Suning is Suning, Ali is Ali, Wanda is Wanda .Not an alliance between us. '' On the afternoon of January 31, Suning Cloud Business Group Co., Ltd. 2018 Second General Meeting began before the review, the chairman Zhang Jindong with nearly 30 minutes, expressing the dissatisfaction with the comments made by the outsiders such as Suning and Ali and Wanda.
Following the reduction in holdings of some of Alibaba Group's shares in 2017, the beginning of the new year, Suning cloud business moves frequently not long ago on January 15, Suning cloud just just announced that the company will be renamed 'Suning Tesco Group Limited Suning Tesco announced on January 30 that the company plans to invest 9.5 billion yuan or equivalent Hong Kong dollars to buy Dalian Wanda Commercial Real Estate Co., Ltd. (hereinafter referred to as "Suning Tesco" Wanda Commercial ') 3.91% of the shares.
On the renamed, Suning cloud business's official position is: the company engaged in retail business, 'Suning Tesco' the name more able to highlight the retail itself. 'Selected to choose to mention a lot of names, and finally I decided to make the final decision Suning Yi Buy 'Zhang Jindong said.
One-hand holdings of Alibaba Group shares, the other hand into shares Wanda, the current concept of the development of new retail in full swing, as a traditional retailer, Suning cloud business is what kind of a chess?
Sell Ali
Zhang Jindong also did one more thing in 2017: Suning Cloud Business gained a net profit of about 3.25 billion yuan by reducing some of its shareholding in Alibaba Group. 'Ali's stock price may still reach 250 or 300 U.S. dollars, but we vote Ali Is a financial investment, financial investment always pay attention to income. 'Zhang Jindong explained why Suning cloud business to reduce Alibaba shares.' We hold a relatively small stake in Alibaba, it has little effect on the basic, but Ali reduction We have a big impact, he is our second largest shareholder.
Alibaba is currently China's largest e-commerce company, Suning cloud business in these past few years to catch up with the goal, that is, I hope from a traditional offline electrical retailers, the transformation into a comprehensive e-commerce, and therefore from the 'Suning Appliance 'into a' Suning cloud business'.
However, Suning Cloud Business has been trying to innovate over the years, still repeating the loss and profitability.
The story of holding Alibaba Group shares started two years ago.
On August 9, 2015, Suning Cloud Business and Taobao (China) Software Co., Ltd. (Taobao Software, a subsidiary of Alibaba Group) signed an equity subscription agreement: Taobao Software subscribed Suning at a price of 15.23 yuan per share 1.86 billion shares of cloud business, an amount of about 28.3 billion yuan, accounting for 19.99% of Suning Cloud shares, Alibaba also because of this subscription Suning become the second largest shareholder.
Alibaba shares news came out, Su Ning cloud business immediately after the resumption of soaring stocks rose four consecutive daily limit stood above 21 yuan per share.
The two sides share subscription is a two-way, not just Alibaba Suning cloud providers, Suning cloud providers also come up with 14 billion yuan subscribe for not more than 2780 shares of Alibaba newly issued shares.
Suning cloud providers and Alibaba subsequently signed a business cooperation framework agreement, including:
Suning to open and build a brand new channel on 'Lynx' open platform - 'Suning Tesco Lynx flagship store', positioning 'genuine guarantee, excellent product selection, speed of logistics, worry-free sales' and committed to the O2O business model innovation With promotion.
The two sides will work closely together, Suning Logistics will serve as 'Suning Tesco Lynx flagship store' logistics service provider, while Alibaba Group in its open platform Suning logistics as a rookie network logistics service providers.
Since then, the practice has proved that Alibaba and the winner of a platform for all-powerful cooperation, only to grow each other and weak themselves, Lynx has become increasingly large, and 'Suning Tesco' settled into a shop on the Lynx platform.
Two years later, Suning cloud providers and Alibaba's share price is very different, Suning cloud business shares fell to below 10 yuan per share, January 24, 2018 Suning cloud business's share price remained at 13.7 yuan per share, Alibaba holding Share loss is about 10%, or 2.8 billion yuan.
On the contrary, Suning cloud holding Alibaba shares, when the subscription price is $ 81 per share, by the end of January 2018, Alibaba shares have been standing on the 200 US dollars.This means that Alibaba's share price has been compared to the time More than doubled.
On the evening of December 11, 2017, Suning Cloud Business announced that it had completed the sale of not more than 5.5 million shares of Alibaba Group, so the company received a total of $ 940 million (about 6.22 billion yuan) Net profit of about 3.25 billion yuan.
Suning cloud sold 5.5 million shares of Alibaba stock Suning cloud business holding Alibaba all stocks in 20% of the media statistics, Suning through the sale of Alibaba shares gained more than its 2013 The total profit to 2016.
Renamed Tesco
'Very simple, renamed Suning Tesco is to return to the retail itself .A business is like a person, will not easily change the name.' Shareholders, Zhang Jindong renamed Suning Tesco to make a direct explanation.
Tracing back history, Suning's earliest name change actually occurred in 2013, and the shareholders' meeting unanimously agreed: Suning Appliance Co., Ltd. became a company of Suning Cloud Business Group Co., Ltd.
