Suning Tesco (002024.SZ) is about to say goodbye to Zhang Jindong era!
Recently, the company disclosed that director Zhang Jindong proposed to the board of directors to resign from the company’s chairman, director and chairman of the board’s strategy committee. Director Sun Weimin also proposed to the board of directors to resign as the company’s vice chairman and director, and director Meng Xiangsheng proposed to resign as a director. At the same time, Sun Weimin and Meng Xiangsheng resigned as members of the Strategy Committee of the Board of Directors, members of the Nomination Committee of the Board of Directors, Audit Committee of the Board of Directors, and members of the Remuneration and Appraisal Committee of the Board of Directors.
Although he resigned as chairman of the board, as the founder of the company, the board of directors unanimously agreed to appoint Zhang Jindong as the honorary chairman of the company. He will continue to give full play to his accumulated experience and capabilities in the development of the retail industry for many years, and provide valuable for the company’s medium and long-term strategic development The opinions and suggestions of the company provide guidance to the company in terms of management reform and promotion of corporate culture inheritance.
[Main business performance is not profitable?]
While Suning’s brand name sound out, but in recent years the company’s main business is not making money. According to data, since 2014, Suning.com’s non-net profit has been negative, and the non-loss deduction has expanded significantly in the past two years. The financial report shows that in 2020, Suning.com has a net loss of 6.807 billion yuan, which is also its listing. The biggest loss since.
According to the annual report at that time, Suning.com achieved operating income of 252.296 billion yuan, a year-on-year decrease of 6.29%. The company’s merchandise sales scale in 2020 was 416.315 billion yuan, a year-on-year increase of 9.92%, of which online platform merchandise sales were 290.335 billion yuan, a year-on-year increase of 21.60%, and online sales accounted for nearly 70%.
In terms of net profit, the company achieved a net profit attributable to shareholders of -4.275 billion yuan, a year-on-year decrease of 143.43%, deducting a non-net profit loss of 6.807 billion yuan, a decrease of 19.19%, basic earnings per share -0.46 yuan, total assets of 212.075 billion yuan, total The debt is 135.243 billion yuan, the asset-liability ratio is 63.77%, the net cash flow is 11.564 billion yuan, and the net increase in cash flow is -6.356 billion yuan.
During the reporting period, the company’s operating income in the first quarter was 57.839 billion yuan, the second quarter operating income was 60.585 billion yuan, the third quarter operating income was 62.438 billion yuan, the fourth quarter operating income was 71.434 billion yuan, and the first quarter net profit was -551 million yuan. The net profit in the second quarter was 384 million yuan, the net profit in the third quarter was 714 million yuan, and the net profit in the fourth quarter was -4.822 billion yuan.
In addition, the company also disclosed its performance forecast for the first half of 2021 in July. It is expected that losses will increase from January to June 2021. The net profit attributable to shareholders will be between -3.2 billion and 2.5 billion yuan, and the net profit will fall by 1820.80% to 1400.63% year-on-year. , The estimated basic earnings per share is -0.35 to -0.27 yuan.
Faced with such a dismal performance, Suning stated that during the reporting period, the company encountered phased challenges and difficulties. Sales revenue in the second quarter is expected to decline by more than 30% year-on-year, resulting in a large year-on-year decline in gross profit. At the same time, expenses are relatively rigid. , Making the second quarter loss larger, as a whole, the net profit attributable to shareholders of listed companies in the first half of the year lost 3.2-25 billion yuan.
The company’s major shareholder intends to transfer the company’s total holdings of 16.96% of the total share capital of the listed company to the second phase of Jiangsu New New Retail Innovation Fund (Limited Partnership). The share transfer will help Suning.com to maintain stable operations and create a good and orderly external environment. Environment to achieve sustainable and healthy development.
At the same time, during the reporting period, the company’s non-recurring profit and loss projects are expected to affect about 1.5 billion yuan, mainly including the acquisition of the company’s logistics assets company by Zhuhai Puyi Logistics Industry Investment Partnership (Limited Partnership) and the second bond repurchase of 18 Suning Bonds. Impact.
As mentioned above, the transfer information. In order to improve its performance, Suning.com also began frequent changes in equity very early, hoping to “self-help” through this method. Prior to this, two companies controlled by the Shenzhen SASAC were preparing to settle in Suning. However, they did not take shape in the end.
But soon, two equity investment funds, named New Retail Development Fund and Jiangsu New New Retail Innovation Fund Phase II (Limited Partnership), took over.
The New Retail Development Fund is jointly funded by Jiangsu Province, Nanjing State-owned Assets, Suning, and Social Capital, with a total scale of 20 billion yuan. According to the announcement, the new retail fund will hold 5.59% of Suning.
The other one did not surface until July 5th. Zhang Jindong and his actions in concert planned to transfer 16.96% of the shares they held to the second phase of Jiangsu New New Retail Innovation Fund (Limited Partnership), with a total transfer price of approximately 8.827 billion. yuan. After the transfer is completed, the company will be in a state of no controlling shareholder and no actual controller. Suning.com believes that the share transfer is in line with the company’s strategic development needs and will have a positive impact on the company’s future development.
