Category: Money tips Release Date: 2006-03-13
If the "Beijing Gome" really are "the United States Department of State," electrical retail business in the high-quality assets, "the United States Department of State," electrical status of the overall profitability of the retail business in 2003 years ago is not optimistic, 2001 to 2003 retail outlets of electrical expansion funds should not come from the accumulation of profits.
"Eagle Property," a very high net return on assets in the asset-liability ratio for failing to maintain a high level, if not using external funding, it means that its sales revenue profit margins are 2.61 times the same industry, while the development of real estate cycle, the cycle industry average is only 35.7%, which is incredible.
"Eagle" investment in a very low turnover and profits, but never "Beijing Gome" borrowed sum of transactions in respect of 2.3 billion yuan of funds, these investments may lend to the its other subsidiaries.
We can make a bold speculation: "the U.S. Department of State," the overall electrical retail business may be profitable in 2003, before the situation is not very optimistic, but to achieve a certain scale of operation, with tremendous cash flow, part of which funds are administered through the Department of investment company within the past come in the form of paragraph transferred to the department within a company engaged in real estate free use; the real estate industry benefits from further high-return flow back into electrical retail trade, provided the continuous expansion of its financial support. However, beyond the year 2004, this pattern was broken, because at this time Huang Guangyu has high cash from the capital market can be directly through the replenishment of the right real estate company to provide financial support, the electrical retail business in the unloading of the exchanges after the listing of section the burden of financing through the capital market to achieve high-speed expansion.
In the backdoor listing process, Huang Guangyu by real estate and electrical retail business a phased into the listed company and take advantage of the payment of the acquisition characteristics of convertible bonds has become the big winner in capital operation. From April 2000 onwards, listed companies, the cumulative excess return is almost always negative, and a declining trend.
Huang Guangyu and his "the United States Department of State" (In this paper, Wong Kwong Yu family's real property referred to) in the last five years, the rapid rise of its electrical retail and real estate continues to intensify efforts to expand, "Gome" has become a household name brand, Wong Kwong Yu is also ranked in 2005, "New Fortune" 500 rich list, took second place.
Electrical retail, real estate, capital operation has been considered to be "the United States Department of State," the three major industrial chain. Huang Guangyu in an interview when he said: "If my real estate business Zhizuo electrical inconsistent or inconsistent or capital operation, I can not possibly achieve a long-term, large-scale development. Rely on one-way, is not acceptable. "
Then, "the U.S. Department of State," the three major industries is how to build up the chain? The association between? Them in the whole "the U.S. Department of State," What is the role of each?
Electrical retail business may be a loss of Beijing is "the United States Department of State" development base. In 1987, Huang Guangyu and his brother Huang Junqin appliances in Beijing opened its first store was established in Beijing Gome Electrical Appliances Co., Ltd. ( "Beijing Gome"). In 1993, "Beijing Gome" began to develop its store network, followed by stores operated by the adoption of the "Gome" brand. In 1999, "the U.S. Department of State," began to expand outside of Beijing to set up the first store is located in Tianjin, followed by, respectively, Chengdu, Chongqing, Xi'an and other Chinese set up stores in other major cities. By 2004, "the U.S. Department of State" backdoor listing before the electrical retail business, has been set up around the "Chengdu GOME", "Chongqing GOME", "Fuzhou GOME", "Hong Kong Country America" and dozens of electrical appliances retailer.
