Kwong Yu as if transfiguration capital operation "biggest names", two funds have let him in the real estate and retail areas of new investment over five billion yuan.

Suning financing purposes: shop and buy a house

Suning non-public offering plans to invest the funds raised through the following four projects: one 250 chain development projects, leasing store Suning plans to use the way in north, northeast, northwest, central, east and south China Development 250 stores . After completion of the project is estimated to increase annual sales revenue Suning over 19700000000 yuan; second logistics center in Shenyang project; Third, the acquisition of Wuhan South flagship project; Fourth, Pudong, Shanghai flagship store purchased items.

In the purchase of real estate, the Su Ning are active, according to Suning notice on the purchase of assets only in the April 20, Pudong, Shanghai Far East to buy the commercial purchase of 1 to 3 layers total reached 533 million yuan, not including tax ; the construction of Wuhan in Real Estate Development Company purchased BC ICBC Square, 5th Floor, Building 1, the purchase price has reached 204 million yuan. Only piece in the acquisition of property, Suning expenditures reached more than 700 million yuan.

Lu Renbo that the unprecedented strong financial strength of both sides, if the purchase of medium and large, there is no question of money. Purchase of property, property development, can reduce the rental costs and property can be held by the banks to refinance their mortgages.

For large-scale purchases of property, Suning side chains face of the business operations that have significant impact, can give full play, "Su Ning," brand, chain store management to maintain stability, reduce rental costs, and enhance their competitiveness. The way through the development of self and the acquisition of this model chain store Suning's expansion in the future will also be used.

It is understood that account shall Suning Appliance suppliers and non-core business revenue totaling over 3.6 billion. Moreover, Suning more abundant inflows of funds, assets and liabilities at the industry average rate of about less than 80% of the level of Gome, there is still room for loans and raise funds.

States at this time no need to purchase large and medium U.S.

Merger Wing-lok, the National US-Shanghai market share above 40%, according to the country in 2005 proposed four-year U.S. expansion plans, expected by the end of 2008, the National Group of the United States together with the master volume up to 800 stores, combined market share from 2004 to 5% to 10% to 15% after the merger of Yongle, the goal has been completed ahead of schedule.