According to the announcement, the shareholders of Jiangsu New New Retail Innovation Fund Phase II are not small: Nanjing Xinxin Retail Development Fund (Limited Partnership) (referred to as “Nanjing Xinxing Retail Development Fund”), Huatai Securities (Shanghai) Asset Management Co., Ltd. (referred to as ” Huatai Asset Management”), Hangzhou Alimama Software Services Co., Ltd. (” Alibaba “), Chongqing Haier Home Appliance Sales Co., Ltd. (“Haier”), Midea Group Co., Ltd. (“Mide”), TCL Industrial Holdings Co., Ltd. (referred to as “TCL”), Xiaomi Technology (Wuhan) Co., Ltd. (referred to as “Xiaomi”) and other industrial investors as a consortium funded by limited partners, the general partner and executive partner is Hainan Jilida Investment Limited liability company (referred to as “Jilida Investment”).
Based on the above two announcements, after the change in Suning Easy Shares, among the company’s 5% or more shareholders, Zhang Jindong and his concerted person, Suning Holding Group, hold a total of 20.35%, the New New Retail Fund Phase II holds 16.96%, and New Retail The fund holds 5.59%.
[Who will “helm” the future?]
It is worth noting that while Suning.com announced the resignation of directors Zhang Jindong, Sun Weimin and Meng Xiangsheng this time, the announcement also mentioned that Zhang Jindong nominated his son Zhang Kangyang as a non-independent director candidate for the company’s seventh board of directors. This re-election is bound to affect the future “helm” of Suning Tesco. Whether it can be used by “Xiao Zhang” is still unknown.
According to public information, Zhang Kangyang was born in 1991, graduated from the Wharton School of Business, University of Pennsylvania, and worked as an analyst in the Capital Markets Department of Morgan Stanley. He joined Suning in March 2016 and served as the president of Suning International Business Development Center, Europe Director of the Football Club Association, member of the European Football Association League Athletic Group, currently the chairman of the Italian Inter Milan Football Club, and the director of Japan’s LAOX Co., Ltd.
At the same time, the new shareholder Jiangsu New New Retail Innovation Fund Phase II (Limited Partnership) has all completed the company’s 16.96% share transfer procedures. According to the agreement of the share transfer agreement, the New New Retail Fund Phase II nominated Xian Handi and Cao Qun as Non-independent director of the company; shareholder Taobao (China) Software Co., Ltd. nominated Huang Mingduan as a non-independent director.
Among them, Handy Xian was born in 1974, graduated from Stanford University in June 1997, holds a master’s degree in engineering economic systems and operations research, and obtained computer science/mathematics, economics and industry from Carnegie Mellon University in May 1996 Three bachelor degrees in management. I am also the co-founder and vice chairman of China Mobile Games (00302.HK), responsible for the overall business operation, management and strategic planning of China Mobile Games. He is currently the president of the Hong Kong Internet Professional Association.
Another Cao Qun was born in July 1970. Since 1997, she has served as deputy general manager of the issuance department of Huatai Securities Investment Banking Headquarters. She is in charge of investment banking business operations and business quality control. She is one of the first domestic sponsor representatives. The announcement shows that Cao Qun does not have an associated relationship with shareholders who hold more than 5% of the company’s shares, other directors, supervisors, and senior management personnel, and does not hold shares of the company.
In addition, director Yang Guang proposed to the board of directors to resign, and shareholder Taobao (China) Software Co., Ltd. nominated Huang Mingduan as a non-independent director candidate for the company’s seventh board of directors.
Huang Mingduan is from Taiwan, China. He was born in 1955. He was the general manager of Runtai Global Co., Ltd., responsible for formulating and executing its overall strategy and supervising its business operations. Served as the general manager of RT-Mart Distribution. From April 28, 2011 to January 30, 2018, served as a director of Gaoxin Retail Co., Ltd., and served as CEO of Gaoxin Retail Co., Ltd. from May 17, 2019 to May 10, 2021, October 2020 Appointed as the chairman of the board of directors of Gaoxin Retail Co., Ltd. since the 17th. He is currently a non-executive director of Gaoxin Retail Co., Ltd.
Suning.com stated that after the re-election of board members, the company’s board of directors will be more diverse. The strategic shareholder representative directors will actively utilize their professional experience in strategic management, operation management and investment management to further promote the company’s continuity, stability, and investment. healthy growth.
It is foreseeable that with the entry of new strategic investors, Suning may enter a new stage of development, as Zhang Jindong wrote in an open letter to employees after he resigned as chairman:
Retail is a marathon without an end, and the future is far away. For the past ten years, I have been considering this issue. I think it is inseparable from a continuously leading business model, a more modern governance mechanism, and the continuous emergence of batches of young talents. In fact, Suning has always been Towards this goal.
The road ahead is vast, and everything can be expected.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/at-the-curtain-call-of-the-times-zhang-jindong-resigned-as-chairman-of-suning-com-will-the-young-owner-take-the-helm/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.