From "the United States Department of State," Electrical spin-off listing of retail business process and the "Beijing Gome" in April 2001 consolidated statements, we can determine, "Beijing Gome" belongs to "the United States Department of State," electrical retail business in the high-quality assets. In June 2004 by Wong Kwong Yu, the Hong Kong-listed holding company "China Eagle" (0493.HK) acquired from the Wong Kwong Yu, "the U.S. Department of State," part of the electrical retail business -131 directly-owned stores in the 94, and renamed "Gome" ( "backdoor listing structure," see attachment 1). To tie in with this acquisition, the whole "the U.S. Department of State," the retail business into a separate listing of target groups and non-listed parent group in two parts. Listed target groups, including Beijing, Chengdu, Chongqing, Tianjin and other places of the stores, stores in Shanghai and other places are still operated non-listed parent group. "China Eagle," that its acquisition of listed target groups because: "A: target groups have a long business records, to lay a stable foundation for future development; and (B) comparison between the two, the mother's level of development of the Group's business and is not on the target group, which will face higher business risks. "From this, Beijing, Chengdu, Chongqing, Tianjin area stores are" the United States Department of State, "electrical retail business in the high-quality assets, while the Shanghai area stores the relatively weak profitability. Provided by the Beijing Bureau of Commerce and Industry, "Beijing Gome" in April 2001 consolidated income statement once again shows the problem. The consolidated statements include Beijing, Tianjin, Chengdu, Chongqing and Shanghai five regions, in addition to the Shanghai area of sales revenue net profit margin of 0.82% on the low side, the Beijing, Chengdu, Chongqing, Tianjin, sales have higher net profit margin, followed by 3.75%, 2.81%, 2.37%, 2.31%; five regions, the Beijing area sales rate of 3.75% is the highest net profit, its revenue and net profit percentage of 41.49% is also the largest proportion of 59.24% (Figure 1). While the relatively poor profitability in Shanghai, but because of its "Beijing Gome" in the share of the low percentage of sales revenue and net profit is not enough to affect the overall performance. "Beijing Gome" in April 2001 consolidated profit and loss account shows that month the company maintained a good level of profitability, all regions achieved a total sales income of 412 million, net profit of 10.8297 million yuan, sales income net profit margin of 2.63%. Thus to determine, mainly from Beijing, Chengdu, Chongqing, Tianjin, asset composition, "Beijing Gome" belongs to "the United States Department of State," electrical retail business, quality assets.
If, according to "Beijing Gome" in April 2001 a simple projection of monthly profit and loss, sales revenue and net profit will be the month multiplied by 12 months, the estimated annual sales revenue and net profit reached 4.944 billion yuan respectively, and 130 million yuan. However, a significant surprising is that the "Beijing Gome" in 2001 and 2002, consecutive losses. According to business information, in 2001, "Beijing Gome" 1.68585 billion yuan sales income, profit after tax for the -1415 million, the company explained that losses due to: operating loss. In 2002, the "Beijing Gome" sales revenue 2,081,871,900 yuan, after-tax profit -436.92 million, the company to explain the reasons for losses are: intense competition, narrowing margins, is a normal operating loss. What causes "Beijing Gome" in 2001 operating deficit of -1,415 million? This is really puzzling.
To a backdoor listing the previous year, 2003, "Beijing Gome" in successive years of losses to achieve a substantial profit, the company in 2003 after-tax profit of 44.4318 million yuan. However, the 2003 earnings are difficult to electric retail business operating profit to interpret, because in 2003 and 2002 sales of more or less: in 2003 sales of 2.137 billion yuan sales revenue in 2002 compared with only 2.082 billion yuan higher than the 2.67%, while the company's operating range and there is no adjustment period. Accordance with internationally recognized economies of scale retailers, chain stores reached 11 or so organizations of profits and cost of critical points (see Articles in September 2005 the cover article, "GOME Suning type of financial survival"), "Beijing Gome" in the door Shop at this time have already far exceeded the number of 11, this change in earnings is clearly difficult to explain the characteristics of the industry profit growth.
And "Beijing Gome" in the formation of a continuous loss of a great contrast, the Hong Kong listed company "Gome" announcement made it clear that: 2001 to 2003, listed target groups and were making profits continuously rapid growth trend. In 2001, the listing of target group for 3.873 billion yuan of sales revenue, net profit of 16.535 million yuan; in 2002, listed target group for 6.619 billion yuan of sales revenue, net profit of 69.19 million yuan; in 2003, listed the sale of target group income of 9.346 billion yuan, net profit of 178 million yuan. Target groups listed on the sales revenue growth rate well above the "Beijing Gome" in revenue growth, and in 2001, 2002, 2003, has maintained a continuous growth in net profit, there has not been a loss (Figure 2).
"Beijing Gome" in financial statements in accordance with Chinese accounting standards and accounting system for the preparation of, the listed target groups in accordance with Hong Kong accounting rules provided for the preparation of both revenue and net profit on sales there are certain differences in the measurement, but such differences should not cause the nature of profit and loss completely different results. If the "Beijing Gome" really are "the United States Department of State," electrical retail business in the high-quality assets, and "Beijing Gome" really took place in 2003, prior to a continuous operating losses, then "the United States Department of State," the overall electrical retail business profitability can not be optimistic about the . And from 2001 to 2003 as "the United States Department of State," a unit of electrical period of rapid expansion of retail outlets, distribution outlets in many parts of the "Beijing Gome" in debt ratios and no significant improvement of circumstances, the expansion of the funds required come from it?
