Finally resumption of trading transactions, although the company announced that "non-public offering refinancing options to succeed," but the secondary market and the majority of investors do not seem to buy it, Suning Electric shares fell 1.82 yuan, a large Yinxian Gaokaidizou Suning Appliance to the blow.

Financing "appetite," the more the larger Zhang

According to the disclosure of the private placement Suning showed that the non-public offering of 2500 was 7 million fund management company subscription, the price of 48 yuan / share, the amount of up to 1.2 billion refinancing. With the company first announced the additional reserve price 31.17 yuan / share compared to the actual issuance price premium on this basis the equivalent of 54%. At present, Suning Appliance reached 36,037.6 million of total capital, total capital is 9316 million IPO of 3.86 times. Arguably, the company in July 2004 the IPO (initial public offering) shares issued 2,500 new shares to raise funds only 4.0825 billion, while 2500 shares the same issue, the money almost circle to issue new shares when 3 times. In this regard, a helpless old investors shook his head, joked: "With the expansion of the total share capital, Suning Appliance financing 'appetite' and the more the larger the Chang!"

"Lightning additional" emergency actually

Suning Appliance from the issuance of general meeting of shareholders through the issuance of the end of the motion to issue less than a month, from the received approval from China Securities Regulatory Commission to raise funds in place only two days, called "Lightning issuance." However, for the "Lightning additional" background and purpose, some have questioned the industry.

Stock Market Weekly that the high rate of expansion is to Suning drag "growth trap", a large number of the funding gap so that Suning's "type of financial" model unsustainable. In the current China

Home Appliances Market conditions remaining space, quick to seize the market share of channels of commercial expeditions appliance main purpose is to generate increased store of scale, maintain a competitive edge, so that it can capture the most direct means of market share. Therefore, in recent years, major home appliance chain enterprises are expanding rapidly, making crazy number of shops increased, in the years since 2005, reached the peak. Suning Appliance them particularly, the number of shops in 2005, rising to 224, up 166.7 percent year on year growth. However, the expansion of the negative consequences have emerged. In 2005, Suning's single-store revenue decline, then single-store sales only 71.144 million yuan, down 34.4%; per square meter of sales revenue fell 31.36 percent, only 17,000 yuan.

Based on this model, most of the necessary funds Suning expansion through the occupation of supplier payment, slotting allowance, promotion, access fees, opening new stores does not seem to give the company a great deal of financial pressure. However, in home appliances

Retail The rapid development of the overall industry profits being squeezed in the case, Suning the excessive expansion in 2005, not only allowed to carry the financial pressure, but also to the rapid decline in growth "trap" into (long-term net worth is positive, while dependence on external financing, changes in divergent trend), that is, the expansion of its business is rapidly eroding its financial resources.

Suning This is why the Commission will re-financing requirements are imposed on the day of issuance of additional shares issued as soon as the most important reasons for refinancing. Analysis, raising 1.2 billion refinancing most of its 100 stores will be used for investment in development projects, this funding for the ambitious expansion and Suning have some tight budget, no doubt, is the timely help.

"First high" Too Even suffered a big blow Yinxian, Suning Appliance yesterday's closing price was still up to 52.05 yuan, the Shanghai and Shenzhen stock markets, "the first high-priced stocks," the flattery has not sidelined. However, so high above the share price will be still in the development of China's stock market and a middle and small shareholders about how their story?

"50 an! Too high, so that those institutions have to play it, even if you will be up on the 100, anyway I will not buy it!" In Changsha, a Stock Company, one position in the stock market had fought a decade-old shareholders admitted to reporters.

Author SIG

I am China Quality Digital writer, reports some information about blank patch panel , monitor audio radius.

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