Gome cut to subscribe to Huizhou merchant Bank

before press release

Yesterday, the Gome electric announcement announced that the number of shares in Huizhou Merchants Bank was lowered from 6.32.5 billion to 4.7.1 billion shares. The industry believes that the reduction in the number of shares to be linked to Gome's own capital supply capacity and co-ordination arrangements.

As of the press, Gome Chief Financial Officer (CFO) Fang Telephone has been disconnected, Gome has no response to the number of lower subscription shares.

Reduced subscription price of HK $600 million

November 12, Gome issued a notice that will be the issue of HK $3.80 per share subscription 632.5 million shares of the new H-shares, the total price of about 2.4035 billion Hong Kong dollars (about 2 billion yuan). Only two weeks later, Gome announced that, in order to successfully advance the subscription issue, with the Hui Commercial Bank yesterday (November 26) signed a supplementary agreement, the number of shares in the subscription from 6 3.3 billion shares of the new H shares adjusted to 4 7.1 billion shares of the new H shares. After the downgrade, the subscription shares accounted for about 4.26% of the current issued share capital of the Hui Commercial Bank and about 4 9% of the issued share capital by the Hui Commercial Bank through the adjusted subscription share issue. Previously, the two figures were 5.72% and 5.41% respectively. In addition, the total cost of the subscription was reduced from HK $400 million to HK $1.79 billion, as a result of a supplementary agreement and an adjustment to the subscription issue.

At present, Gome is pushing forward the whole channel strategic transformation, financial services platform construction is an important part of this, the shares of Huizhou Merchants Bank is considered by the industry is gome to step into the financial services a substantial step. Gome C F O Fang previously interviewed said, as the above four "wheels" backstage support, gome in the procurement, logistics, information platform to improve, the most need is to upgrade the financial services platform. Will the subscription downgrade affect the pace of Gome's strategic transformation? Until the press, the Fang phone has been disconnected, Gome has not responded to the adjustment of the number of shares to be lowered.

Gome is behind rivals in size

Home Appliance Industry Observer Liu Buzhong, interviewed by South reporters, said from the point of view of the subscription ratio, the adjustment of 4% and 5% is not much different in nature, the reduction in the number of shares in the company's own capital supply capacity and co-ordination arrangements, too much money in the bank may affect gome other Main business. Liu Buzhong Example pointed out that the current Gome online development and the gap between suning more and more, it is necessary to invest more money to cultivate the electricity market, otherwise it will miss the opportunity to develop the electric business.

2012, due to offline sales revenue decline and e-commerce investment, Gome for the first time in 10 years, loss scale of 5 9.7 billion yuan, of which e-commerce loss of 500 million yuan. Since then, Gome has reduced its input to the line. It was not until 2013 that Gome finally turned a profit, but its size lagged far behind its rivals. Public data show that 2013 Gome's income is only 5 billion yuan, just the same time suning easy to buy 218.900 million yuan sales revenue of 1/4 less than, is from Jingdong mall 39.6 billion yuan revenue scale is far apart.