Jindong Stock Pledge Road

Graphics/Zhang Zhangchun

Securities Times reporter Thalictrum

Jingdong Mall slightly show the price war Manifesto, accurate hit Suning appliance (002024, stock bar) urgently need to fill the purse, make its share price plunge, more make jindong may face additional pledge stock risk. Yesterday afternoon, Suning Electric appliance Group announced that will be 1 billion yuan overweight, in front of the cliff will suning appliance stock prices, temporary solution jindong dilemma.

Yesterday, Suning appliance stock price fell 5 points, after the increase in the announcement, the final trading price closed. Industry personage analysis, Suning Electric Appliance Group announces overweight, or because Jindong pledge stock again close to the early warning price line, this will make jindong temporarily avoid the risk of additional pledge stock. But with the depth of the evolution of the price war with Jingdong Mall, Suning three quarter of the financial reporting pressure, is the real test Jindong and its holding the key moment of suning appliances.

Jindong Stock Pledge Road

Suning Appliance recently pressure, on the one hand Jingdong Mall and its board chairman Liu with price war step by step press; On the one hand, suning appliance stock continued to decline, Jindong participation in the increase in market value has shrunk by 1.6 billion yuan. More urgently, Jindong pledged stocks may also face a risk of being closed.

Just completed a directional additional 4.7 billion yuan, Suning appliances also announced the issue of 8 billion yuan corporate debt, Suning electric appliances this year very poor money. From the public information speculation, large shareholder Zhang in the Near East Li Suning appliances, chose to fund the stock pledge. June 12, Jindong will be its 630 million shares of Suning appliances pledged to AVIC Trust, Beijing International Trust and China Resources Trust, thus Jindong has been pledged 980 million shares.

July 7, Suning appliance announced directional additional, Jindong to wholly-owned subsidiary run East Investment participation, to 12.15 yuan/share Buy 288 million shares, from the 3.5 billion yuan cash. August 8, Jindong's stake was again pledged, its holding of 260 million shares, 130 million shares and 52 million shares of Suning appliances are pledged to Beijing International Trust, China Resources Trust and AVIC Trust respectively. Suning Appliance announced that the handling of the pledge business, is due to stock price changes, in accordance with the Trust Company financing Agreement, additional pledged shares.

At the same time, Jindong wholly-owned subsidiary of Run-East investment will be its restricted shares 290 million shares pledged to Agricultural Bank of China (601288, shares) Nanjing Xuanwu Branch, run East investment for pledge stock business, is by its subscription directed additional shares and applied for acquisition loan financing, according to the provisions of its shares pledged.

Two sides of a coin

Equity financing is as two sides of a coin, it allows Jindong to get financing, it may also let it into a passive situation.

According to the public data statistics, directional additional, Jindong directly hold Suning appliance 1.95 billion shares, through run East Investment holds suning electric appliance 290 million shares, at the same time, through Suning Electric group indirect holding 260 million shares of Suning appliances.

As of August 8, Jindong pledged a stake of 68.5% of its total equity holdings of 2.5 billion shares. Jindong was asked for additional shares on August 8.

Securities Times reporter interviewed a number of capital market personage, they said, the stock pledge financing is the stock pledge to the Trust Company and other financial institutions to finance the financing of a way. The pledge price is generally the day close of 60 percent or so, at the same time, the financing agreement, generally has the stock price the early warning line peace Storehouse line, the early warning line is at least the pledge price 110%, but to the stock quantity more pledge, the early warning line is usually higher. When the stock price to the early warning line, the financing party is forced to append the stock, otherwise, there is the risk of being closed.

June 12, Jindong stock Pledge, suning appliance stock price is 8.79 yuan, to pledge price 60 percent calculate, 630 million shares Suning appliance or bring 3.3 billion of cash for Jindong, and suppose the pledge price is 5.27 yuan, it means that Suning appliance's share price cannot fall sharply. August 8 Suning Appliance price fell to 6.44 yuan, Jindong was asked to add shares, and 6.44 yuan is 5.27 yuan 1.2 times times. Although this pledge price as well as the early warning line and so on are the industry speculation, but conforms to the stock pledge general rule.

Liu High-profile announcement of the timing of the war, selected in the August 14 Suning appliance will issue 8 billion company debt, Suning appliances on the day of the stock price plunge. On the same day Liu is compared to the United States retailer, directly to Suning price is worthless. And yesterday, Suning appliance stock price bottom to 5.57 yuan. At noon, Suning Appliance Group directly announced that will be more than 1 billion yuan Suning appliances.

This is a small and broad approach. If not, Jindong may again be asked to add shares. "A person in the capital market said.

Left or right?

Although Suning appliances yesterday to limit the price, however, the test of suning appliance may have just begun. Yesterday, Suning appliance announced that, August 17, Suning will be in the nationwide range of 1700 stores to start the "National Hui War", suning electrical related officials said, will ensure that the activity and scale for the year's largest, to bring real benefits to consumers. But Suning's forced involvement in the price war has worried many capital watchers.

At present, Suning is still in the stage of burning money, difficult to have a profit, and the price after the war, Suning entity stores will also face the test of business diversion. That will put pressure on Suning's three quarterly results and its capital chain. "A person in the capital market said.

However, well-known capital market personage Houning is more optimistic to suning appliance. He thinks, Jingdong mall behind the standing of today's capital, Bull Capital, Kleiner, Sequoia, Tiger Fund, DST and other PE funds, and suning appliances behind the bank, brokerage and other financial institutions, the full support of the next price war, winner not known. At the same time, Houning that Jingdong mall next most likely just cop-out, will not really carry out price war.