March 22, 2013, the listed company said: After many years of business accumulation and transformation exploration, Suning's cloud service model to further deepen the online and offline multi-channel integration, full-class operation, open platform service business form, the future of Suning Development will be transformed into a new 'cloud business' model for 'store + e-commerce + retail service providers.' As the business model changes, the company name also needs to be compatible with the business scope and business model of the company in the future, Company name and short form of stock change.
After five years, looking back, the Suning cloud business name may seem too ideal now.
Well, still renamed it.
January 15, 2018, Suning cloud business renamed the announcement said: In order to unify the company name and channel brand name, highlight the smart retail main business, to further enhance the retail channel brand awareness and reputation, the company plans to 'Suning Tesco' The brand name of Suning's smart retail channel has been upgraded to the name of the company and the company's Chinese name, English name and stock name will be changed.
Suning cloud providers also carried out a deeper description of the company's second name change:
Suning started the development of 'Technology Suning and Smart Retailing' at the beginning of the third decade of development. In 2013, it promoted the integration of online and offline, so Suning changed its name to 'Suning Business.'
In 2017, Suning highlighted the effectiveness of its transformation. While developing its online business, it integrated Internet technologies and resources into offline channels, upgraded all offline formats, and implemented online and offline O2O convergence operations, thus forming Suning's smart retail model and gradually Multi-channel online and offline, multi-format unified Internet retail scene 'Suning Tesco'.
'Suning is not just renamed renamed, Suning Tesco back more focused on the retail format up, in recent years our offline stores have been completed through Suning Tesco, online and offline formed its own expertise, back to the user Service original intention. 'Zhang Jindong said.' At the same time, our name change is to go through the consent of Ali, the second largest shareholder, are voting, unlike some companies in order to create the concept of fashion to catch up with the trend and renamed, 'added Zhang Jindong.
Su Ning business secretary of the Office of the Secretary for Economic Observer on the Economic Observer reported that if there is no selling Alibaba stock, Suning 2017 performance report will not be so good.At the same time, the Office of the secretary also said after Suning cloud business changed its name to those who "cloud" to Named formats such as cloud stores, the cloud is still retained, will not be affected by the company changed its name.
Wanda shares
January 30, 2018, Suning cloud business announced that the company plans to invest 9.5 billion yuan, or equivalent Hong Kong dollars, Wanda 3.91% of the purchase of shares of business' news came out, some people say that we alliance with Wanda. In fact, 2015 The department store under the line of Wanda is what we took over. 'Zhang Jindong said.' We feel that line does not work, but we are still sticking to offline scenarios.Wanda business has a very good offline resources, we think this resource is Scarce. 'Zhang Jindong said.
In the official announcement, Suning Cloud Business also said Wanda Commercial has a well-established commercial plaza property resources as well as a wealth of brand business resources, with greater offline import value.
Suning's financial data shows that Suning Cloud Business is still a traditional retail business - from 2014 to 2017 third quarter earnings, net of non-operating profit and loss, the Suning cloud business's net profit is negative.
In the first quarter of 2015 and the first quarter of 2016 financial report, Suning cloud business showed a loss.
2016 annual report shows Suning cloud business despite net profit of 700 million yuan, but after deducting non-recurring gains and losses, the company's net profit was negative, about a loss of 1.1 billion.
The company has been losing money and making profits repeatedly, but it also reflects to a certain extent its struggles in the process of turning old appliance retailers into new era e-commerce.
In foreign investment, Suning invested 250 million U.S. dollars in video media companies in 2013 - PPTV became its largest shareholder. Unfortunately, five years later, IFC, Youku and Tencent have become video media giants such as PPTV As early as in the fierce market competition in a huge pressure.
At the end of 2017 Suning sells Alibaba shares, the media laughed at Zhang Jindong, chairman of the stock level than N times stronger than Jack Ma, so the ridicule still reflects the plight of Suning business: What is Suning? Is the electricity supplier or the traditional retailer? Suning transformation why has been difficult?
Tencent also increased its investment in Jingdong while adding 28.3 billion yuan to Alibaba in 2013. In Jingdong's architecture in 2013, the structure of Suning is actually very much like that of Suning: both have their own logistics, Are engaged in the online retail industry.
Five years later, Jingdong has grown into a retail giant with a market capitalization of 500 billion yuan, leaving Suning at a market capitalization of 100 billion yuan far behind. However, Suning has to rely on selling Alibaba shares to achieve substantial growth in performance.
Talking about the stock price, Zhang Jindong said: "Now we (Suning) share price is seriously underestimated, if the Jingdong is in the domestic capital market, this can only be the case .We are to do a hundred years of business, your investors basic On the make a vote left.
'In 2018, we have a lot of data, better than the Jingdong. Ali holdings of large sums of money, just take to do with the Jingdong.' Zhang Jindong turned to Vice President Ren Jun said the shareholders meeting came a laughter.
As for the future will be how, at present can not accurately predict.
Zhang Jindong said that Nanjing has not spent such a big snow for a long time, which is a good sign for Suning.